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  • FIRST POST
    • Jburn
    • By Jburn 17th Sep 16, 4:08 PM
    • 3Posts
    • 0Thanks
    Jburn
    Need some advice please
    • #1
    • 17th Sep 16, 4:08 PM
    Need some advice please 17th Sep 16 at 4:08 PM
    The total amount I owe is 93K. All CC or OD. The debt has been there for about 10 years. I was never too worried about it as I had a very well paid job.

    Then I lost my job 4 years ago.

    In the beginning I was still not too concerned as I thought I would get a job quickly. I did get another job, with a salary less than half of the original one. I took the job anyway but it was hard as I could not meet the monthly minimum payment.

    Instead of seeking help or advice, I used one card to cover another and keep repeating the trick.

    And I lost my job 2 months ago.

    I used the debt remedy tool on Step Change and it advised me to do a token payment plan.

    My question is: would the creditors really sit back and just accept my plan? If 3 months down the lineI still could not get a job. What is going to happen? Should I just take the plunge and go directly for bankruptcy now?

    Another question: will I lose my Tesco Club Card points? What about M&S? And how about my BA mileage points?

    Thank you for your help!
Page 1
    • worriedmamma
    • By worriedmamma 17th Sep 16, 4:27 PM
    • 80 Posts
    • 17 Thanks
    worriedmamma
    • #2
    • 17th Sep 16, 4:27 PM
    • #2
    • 17th Sep 16, 4:27 PM
    Hi

    Definitely start the token payments with a copy of your SOA, if you cannot meet the payments but have sought help and that's what's been advised, then its the best step you can take. Are you claiming benefits if you have lost your job? Is it likely you'll find another job soon?

    I'd also speak to National Debtline, I found them really helpful. If your situation isn't going to change at all then bankruptcy could be a good option for you, I know on here people like to see your SOA to see where your spending is etc....

    I have recently applied for bankruptcy and so far I've found the process extremely simple, and much less daunting than I ever thought I would. I'm relieved. My debt was through selling a property in negative equity. I'm not sure if the process differs depending on your debt, but every case is different.

    Sorry not much help here but I'd definitely post an SOA on here so people can comment and help, and speak to NDL if you can also.

    I don't think you'd lose Tesco Clubcard points, but haven't even thought of these things, someone else will know no doubt. The main thing is you are not alone in having debt, and there WILL be a solution for you.
  • National Debtline
    • #3
    • 22nd Sep 16, 3:59 PM
    • #3
    • 22nd Sep 16, 3:59 PM
    Hi Jburn,


    If you cannot maintain the minimum payments then you can only offer what you can afford, and at the moment if that is 1per month then that is it. I understand it can be a worry whether the creditors are happy with the offer, but realistically, there is not much you can do if they aren't. You can't maintain the minimum payments, and your trick of using cards to pay cards is only going to make the hole deeper.


    A SOA is good, going to be very basic until you are back at work, but once you are back at work you can look at your options again. You may increase your monthly negotiations, or do a DMP, IVA or bankruptcy, it really depends on your assets and affordability.


    I am afraid its hard to answer your query about the club card points and air miles, I imagine it would depend how much they are worth and whether they are transferrable and/or redeemable as cash.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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