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I don't know what to do

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
3 replies 874 views
Billy90Billy90 Forumite
7 posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
I've done what a lot of people do which I know is the worst option but I buried my head in the sand.

At a rough estimate I would guess my debt is about £15k+

It started when I took out a loan with ppi insurance. I was keeping up with payments and my credit was great. I was made redundant and went to claim with the ppi but they were coming up with every excuse why they couldn't cover me. By the time I'd found a new job the loan and mobile phone had pretty much ruined my credit. I paid off the phone contract but ignored the loan as they were asking for more than I leant in the first place with interest and charges etc despite the fact I'd already paid over half the loan off.

I was silly and started to not care about my credit anyway which I know is stupid and I've learnt my lesson but I've left myself in a horrible position with multiple debts. No one now knows where I live but I want to clear my name and looking for the best way.

I am currently in the early stages of becoming self employed so I'm living off absolutely minimum income with a baby on the way.

I have a logbook loan, a bank loan, debts to energy company's and insurance, mobile providers and a payday loan.

I haven't heard from anyone for a while except the logbook loan who are threatening to take the car although they don't know my new address as I haven't updated it with anyone due to not having the logbook.

I have looked at all options I can think of but nothing seems like it will help.
In an ideal world I'd love to just pay everyone off and live happily but I genuinely can't afford to. I literally struggle to pay rent at the moment and keep myself out of arrears with that.

Any advice would be much appreciated.
Thank you

Replies

  • sourcratessourcrates Forumite, Board Guide
    23.3K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Hi,
    Have you considered a DRO (debt relief order) ?


    Although you say your debt is 15k plus, the limit for a DRO at present is 15k, but from October, this is rising to 20k.
    Most debts can be included, your DRO would last 12 months, you make no payments, after 12 months, your debts are written off.
    Full info here :


    http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx?WT.srch=1&WT.mc_id=200109&WT.seg_1=dro&gclid=CMmtzsbotMYCFZHHtAodJh8M2w
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
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    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • rockm87rockm87 Forumite
    847 posts
    Wedding Day Wonder
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    Hi I second that, and I would probably give step change a call to see what your options are. There is always an option!
    Total Debt in Feb 2015 - £6,052 | DEBT FREE 26/05/2017
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  • National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
    8K posts
    ✭✭✭✭
    Hi

    A DRO may potentially be an option as the others have suggested but it will depend on your specific circumstances.

    If you own a car worth more than £1,000 you wouldn’t be eligible for a DRO. Also, as a Log Book Loan is classed as a secured debt the secured part wouldn’t be cleared with a DRO if you still have the car. One option may be to allow the car to be repossessed and then include any debt from it in a DRO but it depends on whether you need to keep the car, particularly if you’ll need it for your new business.

    It’s a good idea to telephone one of the free advice agencies to go through the options you can consider for dealing with debts based on your particular situation.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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