Help with Loan Repayments

I have three outstanding debts from my marriage.

A loan of £14000 with my bank, a creadit card with a balance of £4000 and a loan for £6500 for a car.

I have called the bank who suggested I conslidate the debt but my payment went up!

I have no wish to dig any deeper but I need a way to survive until our assets are split.

Any help would be appreciated.

I am trying desperately to keep my credit file intact!

The payment may have gone up but I take it that overall you will repay less as the rate of interest is lower? The credit card debt wil have a high standard rate for instance...

If you cannot afford the repayments, you should speak to your bank and, ideally, the person who dealt with your original enquiry. Your plan was to repay your debts but the rearrangement, whilst financially advantageous in the long run, does not resolve your lack of funds on a monthly basis.

Perhaps you could rearrange the terms again to repay the loan over a longer term? The important thing is that you discuss this with your bank before you default on payments in order to preserve your credit rating.

Charles

I agree with what Charles has said, I personally would be inclined to proceed along the lines that you submit a statement of income and expenditure because in my experience creditors need something like this before they will consider debt relief.

The basic methodology is

1. Set out all your debts ( and I mean all of them )
2. Examine your income and see if there are ways in which it could be increased ;
3. Look at your expenditure and in particular priority debts like tax, essential utilities, rent/mortgage,
4. Pay priority debts first and any surplus is then allocated between unsecured creditors ona pro rate basis.

I think I would help from a CAB is only because a creditor is more likely to take notice ; why this should be so I don't know but experience suggests it might be true.

LMM