Credit Advice

Hi guys, it's been a long time since I was here. Just wanted some sound advice from you guys as you know your stuff. My story is in one of good to bad very recently. Got laid off last October from a very good job, took me 5 months to get back into work simply due to ny location and lack of work. Anyway in the 5 months I'd just taken a loan to pay off my credit card the week before I got let go. I used that money to pay the mortgage and bills so basically stuck with both now. Yes it was stupid but at the time my only solution. So managed to get into work but it don't pay enough and I'm now struggling to make ends meet. To top matters off the wife wants out now so as you can guess it's very difficult to cope but I put on a brace face. We have about 50k in equity in our house and tried everywhereto free up some of that to pay stuff off but banks refuse to lend due to 1) the deft I have (35k)2) I not been in job 6 months yet although that is lose now and 3) the wife's job is agency and not permanent that's been the biggest one. Anyway I tried all avenues and now resigned to go down the DMP route. I am currently all paid up with my creditors and never defaulted. Had an excellent credit record but checked recently it's gone to poor as I'm maxed on my two cards. With 1 loan also. But I can't hold out any longer and need to make an arrangement. I not coping very well and put that brace face on. Spoke to one creditor and they told me to contact step change. But I'm hoping for a miricle Any ideas guys on first steps. I just need to get this off my back before I can try salvage my marriage

Comments

  • kram
    kram Posts: 136 Forumite
    Hi thecreditmuncher,

    The first thing to do is post your SOA here so people could give some advice?

    Its in the debt free wannabe sticky on the main page.

    Then I would have a look at step change debt remedy tool.

    All I can say is it does get easier once you get things moving in the right direction.

    Good luck

    K
  • kram
    kram Posts: 136 Forumite
    It would also be worth signing up to noddle or the mse credit club to check your credit report as well.

    K
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,447
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    Taking out a loan to clear debt won't work. The banks have done you a big favour in refusing to lend you any more money. From the sound of it a DMP is your only option or bankruptcy if the debt is high and your income low. Post an soa on here to get better advice.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • sourcrates
    sourcrates Posts: 28,724
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    Hi,

    No miracles where debt is concerned chap unfortunately.

    Scottish law is a little different to the rest of the UK, but the arrangements are similar, contact stepchange (Scotland) or National Debtline (Scotland) for free advice on your available options.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thanks guys. Made the first calls tonight. Let myvcreditors know my plans , worst feeling in the world of failure but it's the first step to recovery. I will browse about and see what everyone else has done. Thanks , just not feeling very good about myself right now. But I hope it gets easier
  • What is an SOA ? Just unsure of terminology
  • Ilona
    Ilona Posts: 2,449 Forumite
    Statement of Affairs.

    http://www.stoozing.com/calculator/soa.php

    Ilona
    I love skip diving.
    :D
  • Hi.

    Scariest bit is actually admitting to someone else that you have debts that you are struggling with.
    The relief one feels after speaking to someone (in my case Stepchange) is amazing. I wanted to cry with relief.

    The hardest bit is then over.

    I wish i'd sought advice years ago instead of just 18 months ago.

    Best thing we did was go on a debt management plan. We could easily have gone down IVA/ bankruptcy route for our then £36, 000.

    I have bi-polar and spending when manic was major part of it.

    It's a scary thought paying debts off for years but the support of Stepchange will help me.

    In fact all 4 of our creditors have been very caring and understanding.

    Financial problems can cause so many issues in our relationships.

    Be honest with yourself then you'll find it easier to talk to your wife and family.

    Good luck!
  • SusieT
    SusieT Posts: 1,267
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    Thanks guys. Made the first calls tonight. Let myvcreditors know my plans , worst feeling in the world of failure but it's the first step to recovery. I will browse about and see what everyone else has done. Thanks , just not feeling very good about myself right now. But I hope it gets easier
    Its not failure, its a new start with stepchange (or whichever free provider you go with) taking the pressure off you financially. Make sure you budget properly for spending so that you are able to live with the figures you use and down the line you will reallyy get the benefits.
    Credit card debt - NIL
    Home improvement secured loans 30,130/41,000 and 23,156/28,000 End 2027 and 2029
    Mortgage 64,513/100,000 End Nov 2035
    2022 all rolling into new mortgage + extra to finish house. 125,000 End 2036
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