Help please!! £25k in debt at 24

nv2k15

Hi all


I am 24 and I am in serious trouble with my debts. In total, I owe around £25,000 which is made up of:-


Natwest loan (parents took out for me) = £9900 - paying £188 per month over 5 years (4.9% interest)
Natwest loan = £2,900 - paying £133 over 2 1/2 years (28% interest)
118 loan =£2,000 - paying £123 over 2 years (49.9% interest)
Barclaycard =£6,700 - min. payment £150 p.m (£5,000 of this is at 0% until July 18)
Capital one c/card =£960 - min. payment currently £10 (will be £40 when 0% ends in April 16)
Aqua c/card =£650 - min. payment £30 p.m (39% interest)
Natwest overdraft =£1,000 (just paying around £10-£15 in interest every month)


Total debts =£24,110


I really just don't know what to do. I earn around £1,100 per month, and after all my expenses I have around £400 per month left to pay my debts, but £188 of this goes straight to my parents to pay off the loan that they took out for me, so I am left with just over £200 to pay towards the rest of the debts, which does not even cover the minimum payments.


I have not yet missed any payments, but I am having to use the credit cards every month to live on, so the balances are never going down. I have been on the stepchange website, and it suggested starting a debt management plan, but I am terrified of this, as it would mean that I would have to stop paying my creditors. Could anyone please help me with a couple of questions:

• The loan for £2,000 I have only just taken out, and have not made any payments towards yet, would this affect me starting a DMP?
• If I started a DMP, I would obviously have to stop making payments. Could they end up taking me to court and could I lose my car?

Before anyone asks the question, yes most of this debt is due to a gambling addiction, and I know its my own fault, and im an idiot, but I would rather not be lectured on this, as I am currently seeking help for this, I am just so worried about the debt I have got myself into I cant even sleep at night, I just don't know how im going to get through it.

sourcrates

Any reason you can't declare bankruptcy ?

nv2k15

Thanks for your reply.


Have thought about it, but I think it may affect my job. I will definatley look into it as a possibility though.


Thanks.

sourcrates

In answer to your other questions, creditors have to treat people in financial difficulty fairly.
So we're as legal action is an option, creditors usually just sell a debt on to a debt collection agency instead, you can start a DMP at any time, normally these run very smoothly.

Defaulting on your debts if you can't service them, is not the end of the world.
Essential living expenses must come first, unsecured debt is non priority and should be the last thing you pay.

Jackt90

I'm in a similar situation to you - £30k actually.

Can I ask what type of gambling you're involved in? For me it's financial markets. Do you parents know?

nv2k15

Hi


It has been online slots that have got me into this mess . My parents know about part of it, which is why they took the loan out for me, as I was paying ridiculous amounts of interest, and I assured them (and myself) that enough was enough and I was going to stop.


Unfortunately, I only managed to stop for a couple of weeks, and I now I have let myself, and more importantly my parents down severely. I am actually afraid to tell them that I have done it again, as they have done everything to try and help me get my finances back into shape, and they are going to be so upset that I have let them down again that is probably what is hurting me the most, but it is all down to me and my stupidity, so I know I have got to face up to the mess that I have caused.


I just think that I have now gone past the point where it can be sorted out, so it looks like either a long debt management plan, or bankruptcy.

andyfromotley

Hi NV,

no lectures here. Follow the sound advice above regarding your debt. Bankruptcy may well be a good option for you as it will definitely limit your access to debt which is a good thing for compulsive gamblers.(CG) Sorry to hear that you are still in the death grip of gambling. You are sufferimg from a progressive (as in it will get worse) mental illness. You will be unable to sort out your finances until you get on top of your gambling addiction. For most people there is a solution and it is free. It can be found at Gamblers Anonymous. Find a meeting and get yourself to it, you will find an warm welcome and an understanding ear.

In the meantime you need to tell your parents, i do know how hard this will be.
You need to give them or someone you trust all of your cards and access to cash.
You need to install gamblock or similar program on all devices that can access the internet. (This will not stop you gambling if you are determined but it will make it somewhat difficult to do it on impulse).
Although hard to believe sorting out your finances will prove to be one of the easiest things you will do on the road to recovery you are in a battle for your lifee that may well take the rest of your life. However tackling it now will save you years if not decades of pain, and trust me there is an endless supply of pain out there for compulsive gamblers. But, you can recover, live a normal sane life and be financially secure. I know, i and many others have done it, one day at a time. I feel for you my friend, but you are not alone.

Willowpop

Hi NV2,
just a quick thought.... you can self exclude from most gambling sites online...could you do that now whilst you're determined to sort your finances out. If you exclude yourself, then even if you have a little wobble down the line it'll be impossible - or certainly much harder- to gamble again.

Shack_attack

Hi NV,

Sorry to hear about the situation but you're over the first hurdle and this is a positive step in the right direction admitting it here.

As Willow said contact every gambling site you use and get them to block you from using them, they trace your IP so you can't open new accounts / same bank details etc and completely limit these routes in.

You mention your vehicle, I think if the DMP route was available it's in the best interests of your creditors to let you keep the car as without it you can't get to work and subsequently pay them off. Although from the looks of things I think bankruptcy has to be a serious consideration taking everything into account.

I wish you all the best.

Shack

nv2k15

Hi


Thanks Andy, its good to hear from someone who has been in this position and got through it.


I think the debt management plan may be a better option for me, purely because bankruptcy may well affect my job and my future career prospects. I have been on a few sites to get some help with my gambling addiction and think I will be looking into attending the next gamblers anonymous meeting, as I have said twice previously that I could stop on my own (which I genuinely did believe I could do), but it has obviously not worked.


I think I am going to have to tell my parents tonight, even though I know how disappointed they will be. Neither of them have ever gambled, so understandably they cant understand how or why I keep on doing it and to be honest neither do I. I know I shouldn't, and I know the consequences, but somehow I still do it. Once they have had time to calm down from the news, I am going to ask them to take control of all of my finances.


I have actually self excluded myself from a few sites when I have tried to stop before, but there are so many sites it is too easy to just set up another account. Thanks all for your comments.

KirstyO

Hi NV,


If you're determined not to go down the bankruptcy route then a DMP is your only way forward. It shouldn't mean you actually stop payments to anyone. Payments may be reduced and will come from your debt charity as opposed to you. However part of the DMP is efforts to prevent further interest/fees/charges being added to your debts, and not spending any more money on credit so your debts do start to go down straight away.


On a DMP there are a couple of frustrating things that can happen...a lender not accepting it, but as has been mentioned previously they are supposed to be fair and as all of your debt is from high street banks or large credit card firms, they will be aware of this. Secondly they might not agree to freeze interest, annoying but within their rights. Finally and most likely is that you default on each of these debts. Again not the end of the world, and will only negatively impact your credit-worthiness for max 6 years (my default is less than 4 yrs old but have since been approved for cc and mortgage).


As others have correctly said the biggest hurdle for you is getting the addiction under control for good. Once the reason for your spending is gone, you will be able to get the finances sorted and it will seem easy in comparison. There is help out there for both the gambling and the associated debt. If you start using it straight away you might be able to get both sorted out sooner rather than later.


I wish you well, keep us posted x