No job and £30k worth of debt!!

niase

Hi there. I am finally here...after endless cajoling from my hubby dearest. I have been doing exactly what I used to tell my customers NOT to do. I buried my head deep deep inside the dark hole of 'if you don't see it then it's all ok!'; disregarding guilt ridden niggles of doom! The reckless in me decided to simply ignore all the warning signs and dashed headlong into major disaster.
I have been suffering from clinical depression for a little while now but doctors only want to see me when I say I am about to die and to add to that I had two jobs that wore me down further. I have been working two jobs for the past 2 years and now lost my full-time job at a bank. I have no assets, no job and tons of bills and repayments to make every month. I don't know what to do. I don't have kids. My second job which is turning out to be a life line only brings in a measly £200 every month. At present I feel worthless, penniless and even more depressed than I thought I could ever be. In fact the only way I feel some semblance of sanity is when I spend the last pound in my hand in a shop. That doesn't help matters now does it? Any advice would be highly appreciated. Please bear with me as I am new to this. Many thanks for reading!

RAS

Hi and welcome

Not only to DFW but to loads of folks who have been there and got the t-shirt and come out the other end.

You starting point is to contact one of the debt charities but given your current income, there may not be a lot they can do regarding a DMP.

The starting point is that you cannot pay what you do not have. So for the time being you will just have to pay token payments - anything over £1 per mont to each creditor.

Regarding your safety, I suspect you have a number of accounts with your old employer? Is your bank account up to date?

You need a new bank account not associated with any of your creditors - a basic one is OK. Pay your wages in there. If possible close your old bank account, or your ex-employer will pay any loans and cards from your old bank account.

Do you have any joint debts with OH and do you have a mortgage/property?

We can post letters to halt phone calls and deal with creditors later. Not least as you have been ill, they should be reasonable once they know this.

System

Hi niase, what RAS said really, contact one of the debt charities and remember you are not on your own and there is so much help and support on here it really help you through. In fact I would go so far as to say that the support you receive in here, the positive vibe that it will give you is proabably just as good as a visit to the docs; not that you shouldn't go to the docs of course. What about posting your SOA so people can see exactly what you owe, to whom and what you spend your money on. Take care Len

niase

Thanks a lot for getting back to me. Sorry what does DMP stand for? Can I speak to my creditors and tell them my situation? Is there a possibility of them reducing the monthly payments? I did think about IVA...but my partner is against it. Either ways I will still ruin my credit file. Is it not better for me to do an IVA rather than annoying the creditors with a sob story? Because I am quite sure that is how they will view my situation. Whatever he earns goes towards rent and all the necessary bills. We took out a number of loans to pay for a downpayment on a mortgage. We got declined. I am a mess with money so all that money...I cannot even say what it all went towards. All I know is I am terrible with money and I have spent way more than I should have. Serves me right I know. But I need a way forward. I have another account but it's not basic. I am going to open a basic one tomorrow. I had everything with my ex-employer/bank. I find it very difficult to speak to them. This job was my pride and joy.....

RAS

hi

Take it very slowly. One day at a time here.

Debt Management Plan. it is an informal alternative to an IVA. You need a higher income to apply for an IVA and they only suit a very few people.

If you have another account, great. Just hold that as long as it is not in the same bank as any of your creditors. get your income paid in there.

I would strongly advise you only to contact your creditors by letter.

1. You have proof of what you said and what the agreed to.
2. I am sorry but most creditors employ bullies on their debt collection set-ups. If you find it difficult to speak to them, then you are much better NOT speaking to them. Write.

This does not serve you right. You made a mistake like everyone here. Please believe that you are in good company.

Would you be able to close your old bank account with your ex-employer?

Deep_In_Debt

National Debtline website has a good template letter that you can use to write to your creditors asking them to freeze interest and offering them payments.

I'm not sure an IVA would be suitable for you. As RAS says, you will probably need a higher income and a lot can happen in 5 years and if you miss payments your IVA could be terminated and you'll end up back where you started or it could end in BR.

I would suggest what others have said - write to them with your SOA so they can see how much you can afford, offer them a token payment and pay them what you can afford each month - not what they want.

Tixy

Hi niase

Do keep on at your docs to get some proper help for your depression. It can be bad enough when debts get on top of you but if you are already suffering its vital you have some support - you shouldn't have to nag, coerce and beg for support from your doctors but if they won't listen then try again or even try moving doctors.

Opening a new bank account is a good starting step. Have you made sure you are getting any benefits you are entitled to? check out www.entitledto.co.uk which has a quick check its worth you doing.

Did you have any PPI when you lost your main job? If so have you tried claiming?

Getting out of debt is tough but it can be done. Think of posting here as the first step on a long but very worthwhile journey. I hope you keep posting and we'll do what we can to help and advise you.

Good luck.

niase

So it is possible to deal with my creditors on my own? I will write to them. Please confirm...I can come to an arrangement on my own without outside help and deal with creditors all by myself?? It will affect my credit file I am guessing but is it as drastic as an IVA? I am not even eligible for an IVA? I haven't come to that stage yet where people are knocking my door down! But I have worked on the other side and I know one missed payment and the letters, the extra charges and eventually the Bailiffs will be on their way. It is God awful. And I would like to avoid it. Thanks a LOT for all the fantastic tips. BTW...anybody employing here?? .....

Numpty_Monkey

Yes it is possible to deal with your creditors on your own, there are plenty of people doing it
DMP Mutual Support Thread (Part 6)

Talk to one of these, they will help take the stress away
they did with me:A
Non-profit Debt Counsellors' List

Numpty_Monkey

niase wrote: »

BTW...anybody employing here?? .....

We only take volunteers and you've just vouluntered:T:j:j:D

Deep_In_Debt

It will be damaging to your credit file as by making reduced or token payments would be seen as defaulting on your original agreement. Whether you choose to go it alone, an IVA or a dmp, will all trash your credit file.

Baliffs will only come if you default on a court arrangement. The reps that may call from your creditors are not bailiffs and have no legal rights. You don't even have to speak to them and if you do, tell them to s*d off.

There is no reason why you can't deal with your creditors yourself and you don't need outside help. Many choose to have help though (me included) as it takes away a lot of the hassle and legwork.

Write to them with your SOA, offer what you can afford and don't let them bully you. If they don't like it and decide to go to court, the court is likely to look favourably on you as you are making an effort to pay what you can afford. This is a long way off yet though.

In terms of an IVA, I really don't think you have enough income to be able to go down that route. Usually need at least £250pm (I think but don't quote me) surplus for it to be considered.

As i mentioned before, check out National Debtline website for lots of information and template letters.