Hi Folks
I have a lot of unsecured debt that I cannot continue to repay at the initial agreed rates. There are 4 different creditors and each loan is roughly two years into the term (varies between 5 and 7 year loan terms). I have been keeping my head above water for the last year or so but now its got to the stage where i cant affors car tax / repairs and have no rainy day fund for issues such as boiler breakdown at home (which occured last month).
I am not looking to have loans written off etc, just wanting some leeway until I find more income(looking for 2nd job with no success).
I am in the process of writing to each laon company and was thinking of stating that I pay out 900 per month in unsecured loans broken down as :
Creditor 1 36%
Creditor 2 31%
Creditor 3 21%
Creditor 4 11%
I can afford total repayments of 600 per month and would distribute the repayments the same. This is the fairest way I can see of dealing with this and I will review my ability to repay on a constant basis and will advise if anything changes.
Just basically need your valued opinion on this approach and if anyone has any experience of negotiating reduced repayments.
Actually, if all interest was frozen, I would be able to make full capaital repay ments so would it be worth outlining this as another option?
Thanks
I have a lot of unsecured debt that I cannot continue to repay at the initial agreed rates. There are 4 different creditors and each loan is roughly two years into the term (varies between 5 and 7 year loan terms). I have been keeping my head above water for the last year or so but now its got to the stage where i cant affors car tax / repairs and have no rainy day fund for issues such as boiler breakdown at home (which occured last month).
I am not looking to have loans written off etc, just wanting some leeway until I find more income(looking for 2nd job with no success).
I am in the process of writing to each laon company and was thinking of stating that I pay out 900 per month in unsecured loans broken down as :
Creditor 1 36%
Creditor 2 31%
Creditor 3 21%
Creditor 4 11%
I can afford total repayments of 600 per month and would distribute the repayments the same. This is the fairest way I can see of dealing with this and I will review my ability to repay on a constant basis and will advise if anything changes.
Just basically need your valued opinion on this approach and if anyone has any experience of negotiating reduced repayments.
Actually, if all interest was frozen, I would be able to make full capaital repay ments so would it be worth outlining this as another option?
Thanks