Scared about debt and not sure what to do

nicola1982_2

OK - I think that in total including the pawn broker, unathorised o/d and debt to friend but not including the mortgage (as that's a debt with equity behind it) you owe £71740. I doubt you would get a loan to cover this amount. I think you need to contact CCCS as you owe a very large amount plus you have big mortgage repayments to deal with too.

In_Search_Of_Me

Just wanted to send a humongous hug for you. You are doing the right thing by sorting but you do need to take action. I really would suggest ringing CCCS ASAP to get some assistance in resolving this. The problem with pawning, cash advances etc is that you are paying so much more and effectively loosing money. I think the time has come to just stop and try to deal with it because you cannot go on as you are for your own sanity. I know that awful sick feeling when you cant sleep - was there last week but by sitting down and working it all out (with the help of friends & people on here) I have managed to sort things. It's when you blind panic that the problems come so do the sorting and things will seem easier. It does look like you need to do something like a formal debt management plan (DMP) to get yourself out of this but as others have said it's hard to know 100% without looking at the income etc...
Really just wanted to send a huge hug & say hang in there. While it feels like the world is crashing in it isnt and once sorted you'll feel 100% better.Would selling your house & renting be an option for you? Just a thought...Have you also been doing a spending diary or anything like this?

BizzyBek

I'm going to echo the other users and say be really brave and put together an SOA and if you put it here we can all put our brains together!

The first step is recognising the problem, which you;ve done thus ensuring it doesn't get any worse and now you can get on the right path.

confused82_2

Thank you all for all the help, advice and hugs!

I went onto the CCCS website - filled in all the details and it came back with two options. Bankruptcy and a low start debt management plan. REALLY dont want to go bankrupt. I have applied for a second job and have an interview on Tuesday - I really hope I get it because it should help me a bit. Here are my state off affairs.

Mortgage is as of December 2006 - £111.354.60 repayment mortgage for 25 yrs 6.19% a year

Oli catalogue: £247.47 min payment £12.37: 29.8 APR (in my name)
Next catalogue: £1189.02 min payment £112.11:26.49 APR (in my name)
Barcalycard: £239.45 min payment £5.00: 24.9 APR (in my name)
Natwest Visa: £2044.21 min payment £45.00:2.075 % monthly interest rate (partners)
Debenhams: £ 750.00 min payment £50.00: 29.9 APR
Abbey National Loan: £16000.00: contracted payment: £277.67 14.9 APR (friend)
Ford Credit: £3000 contracted payment: £103.00 20.6 APR (in my name)
Welcome secured loan: £17000.00 contracted payment: £277.56 for 180 months 19.90 APR (joint)
Citifinancial loan (joint) £3211.00 contracted payment:£120.64 for 36 mnths 26.2 APR
Cahoot flexible loan £5000 (my name) 15.9 APR payment at moment is £101.00 but changes as balance comes down
Royal Bank of Scotland £19000 in joint names over 7 yrs had it for a year dont know what APR is until i can call them in the morning.

So there you xx

confused82_2

Oh forgot to say we have £2662.35 total income x

RAS

Confused

Now you need to post up the income and normal living cost side for your SOA, so that people can help you out. You have been spending on something which costs more than you can afford. This means that you are going to have to reduce your normal spends to make the DMP work.

In addition to this, can you take a lodger - tax free upto £4,500ish a year? have you got anything sort out this weekend to put on e-bay or via a car boot sale? use the cheap listing days if you e-bay stuff?

Anything to start getting things.

dsljfreeman

Why don't you post your soa aswell, then we can all help you to cut back on your monthly outgoings too xx

RAS

So without the pawnbroker and the OD, you have £810 worth of mortgage and £1415.45 of debts to service at the moment?

Plainly the remaining £436 is not a lot to live off, what are you actually spending at the moment?

Also how much is secured?

Curious_Moose

You say you have no equity, but have you had your house valued? Is it worth any more than the £117,000 settlement charge?

In_Search_Of_Me

Well done for posting...this is the toughest part, the sorting but once you've done that you know where you are at least. You can try & get extra dosh by flogging stuff and this does make a difference & would help you pay off some of the higher rate interest bits. I do think it's hard for people to help minimise spending as we dont know your circumstances - ie do you have children or is it just you & OH? That makes a huge difference as the little darlings are expensive! It may be worth you investigating whether you ave any equiry after debts are paid & if so whether it would be worth selling & renting for a while. People on here have done so in the past & some have said it is the best thing they've done & I have to say I considered doing it myself only this week but managed to get a fixed rate mortgage instead! You just need to investigate the option so you can make some informed choices & I really wuld suggest ringing CCCS for advice...