Frightened about my future

mouseann

Hello,

I am new to this discussion board so please forgive me if am not following the correct procedure.

I think I may hold the, very unwanted, record for having the largest debt ever, entirely on credit cards!

I have been in denial of my situation for many years but am gradually trying to face reality, but it is very difficult for me to actually face up to my situation.

I am 65 years old, and am due to retire at the end of March, and will lose my monthly salary. Although I will have a modest pension there is no lump sum. Ever since the break-down of a relationship, I have been living beyond my means, using credit cards to survive. I estimate my credit card debts to be in the region of £120,00 (I am too frightened to calculate the total sum of these). I do not feel I have been living extravagantly – I have really been playing the cards off one against the other, in order to buy food, etc. I have no other luxuries, apart from a small car. Any holidays I take are always staying with family or friends. I have managed to make the minimum repayment on all my cards but, when I need to manage on my pension, I will not be able to sustain this, especially as the interest rates on these have increased exponentially.

I have a house with two outstanding mortgages, which total £40,000. My pension will allow me to keep making these payments, as long as I live in a frugal manner. Unfortunately, house prices my area crashed in 2008 and have not yet recovered, coupled with the fact that houses locally are not selling. I anticipate the value of my house to be somewhat in the region of £130,000. I have considered selling it, but not sure whether I could afford the price of the Home Information Pack. Another option may be Equity Release, but I am a little vague about how this works.

My concern is that, when I retire and am unable to make even the minimum repayments on these cards, that I will be hounded by the providers and I am not sure whether any arrangement I make with them will be sufficient o satisfy them. I am too ashamed to confess my situation to my family and friends and the last thing I want to do is ask them fo help, although I suspect that they wouldn't be able to help, anyway.

So, I am tryint to get over the first hurdle by sharng the experience with people who may have had similar problems.

zarazara

Well Done for posting and facing your situation. Have you contacted CItizens Advice? and/or Help the Aged?

tazzy2010_2

Hello mouseann,

At least you are making a step in the right direction Plenty of friendly people on here who will try to help you. I imagine the first thing people will ask you to do is post an SOA (state of affairs) I don't have a link but I'm sure someone does. I am pretty new to all this myself, but will try to chip in where I can

RAS

Hi

You will be astonished to learn that this is not the largest consumer debt i have seen liste don DFW.

You really really do need to talk to the debt charities ASAP.

http://www.moneysavingexpert.com/loans/debt-help-plan#help

Because you have equity in the house, there is a real risk that the creditors will go for charging orders if you do a DMP and both an IVA or BR would require you to release the captial on the house.

So you need specialist advice.

mouseann

Thanks so much to all who have already replied - and not a word of criticism that I may have been profligate with my cards!

I am currently trying to get up enough courage to do a SOA - it is the final calculation of the outstanding balances which is worrying me!

Am also going to get up some courage to contact the debt charities. I still have a salary for another month.

The saying about a "trouble shared" is so true"!

Mouseann

tazzy2010_2

I worked at the citizens advice for about a year a few years ago and they are very good, and very non-judgemental. I would however advise you to go there early one day (to avoid big queues) and take all your up to date paperwork with you. They have debt specialists etc., or the national debtline is good too

Is getting a part time job after you retire an option? Not sure how this would effect your pension etc??

Tazzy

curlytop12

you have taken the first step,well done!get your SOA done and thats one more.
good luck,you have come to he right place xx

happyhaddock_2

Hi Mousann I'm a newbie too so can't give any advice, just wanted to say well done for posting and good luck, you'll get loads of helpful info and support on here:A

pure_dead_dopey

mouseann wrote: »

Thanks so much to all who have already replied - and not a word of criticism that I may have been profligate with my cards!

I am currently trying to get up enough courage to do a SOA - it is the final calculation of the outstanding balances which is worrying me!

Am also going to get up some courage to contact the debt charities. I still have a salary for another month.

The saying about a "trouble shared" is so true"!

Mouseann

Welcome Mouseann

and well done for taking the first step. You do need to get some advice and this is a great place to start. I know how you feel, we too, lived on our credit cards, it mounts up pretty fast especially when the caring sharing banks add on ridiculous amounts of interest, so don't feel worried, a lot of us are in the same boat. If you could manage an SOA that would be a good starter and then the good people on here can have a better knowledge of your situation. Good luck and keep posting:):):):)

savingmummy

Well done for posting!
There are a lot of people who have big debts so your not alone there.

It is good you have come here for help and advise.
A SOA is the first thing you need to do http://www.makesenseofcards.com/soacalc.html and you need to calculate these debts and get amounts, APR`s and then go from there! You need to include ALL incomings and ALL outgoings.

STOP the cards if you havent already, cut them up

You may get some fab advise regarding your house selling etc on the huse selling forum, people there can advise about anything your concerned about! http://forums.moneysavingexpert.com/forumdisplay.html?f=16

Primrose

My only question is "Do you actually HAVE to retire at the end of March? Would it be possible for you to extend your employment? Have you tried asking? If it would be possible for you to continue earning at your current salary, even for another year while you go through the process of trying to sort your financial situation out, it would give you some breathing space.