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| The independent answer to your debt problems | login join |
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loulouxx
| 08-12-2009 09:26 AM |
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Joined: 08 Dec 2009 Posts: 2 | im sorry this could be a bit of a long one. thing is i ended up getting into a lot of debt about 2 years ago, and now i dont know what to do i know that these company's, including a bank will be looking for me. i have moved a few times in the last two years but i know its only going to be a matter of time before they find me. the problem is i moved in with my partner a year ago, he has no clue about my debt, we now have a baby too. when i moved in with him i got rid of any paper work from cards and loans, any bills i had, their all gone. so even if i went to see a debt advisor i have no paperwork or statments to show for it all. he keeps asking me to get a current account, but i know i cant. as i changed banks when i stopped paying the other one they only give me a cash account, i cant even use my card at cash points other than at branches with who my account is held with. i dont know how to tell him about all this im scared he is going to judge me for the stupid things ive done. and it was stupid i had 3 credit cards a bank load a unsecured loan and a cheque book that i also used to cash at pawn brokers. but getting back to the question. what could i do to begin sorting this out? i have no problem in going backcrupt in fact i think that would be the best option only thing is how do i do it? and how to i solve the problem with no paper work? sorry for the rant. please help |
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johnchase
| 08-12-2009 09:13 PM |
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Joined: 12 Aug 2009 Posts: 2 | Hold on wait a second before you start throwing around the B-word other options need to be investigated. Although you threw away your paper work all the creditors and banks still have you on file, you can't just disappear. All the debts you didn't pay are most likely on your credit report and/or in collections. Have you been getting calls from creditors? there pretty good at finding you even if you try to disappear. The longer you put this off the more substantial the consequences will be. On the bright side you're taking the first step and asking for help. There are alternatives to bankruptcy. It sounds to me like you have a lot of unsecured debt, meaning credit cards and bank loans. Below I will give you description of each alternative so you can see what the options are. The options below are typically the most popular. Debt Settlement Debt settlement companies will negotiate with unsecured creditors (credit cards, retail store cards, medical bills, judgments, personal loans, etc.) on behalf of the client to settle for an amount much less than the balance owed. In return, the debtor will make a settlement payment for the balance owed. Once the debt has been paid in full on the settled amount, the creditor will issue a letter to the credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for less than full amount." Debt consolidation Debt consolidation is the process of taking your existing high interest rate debt, and combining it into one low interest rate monthly payment. A responsible debt professional will explain to you that it is not about taking all of your debt and putting it under another loan; it is only about taking the high interest debt and putting it all under one low monthly payment. If some of your debt already benefits from a low interest rate and good loan terms, then there is no need to change that arrangement. Credit Counseling The Consumer Credit Counseling approach looks to minimize debt by negotiating with creditors to lower payments and interest rates. However, unlike debt settlement, Consumer Credit Counseling companies ask consumers for payment and rarely slash actual debts. For those seeking to repay the entirety of their debt (especially a temporary blip caused by accident, illness or sudden unemployment), Consumer Credit Counseling is an option worth investigating, but be advised there may be negative consequences to your credit scores. So now that you have a little background on each you can begin to research these alternatives. My own personal opinion is that debt settlement might be the best option for you especially since your dealing with mostly unsecured debt. |
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RivaSoul
| 25-01-2010 06:24 PM |
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Joined: 06 Jan 2010 Posts: 6 | LouLou. The best thing you can do is to seek advice, there is no need for Bankruptcy. I was in over 10,000 debt on my credit cards, I joined a debt management plan, and I was still getting letters from my creditors, in all I was actually in around 70000 grand debt, I lost my marrige, and nearly my sanity. |
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Scrat
| 26-01-2010 02:59 PM |
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Joined: 26 Jan 2010 Posts: 6 | I am sorry to hear of the position you are in, however I can categorically state that your debt will not be wiped out in 14 days being an unenforceable claim, this will not in any way shape or form happen. Your best solution is Debt Management or contact the Companies directly and arrange payment plans with them, either way there will be consequences to your credit file, but if you are struggling now it will not matter as you have already ruined it. If a Company advises you that you can so call wipe your debt in 14 days, do not believe it and certainly do not part with any money over the telephone. Unenforceable claims are still in the process with over 300,000 cases with the courts and the process cannot be determined not can the timescale. There is no quick solution out of debt, you have to meet it head on and make your choices. However Debt Management works where the relationships with the creditors is strong and they are working on your behalf. I hope this helps :) |
