Were to Start and how to move forward.

Paulon1

Hello everyone

I currently run a small business and am in quite alot of debt though beginning to get a hold of it kind of.

I signed a debt arrangement scheme up here in Scotland last March/April time for the biggest and highest priority debts that have so far secured my flat that i have a mortgage on.

I have some debts and creditors that are not part of the Debt Arrangement Scheme and i am trying to deal with them as best i can. The most important ones are

My Mortgage. I have a relatively low mortgage to pay each month although i am bit of arrears with them i have quite a bit of equity if you can call it that these days in the flat that may be of use in the future.

My Van which has about 18mths out of 4 years still to run is currently 4 mths in arrears i am due to make a payment to them on tuesday.

I just recently managed to secure a credit report and as you can imagine it was graded as very poor with experian.

I haveother debts that have arose namely and old mobile account with 3 from 2007/2008 for £730

a provident loan for £450 from last year

an insurance cancellation for £350 from feb of this year.

These people have all made an arrangement for kind of £10 per mth.

My debt arrangment scheme that i have contained many things but namely, a barclaycard credit card, a vanquish bank credit card and a lloyds bank overdraft that i had at the time, these are all still showing on my credit file as defaulted with a balance beside them.

The thing is i just need help in having a mid to longer term goal, its harder being self employed as my income can vary, though because it is window cleaning, if i get the work done the income can be steady, i just have about more coming in than i do going out each month due to the arrangements i have in place.

My problem is is that i am scared to live as i dont know what i should do with any spare cash as and when i do get it, ie use it to pay debts, that are in no sense accruing interest any more, use it to pay my mortgage????

What is the balance to try and achieve when you are in debt, ie holiday, car, living life, do you have to give that up because of the mistakes i have made.

I am single with no children, how i still have a mortgage on a flat owing £43000 when it is valued at £70,000 £75,000 is beyond me but i have it and its a bonus.

I dont have anything really to borrow to grow my business and i dont really need much.

But how do i set a realistic time frame on getting on top of things , my life and mindset is just debt debt debt!! and i feel like it is my life and i work for nothing, it caused and causes me to not work which makes matters worse and caused me to drink alot and suffer from depression. I have borrowed alot from family and friends and it makes me feel bad, but if it was not for them i would have lost my van/business and home by now, so at least i still have a chance. I am getting help with stopping drinking and have not drank for 2 weeks and plan to stay clear for months until i am on my feet and i get my life back in balance. I would love a wee holiday :-) just feel guilty about even planning one, if and even if i could afford one.

Is there any groups and people that could help me set a realistic timescale and plan to sort things.

My debt arrangment scheme is £25,000 over ten years at £210 per mth i dont know if that was the best thing to do or not, i feel it was as some of the debts i had were looking to bankrupt me and take it from me.

If i could employ someone and market my business a little i could increase my income and get on top of things much quicker, but i dont know the smartest thing to do here and its driving me nuts.

If i had a plan with someone who knew / an expert who could guide me along and help when and if my financial situation changes then it would help with me working consistently. I hope someone out there reads this and can tell me were to start here and hopefully help get the ball rolling on living a life and not one controlled by debt and worry i would like to leave a more fun filled life behind, i am sure with the worry and unhappiness i have suffered i have paid my dues for my mistakes.

I really look forward to hearing from someone who can help me.And continued support in dealing with life when i have this problem.

Best Regards

Paul

wannabee_in_credit

Hi,
I'm far from an expert on this, but have found this site is full of people who can and will help you...
Have you contacted CCCS? If you look online they have some things that can help out, and offer you advice on the best way forward.
I really do wish you luck.

mildredalien

I didn't want to read and run, your situation sounds very complicated and it's clearly affecting you - so well done for trying to get help!

To be honest, where to start seems quite tricky!

How about filling out/posting an SOA (http://www.makesenseofcards.com/soacalc.html) so you can see exactly how much you are paying to who, which is highest interest, what your outgoings are etc. As scary as it sounds, having all my debts listed and all my income/outgoings itemised really helped me to get a grip on what I needed to do. You can then set yourself goals as to which debt you tackle first and how long it will take you which might help you to see some light at the end of the tunnel!

Personally I would say that dealing with your mortgage and van arrears would be a priority (assuming you need your van for work?)

I am not an expert in managing large amounts of debt however, it may be worth speaking to a free debt charity and explaining the additional debts to your debt arrangement scheme and see what they say. Is it a possibility that selling your house would clear your debts and allow you to start 'fresh'?