In crisis don't know where to start

Legacy_user

Hello all,

Hope I can finally get some decent advice! I'm sick with worry.

Due to my marriage breaking up, my income dropped suddenly last year, and I just haven't managed to tighten my belt enough to keep up!

I now have in the region of £11000 in credit card debt, and I am just on the edge of being unable to make the repayments. So I applied online for details of a couple of loans which looked competitive enough, and I have been turned down for them all. If I could only reduce my payments and give them some structure, I know that now I've worked through the distressed stage I could discipline myself to manage my spending appropriately. Although I thought I was careful to select the "no" option for my details bewing passed on to other companies, I seem to have been barraged with letters, Emails and telephone calls from consolidation agencies, which I just don't trust, although in essence consolidation is what I am aiming for.

I did eventually answer one of these phone calls, and the man on there was dreadful. Making jokes about my husband being "on tablets" for letting me go etc. to try and get a rapport. SO unprofessional. He told me that because I bank with Co-op, they would have defaulted my credit rating every time I had a direct debit fail, which did happen about 3 times around last Christmas,more due to lack of organisation from the emotional distress than anything else. He went on to say that then, every time I was refused for a loan, my credit rating would have gone down further. Is this true? And do I have any right of appeal?

Like lots of people I am feeling overwhelmed with all the facts and figures and totally hopeless. I thought I was making a move in the right direction by looking at loans but it seems to have weakened my position even more.

Apologies that this is such a long post, but I'm guessing lots of people start with an outpouring! I'm so cross with myself. I have never been in debt before.

Thanks in advance

T

Lizbetty

Hi, I'm sure you will find the right answers and support from here. I know from experience that from this point on things will only get better for you as you have probably reached crisis point to have posted in the first place. It may seem impossible, but it's not - I'm afraid I can only offer support but would suggest that the CCCS is the best port of call for you, they helped my mum lots - they're non judgemental, to the point and understand how you might be feeling and certainly won't make you feel any worse like the idiot you spoke to at the loan company. I'd be very tempted to report him as calls might be recorded as they say, although I'm sure you have enough on without the bother of complaints letters, etc.

My mum told me last October that she had reached her limit - she had been taking out loans to repay credit cards for YEARS (without telling my dad!), but then the loans started to be turned down and she had to do something about it, thank god.

She had around 15 credit cards, 8 loans and was £64k in debt (not including a £10k remortgage she did on the quiet)! She is 57 and was due to retire in 3 years, and her joint income was £30k ish.

I took her to the docs because she literally was drip white and shaking constantly for weeks after totting it all up (esp not having told my dad), and when he said 'oh, it's manageable' I thought he was talking rubbish! She went through the IVA process having been given some hope, but was turned down (thank god in retrospect!). Then CCCS sorted her out a repayment plan, and she IS managing, remarkably! She gets the odd phone call and letter, but has even become adept at saying 'sod off, I'm paying what I can!' instead of panicking and getting in a mess trying to pay them all what they ask for. You can only manage what you can manage, after all.

I just wanted to let you know that even in the most dire seeming situations, there's an answer. I posted on here and got SHED loads of advice and support, which helped me to help her (a bit like shifting the pyramids, trying to help my mum, lol!). Don't feel ashamed, I can see how it can all tot up bit by bit and then suddenly when you get chance to look at the figures it's quite scary, but do get some professional help, and best of luck - you will get there!!!

((Big hugs))

Luce

Lizbetty

ps forgot to say, have a look on www.cccs.co.uk and there's some info and a contact number for them. You might have to wait for an appointment, but they give you a reference number to give to your creditors which shows them you're dealing with the problem and something will be done soon. They really are good!

postingalwaysposting

ashamed of bristol ~ please dont be ashamed. Yes you are in a lot of bother with your finances but thats easily sorted. There are many free charitys out there that can help you in your place of need, and if you are in bristol there are many advice groups too.

Firstly in order for everyone on here to access if consolidation is right for you we need a soa (see ss sticky at the top of the page) this includes all debts with aprs and balances and avalible credit and all your outgoings and wages/incomings. Once thats posted we can see if you can cut back/find the extra to pay your credit cards therefore not needing a consolidation loan/debt management plan.

Come back soon we are all in the same boat and we are all happy to help

Sea78

Hi

Ashamed of Bristol- massive hugs - I've in that same position and just felt sick looking at the mountain of debts in front of me with no way out - or so it seemed. Then I found this site and it's been a godsend! Definitely post your SOA and no doubt you'll get loads more advice. I am now with CCCS which was for me the best option, but you might not need to go down that route. You've taken the first big step by posting so well done you

Jacks_xxx

Hello my lovely, :wave:

That panicky tearful feeling is all too familiar to me hon, but I promise you, once you start taking steps to manage the situation you'll start feeling better.

