Struggling with debt? Ask a debt advisor a question

Ox1987

I have been advised by yourselves to consider a DMP and have a pending appt to be booked I have two questions I am at my wits ends as I am not sure whether its the right thing as I can only get the budget to 200 to debt and at c 36k that would mean 15 years and my current work is only a 12 month contract so who knows if I will be out of work again.
I have no equity in my house and it does not cover the mortgage plus SL as the prices have dropped considerably recently in my area, it more than did when we took both out. Also the job I had to take is at less than my salary was in 2008. Am i fighting a lost cause. I have 3 beautiful young kids i love but if we have to go BR i am not sure we can be happy again we would lose house and I possibly could not work as I am a CIMA accountant though their website does not say I would be banned.

Also I was advised to move by bank account as I owe to my current bank, I am nervous as i have payment that i dont want to miss ie CT mortgage. I have enough to cover April but May needs to come out new bank

What should I do I feel a bad parent and have ruined my kids lives
I am finding it hard to continue

mum2one

Ox1987 wrote: »

I have been advised by yourselves to consider a DMP and have a pending appt to be booked

Thats good youve taken the first step and youve been given some sound financial advice, and at least with the call your be able to ask the questions go through the budget. I would suggest jotting down any questions that you have so you know to ask them at the time.


I have two questions I am at my wits ends as I am not sure whether its the right thing as I can only get the budget to 200 to debt and at c 36k that would mean 15 years and my current work is only a 12 month contract so who knows if I will be out of work again.


It doesn't mean that your budget is always going £200, things may change, but the positive is yes its £200 for now, but every penny of that £200 is going off your debts and if and when your money changes a review can be made

I have no equity in my house and it does not cover the mortgage plus SL as the prices have dropped considerably recently in my area, it more than did when we took both out.
Sorry know nowt about houses, but hopefully the housing market change for the better

Also the job I had to take is at less than my salary was in 2008.

positive yep it may be less pay - its the economy, but you have a job, your a hard worker, and your putting your family first, your being a breadwinner (not meant sexist - your not sat on your bum your working hard
Am i fighting a lost cause.
From an outsiders point of view I don't think your fighting a losing battle, I see a really strong person, who through no fault of their own has been dealt a bad set of cards in life and if trying to turn the situation around.

I have 3 beautiful young kids i love
Those kids love you to bits, I bet, your doing this to give them the best start you can

but if we have to go BR
if you have to go BR then that is the route it has to be, it wont be a decision that will have been made lightly, but your cross that bridge if it comes, with the full strength and support of your family, stepchange, and people from the boards.

i am not sure we can be happy again we would lose house
being blunt a house is bricks and mortar, - the thing that makes it home is you, your wife and your children, and the memories you make. If it happened, then a new house would be a new home and a new set of memories to be made.

and I possibly could not work as I am a CIMA accountant though their website does not say I would be banned.
if there website does not say you would be banned, thats something that you would need to look into further, and may be the reason to stay on a DMP.

Also I was advised to move by bank account as I owe to my current bank, I am nervous as i have payment that i dont want to miss ie CT mortgage. I have enough to cover April but May needs to come out new bank

Get the bank account sorted asap, I don't know who your with or who your going to, but what i did to be on the safe side was make my payments manually for the 1st month - most by telephone, juts say your changing bank accounts, (in this day and age you won't be the first and certainly not the last, and that rather than wait for a standing order / direct debit to go through, your being proactive and ringing to make a manual payment. The mortgage company would be more impressed with you being proactive and it shows your commitment to them.

What should I do I feel a bad parent and have ruined my kids lives
I am finding it hard to continue

You are not a bad parent, and you have not ruined your kids lives, - the things kids need most is a parent that loves them, and just from reading your post it jumps out to me what a wonderful parent you are, everything you doing your doing for the kids, and putting them 1st.

Maybe it just means you change your plans a bit, -

trip to seaside -
money doesn't matter trip - day out, top up on sweets, I feel sick, get there go to posh cafe, don't forget to pick up a present for aunty gertie for looking after the gold fish, - oh heck wheres the day gone!!

New way - Day out, small packet sweets in car, still getting a treat - drink (made up juice maybe pre freeze - kids have their own slush puppies style drink with a flavour they like

Food - prepared picnic - you know the kids like the food, share a laugh and joke, reminise about how you use to have family picnics depending on age of children - could make there own picnic bags

Your already near the sea - grab some nets, go crabbing, build a sandcastle, - mum stretches out, dad gets buried in the sand

pack a bat and ball set,

Children still hungry - ah thats where the magic bag comes in handy as you have done a little extra food.

Home time - yep grab a prezzie for Aunty Gertie - what about a shell or a pebble, maybe the kids could decorate a pebble with felt pens personal gift

On way home - kids sleep - peace.

