Nice post 98merc, hopefully you will be able to update that merc again someday.
I'm no expert but here is my debt advise for those that are interested.
1. When you reach the point that you know you will not be in a position to honour repayments on outstanding debts going forward, sit down and do a full and comprehensive list of all outstanding amounts.
2. Write a standard letter that you can send to each of the lenders involved. Something like:
Dear Sir/ Madam,
With reference to my agreement with __________, your ref __________.
I regret to inform you that I am experiencing financial difficulties at present and may need to contact you again shortly to discuss the terms of my borrowings with you.
I am currently conducting a full review of my financial situation and should be in a position shortly to make a proposal that is sustainable and acceptable to both parties.
In the interim if you have need to discuss this matter with me you may contact me by letter or e mail to the following addresses.
I will not be conducting any discussions on this matter by phone,however I am available to meet any of your representitives by appointment. Please direct appointment requests to the addresses listed above and I will respond by return.
3. Conduct a full review of your finances, follow up with a household budget that will allow you no luxeries but meets the basic needs of the household (if that is possible). This review is designed to identify any surplus that can be devided between your lenders.
4. Compile the results of your review and budget into a proper statement of means which you should type up and make copies of. This is your bible going forward.
5. Compose a new letter to your lenders,
Dear Sir/ Madam
With reference to my correspondance of ________date, refering to your ref_________.
I have now conducted a full review of my financial position see attached Statement of Means.
The amount I owe to you represents _% of my total debts, I have therefore apportioned _% of the available monies towards meeting my commitment to your institution. I believe that this is the fairest option to all concerned.
While I am aware that this does not meet the terms of my original commitments to your institution it is the only viable way forward.
I will of course undertake to keep this situation under regular review and revise the amounts in question as and when my financial circumstances change.
Please feel free to contact me on the addresses previously provided to arrange an appointment to discuss this situation if you need to.
6. Follow up this letter straightaway with a payment in the amount agreed and continue this payment no matter what correspondance you recieve as this is your safety blanket, these are the letters and deposits that you will use in a court to show good faith, should your lender persue it to this stage.
7. Keep copies of everything.
8. Try desperately to make some adjustment to your income so that you can make a small increase in your repayments, if this is possible you send another letter detailing the change and make the increased in deposit.
9. did I say to keep copies of everything.
10 Being able to increase your repayment is an important stage in the process as it achieves 2 things, 1, it is the right and honourable thing to do as you do owe the debt and 2 a judge will recognise the effort.
Remember they dont sell happiness in TKMaxx or Curry's take your happiness where it can be found in the enjoyment of your family and friends.
Hope this makes some sense.
I'm no expert but here is my debt advise for those that are interested.
1. When you reach the point that you know you will not be in a position to honour repayments on outstanding debts going forward, sit down and do a full and comprehensive list of all outstanding amounts.
2. Write a standard letter that you can send to each of the lenders involved. Something like:
Dear Sir/ Madam,
With reference to my agreement with __________, your ref __________.
I regret to inform you that I am experiencing financial difficulties at present and may need to contact you again shortly to discuss the terms of my borrowings with you.
I am currently conducting a full review of my financial situation and should be in a position shortly to make a proposal that is sustainable and acceptable to both parties.
In the interim if you have need to discuss this matter with me you may contact me by letter or e mail to the following addresses.
I will not be conducting any discussions on this matter by phone,however I am available to meet any of your representitives by appointment. Please direct appointment requests to the addresses listed above and I will respond by return.
3. Conduct a full review of your finances, follow up with a household budget that will allow you no luxeries but meets the basic needs of the household (if that is possible). This review is designed to identify any surplus that can be devided between your lenders.
4. Compile the results of your review and budget into a proper statement of means which you should type up and make copies of. This is your bible going forward.
5. Compose a new letter to your lenders,
Dear Sir/ Madam
With reference to my correspondance of ________date, refering to your ref_________.
I have now conducted a full review of my financial position see attached Statement of Means.
The amount I owe to you represents _% of my total debts, I have therefore apportioned _% of the available monies towards meeting my commitment to your institution. I believe that this is the fairest option to all concerned.
While I am aware that this does not meet the terms of my original commitments to your institution it is the only viable way forward.
I will of course undertake to keep this situation under regular review and revise the amounts in question as and when my financial circumstances change.
Please feel free to contact me on the addresses previously provided to arrange an appointment to discuss this situation if you need to.
6. Follow up this letter straightaway with a payment in the amount agreed and continue this payment no matter what correspondance you recieve as this is your safety blanket, these are the letters and deposits that you will use in a court to show good faith, should your lender persue it to this stage.
7. Keep copies of everything.
8. Try desperately to make some adjustment to your income so that you can make a small increase in your repayments, if this is possible you send another letter detailing the change and make the increased in deposit.
9. did I say to keep copies of everything.
10 Being able to increase your repayment is an important stage in the process as it achieves 2 things, 1, it is the right and honourable thing to do as you do owe the debt and 2 a judge will recognise the effort.
Remember they dont sell happiness in TKMaxx or Curry's take your happiness where it can be found in the enjoyment of your family and friends.
Hope this makes some sense.
