Best way to manage debt without going bankrupt

Kittiek

Hi. I am 56k in debt, live in a rented property, work full time and have around 100 disposable income per month. What is the best way to sort my debts without going bankrupt because of work

Rochdale_Guy

Hi kittiek,

I'd recommend a Debt Management Plan (free, with no charges) from The Consumer Credit Counselling Service:

http://www.cccs.co.uk/Services/Debtadvice.aspx

Worth taking a look if you have a cuppa and 15 minutes to read through the options on their website.

Good luck
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Rochdale_Guy

Forgot to add I work full time, live in a rented Council flat, and have about £126 a month spare towards my Debt Remedy Plan with CCCS!

Don't let my signature put you off, I'm just a big pessimist at heart!

Kittiek

Thanks, I'll give it a go :-)

Rochdale_Guy

Kittiek wrote: »

Thanks, I'll give it a go :-)

You are welcome.

You might also want to try completing a "Statement Of Affairs" (basically a list of your monthly income and outgoings, bills, loans, credit etc) here:

http://www.makesenseofcards.com/soacalc.html

Help here:

http://www.makesenseofcards.com/soacalchelp.html


And PANIC button, below:




Just kidding! :rotfl:

Try to be as honest as you can, its scary seeing where your money goes each month :eek:

You can also follow the instructions when you've completed it and copy and paste it on here, then the experts can help suggest where (if possible) you can cut back.

EDIT: Sorry, just remembered you've already said how much you have available. I really should pay more attention

onwards_2

Hi, i would go bankrupt if you owe 56k,take you years to pay that off, and you live in a rented property, but thats my opinion, make a fresh start, and sleep well at night! ive been where you are at the moment, i had enough of sleeping with one eye open,,,

neverbefore2011

Kittiek wrote: »

Hi. I am 56k in debt, live in a rented property, work full time and have around 100 disposable income per month. What is the best way to sort my debts without going bankrupt because of work

The best way, always, to sort debts is to simply pay them off!

Why would there be any other way?

suburbanwifey

neverbefore2011 wrote: »

The best way, always, to sort debts is to simply pay them off!

Why would there be any other way?

I agree! I've spent a life paying my bills, and can't imagine how anyone can end up having debts of 56K that are not a mortgage :eek: but I have seen higher on here.

Frankly, if I rented a home and had no assets I would choose bankruptcy also. 56K would take a lifetime to pay off on a DMP etc or any other way. Credit shot for life anyway, so bankruptcy would be the best solution. I agree with the other poster that suggested that.

Yes, debts should be paid but at 56K its not really viable to pay them off is it.

neverbefore2011

suburbanwifey wrote: »

I agree! I've spent a life paying my bills, and can't imagine how anyone can end up having debts of 56K that are not a mortgage :eek: but I have seen higher on here.

Frankly, if I rented a home and had no assets I would choose bankruptcy also. 56K would take a lifetime to pay off on a DMP etc or any other way. Credit shot for life anyway, so bankruptcy would be the best solution. I agree with the other poster that suggested that.

Yes, debts should be paid but at 56K its not really viable to pay them off is it.

But, according to the thread title, the OP is looking for a way to get out of debt without going bankrupt!

wecandothis_2

Easy to judge others..

Debt becomes a spiral.. i know i've been there, you run some up, borrow to pay it off, spend a bit more life throws a curve ball at you and before you no it your in trouble.

As for going bankrupt not everyone wants to, we didnt, we borrowed the money we'll pay back EVERY penny, might take us 12 yrs (hopefully less though) to do so , but we'll do it. Our debts are higher than the OP's and its perfectly viable to pay them back through a DMP. It was the interest that was crippling us and we were barely making a dent in the debts.. In 18 mths we've paid about £10k back all , though we've had to reduce our payments now so will take longer.

Credit rating isnt shot for life either, but then who cares anyway, i'm managed 18 mths not boring a penny so its proved that i dont need to again.

Poosmate

Kittie, with the exception of Wecandothis, I would seriously disregard the comments made by the others at this point. No disrespect people but you can't possibly suggest someone goes bankrupt or on a DMP given the information provided so far.


In order to get the best and most informed suggestions you need to post a full SOA (use the link in Rochdale_Guy's post #5). There may be areas where you can cut back on your spending, reduce your outgoings or even up your income a little (or a lot). Never underestimate what a fresh pair of eyes can see, sometimes when you are in the thick of it you can't see the wood for the trees.

Please post your SOA and you will be inundated with useful and constructive suggestions and you will feel much more able to cope with the support of the other users on here.

Best of luck,

Poo