Debt help needed - only covering minimum payments

Slothy88 · 14 November 2014 at 7:11PM

Hi all, some help would be greatly appreciated here.

All of my debt is listed in my signature below. I own a house with my ex which is currently for sale but for which I am paying half the mortgage and council tax. I am co-renting a property with my current partner (moving back to my house is not an option). I am literally only just making all my monthly payments, mortgage, rent, bills, council tax and then minimum payments for my debts. I have quite a commute to work and therefore spend a hefty amount of my wage each month on travelling costs, and I by no means have a lovely new car, it's just something to get me from A to B, and that is what my loan is paying for. After all of the monthly payments I pretty much have about £100 left, and that has to go towards food.

A lot of my credit card debt came from my relationship with my ex when he had money struggles and therefore couldn't get credit, so I would take out credit for things like holidays etc. (stupid I know and something I have since learned from and won't do again.) since we broke up I was living on my own for a year, and because so much of my money was paying off the debts, I got into more debt trying to just get by. It's a vicious circle.

Basically, I don't want to go on just paying minimum payments as I begrudge these companies getting my money for nothing when I'm struggling. I'm also very serious about getting rid of my debt while it's still a relatively low sum because I hate that it's controlling my life right now, but I feel like I'm stuck in limbo with not being able to afford more than the minimum, and the companies adding on more and more interest.

Any help would be greatly appreciated as this has seriously affected my mental health over the last year and I'm sick of feeling like I'm helpless and I'll owe them for the rest of my life.

Thanks in advance

sourcrates · 14 November 2014 at 7:40PM

Hi,
A quick, short term solution, would be to cease all unsecured credit payments, or just make a token payment of say £1 a month, until the house sells, and relives you of that particular debt.

You should still pay your priority debts, council tax etc.

You should write and explain your situation to your creditors, and that you will be back in touch when your situation improves.

Slothy88 · 14 November 2014 at 7:52PM

Thanks for the reply Sourcrates - what effect would doing that have? I mean I know it will affect my credit rating but right now having a good credit rating is not a priority. I just don't want bailiffs knocking at my door or companies taking me to court. I also don't want late payment fees to add up.

Takeaway_Addict · 14 November 2014 at 8:35PM

Is there a possibility of consolidating, I know its generally frowned on because people rack more debt up but if you have learnt then it might a) lower the payments, b) lower the interest paid and c) give you more control over your life.

I would make sure the loan allows over payments so that if you can pay more you are able to.

Tixy · 14 November 2014 at 8:55PM

Is ex still living in your joint house?

How long has it been on the market? realistically how long are you expecting it to take to sell? does ex also want to sell, or is he likely to string out any sale, refuse to accept offers etc?

If its a short term problem of maybe 3-4 months then you may choose a different approach to if it could be a year or more in your current situation.

If you haven't done so then it may be useful to complete a statement of affairs so you can work out exactly what you should be able to afford towards your debts, and also it helps you take a look through outgoings to see if there may be anything that could be reduced/got cheaper elsewhere etc.

seanavfc92 · 14 November 2014 at 8:57PM

Slothy88 wrote: »

Thanks for the reply Sourcrates - what effect would doing that have? I mean I know it will affect my credit rating but right now having a good credit rating is not a priority. I just don't want bailiffs knocking at my door or companies taking me to court. I also don't want late payment fees to add up.

The unsecured collections process is a lengthy process. Bailiffs, or enforcement agents are they're now known, will only "knock at your door" if the debt goes to county court and you default on those payments.

Pablosammy · 14 November 2014 at 8:57PM

It's a bit of a cliched response on here, but have you filled in a full Statement of Affairs? There is a good calculator at http://www.stoozing.com/calculator/soa.php.

Generally people can post their results, and others can recommend a way forward from there. Even if you don't post it, it's often good to get these things written down so that it's clear in your own head what's going where.

Slothy88 · 22 November 2014 at 8:28PM

Thanks for all the advice, I called Step Change and I'm going onto a debt management plan. The relief has already made a difference

Debt help needed - only covering minimum payments

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