Spiralling Debt Problem

clivebarker1971

Hi all, I hope someone can give me some advice. Three years ago my long term (12 years) relationship with my girlfriend came to an end. To make matters worse we also worked with each other in the same office. I took the end of it terribly badly and my life started to spiral out of control.

I took out 8 payday loans - stupid I know. But I was paying them back each month (sometimes wasting even more money and rolling them over) so I could "drown my sorrows" 24/7. Then I lost my job nine months later. This was even more frustrating as I was in the process of setting up affordable repayment plans for them.

I had to move back in with my parents and basically buried my head in the sand. Increasingly since then, I have been getting 5/6 six calls from different debt collectors, people turning up at my parents' doors on occasion. I have either not answered the phone/door and pretended I wasn't me. I have also started unplugging the phone for large parts of each day.

I has got to he stage now where it is making me ill with worry. In total I would estimate that my total debt including payday loans/bank/mobile phone provider is roughly £10,000.

In two weeks times I have secured a 10 week temporary job, not great money, but more than the JSA I am on at the moment. I have considered an IVA or DRO - do these work? Will all of any future income be taken?

Thank you for any advice, I really do not know what to do, I am at my wits ends so much that I was considering moving out into a tent somewhere so at least I could be free of the constant worry about calls etc. but I know that this is just burying my head in the sand even further and would make it virtually impossible to gain permanent employment.

pozza_73

You need to seek professional advice. Debt line are very good and will help to focus your mind on what you need to do.

Jack8171

Hi Clive,
Well done for finally deciding to get your head back out of the sand. That's the hardest step.
As pozza says, you need to ring one of the debt counselling charities. Have a look at the stickies at the top of the board for good advice.
Also, doing a SOA is a good step. This lists all your income, all your outgoings, all your assets and debts, and allows you to draw up a realistic repayment target. Post the results on here and I'm sure lots of people will give you good advice about what you can do to manage your expenditure better.
Yes, you can sort this out. You should be able to set up a debt management plan, the phone calls should stop, you may well get most of the interest frozen, and you will eventually be debt free.
If you've got eight payday loans your credit file is pretty much shot to ribbons anyway, so defaulting properly on the loans and setting up a structure to pay them back will only make a bad credit file slightly worse, so there's hardly any downside. The upside is you should be able to sleep at night, take control of your finances, understand your money in a better way than you probably ever have.
Good luck! It will be hard at first and expect it to take a long time, but you will end up debt free.

clivebarker1971

Thanks for the replies I'm just checking out National Debtline now and will call them tomorrow and perhaps pop down my local CAB and see what they have to say

pozza_73

Good luck with it Clive. I have paid of £15k worth of debt through a DMP so it is doable. I was so nervous about ringing debtline but they were brilliant and they helped me to focus. I eventually ended up with Payplan who I highly recommend if you need help with a DMP

Sazzie23

Clive

When I stopped being able to pay my debts a kind clerk at HBOS suggested I ring Stepchange, I did so, (their web-site is comprehensive if phoning is difficult) and regained control over my life. I am no longer afraid to answer the phone, open the mail or waiting for the knock on the door. I have hurdles to get over but they now seem do-able.

Good luck, & come back to the forums, there is lots of help here

Well done for making a start - its not easy - but you are not alone

manzanilla

In two weeks times I have secured a 10 week temporary job, not great money, but more than the JSA I am on at the moment. I have considered an IVA or DRO - do these work? Will all of any future income be taken?

You need secure employment and some spare cash each month to consider an IVA, so that isn't possible at the moment.

If you were still on JSA then a DRO would be a definite possibility (assuming you don't own a car worth more than £1000?). Whether one is with your temporary job depends very much on what you will be earning and how much you will be paying your nice parents for board and lodgings... Even if your parents aren't charging you anything at the moment, it would be reasonable for them to charge you something when you are in work.

It sopunds as though a 'fresh start' might be a very good diea for you, to put this mess (girlfriend, bad debt decisions, unemployment, hassle by creditors) behind you.

National DebtLine are excellent about DROs - they are the good guys and tell it straight, which is what you need to hear. Good luck with your call tomorrow.

And well done getting a temporary job. Even if the money isnt great, it's better than a big blank on your CV

terryw

Alex583

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