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  • FIRST POST
    • matthewcallaghan
    • By matthewcallaghan 12th Sep 17, 4:51 PM
    • 8Posts
    • 2Thanks
    matthewcallaghan
    Stay and suffer, or use a debt free service :/
    • #1
    • 12th Sep 17, 4:51 PM
    Stay and suffer, or use a debt free service :/ 12th Sep 17 at 4:51 PM
    Hi

    I have hit rock bottom. I have been bad for years but now have got to a stage where I have moved back in with my parent, and even with no rent or utilities still owe more every month than my salary.

    I am roughly paying out £2,400 a month and it is simply getting worse every month, not better and I cannot see any way out. I have zero other collateral and no free time for extra income (I am aware that this is never true but it certainly feels true and I am becoming quite ill with worry).

    I keep seeing ads where they say they can wipe out 85% of debt. I know this involves getting an IVA or even Bankruptcy and it is because I do not want to become either I have tried (and failed) to not use these services.

    I am now not sure what to do.

    I know that in the long run I will be better if I don't use a service, but at the moment, where even getting in to work and feeding myself relies on borrowing I don't see any other way.

    Please can someone help me with advice.

    What are the pros and cons. One I see is that if i clear 85% then even while on the 3 year of IVA I will be able to save a fortune... but then I will not be able to rent in the area I want as no doubt I will fail a credit check.

    I would be grateful right now for anything.

    Cheers

    Paddy
Page 1
    • leslieknope
    • By leslieknope 12th Sep 17, 5:14 PM
    • 303 Posts
    • 441 Thanks
    leslieknope
    • #2
    • 12th Sep 17, 5:14 PM
    • #2
    • 12th Sep 17, 5:14 PM
    https://www.stepchange.org/

    contact them and use the online tool to see their best suggestions. you will feel better once you have a path out and you're not the first (and certainly not the last!) to be in this situation.

    you can repair your credit history. it will take time but you cannot sustain your current debt levels and your credit history is likely to be poor anyway.
    CCCC #33: £42/£240
    DFW: £4355/£4405
    • matthewcallaghan
    • By matthewcallaghan 21st Sep 17, 4:21 PM
    • 8 Posts
    • 2 Thanks
    matthewcallaghan
    • #3
    • 21st Sep 17, 4:21 PM
    I tried..
    • #3
    • 21st Sep 17, 4:21 PM
    I did try them and the options available were not promising at the time.

    I might try them again, but I am really trying to avoid an IVA at all costs. :/

    Thanks
    • sourcrates
    • By sourcrates 22nd Sep 17, 10:22 AM
    • 12,421 Posts
    • 11,822 Thanks
    sourcrates
    • #4
    • 22nd Sep 17, 10:22 AM
    • #4
    • 22nd Sep 17, 10:22 AM
    Hi Paddy,

    The time will come where you say, enough is enough, people tend to try to struggle on paying out ridiculous sums of money on debt repayments, and not having enough money to live on.

    You do not have to live like that, there are solutions in place to help you, but first we need to know more about your circumstances, posting a statement of affairs will tell us more.

    An IVA can be a good choice if you have a lot of debt and a house to protect, if you have no, or few assets, then going straight for Bankruptcy can ease the pressure right away, but your debt may not be that serious, in which case a debt management plan or debt relief order may be more appropriate.

    There is always a solution, so stop struggling, and re-take control over your finances, starting with an SOA :

    http://www.debtadvicefoundation.org/personal-debt-analyser
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Newstart3
    • By Newstart3 22nd Sep 17, 2:19 PM
    • 25 Posts
    • 32 Thanks
    Newstart3
    • #5
    • 22nd Sep 17, 2:19 PM
    • #5
    • 22nd Sep 17, 2:19 PM
    Had I realised 3 years ago that my credit report wouldn't improve with defaults & CCJs, I would have went straight for bankruptcy as my outgoings were higher than my income.
    TSB £3,303, MBMA £4,315, Barclays £4,463, Argos £1,260, Mortimer Clarke CCJ £2,174, Lloyds CC £1534, Littlewoods £796, Next £510, Wonga £123, , Lending Stream 1 £130.87, Bensons for beds £1509, Lending Stream 2 £255.96, Lloyds CC £1,534, Total Jan £21,908, Feb £20,412 Sept £15,515 Debt repaid in 2017 = £6,393 TARGET DFD APRIL 2018
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Sep 17, 2:47 PM
    • 4,680 Posts
    • 8,785 Thanks
    enthusiasticsaver
    • #6
    • 22nd Sep 17, 2:47 PM
    • #6
    • 22nd Sep 17, 2:47 PM
    If your outgoings each month are more than your salary simply on debt and you have little to no living costs I cannot see any option for you other than Bankruptcy or IVA. As presumably you have no house Bankruptcy may be the best option. I would suggest stepchange or post an soa as sourcrates suggests.
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Sep 17, 2:52 PM
    • 4,680 Posts
    • 8,785 Thanks
    enthusiasticsaver
    • #7
    • 22nd Sep 17, 2:52 PM
    • #7
    • 22nd Sep 17, 2:52 PM
    Is your main obstacle to bankruptcy that eventually you want to rent somewhere and the credit check will pose problems?