---

Thats a bit of a daft way to describe it, but with just a little tweak, you can still do a lot, - my DDs 10 - shes mad on 2p machines - so we have budget £1 for 2ps, then shes goes on bingo, 20p a go - £1s worth she has as much fun with that £2 as families that just pump money into the machines.

---

Your not the 1st nor the last person to find yourself in a state of debt, I'm nearly 42, in debt up to my eyeballs. But you have taken the first and the hardest step and that is asking for help. There is a lot of support on the debt free wanabee boards, on oldstyle boards there great tips re groceries, meal planning etc, on others theres tips for cheaper Christmas presents.


I broke your post us as I wanted to say your not alone and try to show you there is a light at the end of the tunnel it may be a long tunnel but your there xx

Ox1987

A quick question I have the two boys Child Trust Funds with the bank that I will leave as I will owe money to. These are proper trust funds opened up with the vouchers when they were given and also my mum has put some money in the eldest when my gran died
Is this money safe both in the case of a DMP and also in the case of a bankruptcy

please dont tell me they will lose the money i am not sure i csn cope with that
the whole dmp thing is really scaring me if im honest if it has a chance to work for me i am happy but it is scaring the hell out of me to get it set up

mum2one

Ox - I'm in same baot as you, im the owner of my daughters trust fund, - i was told that as long as its in childs name and your clearly listed as trustee there shouldn't be any issue, as its clear that your name is just been used as the adult person.

If the DMP didn't at least worry you, then I would wonder whats wrong with this person, its understandable your going to be nervous

One of the advisors from stepchange will know the exact ins and outs of the situ. xx

lboj1

HI guyz, here my problem i hope someone could give me ideas of what to


I came into this country bout 5years ago to study and gain experience, i recently finished my university with good grades but the problem is i messed up my visa renewal and i was rejected because of a mere £40 dip in my maintenace fees.


I have some outstanding overdraft from my uni days and some other debts i woud like to clear, i currently have a plan set up but it will take me a year atleast to clear them all up.


The problem i have is my ongoing dispute with UKBA and there are chances i may be asked to leave the UK anytime soon if my appeal doesnt go to well, What do i do in these circumstances? I dont want to leave debts that will hinder me in the future when i come back to the uk.


I havn't spoken to any of my debtors as i fear they will ask me to provide money i dont have at the moment. what do i do ? i want to clear my debt but it doesnt seem that i would be given the opportunity to.

Stuckinarutt

Hi,

Please can someone point me in the right direction as I am so confused about my out of control debt and have no idea how to tackle it.

Brief Overview

I started taking out loans and credit cards while I was at Uni 12 years ago, this quickly got out of control and severley affected my credit file, I was very naive.

Since then I have never really managed to get on top of my debt situation, I have always moved debt around, taking out loans to pay other ones and so forth. The truth is that I have suffered with a gambling addiction for many years which has ruined me financially and have only recently managed to get on top of this and start turning my life around, but now though I have to face my responsibilities and debts that I have been running from for so long.

My debts total around £17k of unsecured debt, these included banks loans, overdrafts, paydays loans, unpaid gym memberships, basically everything over the last for years just spiralled and now it is such a mess.

It has got to the stage where all of these debts are with debt collector companies and resulted in a bailiff visiting my mums house this morning, which has really shock her up and I feel dreadful, I really need to get a grip on this.

I am fully employed now and am renting a room in a friends house, I am really starting to turn things around but just have no idea where to start with this, whether bankruptcy would be a good idea, IVA or a debt management plan, I know my credit file is ruined already but not sure of the real implications these will have later on.

I know I have been extremely irresponsible with these debts and letting them all get to this stage but I am ready to face it now, if anyone could give me any advice it would be greatly appreciated.

Thank you

jimmyhull

Hi I have amassed £8500 in debt, mainly due to gambling. the debt consists of overdraft, loans, credit cards, and pay day loans which are killing me. My gambling has reoccurred in the last few months which has eroded any inrode into what I have previously paid off my debt. About 10 months ago I was in the same situation and my parents bailed me out of the pay day loans. On which I took help and started to save a little to pay off my overdraft. This last few months I have totally imploded. Got loans to pay off loans, gambled more and lost mire in a tragic attempt to pay it off. I have extended the loans this month but have now found myself unable to pay my car insurance or main bank loan of £150. over drawn on my overdraft which i'll be charged for and literally have no money available. I am so ashamed of mysel, strugggle to sleep at night with worry. I dont know what to do as I know this will break my mums heart aswell as mine. lie after lie has built up and I dont know where to turn.

