I am in debt and need help. I have 6300 debt with 10 companies. I am on benefit with two kids and not much money. The debt manager wants 40 of my 100 each month and says it will take me 8 years to pay it off. But is that the best way. I offered everybody 5 to 10 per month and wanted to do snowball theorie but they want much more money. I am moving now and dont know if i should tell them where to and if i should pay off say 2 companies in 3 month and then pay other ones. Please answer me.
My primary concern is the $5 a month strategy really doesn’t resolve anything. Paying that taken payment will neither reduce your debt nor prevent a creditor from taking legal action.
Honestly, in your situation the best course of action is to talk to a local bankruptcy attorney and find out about discharging your debt and getting a fresh start, or using the debt snowball approach to repaying your debt.
I just think that making payments with the few dollars you have left is not a wise idea. I’d rather see you put those dollars into a savings account or emergency fund to give you a little financial protection when the next surprise happens. And it will.