Help, advice on serious debt problem wanted

Frog90

I'm 22 and have been living on my own for several years and as such my outgoings were always higher than my income as I couldn't really afford to live on my own hence a trail of bad credit and debt.

I now earn £30,000 per year and had started to correct my credit profile a little and things were looking up. I then took a job where I had a company credit card, BAD IDEA. I have now racked up £7000 worth of debt on the card that needs to have the previous months balance paid in full every month, so between my expenses and paying my whole salary on to it every month for the whole year and also cash forwarding from PayPal I have managed to keep up with it.

I would tell my employer and face looking for another job however, I am currently facing court for accumulation of points on my driving licence which means I need to stay employed for this company as it means I have a cause to keep my licence as I need it for my role. Secondly, no other employer would accept that amount of points.

All my other finances have now spiralled out of control because I have been trying to pay this card off. I can't get a loan because clearly my credit is terrible and I haven't got anyone to turn to. A normal solution, IVA, bankruptcy etc. isn't applicable because I am not supposed to have used the card for personal use so I can't tell the creditor.

I have applied for a loan from a local credit union and explained my situation as I can afford one monthly payment to consolidate the debt however, if this gets declined I don't know what I will do.

Any advice would be sincerely appreciated!!

HappyMJ

Frog90 wrote: »

I'm 22 and have been living on my own for several years and as such my outgoings were always higher than my income as I couldn't really afford to live on my own hence a trail of bad credit and debt.

I now earn £30,000 per year and had started to correct my credit profile a little and things were looking up. I then took a job where I had a company credit card, BAD IDEA. I have now racked up £7000 worth of debt on the card that needs to have the previous months balance paid in full every month, so between my expenses and paying my whole salary on to it every month for the whole year and also cash forwarding from PayPal I have managed to keep up with it.

I would tell my employer and face looking for another job however, I am currently facing court for accumulation of points on my driving licence which means I need to stay employed for this company as it means I have a cause to keep my licence as I need it for my role. Secondly, no other employer would accept that amount of points.

All my other finances have now spiralled out of control because I have been trying to pay this card off. I can't get a loan because clearly my credit is terrible and I haven't got anyone to turn to. A normal solution, IVA, bankruptcy etc. isn't applicable because I am not supposed to have used the card for personal use so I can't tell the creditor.

I have applied for a loan from a local credit union and explained my situation as I can afford one monthly payment to consolidate the debt however, if this gets declined I don't know what I will do.

Any advice would be sincerely appreciated!!

Stop spending so much and live within your means. You will have to stay at home for the next 4-6 months not spending any money and this can be sorted.

With a £30k salary and the age that you are you do have the ability to get this debt repaid very quickly but it will mean no spending on discretionary expenditure such as entertainment and going out.

I would cancel everything else and commit the entire £30k salary to repaying this debt. No mobile, no TV...nothing. I'd sell the car as well. Your job is on the line here if you don't repay this you will lose your job through gross misconduct. You will not get JSA and the chance of you getting another job is slim.

Do you still live at home with your parents?

DCFC79

Sit down with your bank statements and work out what you can cut back on eg mobile phone, cancel sky if you have it.

Not sure if the credit union loan will get accepted as you need to have an account with them dont you ?

sourcrates

Agree with the suggestions above, but somehow, I don't think you will get this credit union loan, normally you have to be a saver first with a credit union, before you can even be considered for a loan, and anyway, borrowing your way out of debt seldom ends well for you.


You should forsake your own debts for the time being, your creditors will huff and puff, but basically very little will happen for a good year or more, you need to concentrate on this company credit card, this has just become your most essential bill, just below rent and council tax.


Failure to pay this will lose you your source of income, no doubt about it, you may still face some awkward questions from the firms accounts dept, if anyone checks the statements, and if that happens, you will have to fess up and take the consequences, and that could mean Bankruptcy.


You need to think long and hard if what I have said is a possibility, and stop making rash decisions on a whim to borrow thousands of pounds, as it will only end in tears.