Almost maxxed out

pelirocco

desperado1973 wrote: »

I have not made up my mind what to do, I do not think BR is a magic solution but paying £20 per month against a 35K debt would seem a futile gesture, that's 145 years to pay off.

I am in a debt crisis, I owe double my annual income.

With lots more cutting back I could possibly raise £100 per month towards repaying this debt. If I made an arrangement, either IVA or DMP, that would £7200 over 6 years and could last longer or be reajusted if my circumstances change giving me little stability and little incentive to improve my circumstances.

If BR after 1 year it should be finished and I can get on with trying to improve my circumstances and would have an incentive as I would see some of the results.

I was hopeing someone here could tell me why I should choose the former as I can't see it?

I think you might find the BR forum on here more helpful tbh ,

People mean well on here but sometimes I do think they have unrealistic ideas , you are nearly £400 short of making just minimum payments every month , you might be able to cut your expenditure for a while , but for the next god knows how many years? .its just not sustainable . Its all very well for people to say get a better job , but if it was that easy there would be no need for this site ! I am a business owner , and I know how hard it is out there

I have no experience of bankruptcy , but it has to be an option for you to seriously consider
http://forums.moneysavingexpert.com/forumdisplay.php?f=136


good luck in what you decide to do

desperado1973

I have been to see CAB they told me that Payplan wouldn't be any use and that the CCCS wouldn't talk to me because I am not in arrears. CAB didn't have a debt adviser available and were vague about letting me talk to one as I am not in arrears and have no priority debt.

I have made no offers to any creditors as I am still using the cards to keep my head above water, once maxxed out I will not have that option.

I am trying to put together a plan, which is why I am on this forum, It is totally unsutainable, the budget does need some work and all advse given as to reducing the expenditure will be addressed.

The advise about getting a better job is not welcome as I am exhausted from pursuing that goal and so is my OH. All the ideas put forward have been tried and failed. Self employment efforts cost a loss of £3000 to add to my worries for example.

If you haven't tried it don't suggest it!

rising_from_the_ashes

I've cut £180 off your SOA.

How much do 1 bed places rent for in your area? I'm sure this could help reduce the shortfall substantially and if OH can get some work (even p/t @ NMW) it would help make up the rest of the shortfall.

And if you went down the DMP route, you'd be able to meet everything.

Did you show the debt charities your SOA? Although you've not missed payments yet, it's obvious when looking at it that there is a shortfall and if you're making this up using your cc every month then this (as you say) isn't sustainable long term and there must be something they can do to help.

Bankruptcy is not an easy way out - as others have said it can will affect everything (incl being able to rent and you don't know if you'll need to move in the next few years) and will affect you for at least 6 years but probably much longer

hojkoff

hojkoff wrote: »

Amy look at it like this.

If your partner was to match your income it'd look like this:

Total income = £2800
Total outgoing ~ £1500

Balance = £1300

So you could say have £300 per month to enjoy yourself, that's not to bad, out every weekend for dinner, or a few more cloth every month, maybe a few drinks after work.
AND £1000 towards the dept.

making you dept free in about 35 months or, ONLY 3 YEARS!

How does that sound?

Please please take note of what I've said here. Those numbers do add up. 3 years and you'll be on or close to zero. If you go BR think what you're like will be like in 3 years???

sheba

hojkoff, Amy has repeated numerous times that her partner can't get a job, and whilst we should encourage them to try any means to get out of debt and into the black for their future wealth and happiness, saying that if partner earned the same then they would be straight in less than 3 years is, however true, not helpful and possibly, not realistic. Should Amy get a job earning 35K a week, she'll be debt free by next Fri, those numbers also add up, but may (!!!!) not be achievable!! Amy and her partner should be encouraged to carefully look at all the possible avenues and then come to the best solution for their future, be that paying off debts or going bankrupt. x x x

desperado1973

I am really sorry that I came to this site. It is nearly 2am and after the unkind words from some of the responces I am unable to sleep. I feel this evening has set me back months and the feeling of being totally over whelmed is back with a vengence.

We have tried everything to get work / get better paid work to no avail. Some people get the work others don't, there is an increasing number of people unemployed, are all those people going to be clearers too? How many businesses are going to close before you can see this with your own eyes.

