Im in debt. How embarrasing? and scary!

sh4un

Hi
After pulling my head out of the sand I am finally attacking my debts. We have debts that as a family we cannot afford to pay:(
I have unsecured debts of £26000 with LLoydstsb (£15000 CC, £8000 loan, 2 x £1500 Overdrafts) = £700 monthly payments
My wife has £3000 CC with LLoydstsb.= £70 Monthly payments
I also have a £3000 CC with Tesco.=£70 monthly payments
Total monthly repayments of £840
After completing a SAO I have £350 available for the unsecured debts = a shortfall of £490
I am considering attempting to deal with the creditors myself. ie phoning LLoyds and letting them know about my problem, and maybe asking them if I can collate all the debts and paying of a sum over a considerable number of years.
Is this a wise thing to do?
I have been in touch with CCCS,what will be the full effects of a DRP on the next few years?
I am extremely embarrased and scared about my situation and have found it difficult to face the facts.
Sorry for going on but I found it quite de stressing putting in in words.
Thank you for any help/guidence and information

brokeinlondon

Well, I just want to say that you made a great start by talking to CCCS, and well done on getting started on tackling your debts!

I'm just a n00b so can't really offer any advice but I'm sure someone will come along soon to help

fatbelly

If you go down the debt management plan route, then CCCS/Payplan will take some of the pressure off if you use them.

You will need to ensure that your income is going into an account unconnected to your debts.

I'm guessing you own your own place.

BigCraigJohn

Yep get a totally unconnected account straight away and pay all wages into it, cancel any direct debits on that account and move essential utilities etc over to the new account. Theres a list somewhere showing all those that are connected and unfortunately most are linked to another. Reason being Lloyds can and will help themselves to your bank balance to pay credit card bills etc.
Dont feel embarrassed. Its rarely 100% the debtors fault, creditors are usually at least half to blame.

bluenoseam

Nothing really to be embarassed about - you've seen you have a problem and are now taking steps to fix it! Try posting your SoA here & see if anyone can come up with areas you can improve it a bit.

mrobeng

Sorry about your plight and hope you get to resolve it very soon. I'll definitely listen to those telling you to immediately move your income into a totally new and unconnected account. I've had a friend who had the borrower took their money from their account and it's legal I believe. Wish you the best.

mum2one

mrobeng wrote: »

Sorry about your plight and hope you get to resolve it very soon. I'll definitely listen to those telling you to immediately move your income into a totally new and unconnected account. I've had a friend who had the borrower took their money from their account and it's legal I believe. Wish you the best.

Def agree re new account, - as its in the small print they can take money from other accounts that you hold.

Santander may be an option.

Halifax - no good in with LLoyds, maybe Nat west or Co-op, get the new account 1st, and salary etc in there before making any moves, otherwise the salary just get eat up.

May also be worth doing a statement of affairs, - sometimes a 2nd look over may find some more savings,

Goos luck, and it be fine, we've all done the bury the head in the sand, xx

DragonflyCandy

Well done on taking your head out of the sand your definatly in the right place, there are some lovely people on here who between them have such a mass of knowledge they could answer any question dont be embarresed to ask!
good luck on your debt free missin :beer:

Hales82

Well done on facing up to your debts. We too are in the same position, have emassed debts that we cannot afford to pay back. We've gone down the DMP route with the CCCS and so far it's been brilliant. The relief is amazing.

Good luck with your journey x

SHELLSHOCK

You sound like you and your family are in exactly the same position as me and mine!

We started our DMP journey in January and had the 1st payment to the CCCS on 1st March. So far it has been scary, depressing and emotional BUT it has also taken a weight off our minds and things are starting to calm down a little. It takes away the constant worry every month of how you are going to pay and who to pay 1st!

We changed our account to the Co-op and they have been great so far. We went for a basic account with no overdraft facilities.

Please don't be embarrassed - we aren't here to judge, just to encourage and listen to one another.

Keep going, it will get easier.

HELENC1984_2

i'm in agreement with everyone that has posted, i am around £21k in debt and i was at breaking point until i joined a dmp - without sounding mean, it is a relief to know that there are others on this board who are in the same situation as us. the one annoying thing is that i dont have anything to show for my debts, just the fact that i got a mortgage when i couldnt afford it back in 2007 and its all stemmed from there!!

i felt scared and ashamed also but the fact that you have faced facts is the scariest thing and you have done that, so hats off to you.

all the best and good luck!!!

x