Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • matthewcallaghan
    • By matthewcallaghan 12th Sep 17, 4:51 PM
    • 5Posts
    • 0Thanks
    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
    • 247 Posts
    • 344 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
    • 5 Posts
    • 0 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
    • 11,952 Posts
    • 11,440 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'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    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
    • 19 Posts
    • 14 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
    • 4,265 Posts
    • 7,712 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.
    Countdown to early retirement on 21.12.17 3 months to go.
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Sep 17, 2:52 PM
    • 4,265 Posts
    • 7,712 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.
    Countdown to early retirement on 21.12.17 3 months to go.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,823Posts Today

7,179Users online

Martin's Twitter
  • RT @thismorning: 'Sometimes the best gift is releasing somebody else from the obligation of having to give to you' says @MartinSLewis. Do y?

  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Follow Martin