Really struggling!

LotteryWinWouldBeNice

Hi folks,

This is my first post on this board, and I'm not even really sure what I'm hoping for.

I'm hugely in debt. There are various reasons for this (messy divorce, job loss, borrowing to pay off debt). But the long and short of the situation is I'm really struggling to see any form of brightside/light at the end of the tunnel.

Debts (briefly):

20k Neg Equity, only can afford interest only payments on mortgage
£43k of unsecured debt
£7k of secured debt

Both my partner and I have had to take pay cuts at work.

We started a DMP with CCCS in October, but it's hard going. We're only able to afford such a small amount that it will take well over 20 years to pay it all back.

CCCS told us that they had agreed this payment with all of our creditors.

But since October, 6 of the 9 creditors have passed the debt onto Collection Agencies so things seem to be getting worse.

CCCS's advise is to stay as we are because it's the best thing for us.

We've been told that should we want to move house in the future (which I'm sure we will at some stage) that the DMP means "forget it".

So the harsh reality of being stuck in our house for the next 20 plus years has hit us like a brick.

I'm not coming on here for sympathy. Some (not all) of the debt is our own doing. I'm very aware of that and wake myself up at night reminding myself, so don't really need anyone else to do it for me.

I was hoping for someone out there who might have been in this situation who are coming out the other side?

At it stands, I'm ready to walk away from the lot and declare myself bankrupt! It's effecting my relationship with my friends and family and my performance at work.

Sorry to just onload on this in one post, but I don't know where to turn.

savingmummy

Hi and welcome!
Don`t worry about venting on here it really helps and there are some fab listeners here!!!
First thing you have posted here which is a big step in itself and may be because you have finally decided to sort this out or try to amend things!!
There are people here who have been there and done it i`m sure they will be a long soon.
I recommend doing a SOA http://www.makesenseofcards.com/soacalc.html hit MSE once you have done it!
Post it here and we will all advise on your next steps!!
Ensure you do ALL incomings and ALL outgoings.

gonzo127

hi and dont lose faith CCCS are very aware of how things work and i would expect their advice to be pretty accurate as to whats best for your situation.

the reason for the creditors passing the debts to the debt collection agencys is probably one of 'cutting their loses' (due to expected lengh of time of pay back) and trying to balance their books as the agencies usualy pay a lump sum for the debts (at a fraction of the actual debt) to the original creditor so gives them some cash flow 'here and now'

the main problems i can see with going bankrupt (and i do not know that much in all honesty) is that i expect your house is in joint names? what about all the other debt joint names or just in yours? the reason for this is if they are in joint names your partner (or the person they are joint with) then becomes liable for all of it, this also means you might lose your house/made to sell it, and if you have been bankrupt it can make getting a new mortgage much harder to get, at least in the short term.

the other thought is do you honestly think you will not be able to get a new better paid job in the next 20 years? as your DMP is worked out on what you earn now, if you get a better paid job it will end up being paid off quicker as you can up your payments. also have you checked out the up your income board on this site, lots of useful ways of making a few extra quid with things like daily clicks, free bingo, mystery shopper etc yes these will not get you a lot on their own but done together can get a reasonable amount of money over the course of the month to make a difference

yes it is a long road, but it does have a end and thats the big thing!

lozzam

As gonzo127 says, having debts passed to DCAs is quite normal, and can be quite a good thing as they are not expecting to add interest on to what you pay. This probably means you now have some defaults on your credit reports - remember that these will drop off in 6 years time, then although you will still be paying your DMP, all your payments will show as being up to date, so your chances of getting a new mortgage will be a lot better.

It is not going to be easy, I know (I am 4 years in to my DMP with another 6+ years to go). But you have done the right thing, and with the help of some of the good advice you will get on this board you *will* get through it.