Newbie in a spot of bother please help!!!

jko116

Hi everyone, over the past few years I have managed to get myself into a spot of bother, i am currently in around 11500 of debt to 7 different creditors and have no idea where to start to get out of it.

Also i ran a small business for a few years and have never submitted any tax returns there was very little profit if none out of this but i now have fines to pay, of which i dont have the money, i am now employed in a low paying job and have worked out that i have around £100 disposable after bills and all to try and get it sorted out.

Please help i dont know where else to turn all these companies are trying to charge a fortune to sort it out.

uphillstruggler

Start by drawing up an SOA - you can find a template on this site. This will show you how much you have at the end of the month to make payments to your debt.

Then call your creditors and be up front. Tell them you are in financial trouble. Most are happy to accommodate you. My mistake was to make every effort to keep up payments to creditors when I couldn't afford to.

Get in touch with StepChange and follow their advice.

I'm guessing you were director of your small business? Is it still registered with Companies House? It's likely that amounts owed to HMRC would be considered priority, but hard to say if it's a limited company. Definitely look into all the options.

Good luck.

kazp11

I had similar problems this time last year. I went to the Citizens Advice Bureau. They were brilliant.

I was getting myself into more debt trying to make minimum repayment. They contacted me loan provider and credit card providers and agreed a payment plan based on the money I could realistically afford to pay.

I now am reducing my debt, living within my means and most importantly SLEEPING at night and not worrying!!! You will have heard so many folk talking about making a budget, be honest, include everything (add all birthday expenses for. Year then divide by 12) etc etc.

I cannot tell you how much more relaxed I feel. If I manage to save a little from my budget I can even treat myself (family).
Good luck!!

Tixy

Hi

Regarding your business fines (I assume these are the fines for not submitting a self assessment tax return in the relevant years) might be worth contacing business debtline for some free impartial advice.

Have you still got your financial records? did you prepare any accounts at the time? As well as paying the fines you will need to show how much profit/loss you did make each year.

For your personal debts - don't use any company that wants to charge you fees for advice or monthly fees, speak to one of the debt advice charities - IMPORTANT - Where to seek professional impartial advice about your debts.

dancingfairy

For the business debts I would speak to Business Debtline.
df

jko116

Thanks for all your replies much appreciated, the business debt is due to not submitting tax returns, just buried head into sand, for some reason me credit score is still high even tho there are all these debts on it is this a con, got the template thanks looking at it again im not sure i could even afford 100pm.

dancingfairy

If you haven't got 100 pounds a month then offer less. If you haven't got it then they can't have it....
It's better to pay something, rather than nothing and it shows you are trying to sort out your debts.
You really need to speak to one of the debt charities. You may find that a DRO (debt reduction order) is suitable for you. A dro is like a mini bankruptcy.
There's a factsheet on DRO's here: http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx
Best of Luck
df