    Are you up to date with your debt payments at the moment?

    How do you see this getting better if you just carry on as now? There does have to be a point where you just have to say enough is enough and you cannot carry on as before. How about a self managed DMP or could you qualify for refunds from payday loan companies if you can prove that they were remiss in lending to you? There is a thread on this forum about that.
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Money maker
    • By Money maker 30th Sep 17, 12:03 AM
    • 4,846 Posts
    • 11,070 Thanks
    Money maker
    • #8
    • 30th Sep 17, 12:03 AM
    • #8
    • 30th Sep 17, 12:03 AM
    #8 is spam, you want to go to a debt charity such as stepchange or national debtline, not some fee charging company looking to leech off the desperate.


    Do not come on MSE self-promoting your website, reported and you will soon be gone.
    Please do not quote spam as this enables it to 'live on' once the spam post is removed.

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite!
    • EssexHebridean
    • By EssexHebridean 2nd Oct 17, 11:37 AM
    • 8,199 Posts
    • 42,621 Thanks
    EssexHebridean
    • #9
    • 2nd Oct 17, 11:37 AM
    • #9
    • 2nd Oct 17, 11:37 AM
    The risk of course in quoting a post number as spam is that once it's removed you end up looking like you're saying that your own post is spam...!

    OP - I agree that you do sound like a good candidate for bankruptcy and wonder what your real aversion to that route is?

    I also agree though that you need to put together your full SOA as this will help to identify if there ARE any savings you can make. If you are currently paying out more than you have coming in each month though it's vital that you tackle your situation quickly now as things aren't going to get any better, are they!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • matthewcallaghan
    • By matthewcallaghan 4th Oct 17, 10:45 AM
    • 8 Posts
    • 2 Thanks
    matthewcallaghan
    At the moment this is indeed correct. I guess I am trying to see if somehow I can at least start the path of hitting my debt. I am giving it until January to see if I have made any dent!

    Thanks


    If your outgoings each month are more than your salary simply on debt and you have little to no living costs I cannot see any option for you other than Bankruptcy or IVA. As presumably you have no house Bankruptcy may be the best option. I would suggest stepchange or post an soa as sourcrates suggests.
    Originally posted by enthusiasticsaver
    • matthewcallaghan
    • By matthewcallaghan 4th Oct 17, 10:48 AM
    • 8 Posts
    • 2 Thanks
    matthewcallaghan
    My real aversion is twofold.

    1) Years a go ( a long time ago) I helped out somebody and got in to trouble. I applied for an IVA and because of my student loan they said no, and then every account closed on me and demanded I settle. To be honest, I have never really recovered from this.

    2) I keep hearing about potential risks to jobs/rent based on having this on my record. I don't want to be in a position where this is a factor down the line. I.e. I start to see a lifeline but can't live or work where I want to. I admit I need to research this a bit more.

    Thanks all also!

    The risk of course in quoting a post number as spam is that once it's removed you end up looking like you're saying that your own post is spam...!

    OP - I agree that you do sound like a good candidate for bankruptcy and wonder what your real aversion to that route is?

    I also agree though that you need to put together your full SOA as this will help to identify if there ARE any savings you can make. If you are currently paying out more than you have coming in each month though it's vital that you tackle your situation quickly now as things aren't going to get any better, are they!
    Originally posted by EssexHebridean
    • EssexHebridean
    • By EssexHebridean 4th Oct 17, 12:18 PM
    • 8,199 Posts
    • 42,621 Thanks
    EssexHebridean
    I think you do need to do some further research - things have moved on massively in the last few years. As far as the job thing goes - do you work in an environment where it's ever even likely to be relevant? There are certainly some roles where bankruptcy is an absolute no-no - but if you're not in one of those roles, or looking to get into that sort of role, this is probably irrelevant.

    Why not post your worries over on the bankruptcy board - they'll be able to reassure you.

    Get that SOA done and posted - the sooner you do it, the sooner you know where you stand, and the sooner you can halt the slide.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • matthewcallaghan
    • By matthewcallaghan 4th Oct 17, 3:17 PM
    • 8 Posts
    • 2 Thanks
    matthewcallaghan
    I think I may just do that.

    Half way through my SOA.

    Thanks all for your advice.
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