Author Topic: guidance please  (Read 3205 times)

andytheplumber

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Re: guidance please
« Reply #15 on: Apr 07, 2011, 12:21:10 AM »
its simple. you can't protect your credit rating while not making your payments. but you can avoid losing everything. if all wanna do is avoid paying your debts while still being able to borrow more money then can you see why thats not ok? and it won't happen

swiss

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Re: guidance please
« Reply #16 on: Apr 07, 2011, 08:42:32 AM »
i understand what your saying,
    i want to pay the debt and have a capability to do so,
i also want to protect her credit rating,
i think the main concern is the interest being charged which is impacting considerably,
i understand that if a change in interest was agreed that potentially this would also be deemed as not adhering to contract, and creditor would have the ability place a default,
currently there are no arrears,
if i dealt with creditors direct could this help?
 
sorry if i seem to be going over old ground, it is playing on my mind a bit and probably clouding my judgment
 
 thanks
      Swiss   

shocksoc335

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Re: guidance please
« Reply #17 on: Apr 07, 2011, 09:34:13 AM »
Clouding my judgment too - apologies should have read your full thread both James Falla & Debt Support Trust are right I'm afraid. I'm surprised that given you have £600.00 in available income you are unable to get a consolidation loan to reduce the interest and payments being made. This is the only solution to keeping her credit reference file intact by meeting regular payments.

Try contacting Money Advice Service they are government funded and look at financial solutions on 0300 500 5000 they have recently changed their name from CFEB. They may find an alternative route for you both.

Apoliogies again shocksoc335

Supporting 'Practical Debt Advice' by Elizabeth Mc

andytheplumber

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Re: guidance please
« Reply #18 on: Apr 07, 2011, 09:39:36 AM »
If neither of you can afford to make these payments then it is gonna impact on your credit rating. For me it was quite a nightmare for around a year or so in 2007/2008. Most important thing is if you default, don't prioritise based on who sends the nastiest letters. The most polite will be concerning a mortgage or secured debt but they are the ones that need paying first and properly. For the unsecured debts you will get endless threatening letters from debt collecting companies. I can't guarantee what will happen. I can only tell you what I did. I went to CCCS first and they wrote to all these companies. (but not the mortgage). The companies all accepted reduced payments and froze interest. After two months I started making the payments direct because CCCS actually take a few weeks to pass the payments on. Then I focussed on paying the things that were larger. The personal loan and the largest credit card. The other things around £1000 I have just made intermittent payments to and they send intermittent angry letters. But the mortgage is paid up to date. You can't get away with much more than a couple of months arrears on a mortgage. One credit card was owed £3500. They froze the interest and have been accepting £36 per month since 2007. You have to get your head straight over this and keep focussed on it without letting it get to you. Looking back, I handled it all quite well. The personal loan is still being paid at half what the original payments were and no extra interest is being added. They all know they can't get from you what you don't have. Main thing is to make sure you pay Council Tax, mortgage etc first. and don't go to a company that will charge you fees just to default on your debts for you. That will make you poorer, not richer. (CCCS is a charity) But you can't expect to do all this and keep yours or your partners credit rating in tact. I don't mind you contacting me by the way. [** sorry, no personal contact invitations allowed **] direct if you want. My email is on my profile here. But I can't guarantee all this will work. I can only tell you what I did 3 years ago. 

James Falla

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Re: guidance please
« Reply #19 on: Apr 08, 2011, 03:01:48 PM »
Hi Swiss
 
If you need to go down a debt management plan route, Andy's advise is good. It is particularly important to maintain your priority debts su as a mortgage, rent, utility bills, council tax etc. However, given that you can ultimately afford to maintain you partner's debts and can pay £600 a month I do not think debt management is the right way forward.
 
I am not convinced that you will be able to get a consolidation loan as you would need to borrow £22,500 to pay off all the debt. That is going to be very difficult on an unsecured basis in today's lending climate.
 
I also think you are going to struggle to pursuade the current creditors to simply reduce their rates of interest for you. I have never heard of them doing this. However, you may be able to reduce the interest by transfering the balances to credit cards with zero percent transfer deals. I know you can transfer credit card and other debt in this way and therefore all of the monthly payment then goes towards paying off the principle debt.
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