£7200 in debt and on Job Seekers Allowance

bubblebath_2

Hello, newbie here (after years of lurking)

Does anyone have any advice they can give me?

I lost my job at the end of 2011 due to severe depression (after 11 years being at the company)..

Since then I have lost all confidence and failed to make a good impression at any interviews and I am still on Job Seekers getting £280 per month.
It goes on food/rent (I moved back into parents after I could not rent privately anymore)/public transport and I have very little remaining.

Here is a list of my debts - I was paying minimum payments on my cards/overdrafts and paying my loan repayments and interest was still gaining, so here are the totals

£3500 (Encash/Yes-secure)
£1800 (BarclayCard)
£700 (Aqua)
£500 Natwest (being chased by Allied International Ltd)
£500 Smile
£200 (Capital One) (being chased by Fredrickson)

My benefits stopped for a little and therefore I wrote letters to all of them saying I was going to go ahead with a debt relief order.

This sounds so silly but after close inspection I could not afford that as I did not even have £90 so I sent each creditor letter saying I can pay £5.00 per month each month and explained my situation.
Fredrickson have agreed which I am happy with providing I pay each month.

I have heard nothing at all from Yes-Secure/Encash and the others just ignore the letter and keep saying I've failed to reach a reasonable demand.

What can I do?

I don't have any money.. I don't know who to turn to.

I keep looking for jobs but to no avail.

I'm so scared I am going to have CCJ issued against me and have bailiffs round (but I don't own anything except this laptop which is about 6 years old and some shabby clothes

I feel like crying. I'm so sorry to blabber

If my benefits stop I am worried I will have no money left to pay even the fiver a month to each of them.
I feel so bad that I got into to this situation but I have and just have to deal with it.
The thing is, if I only have a fiver left for each of them then that's all I have. I can't magically give them more money.

Upsidedown_Bear

Hello and welcome :hello:

I am sorry to hear things are so difficult for you.

Have you contacted one of the free debt advice charities?
They will be able to help you sort this out.

https://forums.moneysavingexpert.com/discussion/4228011

Can I also suggest you have a read of this?

http://www.moneysavingexpert.com/cards/mental-health-guide

As Martin says the is always a way to sort out debt.
Contact one of the debt charities as a start.

This is a great place for help and support so do keep posting

bubblebath_2

Thank you for your advice.

I will read that pamphlet/pdf.

As for the charities, I have used National Debtline and they gave me sample letters which I have used but I have not used any of the others but it is nice to know there are more people out there who may help me.

Upsidedown_Bear

Glad to help.

I know CAP - Christians against Poverty are very good (you don't need to be Christian to contact them).
They really helped a friend of mine in a similar situation to yours.

I'm sure other people will be along with more advice but as it's the middle of the night it might not be until the morning.

bubblebath_2

Thanks for that. I can't sleep due to worrying and thought I would register here and post.

The pdf is really good. It has some great advice.
Thanks again

Willing2Learn

Hi bubblebath!!

Work closely and in partnership with one of the not-for-profit debt counselling services (they're all free) to create an achievable plan that takes into account your difficult current circumstances.

Try not to worry too much. As long as you listen to and follow the advice, guidance and support provided, a solution will be found and the associated stress and anxiety will be relieved, the depression lifted. You'll be able to sleep again...

In the meantime, have you spoken to your GP about how low you are feeling and your difficulty in sleeping? They may be able to provide you with a prescription to alleviate the symptoms until things improve.

With your experience in the workforce, you will be returning to employment in the future. With the application of a plan to manage your debts, you will be able to reduce and then eradicate those debts. Things will improve and you will have your life back...

National_Debtline

Hello there.

From the information provided there could be a couple of options open to you. Either self-negotiating affordable token payments - such as the £5 per month that you mention, or possibly a Debt Relief Order:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

Prior to deciding on the best route forward, do consider seeking further advice from one of the debt advice charities - as they'll be able to offer you impartial, holistic advice about the best option.
There is plenty of help and support on hand for you, very best wishes,

David @ NDL.

bubblebath_2

Thank you for your such kind words and sound advice.

I have been to the doctors and explained my scenario and they have given me something to sleep for short term.

I know I am not alone in this and it's nice to know there are people out there who help.

I will keep you posted as to whether or not the creditors agree or they take me to court.

RAS

Just remember that if they take you to court, they will be spending good money on nothing.

They cannot have what you do not have and if you ask for a payment arrangement it is likely to be £5 per month or similar.

bubblebath_2

Thank you RAS.
I thought that too. It's not like i can go to prison for unsecured debt and surely the court will see my income and expenditure too and it's either me pay direct to creditors now without them forking out court costs or doing the same after a hearing.

harrys_dad

That is exactly right bubblebath, everyone is entitled to enough to have food, warmth and shelter, and the court will only allow token payments. By definition, on JSA you have no spare money, so if you have offered them £5 a month that is a good offer. Make sure they freeze interest too. If they will not do this then contact one of the debt charities referred to earlier, or maybe do that anyway.