Help...don't know what to do

psycrow57

Hi everyone...I've already written this once and lost it, so I'll be as brief as I can.

I'm 24 and finally accepting that my level of debt is out of control. I have 20k of unsecured debt (don't own a home, or even a car!) spread across a personal loan and 3 credit cards, not including a student loan from SLC.

My debt problems really started whilst at uni when my student loan barely covered my rent, and my part-time job made up little of the difference. When I graduated, I couldn't get any more than a minimum wage job for a while, and had no choice but to leave home, so I ended up practically living on credit. I spent two years in a better job, finally managing to make a dent into my cards, but then I got made redundant at the start of the year and any progress I made is now ruined.

I have another job now, which is better paid than the last, but I have a chronic illness that causes a lot of pain and my employers have tried to get rid of me a few times now (I am covered by DDA, and have got some good advice there, but the atmosphere is still very difficult - the behaviour of my manager and HR constitutes bullying but there's no-one to go to and nothing to gain from complaining). This situation is making my health even worse, and I don't know how much longer I can keep doing this for - the only thing that's keeping me there is the huge amount of debt I have and the fear of not making my payments. Also, without getting too personal, my illness means that there's basically a time limit on my ability to have a child - I am engaged (although can't afford a wedding) and would love to be a parent, but it's not an option because of the debt, and I'm terrified that by the time I get myself sorted (if I ever do, which feels unlikely) that it will be too late (this isn't my main concern, but it's yet another thing to worry about).

I can only afford the minimum payments on my cards, so they're not going down. I can't shift them to a 0% card or consolidate to a lower rate loan because no-one will lend me any more money. I haven't missed any payments on the cards or my loan, but my loan still has 4 years to go and I feel totally trapped. Even after those 4 years, I can't imagine I will have managed to pay much of the cards off, so will have to start all over again.

I feel so desperate, I'm sure a lot of you can understand. In the back of my mind I have considered doing something drastic, but don't know what that would be. I have no idea what the reality of an IVA or bankrputcy is, or even if those options would be right for me (I filled on the questionnaire on the CCCS site and they advised bankruptcy though).

Sorry for going on so long, any advice would be greatly appreciated.

Many thanks and take care...

lynzpower

Hello sugar :wave:

Cor your situation sounds so similar to mine, its as if we are in the mirror, I too have similar health probs , Im off sick on and off, with the fear of being given the boot, and scared to death that its all going to fcome crashing down. I sympathise. Im also engaged, desperate for that wedding ( aint gonna happen just yet) and times ticking on my own fertiliy. We have a lot in common

Ive been here a few motnhs now and with a lot of effort my debt has been reduced. I wont lie, I have my fair share ( or more than my fair share!) of terrible days, but i am getting there, and in time you will too whatever you decide to do, or how to play it. whatever happens you will get support here

Have you done an SOA on the CCCS website? If so post up all your incomings & outgoings up here, we are well versed in knowing the cheapest deals on the market and we cn find extra money to throw at your debts, and to give you extra breathing space.

All the best, and stick around

Lynz
xx

Broken_hearted

I would go bankrupt, if your health is already bad then you need to take time to sort that out.

cupid_s

I know these debts are yours and not the responsibility of your fiance, but are they in a position to be able to take our a lower loan or 0% credit card to allow you to get on top of your finances.

psycrow57

Here it is in black and white - quite horrific when you look at it...

Your Income Amount
Your take home pay £1,100
Total income £1,100

Housing Amount Comment
Rent £300
Water £15
Council tax £55
Gas £10
Electricity £10
Telephone, mobile & internet £50
TV licence £5
Public Transport £50
Food, toiletries, cleaning £160
Tobacco £100
Medicines/prescriptions £20
Dentist/opticians £20
Hairdressing £10
Education fees £20
Clothing & footwear £23
Newspapers/magazines £5
Sports, hobbies, entertainment £10
Sundries/emergencies £10
Total expenses £870

Additional information Comment
Total income £1,100
Total expenses £870
Surplus (Deficit) £230


The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.

Your Creditor List
Creditor name Debt type Outstanding balance Contractual payment Ownership of debt
1 Barclaycard Credit Card £1,150 £30 Me
2 Barclays Overdraft £200 £10 Me
3 Egg Credit Card £1,850 £37 Me
4 Lloyds TSB Credit Card £3,800 £70 Me
5 MBNA Personal Loan £13,500 £325 Me
TOTAL £20,500 TOTAL £472

I'd say the outgoing here are accurate-ish - my brain is not working very well today as I've gotten myself into such a state...!

Rach

quantumleap

Broken_hearted wrote:

I would go bankrupt, if your health is already bad then you need to take time to sort that out.

I'm not a regular by any means as you can see by my post count. And I ask this only out of curiousity, its not a criticism. However, is it wise to suggest going bankrupt to someone who is clearly having problems, particularly when they haven't even posted a SOA? Surely you can't determine, based on the information that has been provided, that going bankrupt is appropriate in this instance.

Just a though!

all_hours

psycrow57,

Please could you post the APRs and credit limits for the cards and loan?

Have you defaulted on anything yet?

Are those figures just for you or are flat sharing?

dudleyboy

Broken_hearted wrote:

I would go bankrupt, if your health is already bad then you need to take time to sort that out.

I agree with quantumleap.

Back to the OP, your outgoings seem pretty modest and sensible. The only things I could see you really cutting out is tobacco (smoke rollies/less/quit) and newspapers and magazines (same info for free on the net). Your phone/mobile/net seems fair at £50 combined, although could savings be made on these compared to your current deals?

Based upon other's past advise, I suggest contacting CAB or CCCS (links at the top) to see what they suggest. I'm sure you'll feel much better afterwards as they have the knowledge and experience.

Well done for posting, Rach, and welcome. £20,500 CAN be paid off on your salary!! It might mean going without a holiday for a couple of years, and updating your wardrobe less often, but at 24, and with few responsibilities, it can be done!

Good luck!

psycrow57

Ok...at the moment, all my cards are up to their limit, embarrassingly...
Lloyds TSB Card - £3800, 14.8% APR
Barclaycard - £1,150, 24.9% APR
Egg Card - £1,850,
Virgin / MBNA loan - £13,500, 13% APR

I haven't missed any payments, but this month I went over the limit on my Egg card and Barclaycard by about £30 on each, so now this month is going to be even tighter...

I live in a kind of flat share, but it's a bit complicated - I share with my faince and a friend of ours lives with us - it's the only way we could afford to live anywhere! Bills are split fairly equally between the three of us, and then my fiance and I work out our shared costs between us. He earns even less than I do, and has his own uni debts to worry about (although nowhere near in as much trouble as I am).

We can't change energy providers either as our landlord won't allow it...

psycrow57

Thanks everyone...

I know, stopping smoking is something I really need to do but the more stressed I get, the harder it becomes! I am spending a lot less on fags than I used to and I'm getting there!

What are holidays and wardrobe updates? I'm sure I used to know but think I've long since forgotten!

I just feel like such a failure, I don't know how I let myself get into this state...

all_hours

If that's just your food bill - you could reduce that.
£120 a year on hair cuts is a lot.
£276 on clothes also seems high - can you not manage with what you have for the next year and just buy essentials when they wear out?
Give up or cut back smoking

Shouldn't the TV license be split between 3?