How do you all manage to pay your debts off??

NinjaSavingKat

Work like a dog. Live like a hermit.

sharp82

A DRO might be worth investigating if your car is worth less than £1k

Check on here - http://www.parkers.co.uk/

You pay for 5 years, then the rest gets written off.

Stepchange will provide you with further advise, and how to go about. I think there is a £75 fee

michael1983l

John1993 wrote: »

The problem with taking this route, though, is that it leads to the sort of place that you find yourself in, where you need to recommend hanging around parks to pick up coppers that teenagers drop, to try and get by.

Hopefully the OP is able to aim a bit higher than that. Telling people to hide their heads in the sand is terrible advice.

When did I say I hung about parks to get by?

I said I thought that was probably the most likely place to find coppers as the thread was talking about that. One thing is for certain, if I paid all of my creditors what they wanted me to pay them I wouldn't be able to get by for many a year. However I can get by now, only just mind, but that is nowt to do with me living off the grid, it is to do with having children and a higher cost of living these days.

michael1983l

Tixy wrote: »

Statute barred debts are debts that you no longer legally required to pay. But it involves paying nothing towards your debts for 6years, ignoring contact from them and hoping creditors don't take court action against you. If they take court action then the debts don't become statute barred.

Realistically if you owe over £20k then there is very little chance that non of your creditors would take court action.

I owe about 40k, I would like to go bakrupt but cannot for various reason. I realistically would be paying back this debt for a very long time via a DMP, and can put very little towards an IVA. So I have very little option other than to ignore the debt completely if I want to be free from it within a reasonable amount of time. I might only be alive for 50 years, I don't want to spend 25 of that giving banks and payday loans every spare penny I have.

So I have been ignoring it, for 2 years now. Only one company to my knowledge has obtained a CCJ and I have ignored that too. A CCJ may not be statute barred after 6 years but it is certainly set aside, making it very unlikely for them to be able to collect the payment from you if they haven't already after 6 years.

It might sound like a crazy way to live, but I will live this way until I am either out of the woods, or if they catch up with me I will move abroad. Most of what I owe is horrendouse charges anyway, I have a little shame in not paying back some of it but all the payday lenders I do not give two hoots about. Unfortunately you cannot pay the ones you would like and avoid others succesfully otherwise I would.

Tixy

sharp82 wrote: »

A DRO might be worth investigating if your car is worth less than £1k

Check on here - http://www.parkers.co.uk/

You pay for 5 years, then the rest gets written off.

Stepchange will provide you with further advise, and how to go about. I think there is a £75 fee

Thats a mix/confusion of an IVA and a DRO.

An IVA you pay in to for 5 (sometimes 6) years, and the fees (several thousand) are taken out as part of your repayments.

A DRO is a mini bankruptcy for people who owe less than £15k and have less than £50 a month surplus income - and the fee is £90.

From the sound of it the OP would not be able to undertake an IVA - at £80/month they cannot afford enough per month for creditors to agree to it.

Either one or both of them may be eligible for a DRO - depending on how the debts are split (assuming the total debts are around the £24k mark).

Newyorkdreams

michael1983l wrote: »

I owe about 40k, I would like to go bakrupt but cannot for various reason. I realistically would be paying back this debt for a very long time via a DMP, and can put very little towards an IVA. So I have very little option other than to ignore the debt completely if I want to be free from it within a reasonable amount of time. I might only be alive for 50 years, I don't want to spend 25 of that giving banks and payday loans every spare penny I have.

So I have been ignoring it, for 2 years now. Only one company to my knowledge has obtained a CCJ and I have ignored that too. A CCJ may not be statute barred after 6 years but it is certainly set aside, making it very unlikely for them to be able to collect the payment from you if they haven't already after 6 years.

It might sound like a crazy way to live, but I will live this way until I am either out of the woods, or if they catch up with me I will move abroad. Most of what I owe is horrendouse charges anyway, I have a little shame in not paying back some of it but all the payday lenders I do not give two hoots about. Unfortunately you cannot pay the ones you would like and avoid others succesfully otherwise I would.

Sorry but this kind of attitude stinks - you enjoyed racking the debt up and now have no moral compass to pay all of it back. It astounds me how people can be so utterly cheeky.

FBaby

There are no secrets. There are few people on one low income who go on to have 6 children and have accumulated serious debts.

Unfortunately, as it's been said, the only way to get your debts down if to increase your income and lower your outgoings. You've limited yourself by having so many children that you can't afford to get back to work so you will have to accept that it will take a long time to pay your debts. Don't forget that you are family rich, which is a great asset, but it means cash poor until you can go back to work and pay your debts quicker.

John1993_2

michael1983l wrote: »

One thing is for certain, if I paid all of my creditors what they wanted me to pay them I wouldn't be able to get by for many a year.

It's a shame that you did not come to this realisatin before you borrowed all of the money, of course, as it'd have lead to you, and your children, having a better life.

While you advise others to follow you and your family into such a mess, you must understand that others will point out that your advice stinks.

quantic

I wish there was a magic answer but unfortunately there are only two methods, decrease your outgoings or increase your income so that you can throw more money at the problem!