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Advice? Debt problems - insufficient funds.
Drysdale
Posts: 33 Forumite
I have 26k+ personal unsecured debt. I am also a homeowner with a mortgage of 90k with no equity (100% mortgage). I have no assetts to speak of (no car etc). I earn circa 33k gross per annum. I have several creditors (phone, 3 loans, 2 cc's, mortgage).
I have had no problems up until now, having never missed a payment. However a family member approached me in confidence with debt problems of their own and as a result I obtained a loan of 7k on their behalf - they currently pay the montly payments in full for this.
Due to this, my credit rating has been crippled due to several failed attempts to gain the 7k.
This month, I have been extremely reckless and overspent as well as having several unforeseen expenses - as a result my current account balance is -£1250(!) having just been paid! My overdraft is -£600 and I am in a 'reserve' which the bank charges for.
I have all my monthly payments/debits set to go out in Janaury and they will obviously be bounced back with my account so far in to the overdraft. On top of this, the bank is charging me £22 every 5 days my account is in the reserve, which seems to be indefinate. I cannot wait until my next payday as even with a paycheck I will still be in the red.
I have tried applying for loans/cc's to bring my current account into credit however I have been declined for all due to the above. I have no savings, assetts or family to borrow money from.
What can I do?! Getting v concerned. Have looked at IVA but seems a long drawn out process with no guarentee of acceptance. Help!
I understand that December is particularly expensive for everyone but I have been a complete idiot and need to sort this out. I also appreciate I am after a short term fix but in reality money doesn't appear from nowhere - I just need a solution. I have been trying to sell my house for the last year but no luck whatsoever
I have had no problems up until now, having never missed a payment. However a family member approached me in confidence with debt problems of their own and as a result I obtained a loan of 7k on their behalf - they currently pay the montly payments in full for this.
Due to this, my credit rating has been crippled due to several failed attempts to gain the 7k.
This month, I have been extremely reckless and overspent as well as having several unforeseen expenses - as a result my current account balance is -£1250(!) having just been paid! My overdraft is -£600 and I am in a 'reserve' which the bank charges for.
I have all my monthly payments/debits set to go out in Janaury and they will obviously be bounced back with my account so far in to the overdraft. On top of this, the bank is charging me £22 every 5 days my account is in the reserve, which seems to be indefinate. I cannot wait until my next payday as even with a paycheck I will still be in the red.
I have tried applying for loans/cc's to bring my current account into credit however I have been declined for all due to the above. I have no savings, assetts or family to borrow money from.
What can I do?! Getting v concerned. Have looked at IVA but seems a long drawn out process with no guarentee of acceptance. Help!
I understand that December is particularly expensive for everyone but I have been a complete idiot and need to sort this out. I also appreciate I am after a short term fix but in reality money doesn't appear from nowhere - I just need a solution. I have been trying to sell my house for the last year but no luck whatsoever
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Comments
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hi there i would suggest you do a full statement of affairs. if you look at https://www.whatsthecost.com there is a form you can fill in in there and then format for MSE. That will give you a good idea where your money is really going. And maybe we can give you some pointers as to how you can go forward
chevI want a job that is less than an hour driving away from my house! Are you listening universe?
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Would selling your house actually solve anything? If there is no equity there, then you would clear your mortgage but none of the other debts, and would presumably still have to rent somewhere, so your outgoings wouldn't change?
Do the SOA above, and also have a look on the CCCS website - check out the tab for "problem debts" on this site, and see if doing some sort of debt management plan would suit you. It would be rare for an IVA to be suitable for someone, so I would look at all the other alternatives.
You have a good income, and with a bit of focus and effort should be able to get through this.
January will be painful for you, as you obviously haven't got the readies to pay your bills, but it could be a turning point, as it forces you to deal with things and speak to creditors to get things sorted out.
If you cannot afford your DDs this month - you MUST speak to them beforehand, so you can agree what action you take, which in turn will give you a chance to make alternative arrangements, but will also show them that you are not burying your head in the sand any longer.
Good luck, and keep posting - get that SOA drawn up and you will get plenty of good advice!Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0
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