Please help, I am so stressed out

boredofbeingathome

Sorry just read back a bit.

With your overdraft, how about opening an account elsewhere, and putting your wages in there. Then sending a set amount by DD to the bank with your current overdraft and it will be seen to be reducing but you won't be increasing it.

You are also stuck with gas and electricity until EDF sort the meter out, so you will know better once this is done.

I also agree re the bankruptcy i do not think you need to as i reckon this is sortable. You will get there in the end. Keep on going. A lot of us have done and are still doing so. Read Hypno's diaries and you will see how well she has done and her debt was far higher than yours.

mogsi80

Thanks again, we are looking to open an account elsewhere and both wages will go there and the essential dd's will come out of there. Will look at the diaries to get a more positive outlook on things, I'm determined to sort this mess out once and for all, my aim is to be debt free by the time I'm 35, so got 5yrs to clear the lot!!! Reading some of the stories so far have shown it definitely can be done!

I'll look into changing my life cover but this does include critical illness too, and I think I'm tied in for another 2 yrs, and I know I can't afford to pay anything to get out of it at the moment!

NeverAgain_2

MrsTine wrote: »

But surely rightly so? BR isn't supposed to be a way to run away from debt without consequences... it IS supposed to be a last resort to give you a clean slate but you will have a comfortable allowance for rent, food, clothes etc... Anything over the ORs limits for living allowances etc will go to the OR - it's how it works And I'm a meanie because I actually still think a lot of the OR set limits are too generous

Mrs T,

I agree.

Were I in the OP's position, I would be selfish, and cast aside my principles.

Might as well be morally bankrupt as well as financially bankrupt.:)

Mrs_Trouble

Hi

I'm a newbie here as well facing up to my debts. I understand where you are coming from in relation to Bankruptcy as we considered this as one of our options, but if I do this then I will not be able to continue with my employment.

I think it's a good idea to set up a Bank Account, get your salary paid in and start sorting out the essential Direct Debits. Have you spoken to the CCCS about whether you would be able to do a DMP?

At least you are facing up to it, this is the hardest thing to do and I am sure with support and advice from the people on here you will be able to sort this out and move on.

mogsi80

Hi there, thanks for comments, I hope things are working out for you too.. We have spoken to cccs (online) there suggestion was dmp. My hubby would prefer to send the letters ourselves and see what response we get. Firstly sorting the bank accounts out and the essentials, then send off all the letters after that's all sorted.

I've always worked in financial services so bankruptcy wouldn't be viable as wouldn't be able to stay in the industry I know, plus I don't think it's as drastic as needing to do that - although I really not qualified to answer that considering the balls up I've made so far!!

I'm glad I finally took the leap and poured out my feelings/problems on here, just nice to know we're not the only ones in this position...

Mrs_Trouble

I spoke to the CCCS online and on the phone and they have eased my worried about a lot of questions I had.

I am hoping to get DD's sorted out asap so that we can sort out the Bank Accounts and maybe then I'll feel less stressed.

Good luck anyway!

Tink_04

Hi was just wondering how things were going? i know everything seems all over the place right now but take time to think of all your options and how you will live with this for the next xxx years.

Hope your doing ok

Tink

mogsi80

Thanks Tink, I'm feeling more positive about it all but suppose it's a bit presumputious to feel like this as I've yet to deal with the letters and phonecalls, but I've stewed over the problem long enough to see this is the right thing to do. I always have the additional stress of my income being quite variable as mainly made up from commission and my basic is only about £900 a month, so started working extra hrs to try and earn as much as poss, although I don't get paid for working but if I can make a sale or two then all good.. Helps now my hubby us on board, he was very much just carry on as they are, whilst I was slowly losing my marbles by trying to keep it all together and stressing about selling as much as I can at work to ensure I'm bringing in as much as poss! Hopefully once we start getting agreements with creditors I can rest a little easier.. I'm still frightened at the prospect of bailiffs, has this happened to anyone on a dmp? Thanks for all your help x

skyvicky123

Hi Mogsi, just dropped in to see how your getting on. Pleased to hear that you have opportunity to earn more at work - that will really help. I am sure once you get settled into a DMP your life will really start to settle down and you will feel a big weight lifted.

I'm not very experienced and new to this too so I can't offer any more advice than I did before about making sure this is really your LBM and facing up to the cause of the debt.

My OH is still struggling to realise he can't just spend what he wants. He would like to clear the debts off but his attitude is "what's the rush, we can still have a little fun" To a certain extent I see his point but we have set budgets for food, fun, beer, petrol etc and must stick to this to have money left over for paying down the debt.

Working in cash has really helped me grasp control of my spending. I draw out a weekly amount and split it into envelopes for each budget area. Sometimes I shift things about but I know when I only have £20 left I just can't blow it on something unneccessary in-case I need it for milk, nappies etc.

Have subscribed so hope to hear how your getting along in the next ffew weeks.:T

dancingfairy

Hi Mogsi - here's what I recommend:
1) start off by doing a dmp (debt management plan) - your SOA is showing 750 a month to split between your creditors so this is a decent amount.
2) Settling into the dmp should allow you to think through your options more fully - at the rate of 750 a month it will take a fairly long time to clear you debt if all interest and charges are stopped - as a dmp is informal creditors don't have to stop interest and charges although most seem to be you may have a bit of a fight on your hands at first. Hopefully after doing a dmp for a few months you will get a feel on whether you budget is realistic and whethe you need to do any adjustments - perhaps you have found a way to save on something or perhaps something costs a little more than you had budgetted for- anyway. A dmp is generally best suited as a short term solution for 6 years or less really. As it is going to take you some time to repay the 40k once you have got a few month into your dmp you will have a better feel for whether it is realistic to continue with a dmp or whether a more formal method (IVA/Bankruptcy) would suit you better. Obviously if you then did decide to go bankrupt or an IVA it will have delayed this by a few months but it should have given you some time to fine tune your budget.
3) I should point out at this point that it is not inevitable that you would loose the house in bankruptcy as the Official Receiver is only interested in equity in the property although it is not currently sorted out until 2 years 3 months into the bankruptcy I believe. You also may face the possibility of having to make monthly payments during your bankruptcy as has already been pointed out. It could of course affect your employment.
Will continue this later.
df