Newbie in huge debt and feeling lost

dumast

Hello,

I'm new here and this is a grim starting point. I've been lurking for years but never had the courage to create an account and post until now. I hope I'm posting this in the right forum as a starting point. Bottom line I'm in severe debt. I have a big tax bill due to be paid on January 31st and no way to make that payment in full.

I've been self-employed for the last 14 years of my life. Over the course of the last 5-6 years, I've allowed debts to pile up and escalate out of all control to the point now where I'm struggling to see a way out. I've been battling depression, isolation, and gambling addiction, all three no doubt connected, and failing miserably. I finally took steps to address two of these through counselling last year (a huge step for me - a person who tries to avoid all social interaction - forcing myself to attend weekly meetings) but I can't stay I feel I'm in a better place today. All three problems still persist and continue to struggle.

I owe approximately £64,000 in credit cards and loans + £16k tax payment due in a couple weeks. While up-to today I have still not missed a single repayment on any of my debts or priority debts, I'm now at breaking point with the tax bill due. In the past I would have just piled this onto a credit card (leading to today's inevitable situation), but this year I can't. I only have enough credit to cover about 1/3 of the bill, but I know the IR will expect me to utilise all possible credit to pay them the maximum on January 31st.

If the IR will agree to paying the remaining £10k over 6 months (which will be a huge struggle) then I'll have the same problem in July when the next bill is due. The cycle would then be repeated in January and so forth so I can't see the IR going for this at all.

Stepchange suggest a DMP for me. I guess this might work if enough creditors agree to freeze the interest which is something I know they are reasonably not required to do. I know people have taken on DMP's and regretted it later after wasting years and getting nowhere. That worries me a bit. I assume I will have to deal with the inland revenue separately? And I guess whatever agreement I reach with them would then need to be considered before a DMP is executed. Also the IR may force bankrutpcy on me anyway if they don't like the state of my finances and see

Any suggestions on where I should go from here? I'm guessing rushing in and entering into a DMP with stepchange is not a decision that should be rushed the same afternoon?

lizzy23

didn't want to read and run, i am on a DMP with stepchange and can now see my debts reducing, i would suspect that the IR count as a priority debt? at the end of the day you have less than 3weeks to find 10k, asking you to post an SOA isn't really going to help. if it were me i would take stepchanges advice, at least if they see you working with one of the recognized debt charities, they maybe more inclines to let you set up a repayment plan

clarryd

I agree with lizzy23, I am on a DMP also and it is the best thing that I have done in a long while. The first step is admitting you have a problem and the second is listening to the advise of the experts.

Stepchange are great they do not judge you, they do ask a lot of questions I am not going to say they don't because they do but its for your own benefits.

I have noticed my debt going down and feel a bit better for it.

If you don't want to contact Stepchange go to the debt management people.

You definitely need help even if it is just for a short time, you can come out of you DMP at any time it's you who is in control.

Good Luck.

its_maths_not_magic

Welcome to the forum. You've come to a good place here. I can't really advise you on your issues, but I can understand you are really going through a rough time. Hopefully you've got help for your gambling and mental health issues. One resource that might help you is SMART recovery (google them for their contact details, they have UK and USA specific sites). Its a science based recovery program for any sort of compulsive behaviour from addictions to gambling to spending. They have a wealth of resources and online meetings, based on emotion regulation and are entirely free. They might be able to help you.

As already said, step change is a great place to start. If you want to know more about dmps, you can always contact the national debt helpline. They are also staffed by lovely, nonjudgemental people.

I don't have much experience with depression or gambling but I know from my own circumstances that dealing with my debt has honestly lifted a massive weight from my shoulders and I haven't regretted it for a second. Good luck on your journey.

littlemiss_pretty

Welcome dumast. I can't imagine what you are going through as I have never been in debt. You sure are in the right place, there are lots of wonderful people on here with plenty of good advice and support. You are not alone we are all with you.

It will be easier for people to guide you further and in the right direction if you complete an SOA. It will give a clear picture of your income and outgoings.


Just stay strong and keep going to sort this out.:)