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Thousands of pounds worth of debt
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OriolaW
Posts: 113 Forumite
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.
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, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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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 ?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Please contact step change for advice on how to progress. There is a way out of this
xxx
Loan 1 £5200/£8000
Loan 2 £300/£5800
Total £5500/£138000 -
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£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
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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
@natdebtlineWe 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 Steps0 -
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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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 nowHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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 squeezeHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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