Have I lost the Plot completely?

losttheplott

After battling with chemo after a cancer diagnosis a few years ago I am happy to still be alive. I am 45. I then went onto to be told on another occasion recently that I had another cancer but that turned out to be false. On chemo I was not able to work full time and did not get sick pay. I did not also qualify for any benefits. As I live alone and am far away from my family; emotionally I did not cope well. I spent spent spent spent and really did not care of the outcome as I thought I may possibly die. I didn't.
Now I have approx £20,000 in debt on credit cards and loans. I have £6500 on 2 interest free credit cards plus an overdraft (maxed out) at £3000. Then there are 2 loans from different companies totaling about £9000... the repayments are about £300 a month but this is the minimum payment. Even these payments I cannot afford as I am now already skint from my last pay check and using another credit card which is already another £900. I really don't know how to deal with this; am terrified of telling my family, I have a mortgage and have never defaulted or missed any of the payments but I cannot go on like this I feel at times like ending it all because if this carries on I will end up homeless and bankrupt. Can any one tell me the best option? Debt management plans? Or shifting everything into another single loan? Or a remortgage...or an IVA?
Any advice would be appreciated thanking you kindly JB

abertawe1

your first port of call should be stepchange they will give you all the advice you need 0800 138 1111.good luck

SomebodyToldMe

CAB were brilliant with me- I'd make an appointment to see their money adviser asap.
I fear DMP, IVAs etc will cost you more in the long term- bite the bullet and go BR, IMHO....but get prof advice 1st
Good luck!

alastairq

Hi.....welcome.

Re-mortgaging, to consolidate debts......whilst tempting [to release equity] simply places your unsecured debt by secured debt.....if you cannot afford even the minimum payments now, will you be able to afford the increased mortgage payments?

Before considering Bankruptcy [which is tempting for its effect on your wellbeing]...the amount of equity in your home should be considered.

The reason is, in BR, the equity [or, your share] becomes an asset, and will be sought by the Official Receiver.

Whether this happens, whether a Charge is placed on your property by the OR, or whether the OR seeks to realise the equity as a cash sum [either by someone buying the OR's interest, or, with the property being sold....] will depend entirely on the level of equity.


I emphasise, owning {?} a property and being BR does not necessarily mean one 's home is sold, and one is 'out-on-the-street!'

First, seek advice from CAB, Stepchange or NDL as has been advised above...see the stickies at the top of this forum, and thoroughly research the options, and their effects.

And keep asking questions on here , for first-hand knowledge.

longtermplanner

I think you do need complete debt advice. You would have to give us a LOT of information before we could really say much. I give some general pointers below but I too suggest that you should contact a good debt charity. National Debtline if you would like to discuss it over the phone, your local Citizens Advice bureau if you prefer face-to-face advice. Before you do this, I would spend a day or so reading up about the different options, as this will make the call less scary and you will be able to ask the important questions for you. National Debline have a stack of information on their website: https://www.nationaldebtline.org/EW/Pages/default.aspx and this site looks at how to choose between different options: http://debtcamel.co.uk/debt-options/

Debt management plans - you need to work out what you could repay each month and then see how long a DMP would take

Or shifting everything into another single loan? - very unlikely because no bank would want to take on all your risk. I don't think this will happen

Or a remortgage - that will depend on how much spare equity you would have left after the remortgage AND whether you can really afford the remortgage. Lenders have recently tightened up lending criteria

an IVA - that also will depend on the amount of equity you have and how much you can pay each month. two things to look out for that an IVA provider may not emphasise to you are what would happen to your IVA if you became ill again and the new 'secured loan' provision that is being included in new IVAs.

There are other options - selling the house, renting out a room in the house, bankruptcy etc. Look at them all, don't choose something because it looks easier and the others feel more scary and then find 3 - 5 - 7 years down the line that it really hasn't solved your problem.

I do think you should talk to your family. After your medical problems, they are surely likely to be sympathetic and this is a hrd burder for a single person to carry alone..

IF

Hi losttheplott and welcome to the Bankruptcy (BR) Board. As everone has said........first step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can.

If you're not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two/three others for your own piece of mind. Your BR could be refused if you have not sought advice.

Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

Please do read these threads and other threads relevant to you on the BR Board, remember knowledge is power :beer:

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

Beware of advice via PM.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Reasons for your BR - 6.28

Charities who help with BR Fees

BR friendly home insurance thread.

CABmoney Bankruptcy Payment Order Calculator

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
IF

National_Debtline

Hi JB

Not much to add to the above - just to reinforce the encouragement of other posters to seek impartial advice wherever it is from. It would be so hard for you to try and handle everything by yourself after the things you've been through. Posting on here is a good start; now you need to make it count.

Good luck

Dennis @NDL