Please don't even consider going with one of those debt consolidation cowboys! :eek:

There are organizations you can talk to who will do the same job for free - and they don't have sleazy salesman pressuring you on the phone. ( :mad: Bleaugh!)

Southernscouser has posted a very useful message for new posters at the top of the board. It contains the contact info for the free organisations:

http://forums.moneysavingexpert.com/showthread.html?t=107280

CCCS has an online calculator called Debt Remedy in which you punch in all of your info and they give you advice. It's a useful step to take because it asks for all the info that the advisors will ask for so it's a way of getting all your info together as well as giving you an idea of your options.

https://www.cccs.co.uk/debtremedy/(wpr1k555n2kqxoal51mmvrn2)/Start.aspx?hp=1

If you can post a full statement of affairs (SOA) on here then everybody will pitch in to help you by suggesting areas that you could cut down, or where you could get a better deal, or ways to restructure your payments. (Southernscousers post above gives you some guidance on this.)

There are solutions honey, so don't feel hopeless and helpless. The lovely peeps on here will help in any way we can.

We'll need a bit more info in order to help in detail though, so grab a :coffee: and get an SOA together.

It gets better from now sweetie.

Love Jacks xxx

System

Thank you all so much. I can tell from the heartfelt responses that you have come from the same place as me, which already helps me feel better. I cried when I read your posts because it was such a relief to make it all real, in a strange sort of way!

My SOA is this:

Monthly Outgoings:

Rent £650 Orange £50Electricity £26.50
Gas £20
TV Licence £11.61Account Subscription £10Water Rates £15Council Tax £95Sky Card Min: £76Citicard Min: £106Virgin Card Min: £64.80Virgin Media £66.80Total: £1191.71

My debts are:
Sky Card: £2140
Citi Card: £3544
Virgin Card:£4377
Overdraft: £1260

Total: £11321

I earn about £1500 net a month so I'm sure if I work it right I can turn the tide? And surely I'm not such a bad person if I'm trying to do something about it?

blackangeluk

Hi there

Yes you can turn it round - you will surprise yourself on how much you can!

The only thoughts I had were:-

Rent £650
Orange £50 - this is high can you go on a cheaper payment plan?
Electricity £26.50 - have you shopped around for better deals on G&E?
Gas £20
TV Licence £11.61
Account Subscription £10 - Is this an upgrade for a Bank? Do you really need it?
Water Rates £15
Council Tax £95
Sky Card Min: £76
Citicard Min: £106
Virgin Card Min: £64.80
Virgin Media £66.80 - What does this cover, I am presuming it is Sky but this is something you could get rid of to throw at the debts or at least reduce the package?
Total: £1191.71

I notice you haven't included food, clothes, going out, travel, birthdays, christmas etc. In my experience it is these kind of things that can make us incur debt in the first place.

Re your credit rating, I would apply for a copy of it (costs £1) and have a look at it yourself. It may be that you have to leave it for 3 - 6 months and then you could try reapplying for cards that are 0% to shift the debts around. Have you tried ringing up the CC people and asking for a lower interest rate or life of balance? I tried this, saying that I was going to transfer my balances and they were very helpful. Everything is worth a try?

Also take a look at www.whatsthecost.com, if you put your debts in there and the repayments it will show you your debt free debt and it is very inspirational.

There are loads of things you can do, do a massive ebay splurge, visit quidco, pigsback etc etc .....but dn't want to bog you down, one step at a time Seriously you could ebay everything you don't need just as a cleansing experience and you may be able to make a dent in that debt.

Good luck with everything and well done on posting :T

System

Thanks Blackangel,

I'll start plodding through the list! I don't seem to have the knack of EBay, can't seem to make my items look appealing! Any tips would be great.

Perhaps I'll run the gauntlet of a car boot sale soon!

yeovilmac

Ashamed_of_Bristol wrote: »

Thanks Blackangel,

I'll start plodding through the list! I don't seem to have the knack of EBay, can't seem to make my items look appealing! Any tips would be great.

Perhaps I'll run the gauntlet of a car boot sale soon!

Just wanted to wish you well A of B.

If you do go down the boot sale route, the one by Whitchurch Sports Centre is quite good. It's a wee bit more to sell there but I've always had good sales there and there's always tons of folk turn up ....

Edited to add:- As far as getting barraged with bumph about consolidation, you could contact the Telephone Preference Service and the Mail Preference Service too, it will take three to four weeks to stop all your letters and phone calls from sales people, but it will be worth it in the end.

Karmacat

Hello AOB
Welcome to mse. Just wanted to say hi, and to agree 100% with what BlackangelUK has highlighted in your soa. Once you've got the outgoings down, there are moneysaving things you can do with your shopping, and bits of money you can make online - as you start to read other people's debt diaries (and you will, you will, its addictive!) you'll see the kind of things people do.

Good luck with it all - keep going through that list.