Nightmare of debt.

notsosuperwoman

Ok, I've jumped in with both feet, so..............deep breath............

I am disabled and manic depressive, for those that aren't aware it basically means that I spend money when on a high....lots of it and on nothing important.

I now have debts of around £28,000. I am also on benefits. It all started 10 years ago when I was widowed. The bank phoned and offered me a loan. I said no but then they called me in for an account review and told me what a good idea a credit card is, just a small limit........mmmmm. Stayed in control for ages then went on a spree. Got a loan to pay it off, cut up the card. Paid off the loan. Another call for an account review. Another credit card AND a loan this time. All this time I have been quite open about being on benefits.

The limits were upped without asking and things escalated but still managed to make repayments.

I lost my DLA last November and had to appeal. I called the bank ( Lloyds TSB ) and explained the situation. The advice............to go to the cashpoint, withdraw funds from the credit card then go into the bank and pay the money into my account to cover payments. By this time I was in it over my head anyway, very depressed and did just that.

In April the credit limit ran out. I haven't made any payments since May.
I did get my DLA back and it was backdated but that went to pay the bills that built up while I didn't have it.

I asked them to freeze the interest and allow me a period of time to seek advice and they refused. So I buried my head in the sand.

I owe only to Lloyds TSB, and heve no arrears on anything. I have opened a new bank account and can now pay my bills and buy food with my benefits.

I have been really ill this year, have had surgery and been in and out of hospital.

Now I have to do something, the phone doesn't stop ringing with debt collectors calling. And I have had a letter now from a 'debt counsellor' who has been asked by the bank to come and visit me at home. The return address on the envelope is of a debt collector and sherrif's officer ( live in Scotlend )

My total income is £900 pm, and the payments for the loan and credit card alone are £650.

Which leaves me with £ 250 pm. I also need to pay for care which is £160.

I would like to offer some payment but a friend says they will refuse and make me bankrupt, taking my car which I desperately need and cannot do without.

I am now desperately depressed and can't see where to go. Please don't shout at me, I know I've been stupid, I got myself into this mess and have to get myself out of it.

Sorry for the long post and hope it isn't too confusing.

Bambywamby

I don't know where you legally stand with Lloyds but I think you should phone your local Citizens Advice Bureau or the Scottish equivalent. They will give you sound, free advice.

Good luck - hugs & cuddles

Bams x.x

chelly63

Hi
And I am so glad that you have found this board and have had the great courage to post, from here on in you will feel less alone.
Depression is awful and Manic depression is also a terrible thing to have to deal with and it is so common for those during a manic phase to spend.
What you need to do is contact national Debtline and also the Consumer credit councilling service, National Debtline are fantastic and maybe able to help you to sort out a Debt management plan via the CCCS, debtline set my OH up that way and they have been great in helping him to contact creditors.
Also on a DMP you will be able to have more of your money to live on at the moment your not having enough left over at the end of the month to live.
Most of all please try not to let this make you depressed, call debtline asp and they will make you feel better.
If you want to PM me feel free,
Hugs you are not alone
Michelle

notsosuperwoman

Thank you for the replies. I will contact them. I feel angry at Lloyds but more with myself for not dealing with things and letting it snowball.

They have hounded me and phoned several times a week to sell more loans/insurance/ etc right up until I couldn't pay any more, and all the time knowing I am on benefits.

I paid the cc bill £17 short once and they were on the phone within days about the 'arrears' Calls are now coming at up to 6 per day. I either don't answer or tell them it isn't convenient.

Thank you so much for not judging and letting me get it off my chest. Now I really do intend to move forward and deal with this.

chelly63

I totally understand your anger to Lloyds and I feel you are justified. My OH was banking with them, they knew what his income was, he told them he was struggling, but all they did was sell him more of their products, which long term just increased his problems. Just do not beat yourself up over this, you have enough to deal with and I can assure you that Debtline will help you to sort this out, if you need to vent or want to talk to someone, do not hesitate to email me privately.
Hang in there Michelle

Toomuchdebt

I know what you mean about being angry-I am angry at the banks for allowing me to have cards with limits of £9000 and £7000 when I was on benefits.Yes it's my fault for spending it but if they'd been as responsible as First Direct who made me pay back an overdraft before they would allow me to use my account,I wouldn't be in this mess now.

lynzpower

Welcome, I agree IM so glad youve found us.

Dont get me started on Ltsb. Ive been steadily getting out of debt for a few months now, the other day when I phoned them to REDUCE my overdraft, the woman tried to talk me out of it. I stood bloody firm and she was going "why, you dont know when you will need it. I said, erm no thanks. She then went on about how I had a credit card approved for 4500 she could send it out. Again I refused. She kept going on about how it makes it easier to budget!!!! I was like, er NO IT BLOODY DOESNT. And it took me in my very big and strong voice to say no. So I know what you must have been up against.

I would speak with national debtline if I were you too. There might be scope in going bankrupt, to be honest with you I very very much doubt that they would take your car, most people who go BR on here keep thier cards after bankrupcy, and also having a disability, well it wouldnt get past the Human Rights Act would it

Also I wonder, is there any support that you could get from an agency or the NHS that might help you with tecniques to limit your spending when the time comes round.

I would also say, stuff the cards, feeding yourself and making sure you have adequate care comes first. Lloyds can wait, and they are not as important as you are.

Big welcome again
Lynz
xx

bikerqueen

so angry it needed saying twice

notsosuperwoman

Thanks everyone, it makes me feel better knowing others have been in the same situation. When I am on a high I spend like mad but it is always justified. I can sell what I buy for a huge profit, or so I think. I can make loads and get out of debt within a year...............the possibilities are endless! When I come down to earth again I am faced with the fact that I have spent money again.

Before I had any cards I controlled the spending. Paid my bills on time and managed to have money saved, spent it when high but saved anyway.
I spend what's available and don't ever want to see another credit card as long as I live.
I had thought about bankruptcy but it scares me because I cant always get out with my disabilities and need a debit card so I can shop online for groceries and pay my bills online. I've heard that you aren't allowed a debit card when bankrupt. Also I really would like to try and repay at least some of the money, to try and keep some self respect.

Do people recover from bankruptcy? Emotionally I mean, I think it would make me feel worse than ever , I feel ashamed as it is!

I will report back when I have been in touch with debtline. I have been reading some of the posts about dealing with people who phone to ask for money. LOL I will try some of those tips!

sanfrancisco

Do you have any assets? Do you own your own house?

Stick around you are very welcome!

notsosuperwoman

Hi San, no, lol, I don't have anything. Just my car which I bought with my mobility allowance. I can't get another one just yet because they only gave me a short award. I am scared they can take my car though, and my precious lappy, which is my link to the big wide world.
I rent privately and don't even have life insurance, I got cancer when the last policy ended and now they won't touch me!

I am only just up and need pills and a warm tub before I can tackle anything, then I shall phone debtline. I have to now so I can tell you all that I've done it!