My husband has just owned up that debt that should be in his business is actually in his name, to the tune of 100K. I am so stressed, am already unwell with cancer and have two tiny children.

Until now, it's not been a problem as the business has paid the payments, but business is on the side, and there is no way we can cover the repayments currently on his salary, especially as I am unable to work due to having cancer.

I have contacted an agency who offer to "talk" to the companies involved and have the interest frozen, and the repayments set at a managable level .... but for this they'll "claim" 20% of what we pay as their management fee.

Thhis arrangement would mean we coul make the payments, and would pay it all off in about 12 years, but 20% to the management company sounds awful. Is this usual? Is this the right way to go?

We have some savings (~£15K pay off from my job), and some equity (~£50K) in our home

Any & all advice welcome, many thanks, Jill

Jill,

sorry to hear you are unwell.

you have a few options....

1 equity release from your home( but then remember that you will have a larger mortgage)

2. go down the debt management route . yes 20% is high but then thats how some of them make their living. there are other companies out there that charge less of a fee so you might want to have a look at them. a good Debt Management companies can offer piece of mind and take all the hasstle off your shoulders.

3. write down all your income and expenditure and work out if you can afford the monthly payments. if not have a look at the the the consumer action group (CAG). if you feel up to it you can take on your husbands debt management role and write to them asking for come to some sort of arrangement.

there is light at the end of the tunnel but you will have to be in if for the longhaul wether it be debt management, iva's or other forms.

good luck

Georgina. x

p.s. have you checked that you are claming full benefits? you may be entitled to more money???

---

George

Contact Consumer Credit Counselling Service which is a government backed charity which assists those in financial difficulties by providing free, independent, impartial and realistic advice.

FREEPHONE helpline is open from 8am to 8pm Monday to Friday.

0800 138 1111

If you want to write to them mailing address is:
Consumer Credit Counselling Service
Wade House
Merrion Centre
Leeds
LS2 8NG

Don't pay 20% out to these management companies Consumer Credit can help with getting the interest frozen and ALL the money you pay going off your debts.