Debt has ended my relationship :(

san1_2

My new debt situation as a result of the today's events

Credit Card- £3500 (Halifax) up to date

Store Card- £302 (Arcadia) up to date

Car Finance- £3720 (Alfera) up to date

Overdraft- £499 (Smile Bank)

PayDayLoan 1 £200 approx (will be charges as this amount will "roll over") tried to clear this month and it has killed me!

PayDayLoan 2 £1000 approx (will not be paid at all this month, already rolled over) **** will raise as much money as I can over the next two weeks to pay as much as I can to this debt****

Next £290 up to date

Mobile Phone- up to date but will not be paid this month **** will make final payment(s) as cancelling contract****

OH for bills/rent £350- will not be paid this month ****DELAYED AS A RESULT OF SURPLUS BEING USED****

hieveryone

Can you

- ask for overdraft extension at bank to pay other bills? (payday loans etc)
- ask for a loan from mum/dad?
- cash in any savings?

san1_2

hieveryone wrote: »

Can you

- ask for overdraft extension at bank to pay other bills? (payday loans etc)
- ask for a loan from mum/dad?
- cash in any savings?

Had not considered an overdraft extension until it was mentioned earlier. I might phone tomorrow and ask, even another £500 would keep me going until payday.

I have asked my parents for some money and told them it it to pay things off in the flat before we give it up. They are not exactly well off but have offered £250 from their holiday money if I can pay it back before they go in December.

hieveryone

san1 wrote: »

Had not considered an overdraft extension until it was mentioned earlier. I might phone tomorrow and ask, even another £500 would keep me going until payday.

I have asked my parents for some money and told them it it to pay things off in the flat before we give it up. They are not exactly well off but have offered £250 from their holiday money if I can pay it back before they go in December.

Just a thought - and maybe not a popular one, but maybe worth a try.

Can you apply for a personal loan through Sainsbury's/Tesco/your bank to consolidate the pay day ones? These will have a lower interest rate and sometimes do 'payment holidays' for the first two months. This would give you a bit of breathing space?

NICHOLAS_2

pmd123 wrote: »

Secondly, as others have said, please think very very carefully before taking the advice from NICHOLAS, while it may have worked for him, and he has managed to avoid his debts, do you really want to spend the next 6 years running and hiding, being worried every time the phone rings, or someone knocks on the door, in the fear that one of your creditors has tracked you down.

Running and hiding, are you having a laugh. There is a lot of mis-information about being in debt, you certainly don't have to run and hide, you just have to bin all the blarney letters full of empty threats.

The only debt it would seem you have to really worry about these days is your council tax, because if you have assets they don't bluff, they take them.

More realistically, one or more of them will be taking you to court and obtaining a CCJ, meaning statute barred will never happen, and your credit rating will still be trashed.

CCJ's run out after 6 years also.

NICHOLAS_2

In the case of this person, paying it back is more beneficial because it is a doable sum.

If it was something terribly high like 25k, rather than have years of misery paying it back like a mug and having hardly any disposable income it is best to just not pay it.

Notice also how the OP has debt yet payday lenders are chucking money at her. They are meant to lend responsibly, although i am a firm believer in borrowing responsibly too.

pmd123

Not if the CCJ is obtained 5 years after the debt has been defaulted.

You really aren't giving advice which is going to help out the OP, you're just bragging that you got away from paying off money you owed to people, whoopee for you, glad you got away with it.

The more conscientious of us, who have been in the OPs situation, have managed to get through without screwing over people who we had a contract with, and got through it by paying back what we owed.

tlc678910

I'm very sorry to hear things seem to have ended with your other half. If you love him keep in touch, get yourself straight and you can see what happens.

I see there is divided opinion on your best plan of action. I am also of the opinion that your financial situation can be somewhat salvaged.

You mentioned a car buying site quoting 4.5K for your Fiat 500 (although they are notorious for pushing you to accept a lower offer when you go). Fiat 500 are supposed to be great little cars that hold their value really well. Why not visit several local garages and tell them you want to settle your car finance of x and get a cheap runaround too or the money for one out of the deal. Visit several and get the best deal. You can get a good understanding of the appropriate price of your car looking at private and trade sales on the autotrader or Parkers guide. They are desirable and economical and a garage will shift it straight away at the right price.

If your finance is settled and you still have a car then you only have the pay day loans and other cards and I actually agree that if you can get a loan of 6/7k (and perhaps you will be living cheaply with your folks) you have good earning potential and could pay it back in no time.

Try to get a loan that allows overpayments. We recently took a loan with Sainsburys that allows overpayments but I am sure there are loads of them that do.

If you can't get a loan I still think living with your folks you can pay that off pretty quickly.

Best of luck with everything. Do let us know how you get on and how you are.

gik

Can I ask you where your money went? How did you get into this position? I'm trying to understand how this happens. I'm so debt adverse since losing my job and it worries me sh1tless that it could happen to me.

sourcrates

NICHOLAS wrote: »

Running and hiding, are you having a laugh. There is a lot of mis-information about being in debt, you certainly don't have to run and hide, you just have to bin all the blarney letters full of empty threats.

Its true, a lot of the threats are idle ones, there is no rhyme or reason to which debts a DCA chooses to take to court, and which ones they don't, they cant take everyone to court, it simply isn't possible.
But there is a distinction between the people who cant pay, and the people who wont pay.
Some of what you say, does ring true with me, having experienced most DCA`s that operate in the uk, I would be loathed to further line there pockets.
But ignoring your debt completely is not advice I would ever give to others, it could lead to CCJ`s by default, and years of further trouble.