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| The independent answer to your debt problems | login join |
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JML
| 03-05-2007 08:44 AM |
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Joined: 03 May 2007 Posts: 2 | I'm in a fair amount of debt which is due to credit card debt, student loans aswell as a post graduate loan and although i'm working I seem to be living in my overdraft continually and also living in fear that i'll never be able to pay them off. In total my debts are £33,000. I have approached a debt management consultancy who i saw advertised on the internet and they seemed to offer me an affordable way of reducing my debt. However, after looking at another website i am now scared that this isn't the right way to go about things. I want to be debt free and never think about having credit/loans ever again but I want to do it whereby i'll have some money at the end of the month as i find myself constantly depressed at the lack of not having any and working very hard at my job yet not seeing any rewards for this. Can anyone offer any suggestions about what i should do? I want to avoid bankruptcy, IVA's and insolvency as i am training within a profession and would not want it to look bad on my record. |
| DW George | 03-05-2007 09:57 AM |
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Joined: 01 May 2007 Posts: 494 My Profile | You've taken an important step here, although you may not have recognised this. Many people, who have worries about debt just ignore it until it's too late. So well done for posting. Debt management companies will draw up a statement of affairs (SOA). This basically means finding out what your reasonable expenses are and what exactly your income is. Your disposable income is what's left. This will be offered up to your creditors and they will decide whether or not to accept theses contributions towards your debt. They don't have to! There are two types of debt of management companies, some that charge for their service and the free ones. Mmm which one should you go for!! The free companies have had resource problems but are certainly worth trying. If you go for the fee charging ones make sure you know how much the set-up fees and management fees are before signing up. Also find out what happens to the interest on your debts. Push the company to freeze or even fix the amount of interest your paying. If this doesn't, you may find that your agreed repayment period will end with another lump sum to pay!! If you sign up a on a debt management programme you must re-visit your spending. Debt free happiness can be achieved through careful organisation of your finances. Read some of my articles for tips on DFH. Good luck |
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JML
| 03-05-2007 10:05 AM |
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Joined: 03 May 2007 Posts: 2 | Thanks for your help |
