debt advice - £40k debt

johno11

Hello

after 10 years of service, i got made redundant about 6 months ago and ever since ive not really settled in one job, i looked into different alternatives to make money, stocks / forex, i made some really good profits but then i would loose it all and end up investing more money, dipping into my credit card, my overdraft etc.
i recently took a loan out to consolidate, i lied to the loan company and told them im still in my previous employment and i received (£15k) the next week. instead of consolidating i ended up investing the money again, a week later i lost it all!

my total debt now is around £40k
£14k on CC - 27% apr
£15k personal loan - 10% apr
£11k overdraft - 17% apr

i know i have been really stupid, i have messed up my life, i have ruined my childrens future and my wife has no clue.

ive started doing some agency work, but the money just covers my mortgage and living costs

£1100 gross a month
£600 a month mortgage


please i need some advice

johno

sourcrates

johno11 wrote: »

Hello

after 10 years of service, i got made redundant about 6 months ago and ever since ive not really settled in one job, i looked into different alternatives to make money, stocks / forex, i made some really good profits but then i would loose it all and end up investing more money, dipping into my credit card, my overdraft etc.
i recently took a loan out to consolidate, i lied to the loan company and told them im still in my previous employment and i received (£15k) the next week. instead of consolidating i ended up investing the money again, a week later i lost it all!

my total debt now is around £40k
£14k on CC - 27% apr
£15k personal loan - 10% apr
£11k overdraft - 17% apr

i know i have been really stupid, i have messed up my life, i have ruined my childrens future and my wife has no clue.

ive started doing some agency work, but the money just covers my mortgage and living costs

£1100 gross a month
£600 a month mortgage


please i need some advice

johno

Wow, why on earth did you lie to the loan company ? well I think you know how deep in the doo doo you are, with that much debt I would think you need to consider an IVA, a DMP will take to long, the only other real alternative is Bankruptcy, which as you have a house, you would want to avoid, my advice is, get some advice, from one or more of the free debt charities, seriously consider entering into an IVA and dont be tempted to get any more credit, I have been in a similar situation to you and that solution worked for me, good luck with it.

Meatloaf1981

Firstly, don't beat yourself up too much. Everyone on this board made mistakes somewhere along the line and got into debt. I myself owe about £34k to various creditors and it is entirely my own fault. The first and hardest step is in admitting that you can't manage the debt alone. The second step is seeking help. Speak with Citizens Advice or look at any of the debt charities advertised on here like Payplan or StepChange. They will go through your finances in detail with you and work out the best thing for you to do to address your problem.

Well done on taking this first important step. It might be worth posting your Statement of Affairs on here (Links to one can be easily found on here somewhere) and then people will have a bigger picture of what your options are. In filling it out, make sure you're honest with yourself and suitably budgeting for things you SHOULD be budgeting for, even if you're not currently!

dancingfairy

O.K firstly you have to stop the gambling/trading whatever you are calling it. It obviously is not working for you and is obviously getting you deeper in trouble.
It might be worth getting some career counselling for suggestions as to what sort of career would suit you. When you are in a more stable situation job wise hopefully this will temper the urge to gamble. It sounds like the gambling was a desperate attempt to get some money in and support your family/get some self worth back by providing for your family and it's all gone a bit wrong.
I think you need to work out realistically how much you can afford to throw at the debts each month. This will partly determine what sort of debt solution will work for you. Do note however that any sort of agreement/dmp/iva/bankrutpcy will impact your credit file and if you are linked in any way financially to your wife( ie through the mortgage) then it will affect her too. How far of paying the minimums are you?
You basically have 2 main options with the family - try and work through this and shoulder all the repsonsibility and try and hide it from them as long as possible or you 'fess up. Given the strain of trying to keep it a secret for a number of years while you pay it back and the chances of your family finding out I think short term pain is probably better (ie confessing). Before confessing to your wife I think it would help to get some help from National Debtline, or your local CAB or StepChange as then at least you will be able to show her a way forward and that you are committed to sorting it out.
df

dancingfairy

It is definitely possible to deal with that level of debt but I do really think you will need your family on board with you.
On the face of it your best options look like either an IVA or maybe bankrutpcy depending on how much equity (if any) you have in the house.
Best of Luck
df