Please help me if you can... 80k of debt!

yeahyouknow

Hi all

I'm mid-twenties and have around 75-80k of unsecured non-priority debts. This is down to gambling and I've posted here a while back.

I'm at my wits end and don't know where to go... I think I just need some reassurance and top notch advice, please...

The debt is spread across around 16 creditors (loans, payday loans and credit cards plus an overdraft).

I've missed my 1st monthly payments on my credit cards at the end of November and in December I've missed all payments as I opened a safe bank account etc.

The credit card companies have been chasing me (I've just ignored them) and the loan companies (everything else) will begin to chase me now I guess. I'm getting several calls a day, lots in fact and lots of letters now.

The 3/4 credit cards are now a month or so behind payments and the 12 or so loans a few days.

I've stopped the gambling and I want to sort all of this out now.

I have around £2,200 per month to spread around these creditors.

So here goes:-

1) I'm writing the letters now (literally tonight) informing all creditors I'm having issues and that I intend to pay them all back (I don't want insolvency)

2) I got a text today from a payday loan company informing me they may contact my place of work or face legal action (only 5 days since payment missed) this has really scared me

3) How long do I have until these companies start passing the debt off to collection agencies and start coming to my house?

4) How long until I get a CCJ? Is it weeks or months?

I'm worried now and I'm not sure what to do... Any help is appreciated... I'm at my wits end and I'm not sure what to do, to be honest.

Thanks
C

Litchielou

Make an appointment with citizens advice they are very helpful.

At least you have acknowledged your debts that is the first step. Don't bury your head get help.
Hope you get sorted with a plan.
I'm not going to say don't worry. Remember no one will judge you on this forum.

System

I know you don't want insolvency but that or an IVA (if its possible to do for that level of debt) is the best solution. Whilst it is admirable to want to repay them the sheer amount of misery and stress it'll cause not only you but your family or future family for the next 10-20 years isn't worth it. Your credit is shafted, it'll get more shafted but at least an IVA or Bankruptcy will put a cap of 6 years on it.

On_my_way

Get those letters sent asap!

If you have £2,200 per month after your expenses then you should be able to work out how to pay this off.

I would be inclined to try to make things simple and write a list of your debts. Are there any that you can clear in one go/ If there is it might be a good idea to do this to start getting rid of them one by one.

Another thing you could do is to make extra money to pay them off for example:

* sell any gold you have that you don't want - the moneyshop are good for this paying £45 for a 9ct gold necklace that I never used recently!

* any smart phones you have that you don't use can be recycled. Mazume is good and pay £80 per phone even if they are a few years old

Doing this will help you clear your debts faster. If you have £2,200 per month to clear debt you can do this without insolvency.

Good luck

Arleen

You've taken the first step, that is great. Regarding your worries, if you stay in touch with them they have no reason to contact you at the place of work, so send those letters asap. You may want to give a read about what they can and cannot do before it's classified as harassment https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/harassment-by-creditors/

As for the CCJ, that would take months, require for them to go to court, etc. And if you are paying and stay in touch, you have nothing to worry about.

fatbelly

Tarambor wrote: »

I know you don't want insolvency but that or an IVA (if its possible to do for that level of debt) is the best solution. Whilst it is admirable to want to repay them the sheer amount of misery and stress it'll cause not only you but your family or future family for the next 10-20 years isn't worth it. Your credit is shafted, it'll get more shafted but at least an IVA or Bankruptcy will put a cap of 6 years on it.

An IVA is insolvency

OP has enough surplus income to pay this in full in 3 years

sourcrates

Agree with Fatbelly here.

That's a reasonable income with which to deal with the problem.

You will find the smallest creditor will make the most noise, creditors don't normally take legal action, they just pass accounts to debt collectors, the time scale will vary, but usually within 6 months of defaulting.

Just add a sentence in your letters that all contact be made in writing only, most are idle threats anyway.

CCJ s unlikely for a year or two, and home visits are rare also, are you intending self managing this DMP or using one of the debt charities ?

enthusiasticsaver

If you really have £2200 spare each month and your creditors agree to freeze the interest the debt would be paid off in around 4 years. You will initially get a lot of phone calls although you can ask for contact to be made in writing only. You can do this yourself or approach stepchange for them to act on your behalf.

Most importantly have you received treatment for your gambling addiction?

fatbelly

Sensible advice from the two above. If you came to me at the CAB, I'd be pointing you towards Stepchange/Payplan or self-help.

No problems in taking some breathing space here and getting a small fund together ahead of your dmp. Getting the defaults on your file early will also help.

You might also want to explore the mis-selling route on the payday loans.

If you were unlucky enough to get a court claim from anyone, post here about it.

like12

Hmmm. It is hard to say

Ilona

like12 wrote: »

Hmmm. It is hard to say

Erm, pardon. I'm not getting your drift. Can you please explain more?

Ilona