StepChange_James

Ox1987 wrote: »

I have been advised by yourselves to consider a DMP and have a pending appt to be booked I have two questions I am at my wits ends as I am not sure whether its the right thing as I can only get the budget to 200 to debt and at c 36k that would mean 15 years and my current work is only a 12 month contract so who knows if I will be out of work again.
I have no equity in my house and it does not cover the mortgage plus SL as the prices have dropped considerably recently in my area, it more than did when we took both out. Also the job I had to take is at less than my salary was in 2008. Am i fighting a lost cause. I have 3 beautiful young kids i love but if we have to go BR i am not sure we can be happy again we would lose house and I possibly could not work as I am a CIMA accountant though their website does not say I would be banned.

Also I was advised to move by bank account as I owe to my current bank, I am nervous as i have payment that i dont want to miss ie CT mortgage. I have enough to cover April but May needs to come out new bank

What should I do I feel a bad parent and have ruined my kids lives
I am finding it hard to continue

Hi Ox1987,

It sounds like you're having a really tough time at the moment. I'd echo the things mum2one has already said - there is help available and it is possible to get through debts.

CIMA's website has this about bankruptcy: http://www.cimaglobal.com/Members/Members-handbook/Members-employed-in-business/General-member-guidance/Bankruptcy/ which says you have to inform them but doesn't say what happens after you've told them.

You could always give them a call and ask them whether it would affect your employment or future employment prospects.

I don't know enough about your situation to say if bankruptcy or a DMP is your best option - but if we've recommended a DMP then it's safe to say it's a realistic option. The 15 years estimate is based on a payment of £200 a month, but a DMP is very flexible so even small improvements in your finances can knock years off that estimate.

Changing bank accounts can involve a bit of work during the change over, but many new banks have a switching service which can help with the in between period. I'd have thought there should be enough time to get everything moved over in time for the May payments to come out of your new account.

I hope this helps. It sounds like you're doing all the right things. Whether it's bankruptcy, a DMP or any other debt solution, I'd say you should feel proud that you're taking steps to get back in control of your finances.

All the best.

James

StepChange_James

mum2one wrote: »

You are not a bad parent, and you have not ruined your kids lives, - the things kids need most is a parent that loves them, and just from reading your post it jumps out to me what a wonderful parent you are, everything you doing your doing for the kids, and putting them 1st.

Maybe it just means you change your plans a bit, -

trip to seaside -
money doesn't matter trip - day out, top up on sweets, I feel sick, get there go to posh cafe, don't forget to pick up a present for aunty gertie for looking after the gold fish, - oh heck wheres the day gone!!

New way - Day out, small packet sweets in car, still getting a treat - drink (made up juice maybe pre freeze - kids have their own slush puppies style drink with a flavour they like

Food - prepared picnic - you know the kids like the food, share a laugh and joke, reminise about how you use to have family picnics depending on age of children - could make there own picnic bags

Your already near the sea - grab some nets, go crabbing, build a sandcastle, - mum stretches out, dad gets buried in the sand

pack a bat and ball set,

Children still hungry - ah thats where the magic bag comes in handy as you have done a little extra food.

Home time - yep grab a prezzie for Aunty Gertie - what about a shell or a pebble, maybe the kids could decorate a pebble with felt pens personal gift

On way home - kids sleep - peace.

---

Thats a bit of a daft way to describe it, but with just a little tweak, you can still do a lot, - my DDs 10 - shes mad on 2p machines - so we have budget £1 for 2ps, then shes goes on bingo, 20p a go - £1s worth she has as much fun with that £2 as families that just pump money into the machines.

---

Your not the 1st nor the last person to find yourself in a state of debt, I'm nearly 42, in debt up to my eyeballs. But you have taken the first and the hardest step and that is asking for help. There is a lot of support on the debt free wanabee boards, on oldstyle boards there great tips re groceries, meal planning etc, on others theres tips for cheaper Christmas presents.


I broke your post us as I wanted to say your not alone and try to show you there is a light at the end of the tunnel it may be a long tunnel but your there xx

There are some great tips for a cheap day out here - thanks for sharing!

StepChange_James

Ox1987 wrote: »

A quick question I have the two boys Child Trust Funds with the bank that I will leave as I will owe money to. These are proper trust funds opened up with the vouchers when they were given and also my mum has put some money in the eldest when my gran died
Is this money safe both in the case of a DMP and also in the case of a bankruptcy

please dont tell me they will lose the money i am not sure i csn cope with that
the whole dmp thing is really scaring me if im honest if it has a chance to work for me i am happy but it is scaring the hell out of me to get it set up

Hi again,

The child trust funds are in the child's name rather than the adult, so there's no risk to the money in them.

A DMP or bankruptcy of the parent wouldn't have any impact on the money held in the name of the child.

Hope this clears things up.

James