What will happen to us now?! Help!

notfunnymoney

Hi there, we found ourselves in the unfortunate position of husband retraining as a driving instructor (self emp) and me giving up work to have 2 children (only 18mths apart!) and hubby's job not going well and getting into debt... it seems I commited the cardinal sin of taking cash ad on our cc's to put the cash in our a/c to pay our bills - always thinking it was just a temp blip that would soon sort itself out once hubby's work picked up - unfortunately it didn't and still isn't too good but I've not just got a pt job - not loads of money but bit of help....

Anyhow, last yr our cc min payments had gone up to the point there was absolutely no way we could pay them each mth anymore so we spoke to lenders - MBNA offered us a 6mth respite period in the hope our situation would improve but n.wide offered no such deal and said if we couldn't afford to pay the min payment then we'd have to just leave it, default and after 3 missed payments we'd be handed over to their debt collection company - who have now contacted us offering discounted lump sum payment - oh if we only had that lump sum!! But we haven't so what will be their next move now?

Also, now we have defaults on our credit files, I understand these last for 6yrs - however when does that 6yrs start from - the first default or after the default was sorted - ie by a dmp/arrangment or paid up completely?!

Any advice would be massively appreciated cos we need to at least make an attempt to start to sort this out!!!

Many thanks,

H

Nargleblast

Hello and welcome. Like many of us on here you have reached the point where your expenditure outstrips your income. You are not alone, that is the important thing to remember, and you can and will sort this out. It will take time, but it can be done. Try doing the statement of affairs calculator (see help for first time posters sticky at the top of the threads list) and post it on here. It will look horrific in black and white but at least you will have a baseline to start from. Then we can suggest ways of reducing costs and tackling debt repayment.

Nargleblast

While you are at it, now is the time to cut up all credit cards. Trust me, you will feel a lot better after doing this, and you will start to appreciate making the most of what cash you have and not adding to your debt situation.