Rob Peter to Pay Paul

barkkev197

Hi Guys,
I am 39 year old and have had debt since I was 19 - this escalated and got way way out of control a few years back. On top of my own loans/credit cards I added some of my girlfriends to help me out - we are not together now, but I am still with the loans - my fault.

Anyway - I need help. I have 3 loans, 2 credit cards, 1 overdraft and 2 payday loans. I am in a financial mess. Up until about 8 months ago I coped and paid my debts. My overtime and shift allowance was cut at work leaving me earning £1400 per month - a massive pay cut of about £600 per month.

I now have about the same outgoings with my debt than I have coming in - I took out another payday loan last week to pay my credit card bill.

I always have honoured ny debts and paid them. This month I am scared I cannot. In fact I know I cannot. I have never missed loan payments, etc, but I cannot go on struggling like this like I have for years now.

I do not sleep, am becoming increasingly depressed and optomistic about my future. I own no property and feel I never will. I do not pass the buck for this onto anybody else at all, that is not why I am posting this - I just want to know if there is anyone who can help me. Claiming bankrupcy/insolvency frightens me to death, like I say I have never missed debt payment, but I cannot rob Peter to pay Paul forever.

I have made initial contact with Citizens advice and will see what happens there - I just want to know if anyone can help me and advise me what to do and the implications of any decisions.

I just want a good nights sleep and not stressed and frightened about my future.

Thanks for listening.

Tixy

Hi and welcome

I would advise you to read these two threads as a starting point.
Help for First Time Posters & SOA Calculator
The Big Guide to Becoming Debt Free

There are lots of people in similar situations to yourself and there are ways out of your situation. Contacting CAB is a good step in the right direction. Once you have had a read of those threads it might be a good idea to post up a statement of affairs.

If you have debts with the bank you fo your current account banking with then it might be an idea to set up a new bank account with a bank not connected to any you owe money to so that you can protect your income from the bank deciding to off set money from your current account to your debts.

Also this template letter might be useful to you whilst you sort your figures out and wait for an appointment with CAB - http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=51 (although it does depend on what your SoA shows as to whether its appropriate to send that out).

Mikazaru

First step is to fill in an SOA here http://www.makesenseofcards.com/soacalc.html so you can see what you available to tackle the debts at the end of a month and people will be able to advise on the best course of action.

Superbiatch

I found myself in almost exactly the same position as you, please please try not to stress anymore. All debt is solveable and i'm only 3 months down the line further than you

OK, first things first, you need to do an SOA (link available on DFW forum) which will show your income and outgoings. Then you need to think about do you owe any financial institutions linked to the bank you get paid into? If so, then you need to find a new bank which has no ties with any of your creditors.

Lastly, you could go onto the national debtline website and download their pack whilst waiting for CAB appointment. The CAB will basically give you all the information you need which is also contained in the pack, so you can choose to either self manage a debt management plan (which is what I do) or choose to go with one of the free ones such as CCCS or Payplan who work in your interest. If you do contact your creditors (best not to IMO), don't let them bully you into paying them anything until all the maths has been worked out on what you can genuinely afford. Out of interest when are all your direct debits due and when do you get paid?

First things first, put the kettle on and go about getting all your paperwork out. Fill in the SOA which will show what is available after all your 'essential' outgoings such as mortgage and utilities.

I remember feeling just as you do now and I can only tell you from experience once all this is sorted out, you will feel a big relief

barkkev197

I did not come on here looking for sympathy or assigning blame but to ask for help. A lot of people get into debt for whatever reason and I have worked hard all my life to pay my debt - my pay cuts at work have pushed me into this position to ask for help.

Tixy

Kev - ignore Ernster and his ridiculous un-informed post, instead focus on the other helpful replies you have had.

Ernster86

Tixy wrote: »

Kev - ignore Ernster and his ridiculous un-informed post

Wow really? Please explain further.

Superbiatch

Ernster86 wrote: »

Id love to feel some sympathy for you but I dont. You brought this on yourself and now you deserve to pay the price. Coming on here looking for another shortcut? Someone to help you? Work it out yourself, you've had 20 bloody years to do sort your situation out!

You're lucky you can apply for bankruptcy so just do it, and forget about owning a house of your own. Last thing you need is to take out a $200,000 mortgage, stay away from debt, geez you really don't get it do you!

Are you for real?! This is a non-judgmental forum and I am quite insulted you feel this way when so many of us are in the same position due to a recession and cuts in wages!!

Go and troll somewhere else!! :mad:

barkkev197

Thanks for your reply superbiatch - I have noted what you said and am going to address this. My 3 loand come out on around 26th of each month and my 2 credit cards I just pay before the due date - no direct debits set up for these. I get paid on the 25th of each month. Can I ask why you chose your particular plan and is it an idea to post my in/outgoings on here?

sukieq

Ernster, sorry to justify your stupid, pointless post with a response but clearly you are on the wrong forum. This is a support thread for people with debt who need help, if that upsets you then trot on.

OP, there will be plenty of advice offered here. Post a SOA and you'll get the help you need.

Ernster86

barkkev197 wrote: »

I did not come on here looking for sympathy or assigning blame but to ask for help. A lot of people get into debt for whatever reason and I have worked hard all my life to pay my debt - my pay cuts at work have pushed me into this position to ask for help.

My issue is you haven learnt your lesson. You kept taking out new debt to repay previous debt and now you say you want to own a home in the future seems crazy to me to get right back into debt.

Look mate, I'm not a monster I know your stressed out and I cant imagine what you're going through but I really fail to see how so mant people get in these situations in the first place.

Hope you get the help you're after...