We have already downsized once and a one bedroom flat is not an option. If fact the cost of moving house reaches into the thousands in any case, and before you all start with the "i moved house in a wheel barrow, walked 20 miles back and forth and still did a full time job" I have done this less than 15 months ago and NO YOU DIDN'T! It is an expensive enterprise in both terms of time and money.

The situation is hopeless, I can no longer even mention any of this to my OH without a row and in fact I have no idea why I'm even bothering with this any longer.

Yes I will be homeless soon, no I will never get credit again, I will have this hanging over me till I die because there is no way out. Whatever.

I particularly liked the "I starved myself for 2 out of every 3 days" I would rather die than live like that, you are a moron!

so that some smug banker can get another bonus on the back of hard working people! you have to be joking.

Cherryjack

Sorry to hear cccs are not able to help you they have been fantastic with me.. they worked out my outgoings and debts and saw i could not afford them so i am making token payments to each debt.. just a pound a month while i save and try and cut things back etc...
Maybe another call? you might find someone more helpful? If you was to go into arrears then they will help .... good luck

rising_from_the_ashes

desperado1973 wrote: »

We have already downsized once and a one bedroom flat is not an option. If fact the cost of moving house reaches into the thousands in any case, and before you all start with the "i moved house in a wheel barrow, walked 20 miles back and forth and still did a full time job" I have done this less than 15 months ago and NO YOU DIDN'T! It is an expensive enterprise in both terms of time and money.

No of course I didn't walk with a wheelbarrow! I did a 25 mile move a while ago. Costs were approx: Hire a van for a day = £50, fuel = approx £50 & 1 day's holiday.

desperado1973 wrote: »

The situation is hopeless

desperado1973 wrote: »

Yes I will be homeless soon, no I will never get credit again, I will have this hanging over me till I die because there is no way out.

No, it's not - there is always a solution.


I think people are just frustrated and some of the comments reflect this.

As I said earlier, I managed to get £180 off your SOA - if you could get on a DMP to deal with the creditors, this saving would make all the difference.

If the problem with the DMP was because you've not defaulted yet, maybe this is what you need to do but please, please speak to one of the debt charities again and ask them if doing this - and therefore getting a DMP - would be feasible.

merlot123

No debt problems are unsolvable. It mightn't be easy or quick, but there's always a route. Debts are urgent, they grow rapidly over time, and speedily spiral into trouble. The earlier you deal with ‘em, the easier they are to deal with.

As debt isn't just a finance issue, but feeds into all elements of your life, solutions are wide and varied; from cutting interest costs, budgeting, or simply where to find free, non-profit one-on-one help.

Copied and pasted from Martin Lewis' debt problems tab at the top. (cards and loans).

merlot123

FireWyrm

desperado1973 wrote: »

I am really sorry that I came to this site. It is nearly 2am and after the unkind words from some of the responces I am unable to sleep. I feel this evening has set me back months and the feeling of being totally over whelmed is back with a vengence.

That was never the intention, but you asked for help, we gave it.

desperado1973 wrote: »

We have tried everything to get work / get better paid work to no avail.

I'm sorry, but you just need to keep trying. Life doesnt hand it all to you on a plate. It's hard bloody work and sometimes heartbreaking, but it is possible to get you out of this without resorting to bankruptcy.

desperado1973 wrote: »

Some people get the work others don't, there is an increasing number of people unemployed, are all those people going to be clearers too?

Survival is about mindset and half the battle is believing that you CAN and WILL survive. Would you sit down in a rainforest and throw your hands up in the air and claim survival is futile? Or would you keep walking, keep trying until you have nothing left? It's a cliche but it's true. Many people on here have been in the same if not a worse position than you, me included...more below.

desperado1973 wrote: »

How many businesses are going to close before you can see this with your own eyes.

We see it all very well. I have a nice job and I thank my lucky stars that I do, but it wasnt handed to me on a plate, it didnt just materialise out of nowhere, it's the result of 15 years of struggle and survival and I'm the stronger for it. You can be too.

desperado1973 wrote: »

We have already downsized once and a one bedroom flat is not an option.

