Thriftkitten by name NOT by nature....

Thriftkitten

Hi, Newbie here so please accept apologies if I have posted in the wrong place.
My story..... Ok, like so many others I have shamefully not managed my finances and have taken my head out of the sand and realized that this isn't going away....
I have written down all of my debts priority and non-priority and done the whole national debtline budget sheet which shows that I am minus about £250 a month to pay every debtor per month.... hence why I don't have any defaults YET but nerves frayed from juggling who gets what and who has to wait...
I am paying the minimum repayment on most of my debts, so there is no light at the end of the tunnel as far as repaying what I owe as 95% is just interest yadda yadda yadda!!!
I'd say my biggest debt is the car which is a 5 yr finance, I haven't missed a payment as this one is always a priority as I need a car for work (work different shifts and finish late etc, work 50 mile round trip from home)
I think for this reason I have continued to juggle rather than accept defeat and look at BR seriously.
I don't have a question as such, but, I feel I need someone to tell me that this really is the only option, I cant clear the debt even in 15 years I will still be paying just above minimum repayment per month.
I'd say my total debt is close to 20k including the car finance
I'm just so scared about what to do the whole process is really scarey, I don't have any assets except furniture oh and a computer... obviously but that is my daughters and I use it when she is out! I worry how I will get to work to support my family if my car is sent back etc.
Any advice would be welcome from those who have walked the path before me
I have never even been to court before and would panic that they would lock me up for being bad hahaha, just ridiculous but a half true worry!

TheGardener

Hi - and thanks for your story. BR is not an easy option - but compared to where you are now how scary can it be
I was facing penury well into retirement if I didn't deal with the debt - it grinds you down. If BR is the right option, it is a clean break and free you to make a new start. But make sure you understand all the consequences first.

Have you used the online debt remedy at the StepChange website? When I finally realised I was running up a down elevator, I did this on-line and it told me my options - it was BR for me. I actually did it 3 times hoping I'd made a mistake but on the 3rd time I sat looking at the words Bankruptcy on the screen and I took a deep breath and started reading everything on this forum which is amazing. I don't think I could have done it without this board.

That's my advice for now - read, read and read some more. Then make an appointment to speak to Stepchange or any of the other free debt advice charities (I didn't have much luck with CAB personally but some are good, it depends on the local volunteers skills)
If the car is essential you are usually allowed to buy one for less than £1000. It is likely it will be the Finance company that will cancel the agreement not the OR.

If you have any questions, come back to the board. (It can be a bit quiet on here a the weekend though so don't worry if you don't get answers quickly)

Thriftkitten

Many thanks for your advice, I have just done the stepchange tool and came up with the recommendation for bankruptcy... wow didn't realise that seeing it confirmed on the screen would be so scarey!!
I will call stepchange first thing in the morning and try to arrange some sort of advise on what to do next. Is this a free service similar to CAB may I ask??

fermi

Stepchange is completely free charity service, yes.

See the list of others here: http://www.moneysavingexpert.com/loans/debt-help-plan#help

I would make sure you speak to more than one of those just so you get a range of opinions on your options.

TheGardener

Thriftkitten wrote: »

Many thanks for your advice, I have just done the stepchange tool and came up with the recommendation for bankruptcy... wow didn't realise that seeing it confirmed on the screen would be so scarey!!
I will call stepchange first thing in the morning and try to arrange some sort of advise on what to do next. Is this a free service similar to CAB may I ask??

Yes, I confess I had a bit of a hyperventilating moment when I saw it on screen too! :eek:
However, from that point on - all the reading and talking to StepChange was the start of the most positive thing I'd done in years - as I learned more and stopped paying creditors to save for my fees I began to actually feel in control of my life and finances for the 1st time in years. Its strange to think something a negative as BR can feel like the most positive - as if I was actually making plans for the rest of my life with confidence.
As Fermi says, speak to more than one source of support just to make sure you are comfortable you have the right advice and let us know how you get on

Rrushi_Shqiptar

I was made bankrupt so I didn't do the form filling etc. But I still had to go to court which for me was very embarrassing and I felt humiliated. the OR dealing with my case was in my very understanding and quite kind in a way, although he left his position half way through which in a bizarre way worked out well for me. I had no payment plan, I kept my car (£1,500) but I did loose my hse 2 weeks before the 3 yr period was up

I was gutted and felt very ashamed but now, 5yrs on I have a new life, debt free, I can smile at the postman, answer the door, answer the phone and open the mail again. Yes it is hard not having the ability to get a mobile phone contract in your own name, and other little things like that. But in time it will come. Being debt free you can breath again and live again, look after your daughter and the stress will be lifted and she will see that too.

Just think and read about it, understand the implications on your life for the 12 months and then the 5 yrs after. Make sure you sort the bank accounts out first, check the agreement on the car finance and most of all watch and read this forum ask questions.

Good luck in whatever you choose to do, maybe let us know.

michael1983l

How much can you afford to pay creditors each month?

If it is £200 or more then maybe an IVA is the best option for you?

You say you are currently paying some creditors so maybe you have this amount.

longtermplanner

Debtors prisons went out with the Victorians thank goodness.

When does this car finance end? What will your financial position be then? How much is the car worth?

Thriftkitten

longtermplanner wrote: »

Debtors prisons went out with the Victorians thank goodness.

When does this car finance end? What will your financial position be then? How much is the car worth?

I have had a finance for fiat cars for about 15 yrs now and never missed a payment, because of the importance of the car it always came first payments wise, however in hindsight it was silly of me to take part ex my old car with a new one 9k I owe on it and only 8 months into my 5 yr term.
I have done a little reading about stopping direct debits and only offerring token £1 payments, in order to save for fee's which I am really scared to do so, I will wait for the go ahead from CAB stepchange for all that I think as I'm a bit worried about that one... I do have to admit to looking forward somewhat to PAYG mobiles as I am paying for myself and 2 daughters phone contracts, so the fact that they will only have a small amount and probably forced to text is welcoming

Thriftkitten

michael1983l wrote: »

How much can you afford to pay creditors each month?

If it is £200 or more then maybe an IVA is the best option for you?

You say you are currently paying some creditors so maybe you have this amount.

I have debt of about 20 ishk I didn't think I could do an IVA for that amount. I have exactly going out what I have coming in.

Thriftkitten

Also I am a member of Unison as I work for the NHS, they have some kind of debt helpline also which I suppose can't hurt to give them a call. Any advice on this would be welcome