Need help please on how to deal with debts

koalabear75

Hi everyone

Very long story cut short...

Moved abroad nearly 4 years ago, was paying minimum off UK debts, then it all went pear shaped. Relationship breakdown, also lost a deposit on a property due to this. Due to low wage and renting on my own, there was no way I could service my UK debts and survive on one wage. All my UK mail was sent to a family members address but they have since moved and of course I was hiding my head in the sand pretending none of this had happened to me.

So I'm stuck here overseas on my own, I can eat and have a roof over my head but that's it, and I'm terrified of going home as I do not know what has happened with my debts, whether I have CCJs or how I'll even get a rental again, but I want to come home.

Below I will list my debts and the big mess I have gotten myself into:-

Student Loan from 2008 to 2011 - they haven't heard from me in nearly 3 years. No idea if they can fine on top of starting to collect payments if I get a job.

I didn't send in my last UK tax return, was self employed, won't owe any money but what about fines for late submission? I have no idea about this. Again head in sand

Credit Cards - was about 6/7000 - no idea what it will be now.

Overdraft - approx 1000

Any help would be greatly appreciated, many thanks

EssexHebridean

You'll at very least have a £100 fine for late submission on the lack of a tax return - get this done immediately as it will only get worse the longer you leave it. On the rest, you have a choice in my view - get all the paperwork together and tackle things, or spend the rest of your days frightened to go home because you don't know where you stand. Scary as tackling things might be, I get the feeling you're ready to do so - there are lots of possibilities that might work for you but it's impossible to work out what just from the sketchy details you have given.

First step IMO - get together your full SOA (Statement of affairs - you'll find the link in the "sticky" post at the top of the board) and let's see if there is anywhere that savings can be made and what surplus you should have.

Do you currently earn enough for the Student Loan to start being repayable? It sounds to me like you don't so this might be a good first one to tackle - I've no idea if there are penalties for failing to apply for the deferment at the relevant time but I bet someone else on here can tell you.

pmlindyloo

Do you have family/friends that you can stay with if you returned home? You would not be entitled to any benefits for the first 3 months so you would need some support during this time.

If this is feasible, then return home, find a job and tackle your debts through a free debt advice service (read the stickies on this forum) They will be able to advise you about finding out how much you owe and how you can deal with the repayments. They have seen it all before so will not be judgemental.

There is always a solution to debt problems so stop burying your head in the sand and make positive steps for the future.

debbie_debt

There are no penalties for not telling student loans that you don't earn enough to be liable to pay it back - it's all automatic and so they'll know already. This is one you can simply ignore for now, but be aware that interest does accrue whilst you're not paying it. But there aren't any fees for not paying for a year, as long as you don't earn over the threshold.

My advice would be to get yourself home, throw yourself on the mercy of some family members for a roof over your head/some food, get a job wherever you possibly can (forget pride/what you're trained for etc) so you've an income, then face your debts. A credit report is a good place to start. Register for Experian, Noddle or MSE now has one too I think. This will tell you where all your debts are currently and what the balances are. You can then start getting in touch with them and facing facts.

Before you do ANY of that though, log in to the HMRC website and do your tax return. Every day you choose to wait, you're risking bigger fines. You might be lucky and only get a £100 fine if you do it now. Especially if you didn't earn enough to be liable for tax.

Good luck x