In debt

crakintoff

Hi
I am pretty scared of posting to be honest.
I have a live-in partner and 3 young dependants (2-7)
We have debts of £30,000 between us. It has built up over the years as we have ended up using credit to live. Ou income has dropped since last year and can't see it rising.
CCCS have suggested a DMP for 36 years or Bankruptcy. To be honest the way we feel right now, bankruptcy seems the best way forward. I have heard that on a DMP, the banks don't like to freeze interest.
Most of our debt is a loan (a consolidation loan taken out to repay debt collectors and CC bills)
What I don't really understand is why there seems to be such negativity about bankruptcy. Surely if it is an option suggested by CCCS then it is ok to do that.
We were definately going to do it, but then we were looking on here and read lots of awful things about people who were bankrput and it has worried us.
We don't know what to do. Is it wrong to feel that you can't face 36 years of paying back debts.
That may sound really bad, but we have both been so depressed and don't have the energy to face that at the minute. The fresh start suggested seems quite appealing.

Hobsch

well done for posting. I felt the same with debts of £33K approx but people on this site help. Originally Payplan advised a debt management plan that would last about 10years. Then with advice on saving money, claiming back charges, making money via ebay etc I got it down to 6 years. then circumstances can change, I got a couple of nights at a supermarket for example so I can afford to pay more. So 36 years doesnt necessarily have to be the scenario.

I am sure everyone will give you advice - they did me and I am facing up to it all and making progress. Good Luck!

craftingqueen_2

Welcome to the forum.
Myself and hubby have over 50k in debt and we have 5 dependants.Bankruptcy i'm hoping we won't have to do it ,as we will lose our house..

GirlRacer_2

Congratulations on posting and please don't be nervous. Why not post your Statement of Affairs (see southernscousers thread for first time posters), list your incomings and outgoings and see what the folks on here can come up with. When you list your debts make sure you also list the APR's and monthly payments.

Everyone will then jump on the bandwagon and suggest ways to cut back.

crakintoff

We are just renting, so at the moment that is not an issue. I will try to post my details that I put into CCCS.
My partner lost his job last year for being 'indecent' at work. Which to be honest I haven't really got over.

beanielou

Welcome to MSE.
Look forward to seeing your SOA.
I personally think that if you are looking at 36 years to clear your debt then you should think seriously about bankrupcy.

I_was_a_fool

Welcome crakintoff. Have a look on the bankruptcy forum as well, there is a lot of good advice there on pros & cons & how to go about it. Everyone has to make their own choice based on their own circumstances, but if I was facing 36 years to repay my debts I would opt for bankruptcy, especially with young children to consider.

kinkypixie

Welcome to the board, don't be scared about posting here, we're all in the same boat.

I have also read loads of stuff about bankrupcy, but I guess that you'll have to weigh up the pro's and con's for each and see which best suits you. Post your SOA, people on here are so helpful. And don't worry, there is a light at the end of the tunnel!! Well, there better be

chevalier

Does the reason he lost his job mean that he can't get another one, ie bad reference. Was it true? If it wasn't could he take it to a tribunal? If you feel there is no chance that he can get a job any time soon (not even flipping burgers in mac donalds?), then can you up the hours that you do, or get a second job, and your OH become the stay at home person.

The thing is if you went bankrupt then ok that would wipe out your debts. BUT you will have virtually no chance of getting any credit (including an overdraft) for at least 12 months. If your expenditure is still greater than your income, then surely you will just get into debt again. The only thing is it will be to people like the Provident who charge over 100% interest.

Are you getting all the benefits you are entitled to. https://www.entitledto.co.uk has a calculator to work out what benefits you can claim. At the very least with one of you not working, then maybe you can claim some council tax rebate?

Regarding the DMP. The whole point of a DMP ESPECIALLY one done through CCCS or Payplan is that the creditors are pretty likely to agree to freeze interest, and stop charges. That way they get their money back. If you go bankrupt they get nothing.

Ok CCCS have said that it will take 36 years to pay the money back. BUT at a minimum in that time, your children will get to be teenagers (saturday jobs for all I say), then go to college (but will get assistance because of your low income), your OH may find an employer willing to see what they are like rather than turn him down flat. You are virtually guranteed to get a pay rise, even if you are only on minumum wage, as the government will put it up over time. So it won't really take this long. And you might win the lotto.......(Nah!)

So don't give up hope. It can be done. You are in a bad place now, the tunnel is dark and you can't tell which is the best way to go. But just around the corner you can see the light, very faint, which shows you the end of your journey.

Best of luck
chev

mrsspendalot

I can only echo what the others have said ... post your SoA and see what is what, and in the meantime have a think about bankruptcy. It isn't for everyone, but for some people it is a great choice and a huge relief. My in-laws went bankrupt a few years ago and it was the best thing for them.

crakintoff

Hi
Thanks for you kind words. My partner is working. He has taken a huge drop in earnings. We were managing until he lost his job. Now he's working full-time labouring-long tiring hours for not very much money. As 2 of the children are under 4 it will be awfully difficult to afford childcare for me to work until one of them is at school.
When our eldest was 2, my partner had an affair. This resulted in twins. (now 5) I only found out about them after our 3 year old had been born, when he broke down.
He had been using credit to help support them, trying to keep it a secret from me.
I will post a SOA later.