Scared about debt and not sure what to do

confused82_2

Hello, this is the first time I have posted a thread.

If you have no equity in your home because you already have a secured loan and mortgage and you dont qualify for a unsecured loan because of affordability even if you say its for consilidating - what do you do!? I have kept up with my payments on:

Mortgage for £111000 (re settlement today would be 117000) £810 a month - but keeps going up and up with interest

Citi financials owe £3000 with a £100 monthly payment
RBS owe £24000 with a £356 monthly payment
Welcome (secured loan) owe £18000 with a £278 monthly payment
Cahoot owe £5000 with a £100 monthly payment
Natwest creditcard owe £2000 with a £40 monthly pamyent(at limit)
Ford credit owe £2000 with a £102 monthly payment
Barcalycard owe £240 with a £10 monthly payment (£260 limit)
A friend took a loan out for me in her name for £16000 for 278.00 a month
But the last month because my MOT and car tax was due it sent me over the edge and i have fallen behind 1 month with ford. I am also worried sick because i bank with the RBS and have really embarrassingly run up £1000 worth of pawn broker cheques up - i am current £500 unuathorised overdrawn. I have been using the cash chequing to pay some bills and buy food and petrol for the last 5 months and now i cant afford them. I contacted the bank to say i was really worried because i am already OD and there is 2 more cheques to clear and would they be able to put the OD amount onto my exsisting loan if I hand in my cheque book and guarantee card. They excepted this at the branch but said they could only do the loan for the amount I was OD currently, not what i was going to be OD by the 2nd November. So i knew by the end of the month i was going to be even more in a mess and arrears because some of my loan payment Direct Debits would bounce. So I have set up a cash minder account with the Cooperative bank where i can pay my wage into and have control over what bills i am paying because I cant afford for my wage to be swallowed up. Before I had chance to go back to the Branch to accept what they had offered I got a call from the RBS call centre people. I have banked with the RBS for 7 years and in them 7 years I have got myself in a pickle in the first 2 but then never again until now and I have never had a call from this call centre. They told me not to do the loan and take a temporary overdraft to cover what I was over and they would reduce it by £100 a month - i was a bit upset because 1. they would only do a overdraft to cover what i was over and not what i was going to be over in 2 weeks 2. i cant afford £100 a month, I only have £80 a month left after paying everything 3. Why because i had contacted the branch of my own back was i now being contacted by a call centre telling me what to do. So I had a think and rang them back and then got someone else. They told me they couldnt re- do the loan full stop and that the overdraft offer wasnt an option anymore and that unless i bring the account up to date they will issue a letter of default which will give me 6 weeks to pay - this has all happened over 2 days. It made me feel if i hadnt gone to the bank to try and sort it out, they wouldnt have even contacted me and now i seem to be in a worse sitution. I am very very scared and I have not been able to sleep properly for weeks and was nearly physically sick when i got home last night. Because i have got so many loans at such high rates for smallish amounts i am desperate to get a big unsecured loan to get it all onto one, but this seems impossible. My credit rating used to be fair due to missed payments here and there over the years, I am married and my Husband has a default from 5 years ago thats never helped I guess.
Has anyone got any suggestions - I have done a budget sheet like the one on this website - but i am scared because I only come out with £80 to live on for the month. Many thanks..x

dsljfreeman

:grouphug: for you and welcome to mse.

I have only been coming on this board for a few weeks and it has really helped me with regards to our debts, I'm finally at a place where I can think about dealing with my debts without crying, everyone is very welcoming, non-judgemental and offer souns advice.

If you make this board your home while you are in debt, you'll never be alone, we'll all be here to help and support you xx

dancingfairy

:hello: Hi and welcome to MSE - you're in the right place -try not to worry too much (easier said than done I know). If you're feeling brave you can pop your SOA up (your budget) that lists everything coming in and going out and people will give their opinions on where you might be able to save some money. The other thing I would recommend is giving the CAB/CCCS/Payplan (organisations that provide free help to people) a ring. Opening up a bank account with a seperate bank was definitely a good plan and as you say gives you some control over which bills to pay and when.

