Moment of realisation **Advice please**

welderfabguy

Hi, just a quick introduction and then straight to the point.
I'm a 23 year old welder who earns between 21 - 30K P/A depending on workload and has amassed debts totalling 20K+ in a period of 2 years.

The bulk of the debt is on a HP loan for my car, £12,000 (£6500 for car and £5500 interest) please don't ask why APR is so high, This has been defaulted on with around £1,200 arrears.
the insurance on the car has also been defaulted. the car has since been vandalised, which can't be reported as it's uninsured and sat on a public highway until its repossessed, can't move it because its been immobilised remotely :T

I have over £6000 in parking fines from Norfolk county council. from a 30 minute stay parking bay outside my previous home. I have never had contact with them only the letters they send to my registered address and they have had bailiffs asking for me too,

There's also about £2K owed to various credit card, insurance finance and phone contracts that have been unpaid and pushed to the side.

Technically i'm homeless, i can't rent because of my credit rating and can't live with any relatives or friends have no transport. so how do you get somewhere to stay with so much debt ?

I'm also Bi-polar and have cognitive anxiety disorders which helps slightly to explain the erratic behaviour i display with regards to money and future planning, however this is not a mental health forum so that enough of that.
Turns out i'm a pretty talented engineer just a tad rubbish at everything else (Y)

I've come to the stark realisation that i just cant do credit, in serious need of financial coaching and a good boot up the :eek:
If anyone has any advice, **or just want to take a shot at a reasonable solution please feel free**.
Criticism is also welcome constructive or not, so knock yourself out.

Advice on housing situation and financial coaching ?

Thank you !

National_Debtline

Hi welderfabguy and welcome to MSE,


I agree that the housing issue is the first thing to deal with. I would suggest that you start with Shelter and your local council and housing association. You are right that most private landlords will credit check but some may consider advance payments or a guarantor as a possible solution.


As far as the debts are concerned that is a bit harder. So, with the car, the HP company can repossess that now that it has been defaulted on (assuming you have paid less than 1/3 of the agreement). They would not need a court order in this scenario. However, if you have paid more than 1/3 then they will need a court order (called a Return of Goods Order) to take the car. You will be liable for 100% of the agreement, minus money paid to date and minus the resale of the car - if they can. If the car has been vandalised the resale may not be possible which means you will owe the remaining finance plus fees. But the money owed is classed as a non priority debt and once the car is gone, can only be chased with debt collectors or county court.


With the parking tickets, and the bailiffs, they should only visit a property where you live so if you have no fixed abode you are unlikely to get contact by them - but remember the golden rule - which is do not let bailiffs in.


As a long term solution for your debts you could consider either a free DMP (but it is unlikely they will deal with the bailiffs) or possibly bankruptcy. Difficult to say - could you try and post a Statement Of Affairs (SOA) as that will help narrow things down. Good luck,


Laura
@natdebtline

enthusiasticsaver

Goodness what a mess. I think the only solution is to come clean with the council and the car hp company. They will catch up with you eventually anyway and if you really are homeless then the council is a good place to start. Either that or a hostel.

The good news is that you have a job. Do you have a bank account? I am not sure why being bi polar explains your attitude to money but I do not have any experience of that and as you said this is a money saving forum not a mental health one. Are you receiving treatment?

You need to prioritise and obviously your first problem is your homelessness and maybe the council will help steer you in the right direction. If you are struggling with debt then stepchange ( a debt charity) may be able to help you. Pushing unpaid bills aside is never the answer. The best thing is to contact them and explain your situation. Stepchange will do that if you feel unable to cope with it.

welderfabguy

Laura
@natdebtline, Thank you for your response i will complete one later when i have access to a pc. Helped put it in perspective a little.

@enthusiasticsaver
Okay, i struggle to remain constant in my decisions and fitter from one commitment to another with no thought of consequences i wouldn't expect anyone to sympathise with this. i certainly don't.


Yes i have a personal bank account and a LTD company account,
Yes i receive on going treatment for bi polar.

My situation is far to complicated even for me to comprehend.
Best i get in contact with this charity then my fruit

Thank you both (Y)

MoneyMission2015

As others have said, sort your housing first. Then speak to the car finance company, as you need to get the car moved asap because if it's uninsured it should not be on a public road (i'm sure you are already aware of this). Could they temporarily disable the lock so that you can move the vehicle to a garage or to a location of their choosing? I'm not sure how far into the agreement you are, are you able to surrender the vehicle back to them?

Also contact the council about the parking fines, explain the situation and try to arrange a payment plan.

Next thing would be to speak to a debt charity like Stepchange. They can advise you and also manage a debt management plan if that's what needs to happen. I would imagine they would help with the parking fines too, so might be worth mentioning to the council that you are going to be speaking to Stepchange about a debt management plan.

I see you have a limited company. Is bankruptcy an option for you or would it be a problem for future work?

Good luck

nkkingston

Oh, bipolar makes money management hard! If you're getting treatment, can your GP hook you up with a caseworker or similar? It might help when it comes to calling the car finance company to have a third party on your side who understands your condition and its impact on decision making.

DCFC79

Your credit rating isnt the reason why you cant rent, your credit history is teh reason but even then do lenders see your credit history.

welderfabguy

nkkingston wrote: »

Oh, bipolar makes money management hard! If you're getting treatment, can your GP hook you up with a caseworker or similar? It might help when it comes to calling the car finance company to have a third party on your side who understands your condition and its impact on decision making.

It sure does. I'm seeing my GP Thursday to ask this, thank you for your time and understanding !

@MoneyMission2015

Again thank you !!
I'm willing to loose the LTD company, take a bit less work on and concentrate on saving what i do earn instead of trying to earn more to counter my spending habits.

I plan to contact everyone over the next few afternoons. (I work 12hr days so i have to make my excuses to use the phone for more than a few minutes)

I'm lucky to have a decent circle of friends who can put me up various nights of the week, plus a reliable lift to work, my focus is to eat, sleep, function well at work and start pulling my head out of the sand.

I'll be back with updates and I will ring Stepchange tomorrow before contacting any creditors i'm also booked in to see my GP Thursday morning.

Appreciate everyone's input,
(Sorry for grammar and spelling tonight, a little on tired side)

bettyboo71

Welderfabguy, I think it is important to say well done on coming on here and facing up to your situation.
Hopefully the GP will be helpful but, even if not, organisations like the council and finance company should have some understanding of the impact that your condition can have - if not, maybe you could find out if your GP can write to them to confirm your condition? (I'm not sure if tht would be any use, but always useful to know)

If you're single and working, housing options may be limited. But, with your level of earnings, it seems that you should be able to turn this situation around possibly in just a few months. I don't mean that you will have cleared your debts in a few months, but that you will be in a more organised and stable financial position. It is good that you have a circle of friends who can help you out. And now you have us too - so please keep us updated and ask for help and advice as often as you need to.

Fergie76

Are the parking fines from the council? If so, pepipoo maybe able to help - http://forums.pepipoo.com/index.php?showforum=30