Day One of recovery from my darkest debt days. Support or advice hugely appreciated!

tippingpoint_2

Hi everyone

Today has been my most (mentally) challenging day. I have spent my entire abult life (the past 15yrs) in debt, and despite having been blessed with remarkable family & friends I have allowed my financial situation to get in the way of relationships, life opportunities, and my career. Without boring you with the details, this afternoon the reality of the effects of the past 15yrs of being in the grip of debt really hit home hard, and I am now at Day One of my path to ridding myself of debt.

In March 2010, my debt total reached it's highest amount. I had 3 credit cards (£10,000 at 30.9% apr), my overdraft was at £3,350, and I had 3 PDLs (£3,000). All my payments were late (so I was being hit hard by charges), and my take home pay of £1,800 was not even covering credit payments before rent / living costs etc. My physical & mental state were a bit of a giveaway, and my parents confronted me. Despite having very little money, they took out a low interest loan for £3,400 to allow me to pay off my PDLs & the recovery began. A little over a year later, I had paid off my parents' loan, settled two of my credit cards (total £7,300), and reduced my overdraft by £250.

Then, within the space of a couple of weeks, things fell apart: Someone I was relying on to replace my departing housemate in a rented property strung me along & left me paying the full rent / bills on a flat I could not afford alone, my car broke down and the repairs hit me for several hundred pounds (which I didn't have, and idiotically turned to a PDL company for since I had closed my other credit routes after settling them), and I lost my job. In the weeks since, I have moved out of my former rental into a friend's house & my car has broken down again. My financial situation has been in freefall & were it to continue, all the hard work I had put into clearing myself since March '10 will be wasted. I have two final interviews this week for jobs I have a very good chance of getting. If I get either, I will start working ASAP.

So, this is Day One:

Current situation:

QuickQuid loan: £201 due 26 December, £1,375 due 26 Jan
Wonga loan: £1,200 due 30 Jan
MBNA Credit Card: £90 min paym due 1 Jan (balance £2,700)
Barclays: £25 interest & £88 charges due 28 Dec (Overdraft £3,100)

I have £120 cash, my overdraft & all other credit is at maximum. My friend is charging me £250 rent, but I can only stay until the end of Feb. My parents are not in a position to help financially in any way, and there is nobody else who is able to assist financially.

I spoke to Barclays, who told me they could not reduce my charges and (incredibly) suggested either seeking a high interest loan or another PDL(!).

I have registered my details with CCCS this afternoon, but am awaiting securing a job this week before I proceed (I am not taking anything for granted, both roles are offering the same money as my previous job & I am the only candidate under consideration on both and they want someone to start 1st Jan, best case scenario is that I would have my first wage by the end of January). I haven't told any of my creditors (except Barclays) what my situation is, so I'm not sure of when the best time to speak to them will be.

By Christmas this next year, I would love to be in a situation where I am not worried about where I will be living, thinking about due payments every waking minute, and well on the road to beind clear of debt for the first time (& for good). By Christmas this year, I would love to know that the I am on the path to doing that. I'll keep this as some kind of journal.


ANY advice or support anyone can give would be hugely appreciated. Thank you so much for reading.

maidincornwall

No advice, but well done and good luck with the job interviews.
MIC

tippingpoint_2

Thank you. One of them is tomorrow, the other on is Wednesday - Fingers crossed, I'll update here.

I have read through people's experiences with PDL companies here & on CAG, but can't seem to get a consistent idea of whether I would be better going to the PDL companies (as they are my main immediate problem) direct to arrange a repayment plan or letting CCCS deal with them. If anyone can advise, it would be really helpful.

Thanks.

theoretica

Good luck!

Do you really and absolutely need to own a car?

tippingpoint_2

My car broke down again after I had it repaired, so I cancelled my insurance & took it off the road. My line of work does involve me travelling regionally, but I can get away with public transport for a while if I get a job this week.

The car is 12yrs old & probably worth around £100 if I scrap it (which would probably be taken up by the tow charge).

goodmorningsunshine

Just want to offer my support, Good Luck with your job interviews.

Some scrap merchants will take your car away and pay you, so you could look into that, also you may be able to claim some of the road tax back depending on how many months are left.

Any way you could get a flat from local authority, this way, if you are unemployed, you coulld claim housing benefit, I know that would take a bit of time, but just putting your name on a list is a start. Or any way you could move back with your parents, just for the time being.

Stick with it, you'll get loads of advice and support on here.

wannabee_in_credit

Good luck. I will keep everything crossed that you have a new job for new year.
I only joined here last week but already feel like a different person. My advice for the forum is get involved and join in.
Would you share your soa with us to see if there's any room for cutting back.
Shorter term do you have anything you can sell on ebay or similar?
Anything you could offer to do from home (e.g. ironing)?
Lots of people on here do surveys and mystery shopping to earn a bit of extra.

You're making the first and most important steps... it's hard but don't give up.

sickasachip13

Hi tipping-point and welcome,

I too will have everything crossed for you this week. Things are really tough at the moment, for lots of people, and you certainly won't be the only one to have made financial decisions they later regret (just look at my sig to know that this is true!!)

Anyhow, you've acknowledged the issues, you have a good grasp of them , you're informing yourself and you've approached CCCS to get some expert support and advice. You're doing all the right things - please don't beat yourself up over past decisions, it's pointless and self-destructive imo.

In terms of your options, you may be well placed to take up a debt management plan with CCCS when you do get a job. We've no regrets about ours, although, they wouldn't suit everyone. CCCS will advise you.

It's good that you've got a supportive family too.

Best wishes

SAAC

tippingpoint_2

Thanks everyone

My current SOA. Please bear in mind that I am not currently earning - fingers crossed for this week - and my rent / household bills are really cheap until the end of Feb, when I have nowhere to stay & need to find my own place. I can't move back home at the moment because my job will be based a good 65miles from my parents' house & I need to be in the office 8am-7pm daily.

Monthly Incomings:

My salary - £1,800 (expected, tbc following this week). First pay will be end of Jan.
No other income
Total - £1,800 (from end Jan)

Monthly Outgoings:

Mortgage/Rent - £250 (at present, expected to rise to c£350 from March)
Council Tax - £0 (expected to rise to c£80)
Gas - £0 (expected £20)
Electric - £0 (expected £20)
TV License - £0 (expected £10.99)
Phone - £40.00 (used for work)
Food - £200
Gym - £30 (cancelled, will expire in Feb)
Travel to work - £80
Sundries / clothing / entertainment - £50


Sub total £650 (will rise to an expected £881)

Current debt outgoings:

MBNA Credit Card: £2,658 balance (£2,700 limit), £90 minimum payment
Barclays Overdraft: £3,096 balance (£2,850 limit, £250 reserve amount), c£25 interest monthly, £88 monthly reserve amount charges
QuickQuid: £201.75 due on 23rd December, £1,375 due on 26th January
Wonga: £1,198 due on 29th January

The PDLs are where the problem arises. Without their current due amounts, I would be in a far better situation for clearing my debts.

I have £120 cash at present. I will need to use that to live on until the end of Jan. My parents have given me £250 for January’s rent, which I have given to my friend / landlord.

tippingpoint_2

It's worth pointing out that the above SOA represents changes I have made in the past couple of weeks.

Again, thank you so much for everybody's input thus far.

sickasachip13

Yep, once you're working and have got rid of the PDLs you're really in a great position to clear everything else. I'm sure CCCS will give you some good advice about the situation. I am so bloomin pleased that we never went the PDL route, I dread to think what state we'd be in if we had!!

Good luck on the job's front - it's great you've got two interviews.