LandyAndy

Hello and welcome.

You need to get an SOA together and post it here for us to help you.

See southernscousers 'help for first time posters' in MSE Andrea's sticky for the preferred layout.

LA

HHH_2

You poor thing. I haven't got any answers except maybe phone CCCS and talk it through with them ( they are lovely) as it doesn't seem sensible for you to get any more loans even if you could.If you're worried about talking to someone fill in all the details on their website and it comes up with some possible solutions.I'm sure some other people will be replying, sometimes there's not many on line until the evening,and hopefully they can be more helpful. good luck

WestWalesWannabee

Hi

Don't have any constructive advice I'm afraid, just wanted to send you a hug - :hello: and say hello. So many of us are in the same scary position and I am too. Know exactly how you are feeling. This place is fantastic so stick with it and i know you'll get some amazing advice.

Deep breath...

x

misspoppy

Hi

it is worth doing a full SOA as per the sticky at the top of the page. I know it may say that you only have £80 but there may be suggestions to help you improve this figure. Things that may seem essential can be adjusted or removed, eg sky.

marksandsparksgal

Good luck Confused, you've done the best thing possible by coming here, everyone on this forum is great! Good luck XxX

RAS

Hi

Without knowing your incomes and the APRs and seeing your Statement of Affairs it is difficult to advise you sensibly.

Because i have got so many loans at such high rates for smallish amounts i am desperate to get a big unsecured loan to get it all onto one, but this seems impossible.

Confused, you have massive debts, not loads of smallish amounts. Sorry to be harsh but until you face up to that you are not going to be able to address this.

Are these debts in your name, OH's name or joint names?

What is the value of your house?

Would recommend that you get in touch with on of the debt charities as soon as possible.

Scarlett.1974

Confused, you've had some good advice already so I can only repeat what's already been said. Do your SOA as soon as you can and all the fab clever types will come rushing along with ideas and advice, I promise.

You are not alone, everyone here is here for the same reason and we want to help you.

Can I also just say, that if you're in the position of having more coming in than going out (you say you have £80 a month left) then that is a brilliant start, it really is. I know it doesn't feel like it now, but trust me - when I first posted here at the beginning of last week I had a deficit of £981 a month. now THAT is a lot!! It's currently at £281 so still quite a bit to go before we even 'break even'.

Sorry for waffling on about myself, but I just wanted you to see that things aren't AS hopeless as they seem, they really aren't.

Best of luck and look forward to seeing your SOA.

Scarlett xx

GeorgeUK

Hi confused

Hopefully you have managed to catch this in time and is fixable.

First thing, as others have said, post up a statement of affairs showing all your income and expenditure. Try if possible to put the APR% for any CC or loans so we know what to prioritise.
http://forums.moneysavingexpert.com/showthread.html?t=107280

I'd also recommend going to the experian website and having a look at your credit history (free) - just to see what banks etc will see and that there is nothing out of place. Try to count up how many late payments are shown in the last 6 months and see if there is anything else - your husband's default, what was that and any idea when it may be removed? I believe they are removed after 6 years (I take it you have joint accounts)

Lastly, and apologies if i'm wrong, but when i joined the site, all the text kept getting bunched together and i couldn't get the layout to change even though i typed it nice and neatly. If this is happening to you, goto User CP at the top, under settings and options click edit options, and at the bottom of the page make sure the standard editor is selected.
If this doesn't apply to you, then sorry

Hopefully we'll be able to see where you can make some savings and if possible, rejig some of your accounts. I only have experience of taking advantage of the 0% promotional deals that some cards offer, but there are a few different techniques that others have utilised. I know that you shouldn't get more than 3 credit checks in a 6 month period or your credit rating may be affected, but we'll wait to hear back from you before trying to advise.

You've taken the first step - well done. Now just a few more steps and you might see some light at the end of this.

George