Debt up to my eyeballs. Don't know what to do.

Matthew32

Hello,

I'm going to keep this reasonably brief, because - honestly - I feel embarrassed that I'm in this mess at all. I just don't know what to do, and I know it's basically all my fault.

My building society gave me a credit card. It was going well, but then I made a big purchase and put it onto a balance transfer card. Then it was "a little bit more" and "a little bit more"... >_< I soon learned that 0% doesn't last forever. Then I ran up an overdraft. Mostly because I couldn't afford credit card repayments, but also because I was - simply enough - living beyond my means.

I got a new job, and saw a magical opportunity. I started a new bank account with the motivation to pay the old overdraft off (along with my other debt) and get a new start! But it didn't work out that way. I struggled with all three repayments (credit card, transfer card, and old overdraft). That struggle led me to build up yet another overdraft with my current bank. The last few months, I've been running away from the issue. Ignoring it. I've had letters, and threats. I get multiple calls a day from collection agencies (but don't answer them). I'm basically just scared because I don't know what to do...

I've had a look at getting a DRO, but don't know if they apply to me. I do struggle to pay bills, and I'm living to quite a tight budget... But yeah... >_<

Overdraft £1000
Credit Card £1,700
Balance Transfer £5,300
Current Overdraft £1,600

TOTAL £9,600

I hope that's enough info for someone to be able to offer some advice.
I just have no idea where to begin.

Growurown

Hi

You could go onto Step Changes website and go through their debt remedy tool.

http://www.stepchange.org/

Or give them a call tomorrow. They are a free debt advice organisation and should be a good place to start.

Pickle29

Hi
I know how you feel! Embarrassed, sick, ashamed, scared - been there, still there, but slightly less since stepchange have been helping me. I can see alight at the end of this.

Ring them tomorrow, I promise you will be glad you did.

MrsGSR

Good advice from Pickles29 and Growurown there. You've made a big step by realising it now the next step is to find out where you can seek help. This board will also give you the support and help you need. Make that call tomorrow.

Tahlullah

Ok, you made a mistake or two. But do not underestimate how much guts it takes to stand up and admit to others, total strangers, that you can't cope and need help. It is the bravest thing a person can do. From this point on, dealing with it should get slightly easier.

You have taken the biggest step. Congratulations.

Sazzie23

Hi Matthew

Welcome to MSE forums, well done for making a great start by acknowledging there is a problem and taking steps to sort it out. Ok o you might not know exactly how to fix it, but there is plenty of support about. You are in good company here.

Try Stepchange or debtline and see how you get on, and come back soon, we'd like to hear about it,

National_Debtline

Hello Matthew.

We have a comprehensive fact sheet covering Debt Relief Orders, you can find it here: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

Here is some further information on the DRO criteria:

You must:

• be unable to pay your debts;
• have total debts under £15,000 at the date the application is approved by the official receiver;
• have assets below £300;
• not have a car or motor bike worth more than £1,000;
• have less than £50 a month spare income after normal household expenses are taken into account;
• live in England or Wales (or have lived or run a business in England or Wales in the last three years); and
• not have had a DRO in the last six years.

I hope you find this information helpful!

Best wishes,

David @ NDL.

carol1963_2

Hiya Matthew, I too know exactly how you must be feeling, I'm into my first month of my DMP, you'll feel so much better soon.

dancingfairy

Off the top of my head a dmp (debt management plan) or DRO may be suitable for you. A dro is like a mini bankruptcy (obviously more info has been given on this above). A dmp is where you pay whatever you have spare towards you debts each month. It is an informal agreement between you and your creditors and you ask them to suspend interest and charges to get back on your feet.
Speak to the debt charities and see which method will suit you best.
I would be wary of DROs myself as I *think* they are a form of insolvency (as opposed to an informal agreement) so they may impact upon things like future career prospects etc so research all this before making a decision either way.
Best of Luck
df

Matthew32

National_Debtline_representative wrote: »

Hello Matthew.


You must:

• be unable to pay your debts;
• have total debts under £15,000 at the date the application is approved by the official receiver;
• have assets below £300;
• not have a car or motor bike worth more than £1,000;
• have less than £50 a month spare income after normal household expenses are taken into account;
• live in England or Wales (or have lived or run a business in England or Wales in the last three years); and
• not have had a DRO in the last six years.

I hope you find this information helpful!

Best wishes,

David @ NDL.

Hey,

Thanks for the info.

How long will my credit be affected for (regarding a DRO or a DMP)? I believe that any 'bad' history stays on my credit file for six years, but is it possible for this to negatively affect my credit score after this time?

I want to be able to buy a house one day... And I wouldn't mind moving out of my place into somewhere with cheaper rent sometime soon too! It'd be frustrating and somewhat ironic if I couldn't attempt to cut down my bills because of bad credit.

Thanks,

Matthew

Sazzie23

Hey Matt

That is a really good question, I'd be interested in the reply. I may have to go into rental but am worried I won't pass the credit searches . I am in DMP.