Negotiate with your creditors yourself!
Debt is a HUGE worry. There seems like no way out sometimes. The best thing to do is to face it and take control. This is so hard to do but it will give you a great feeling of empowerment and control. It will stop the endless phone calls and letters too. So take a deep breath, get a coffee and make a list abd take action NOW!
First list all your creditors with name, address and account numbers.
If the debts have been sold on to a Debt Collection Agency don’t worry. You will deal with them instead. Sometimes the debt is passed on from one Debt Collection Agency to another. This is normal and means you will have to do this a few times as they don’t seem to pass on information. Debt collection agencies buy the debt for a few pence in the pound from lenders in the hope of reclaiming some of the money.
They may offer you large discount off the balance which you may be able to afford. But don’t worry if you can’t.
Write to each of the lenders (or debt collectors if the debt has been passed on). Use the letter below and fill in your own details. Send the budget sheet too. Once they reply IN WRITING accepting your offer of repayment set up the standing order as agreed and relax!
Lenders can’t take from you what you do not have. Credit agencies want to collect some payment as this is better than nothing. They do nit have the resources to take court action and even if they do so the judge will see you are making every effort to pay in the worst of circumstances.
If you don’t feel able to do this for yourself contact a debt management company for advice. They do take a fee for their work but it may be worth paying it for peace of mind.
Best wishes and good fortune.
Here is the letter to send:-
LENDERS ADDRESS
YOUR ADDRESS
DATE
YOUR ACCOUNT NUMBER OR REFERENCE
Dear xxxxxxxxxxxxxx
There has been a change in my financial circumstances due to xxxxxxxxxxxxxxxxxxxxxxx(say a reason, i.e divorce, relationship breakdown, loss of job,illness etc)
I am having financial difficulty and therefore no longer able to keep up the payments on the above account.
Please find enclosed a budget sheet which shows how much income I have left over each month.
I have xxxxxxxxxxxx creditors. This, divided by xxxxx means I have £….. each month for each creditor.
I would like to set up a standing order for this amount each month, should you agree. Please send me a mandate form so I may do this.
Yours sincerely,
You Name Here
xxxxxxxxxxxxxxxxxxxxxx
Fill in this budget sheet and add anything extra you need to pay out.
Budget Sheet
Rent
Council Tax
Gas
Electricity
TV
Home Insurance
Car Insurance
Car Tax
Pet Insurance
AA Insurance
Mobile Phone
Landline
Water Rates
Petrol
Food
Broadband
Child Support
Life Insurance
Total outgoings xxxxx
Total income xxxxx
This leaves xxxxxxx divided between xxxxx creditors.
