6k in debt and just no hope

DanFish

Hi,

I'll try and keep this as short and sweet as i can.

I guess it all started when i was 18 i had a decent paying job at the time was only paying my mum £30 quid a week and spending the rest of my money going out enjoying myself etc. i had a few catalogues and mobile phonecontracts and was managing them quite well then a couple of years later i lost my job and things went downhill from there.

At the time i wasn't wise and didn't know anything about credit ratings and the impact of missing payments, ignorance on my part i know.

Now ever since i lost that job(i have got a new job now) i have tried a few times to get on top of these debts but there always seems to be something else that comes up and it all becomes a mess again.

I was using any spare money i had for a while helping my dad try and save his home from being repossessed, i turned to gambling as i thought it was the only way i could raise some money(the stupidest thing i have ever thought in my life) i then got into the payday loan cycle and my financial life is just a complete and utter mess i now have 2 CCJ's one settled and one active, i have around 10 defaults and im just so depressed all the time and worried about how im going to sort my life out.

I no longer gamble which is a start, i've had that epiphany moment where i need to get some sort of plan in motion to get my life back on track and i'm dtermined to do it.

I can't sleep, im not eating well, i'm just at rock bottom. i've checked my credit report and the total amount of debt mounts up to around £6000.

I suppose i'm looking for the best plan of action, i've heard about Debt Management Plans but the companies that do them charge. I want to sort these out myself but i've no self confidence to even pick up the phone to call them i know it's not going to go away.

I dont know where to start.

Any help/advice would be greatly appreciated.

Thank you

Avogirly

Hi DanFish,

Firstly well done on stopping gambling. That is a massive hurdle to overcome and you should be really proud there.

Secondly, there is always hope. Please don't feel like you have no where to turn. This forum is a fantastic place for support and to discuss through your options, and you definitely do have options.

I suggest that you post a SOA which will give the more knowledgeable ones on here a chance to look through to see where you could make changes.

Good luck on your journey, believe me, you will get there.

DanFish

Sorry i'm a noob, what's an SOA?

fevlo

SOA is a Statement of affairs, basically its a list of all your outgoings and income and the total at the end.
By posting your SOA on here people will be able to help you cut back and therefore have more money to throw at your debts.

If you want a Debt Management Plan have a look at Stepchange.
Loads of people on here use them and the are free as they are a charity. They will arrange with your creditors for you to make a monthly payment.
You will need to work with stepchange to agree a suitable montly budget which is realistic for you to live on then you simply send the surplus to Stepchange and they distribute it to all your creditors.

yorpington

Hi Danfish,

StepChange do DMPs for free, as do a couple of other charities. You are right not to go through one that charges. Lots of people on here use StepChange and say they are very friendly, helpful and non-judgemental.

You have already made a massive leap forward in stopping gambling and coming on here for advice. Here is a link to complete a SOA, which you can post here and people will try to help you see if there are ways to manage your money in a way that benefits you more:

http://www.stoozing.com/calculator/soa.php

I have been in terrible trouble in the past and remember that feeling that there is no light at the end of the tunnel. Chin up! There is hope

DanFish

My net income is £1200 per month and my monthly outgoings are as follows:-

Rent £450
Water £17
Council tax £100
Gas £50
Electricity £50
Telephone/mobile/internet £20
TV licence £12
Child maintenance £100
Food, toiletries, cleaning £200
Personal & Leisure £30

I am currently not paying anything towards any debts, i was spending ectra money i had gambling, i've not gambled for a couple of months now so it's going well but the extra money i had previously was paying of some Council tax arrears which i have now done. My debts from my credit report are as follows:-

24/7 moneybox £310
Active securities £447
These are two payday loans from same company(irresponsible lending? not blaming them, I did apply for and use the money)

Advance payment solutions £147
Advance Payment Solutions £34
Barclays Partner Finance £820
Brighthouse Other £800
British Gas Other £200
Capquest Investments £479
Cash Genie Payday loan £380
ClearAccount £400
EE ltd Other £541
Indigo Michael Ltd £450(this is the same as clear account again somehow they have lent me further money even though i had a defaulted account with them)
Lowell Financial £60
Lowell Financial £225 £12
Quickbridge(uk) Ltd £29
RBS Overdraft £610
Vanquis £71

I hope from this someone could give me some advice. i really need to turn my life around and be debt free as soon as possible.

Thanks

sickasachip13

Well doing for seeing the light. I know it's a lot of money but you've done well stopping it here. Many of us around here have huge debts - I entered a DMP with Stepchange with over £40k of unsecured debt.

Best of luck, SAAC

ETA: There is always hope - you've shown huge strength in stopping the gambling and once you've got a plan to tackle this debt, you will feel so much better and in control x

Muhren

Firstly well done coming on here and asking for help as that can be very difficult for some people. Secondly it's great to hear that you have stopped gambling as that would only lead to more misery and debt.

As Martin advises there is no debt that can't be sorted out so you have come to the right place for help and support. Like others have said post a SOA and others will be along to help show you whereabouts you can cut back. This can be the first step on your debt free journey.

Little_Miss_Winner

Hi Dan.

Firstly.....Well done on posting... you have made the first step to becoming debt free.

Now, in order to pay these companies back, you either A) have to increase your income, or cut down on what you spend.

So... A) any chance of a second job? anything to sell? Gumtree? Ebay??
Your bills are quite high???? are these for 1 person? Do you have a flat or a house?

Sorry for all the questions..

DanFish

I have a house, i live alone but have my son around 3-4 days a week.
i reckon i could cut back on my shopping around £40 a month.
i have nothing to sell of any value unfortunately.

The gas and electric are a little high as this is what i ahve been spending over the winter months these should reduce.

I've started to cycle to work to cut out my transport costs and also to reduce my gas bill a little as i now shower at work.

I'm going to ask my ex partner if i can reduce the Child maintenance payments to 50 a month for a while until i get back on my feet.

I would like a second job but i'm working full time at the moment and would find it difficult to fit in and still have time with my son as the time i spend with my son is the only thing thats getting me through and its the only time i feel happy.

Avogirly

Have a look on the Up your Income board, there are tons of ideas there which you may be able to do in the times when you don't have your son. Online surveys, mystery shopping etc etc.