Why? I'm not saying you dont have a legitimate reason, but honestly, it's a roof surely?

desperado1973 wrote: »

If fact the cost of moving house reaches into the thousands in any case, and before you all start with the "i moved house in a wheel barrow, walked 20 miles back and forth and still did a full time job" I have done this less than 15 months ago and NO YOU DIDN'T!

Yes I did. Categorically, it is possible to move on a shoestring. In any case, if you go bankrupt, you wont be moving anywhere at all for the next 6 years and you'd better pray you dont get served notice because with a bankrupsy, you'll have the devils own job getting another place, of any description.

I've just moved. I hired a van and two men for 1 day and it cost me £180. I ferried everything I could fit into two cars and my father in law came to help. Everything big went on the truck and it was a terribly long day, but finally, it was done by 10pm at night. Moving does not cost thousands unless you're counting the cost of perhaps a deposit on a new rental, but if you're bankrupt, where are you going to get that money from? No-one will lend it to you. Your only hope is to protect your credit file AT ALL COSTS and I mean that. In todays' society, there is nothing more important than that and I mean it. Bankruptsy isnt a quick fix, it's not 1 year and you're clear, it's 6 years at the very least of no credit at all for any purpose. There's no 'oh dear we're out of milk, we'll shove it on the credit card', it's doing without - literally.

desperado1973 wrote: »

It is an expensive enterprise in both terms of time and money.

It neednt be if you're willing to do some of the work yourself.

desperado1973 wrote: »

The situation is hopeless, I can no longer even mention any of this to my OH without a row and in fact I have no idea why I'm even bothering with this any longer.

No it's not.

desperado1973 wrote: »

Yes I will be homeless soon, no I will never get credit again, I will have this hanging over me till I die because there is no way out. Whatever.

We've told you how to get out.

desperado1973 wrote: »

I particularly liked the "I starved myself for 2 out of every 3 days" I would rather die than live like that, you are a moron!

OK. This annoyed me. You dont know me and you dont know why I was doing it, but I'll tell you. When I was 14, my mother !!!!ed off back to Australia and left me and my (then) 64 year old father all alone. She left us with debts of £28K. We soldiered on, living hand to mouth for the next two years until I was 16 and he had a stroke. Now, we had NO MONEY coming in and no family to turn to. At 16, I couldnt get credit and for reasons that still elude me the jobcentre said I wasnt entitled to any money. By Christmas the year I turned 16, I had finished my GCSE's because without those, we were screwed. I didnt attend 6th form because we couldnt afford it and we were in very real danger of being destitute. The council (who owned part of the house we had lived in) were making noises about eviction, my father was unable to speak or walk and we had literally no food in the house.

I borrowed some business clothes from an old friend and I walked the local industrial estate knocking on doors. I asked hundreds of businesses for a job that day and I managed to get a single interview. I got the job. It wasnt much, but it was something. I was shovelling sausages onto a freeze machine on a 12 hour night shift and stealing the odd one or two off the line to feed us. Time went on and I applied for hundreds of jobs by post since there was no internet in those days. I finally got a decent job in an office paying just £10K per year before tax. My father was improving, but still needed care but he had to just make do during the day because without my income, we were in serious trouble. I put up with the furtive groping of the night-shift security guard for the best part 6 months because I needed the job. Time went on and I got better and better jobs but I had to work for them. I left school with 7 A-C's and nothing more than native intellegence. Slowly, I made friends with successive IT professionals in offices who showed me just enough to blag my way into the next job. Finally, I'm 34 and I've long since paid off both my mother's profligacy, the mortgage on the house I grew up in which was falling apart and since bought my own house just last month for the first time ever. Do you know what I did the first night we were there? I sat in the dark and cried, because the house was mine and no-one could take it away from me. After all my struggle, hardship, uncertainly and almost an adult lifetime of fear, I had made it.

Do you know why? Because I never gave up. No matter how hard it got, no matter how frightened or alone I was with the burden of seemingly insurmountable debt that was never mine and an invalid father, I still tried. I will protect that house with everything I have.

Dont tell me that I'm a moron.

desperado1973 wrote: »

so that some smug banker can get another bonus on the back of hard working people! you have to be joking.

Honey, life isnt fair.