Debt Free Wannabe!

squiggle01

So July 2014, I went into a shared accommodation with 4 other people. By the time we moved in, I was unemployed and still job seeking. By around September, I finally found a job. It didn't provide me with the best hours, but I took on the basis that it was a job at the end of the day, and that some money was coming in.

But as you can guess, by this point I had already gathered a large amount of rent arrears - I was able to qualify for Housing Benefit, and whilst that helped with reducing the amount of rent I had to pay, it obviously did not help with the arrears. In the last few months, I've not really seen my situation improve; I've been seeking employment for an extra job, and applied for a payment from my local council to increase the amount of housing benefit that I receive. I really need this to get sorted before my tennacy ends, because with shared accommodation, my housemates would be liable and that is something I am desperate to avoid at all costs.

I've also spoken to my local CAB, and they provided me with a few options. One of the main options has been a Debt Consolidation Loan. Whilst I think this is probably the only option for me right now, I'm holding so many doubts. Whilst I have budgeted for the repayment schedule, I fear the repercutions if for some reason, I fall behind on payments, as this could place me into further trouble. Also, I have slight concerns that my credit rating will stand in the way of being accepted. If anyone has a bad credit rating but passed their loan application, please message me, as advice would be appreciated.
Furthermore, if anyone is aware of any grants/loans/ways of this situation being amended, please let me know. It's been a horrible situation to be placed in, and whilst before my housemates have been incredibly supportive, it's only a matter of time before they lose their patience with me. So the quicker this can get sorted, the better!

Thanks for any help.

Tixy

I am surprised that CAB recommended taking out a loan.

But if you decide that is the route you are thinking of taking - then your chance of acceptance will depend on what 'bad' thinks are currently showing on your credit files - have you got copies of your credit reports to see what is showing.

How much rent arrears do you owe? how much have you worked out you can afford to pay towards it each month?

When_the_going_gets_tough

Am I right in thinking that your fellow house sharers have been covering your share of the rent for you? If so without being harsh you are effectively forcing them to lend you money for your rent without their agreement. In this particular case I think you have an absolute obligation to pay your housemates back in whatever way possible - even if that means taking out a loan you are worried you cannot afford. Then you need to work out whether you can continue to pay the rent or look to leaving the property. House shares are financial minefields - don't make this one for your friends.

squiggle01

When_the_going_gets_tough wrote: »

Am I right in thinking that your fellow house sharers have been covering your share of the rent for you? If so without being harsh you are effectively forcing them to lend you money for your rent without their agreement. In this particular case I think you have an absolute obligation to pay your housemates back in whatever way possible - even if that means taking out a loan you are worried you cannot afford. Then you need to work out whether you can continue to pay the rent or look to leaving the property. House shares are financial minefields - don't make this one for your friends.

No, my housemates have not been covering the share. The letting agency have been pretty amazing given the situation and have not forced my housemates to pay anything. That is something which I need to avoid at all costs.

squiggle01

Tixy wrote: »

I am surprised that CAB recommended taking out a loan.

But if you decide that is the route you are thinking of taking - then your chance of acceptance will depend on what 'bad' thinks are currently showing on your credit files - have you got copies of your credit reports to see what is showing.

How much rent arrears do you owe? how much have you worked out you can afford to pay towards it each month?

CAB said it could be a potential option, but advised that it is a risky decision to make. I'm currently around £1500 in rent arrears now - I have applied for a payment from the council, which, if successful, will shift a good £400 of that debt. I have an extra job in pipeline, but time really is going to start running out if I wait.

Candyapple

Do you have copies of your credit files from all 3 agencies? What is on there?

When you say you've budgeted for repayment schedule, how will that work if you are, and have been, running a deficit every month for circa £250?

Post up a statement of affairs and see if people can advise you further: