I'm embarassed, Credit Union enquiry...

Monkeyballs

Hi, wonder if anyone can advise?

I was discharged from bankruptcy almost 5 years ago now and at the time I told myself that I would never get into serious debt again.

I've now found myself in a small amount of debt due to a couple of payday loans, a vanquis card, a Littlewods account and a loan from Provident.

I know, I know it's stupid of me but the fact is that it was managable until when I split up with my long term GF about a year ago and went mad on both drink and gambling.

I have about £6k in debt of which half has been racked up over the past year.

I'm now off the drink and have cancelled all my online gambling accounts and self excluded myself from the local bookies (I also attended my first GA meeting on Tuesday).

Problem I have is that while my debts are managable it's all split into bits and pieces... Thanks to my BR I can't get a loan and my credit rating generally is in tatters.

I've joined the local Credit Union with the view of taking on a loan to cover the debt and set up a savings plan to run along side. They want 2 months bank statements though... I'm embarrased as it shows a string of £10 deposits to various gambling sites...

Will this prevent me from getting a loan that I need?

I appreciate it sounds stupid taking on more debt but it's a case of paying either £150 per month or so over 3 years to them or pay £600 per month on my debts as they stand.

I can afford to pay the £600 per month don't get me wrong but, only just and it's strangling my life at the moment.

Can anyone advise?

PrincessPea

can you wait until you've got two months worth of statements not showing the deposits to gambling sites?

Monkeyballs

Hi Princess, I did consider that but it feels a little like cheating... If they ask me then I'd want to be able to just say 'this is the situation that was, this is how it is now'.

But I think this is my most likely course of action...

Just wondered if anyone had any similar experience?

Thanks again for your comments :-)

Marisco

Hi Monkeyballs, first off well done for realising and admitting you had a problem re gambling, and for doing something about it! As for Credit Unions, I don't know too much about them to be honest, but someone will be along who does. Oh, and welcome to the boards;)

Monkeyballs

Hi Marisco,

Thanks for your support. I never considered myself to have a problem really but it just seemed to get worse over the past 3 months or so, to the degree in which I became very aware of what I was actually doing! I just hope that my past 12 months or so of activity isn't going to ruin my chances...

Hopefully someone will be able to advise, if not then I'll just have to bite the bullet and speak to them about it *gulp.

Thanks again.

norathetiger

Hi,

I have been with a credit union for 8 years now, i would think you would need to save first before you can apply for a loan.

Monkeyballs

Hi Nora,

Thats what I thought too but I asked when I became a member and they said that as a member I would be able to apply and my poor rating would not have any effect on their decision, nor would my not having been a member for long be a problem either...

I'm thinking that I just need to come clean to them, honesty is always the best policy.

I just want to try to make my life a little easier in the short term, thats all.

I'm more than willing to set up a DD for saving the same amount as I repay each month which will hopefully help.

I have also set up a DD to a savings account already, but I'm starting low at a tenner a month.

Marisco

You'll be surprised how quick that tenner will mount up:) I just changed 10p, 20p and 5p's yesterday, that I've been throwing into jars for yonks, and I had £105 altogether:D You don't miss it in small bits, I just got into the habit of emptying my purse every time I came in. I've got the "penny" bottle to tackle now - I can't even lift that off the ground!!:eek:

happycamel_2

Hi, well done for the good start made so far. But now I going to be brutal (well intentioned and for your own good).

1) this is the second time you've got in debt so I think it SHOULD cramp your lifestyle for a bit. That way it'll remind you not to do it in future

2) I agree with waiting for a couple of months to apply to credit union for a loan. Then take four months worth of bank statements, be honest and show them how well you're doing. That'll encourage you to actually keep behaving yourself for the next couple of months

3) Setting up savings is a great idea. Maybe some of it could go on a fixed term saver cos they pay higher interest and means you won't be tempted to spend it. BUT only do this once you've paid off any debt at a higher rate than you'll get on the savings.

4) Write yourself a letter about how you feel now. How it's a pain to deal with debts. How you feel stressed about it etc etc Then next time you feel like you're losing control read it to yourself and make sure you don't go there again. Otherwise keep the letter locked away and forgive yourself and move on.

5) It sounds like you react quite strongly when stuff goes wrong in life. That's normal, everyone does, but try to have a support network that you turn to instead of the drink/gambling/whatever. That could be us on this board, your friends or family, a church, or an organisation like GA. Cos as you're finding out the hard way (and you DO have my sympathy) that stuff that feels like a distraction or a solution at the time often makes everything worse.

Good luck, keep smiling and keep posting.

Monkeyballs

Thanks for all your comments!

Happy, I really appreciate your comments and suggestions.

I especially like the idea of waiting a couple of months and then taking four months statements along as this both gives me the additional incentive I need to stay on track and also helps to ease my conscience re. the gambling adding to my overall debts.

You're right, I do tend to act quite strongly to situations but normally have a pretty level head (honest) I am confident that I can stay on the straight and narrow but would, at the same time like to get my life back on track and 'de-cramp' my lifestyle.

I really don't do much, I'm not massively sociable at the best of times and I think this is something which I need to address. Also, while I don't have the money to get my life back on track this is because I'm too busy keeping up with my repayments. I know from last time that this is a priority but I'm at the point now where I need new glasses, shoes, clothes... I'll never have a massive splurge but I need to replace the essentials at some point soon but I'd rather pay my bills first!

Again, thanks for the advice!

Folks, keep it coming.

Regards,

RAS

Mb

Put your tenner a month savings into the credit union. Shows willing. Then they are more likely to loan you some money to pay off one of your horrendous loans.

Next up join www.freegle.co.uk or freecycle and you may well be able to get some clothes, possibly even unworn shoes, for nothing. That will also cover a lot of household goods.

Check out the Up your income, old style Money saving and freebie forums here and you could find that life gets easier.