My mum is in a lot of debt, I've been making the payments for the last year but I can't do it any more. She can't work due to a disability she's had for 20 years, so is on benefits. She has obtained all this debt whilst having no income, she didn't lie on the application yet they still gave her these loans. It adds up to a total of around 7 grand. She has approached an IVA but to me it sounds a big dodgy, as the payments would be less, but they'd be over 10 years and they take a 20% cut every month. Any help would be appreciated
Thanks
2006-10-05 23:58:28 · 23 answers · asked by LADY__LUCK 2 in Business & Finance ➔ Credit
You could try the National Debtline (http://www.nationaldebtline.co.uk/) they are independent people who may be able to help
Or try citizen's advice.
My parents are in the same situation, my dad is on disability, and my mum is retired (on state pension) but their bank keeps throwing money at them. It makes me sick.
2006-10-06 00:02:18 · answer #1 · answered by OriginalBubble 6 · 5⤊ 1⤋
The best way is not an IVA or bankruptcy or getting in a debt management company, the best way is to speak to the company/ies involved and ask them to frieze the interest on the account and agree an affordable monthly payment. You can do this by proving, via an income and expenditure form, that you cannot afford the current repayments. Some banks are more willing than others to do this but they are obliged to if you prove you cannot meet the payments. I have just done this myself and it works! Some banks provide their own forms which they will send you if you ask them or go to the National Debtline website and you can download the forms from there and read about exactly how to fill them in. You have to work out your offer of a monthly payment based on a pro rata figure - the website explains all. IVAs are usually for people with more than 15K of debt. See www.nationaldebtline.co.uk - it's worth it.
2006-10-06 03:32:16 · answer #2 · answered by Ruffee 1 · 1⤊ 0⤋
Depends what other resources you have. If you don't own your house or anything then you could declare yourself bankrupt. A bit drastic, but it depends on how desperate you are. I would definitely speak to the companies you have borrowed from, and look at consolidating your loans. Pay off the most expensive ones first. Does your mum have a social worker she could speak to? They might be able to help. Can you sell anything you no longer need to help pay things off? Maybe you could take a lodger? £7,000 I think is a fairly average amount of debt if you believe what the newspapers tell you so there must be some solution. Try not to get in any more debt until you have control of your money again.
2006-10-06 00:13:02 · answer #3 · answered by Anonymous · 1⤊ 0⤋
citizens advice
do NOT do an iva through one of these companies that advertise on TV saying "there is a little piece of unknown legislation that will allow you to write off your debts and leave you debt free after only 5 years".
it will, IF 75% of your creditors agree to it, and you have to make reduced payments, and it has the same restrictions as a bankruptcy on what you can/cannot do and it leaves you with a great big black mark on your credit rating.
2006-10-06 00:10:45 · answer #4 · answered by alatoruk 5 · 2⤊ 0⤋
Please tell your Mum to contact your local Citizens Advice Bureau, as they can put her in touch with an organisation whio will help her sort her debts without taking a cut. I would advise you to steer clear of IVA or any of the companies who are advertising on the TV that say they can help with debt clearance. I wish you and your Mum the very best of luck - she is lucky that you care so much.
2006-10-06 01:05:04 · answer #5 · answered by Anonymous · 2⤊ 0⤋
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
2006-10-06 01:35:32 · answer #6 · answered by men t 2 · 1⤊ 0⤋
Umm, i'm notably useful statue of barriers in basic terms protects you whilst devote a criminal offense (Sorry approximately that) wager what 2 crimes it does no longer influence? Murdering somebody (of direction!) and not paying taxes... you nonetheless could pay you cash owed. in case you're in debt, make a funds, and make a catalogue of each dime you spend. you will locate someplace the place funds is going that it does not could be.
2016-12-26 11:03:06 · answer #7 · answered by ? 3 · 0⤊ 0⤋
Contact a debt management firm on behalf of your parents(you must have their permission), there is a new legislation (involving the government) where upto 75% of debts can be written off and what is left does not accrue further interest.
2006-10-06 00:11:02 · answer #8 · answered by psychoticgenius 6 · 1⤊ 0⤋
Tell her to contact your local council they have a service called money matters they will help sort everything out and give your mum the best solution to getting out of debt
2006-10-06 00:01:25 · answer #9 · answered by *DB* 3 · 1⤊ 0⤋
if you are in the u.k you should contact the cccs and your citizens advice centre. they can arrange for her to make a reduced payment on all the debts,(as long as they are receiving some kind of payment you will be ok), and they can also arrange sometimes for debts to be written off that she cannot afford to pay.
dont get sucked into one of these schemes to debt consolidate the debt cos that will just make it bigger and she ll be paying for the rest of her life.
good luck x
http://www.cccs.co.uk/about/howworks.htm
http://www.citizensadvice.org.uk/
2006-10-06 00:06:46 · answer #10 · answered by Anonymous · 1⤊ 0⤋
Citezens advice bureau can help. Talk to them a.s.a.p. before stopping any payments. They will advise you what to do, but be totally honest and tell them of all your debts. No holding back. Good luck.
2006-10-06 00:12:16 · answer #11 · answered by bootycreord 3 · 1⤊ 0⤋