Got worried due to debts

System

john3105 wrote: »

The rude lady told me only option to make you default now, and talk to stepchange, you have 30 days, today i found my cards are blocked even still due time to pay minimum payment by 7th january 2018.

The "rude lady" was actually doing you a favour and giving you good solid advice. You're just continuing to dig a deeper hole and their action would put a stop to that. More borrowing is not what you need and clearly you're incapable of stopping yourself from doing that.

Your credit file is going to be trashed, there is no way of escaping that. You simply don't have enough income by a serious long shot without both of you working.

As for you claiming your wife can't work because you have three young kids I work with a guy who is 25, has 3 kids and both he and his partner work. He works 9-5, she works shifts on an evening and weekend. She most certainly can work. She might not want to but clearly your lifestyle, one she has shared in, is one your income hasn't been able to meet and now is the time the bill is due to be paid so she needs to take a part in earning money to do that.

sourcrates

john3105 wrote: »

If you think, I can talk to stepchange or just i wait to deal my self after getting default, i see in both cases i have to be defaulted anyway.

You can organize token payments/DMP on your own, but if you decide an IVA is right for you, you must go through an insolvency practitioner, stepchange or any of the free advice services can organize this on your behalf.

Maybe your wife could take on an evening bar job or something of that nature, i too have 3 kids, and are divorced, so i know exactly how tiring it can be, my son is also autistic so can be a right handful at times, it is possible to work around these things, it just takes some organization.

tallyhoh

Problem is if they increase income the benefits go down so back to square one. I'm all for working more but in this case its not going to help.

I'd get shut of the car though, you don't use much petrol so is it necessary?

enthusiasticsaver

On that income and level of debts a DMP or IVA would take forever to pay off. Your only real option is bankruptcy. Whatever income you are earning through self employment is not sufficient anyway. You are best off cutting your losses and going for a job which pays you a regular wage and going bankrupt as soon as you have saved sufficient for the fee.

sourcrates

tallyhoh wrote: »

Problem is if they increase income the benefits go down so back to square one. I'm all for working more but in this case its not going to help.

I'd get shut of the car though, you don't use much petrol so is it necessary?

That’s a good point, they give with one hand, and take back with the other.........

pmlindyloo

What benefits are you actually receiving?

Are you claiming working tax credits saying you are working 30 hrs a week?

Just a word of warning....................You are not earning the NMW for 30 hrs a week. I understand that being self employed is difficult but unless you are in your first year of self employment then HMRC will soon be on your back if you are claiming WTC.

Your self employment is not bringing in a decent wage so you may have to reconsider your position.

Have you tried inputting various scenarios into the benefit calculator on https://www.entitledto.co.uk with you doing a full time job at NMW to see if you can maximise your income?

Even finding a solution to your debt problems this is not a sustainable income for the future (especially when your area goes to a full service area for Universal Credit)

Of course, you may have just started being self employed and expect to earn more money in the future in which case things can only get better.........................

I am not being judgemental but from your credit history you have not been managing financially - hence the debts - in the past.

Finding a debt solution is often the easy part, sustaining a future life without credit is usually much more difficult if you struggle with a low income.

john3105

bankruptcy is irrelevant for me here, Stepchange recommends IVA or DMP.

What if i continue to talk to creditors direct, even i know they will not help me much but as long as i can skip minimum payments few months and save it plus minimise my expenses plus to do some over time work to raise some emergency fund to pay them in future with F&F payment if they reduce. otherwise i continue to face these people until i sort out my problem, in all options still i have to be defaulted for 6 years, so why not skip payments and pay token money every month if possible.
that will help me stand again on my own feet, reality is that i have paid over 20k interest to creditors in last few years, by borrowing more and balance transfers and from family.

Now all options are closed.

-taff

So you have identifed where the money was being spent and are no longer spending it?

As above, Barclaycard were doing you a favour, but it sounds as if you hoped to keep using the card until the minimum payment was due....

They are not likely to accept F&F settlements until the debts have been defaulted on and have not been paid for a good while, or paid very little towards for a good while, so default on them if you decide you're going to do an IVA or DMP.

They won't accept them say after a month or two of not paying them. Your idea of skipping payments to save it up to pay them a lump sum is a bit unrealistic. Your surplus each month is not enough to save up a lump sum in a few months.

Also, as Christmas is coming up, if you have bought any expensive presents for your children, it might be as well to think about returning them.

john3105

only option is to skip payments now and get defaulted. i hate to do that my past history is clean, never missed any payment but struggled to manage in last few years, now after all i am completely broke up, thats why asked from creditors to freeze interest and to reduce payment so i can pay. If they not willing to do that, i have no option to pay any more.
anyone have same experience by skipping payments for longer time until building emergency fund for longer time.

sourcrates

john3105 wrote: »

only option is to skip payments now and get defaulted. i hate to do that my past history is clean, never missed any payment but struggled to manage in last few years, now after all i am completely broke up, thats why asked from creditors to freeze interest and to reduce payment so i can pay. If they not willing to do that, i have no option to pay any more.
anyone have same experience by skipping payments for longer time until building emergency fund for longer time.

John,

You cannot hope to pay off such a large debt just by stopping payments for a while and saving up a few quid, it’s just a stop gap measure at best, not a workable solution.

I assume your making monthly payments by recycling your credit facilities, so your not actually getting anywhere with this strategy.

I know you don’t want to hear this, but go bankrupt and start again, anything else is just prolonging the inevitable.

I wish you the best of luck.