Thousands of pounds worth of debt

OriolaW

Basically I lost both of my jobs and in the process racked up credit card debt to the tune of £4500

I'm studying but have started work which earns me £60 on the days I can work 1-2 days a week...no guarantee there will be work. My studies prevent me from applying for JSA because I will miss a day if i do. My rent is being paid at the moment by HB

Every single one of my bills is overdue so we can add another £1000 to that number above.

I'm not sure where to start.

I'm concerned that I will not eventually be able to apply for a mortgage on this property in a few years when I'm eligible because of my poor spending.

sourcrates

OriolaW wrote: »

Basically I lost both of my jobs and in the process racked up credit card debt to the tune of £4500

I'm studying but have started work which earns me £60 on the days I can work 1-2 days a week...no guarantee there will be work. My studies prevent me from applying for JSA because I will miss a day if i do. My rent is being paid at the moment by HB

Every single one of my bills is overdue so we can add another £1000 to that number above.

I'm not sure where to start.

I'm concerned that I will not eventually be able to apply for a mortgage on this property in a few years when I'm eligible because of my poor spending.

Hi,

First off, you should cease all credit payments, your essential bills come first, rent, council tax, food, utilities, all come before unsecured credit payments.

Get your essential bills up to date first, then sort out the credit card, is it just one card or more ?

OriolaW

sourcrates wrote: »

Hi,

First off, you should cease all credit payments, your essential bills come first, rent, council tax, food, utilities, all come before unsecured credit payments.

Get your essential bills up to date first, then sort out the credit card, is it just one card or more ?

Hello
It's over three cards. They have shut them down.
I have to find a weekend job too.

Kitten868

Please contact step change for advice on how to progress. There is a way out of this xxx

andyfromotley

Hi O,

If you cannot afford your essential bills then you may have to reconsider your studying until you are in a better position.

Not servicing your currrent debt will have a negative impact upon your credit history. Your chances of getting a mprtgage within the next three years will be virtually nil, and perhaps for much longer.

You definitely as a minimum need to find a second or possibly third job. Contact stepchange, national debtline or christians against poverty to discuss your options. They are free and give sound advice.

If you want more derailed advice fill this in and post it here. http://www.stoozing.com/calculator/soa.php

National_Debtline

OriolaW wrote: »

Every single one of my bills is overdue so we can add another £1000 to that number above.

I'm not sure where to start.

Hi Oriola,


Your household bill arrears are a priority and generally speaking you will need to pay the ongoing bill plus a little bit extra to drive the debt down. Do a SOA, stop paying the credit debts (if you still are paying them anything) and see what you can do. You may only be able to overpay by £3-4per week per debt, but it would be moving things in the right direction.


If that isn't suitable then talk to your gas and electric supplier about trust funds to help get the arrears written off (then you only have to pay for what you are using). Are you classed as a full time student? If so, then you should be exempt from council tax. Is the Housing Benefit covering your full rent at the moment? If not, then you could apply for discretionary housing payments and/or talk to your local council about what emergency help/ funding they have available.

If none of this is suitable then a Debt Relief Order may help clear all arrears and give you a fresh start, but that could make the goal of a mortgage harder in the long run. You really do need full advice from a free agency, but hopefully this has given you some ideas. Good luck,


Laura
@natdebtline

sourcrates

OriolaW wrote: »

Hello
It's over three cards. They have shut them down.
I have to find a weekend job too.

Then as National Debtline has said, you should look at a DRO as your income is so sporadic, every thing has a downside, you will have to put mortgage plans on hold, get rid of the debt first.

OriolaW

National_Debtline wrote: »

Hi Oriola,


Your household bill arrears are a priority and generally speaking you will need to pay the ongoing bill plus a little bit extra to drive the debt down. Do a SOA, stop paying the credit debts (if you still are paying them anything) and see what you can do. You may only be able to overpay by £3-4per week per debt, but it would be moving things in the right direction.


If that isn't suitable then talk to you gas and electric supplier about trust funds to help get the arrears written off (then you only have to pay for what you are using). Are you classed as a full time student? If so, then you should be exempt from council tax. Is the Housing Benefit covering your full rent at the moment? If not, then you could apply for discretionary housing payments and/or talk to your local council about what emergency help/ funding they have available.

If none of this is suitable then a Debt Relief Order may help clear all arrears and give you a fresh start, but that could make the goal of a mortgage harder in the long run. You really do need full advice from a free agency, but hopefully this has given you some ideas. Good luck,


Laura
@natdebtline

Hi my arrears have been turned over to collections agencies. I think I'm going to go down the route of DPO it sounds like something I will regret and not be able to come back from but it appears to be the better solution right now

sourcrates

OriolaW wrote: »

Hi my arrears have been turned over to collections agencies. I think I'm going to go down the route of DPO it sounds like something I will regret and not be able to come back from but it appears to be the better solution right now

Of course you can come back from it.

A DRO will last 12 months, and effect your credit file for six years.

Your accounts are probebly, or soon to be, defaulted anyway, due to arrears, which will also show on your file for six years, so you have absolutely nothing to lose, and everything to gain.

After six years everything will disappear from your file, as though it was never there.

OriolaW

sourcrates wrote: »

Of course you can come back from it.

A DRO will last 12 months, and effect your credit file for six years.

Your accounts are probebly, or soon to be, defaulted anyway, due to arrears, which will also show on your file for six years, so you have absolutely nothing to lose, and everything to gain.

After six years everything will disappear from your file, as though it was never there.

They said the DRO is not the best because my outgoings are too high

EDIT: Omg it was a squeeze

sourcrates

OriolaW wrote: »

They said the DRO is not the best because my outgoings are too high

Who said this ?

You make no payments to a debt relief order, if you have less than £50 left after all bills are paid, you will qualify.