What makes you decide to fight to pay your debts? What makes you decide to go BR?

sams247

Truly (truly) guys, this is not about judgement. Here’s where I am coming from – I have great debt and I know many others do too. I read, and sometimes join in with, many extra-money making ideas, I read about how people are steadily reducing their debt. And it’s much to be admired. And then recently my neighbour got hammered with another heavy debt she was not expecting, she has sought advice from many areas and she is now probably going down the bankrupt route. Since talking to her I started to read all the support threads on here for people in her situation, and post BR people too. So what is it? What makes some people plough on and fight their debts, and others go bravely (and I think it is a brave decision) to BR? What makes a route good for one and not another? I have to confess my neighbours story makes me sit back and reconsider my own state of affairs.
So, when faced with heavy debts, what makes you go in the direction of BR, and what makes you go in the direction of pay-until-it’s-gone?

Ames

I got three lots of advice from three charities - pay more than the minimum, go bankrupt, or just keep making token payments. I went with the last option - the first one hadn't allowed me care needs in the budget, and I couldn't afford to go br. I'm hoping that at some point things change. But as the third charity said to me, I live on benefits in a council house with no valuable possessions, and my credit rating's shot to hell anyway. There's nothing the creditors can do that would affect my life badly. I keep hoping one of them will make me bankrupt (every time they threaten it I say yes please!), but so far they haven't.

fermi

Reaching the "end of their tether" for most people.

That can be financially or often emotionally.

We have a few people on the BR board who have been on long term DMPs, and due to the hassle have in the end just gone BR.

supersleuth

Good question Sams,
My own reasons for struggling through are:
I spent the money so I should pay it back
I want to set a good example for my kids
I don't want to drag my husband into my past mess

Just my personal opinion though, and I am looking forward to seeing what people say.

Out of interest why don't you try posting the same question on the BR thread and look at the differences in answers ??

Have a good day
SS

Nargleblast

Whether someone goes on a debt management plan, takes out an IVA or goes bankrupt, none of these are easy options. It is very easy to be judgemental of people who are in debt - when I first left school (seems like centuries ago) I worked in a bank. I used to think "at least I will never let myself be stupid and get into debt like some of our customers!"
Now look at me - over £50k personal debt due to a combination of life circumstances, money getting chucked at me by credit card companies and banks, huge cost of living rises in recent years and, of course, my own stupidity. I am now in an IVA which means I have to stick to a strict budget but my creditors will get far more paid back than if I went BR or stuck with a DMP so that suits me and is the best option for them.

They say the best advice is to get the best advice, and debt counselling charities are a good source of that. Follow what they say, they deal with debt crises all the time.

fermi

Anyone who just links into this, please read:

Problem Debts: what to do and where to get help

sams247

Thank you for those thoughts, I have to say I never expected to get into debt, and I have found a lot of support on here, and had a lot of advice from various debt charities. I have never been advised to go BR, even though I don't own my own home, and have no assets.

Ames - is it the cost of the BR that prevents you? It does seem a lot of money to pay.

I guess one of the differences between me and my neighbour is that I dont get dreadful calls, I used to and they really ground me down and I had a lot of depression issues, I was swamped with it all. But now they are all ok. It really does seem to make a difference how you are treated, I think.

bunny999

For a long time I had a lot of debt which is now paid off. I never thought of not paying it back - I owed the money therefore the debt was my responsibility. For me it was a question of self respect and honesty. How would you feel if you lent someone money and they didn't pay it back ?

Ames

It's mainly the cost that put me off, it's a hell of a lot of money to someone on Income Support. Also my family were really upset at the idea, my mum told me I should go to loan sharks instead (!) and I got the impression that dad would turn his back on me, I'm already the black sheep of the family for 'choosing' to be disabled and live on benefits. Then when I called national debt line about something else and mentioned I was going to go br when I'd saved the money, they were horrified and said there was no need for such a drastic step when I could just keep making token payments.

sams247

Ah, I so love the choosing to be disabled part! Reminds me of my dad who never understood me 'choosing' to have serious illness and operations, seemed to think it was attention seeking! Mind you, I do think that BR is a thing for anyone to decide for themselves, and individual thing, and no one - not even a debt line should be horrified.

Ames

sams, glad I'm not the only one! Apparantly ME and Bipolar don't exist, therefore I'm pretending to be ill.

The debt line were horrified at the advice I'd been given, not with the concept of bankruptcy, they just didn't think it was right for me. Just goes to show how many different options are out there, that three charities can give such wildly different answers to the same problem.