Excessive lending has put me in a spiral and i need advice

louise133

Hello, So, my situation is this...
I am in £25,000 worth of debt. I suffer with my mental health quite badly so i spend when im in a bad way. Its gotten that bad, i bought a brand new car and a holiday. I am now trying to address the situation before it gets worse. I have been told to go bankrupt but that is not the route i want to go down.
I have two loans, credit cars, store cards and my outgoing are far more than the money coming in. I am trying to get rid of the car and i am in talks with the credit company. I have spoken to the banks and they cannot help. They looked at re-financing them but they couldn't. All they can do is freeze my account and let it go to collections. I have never missed a payment on my loans but i pay £360 a month for them. I got them to consolidate debt. I lied and said it was for a car and a house deposit which doesn't go in my favor. A friend has told me to go down the route of irresponsible lending but i dont think that is the way? I lied on my application because i knew they would say no for a consolidation loan.

I am just lost now and its all gotten too much. I need some advice if anyone can help. I know i need to budget but i dont know how to go about reducing my loan payments. I hope that all makes sense. Its just alot of stress and im just stuck.

Thanks

foxy-stoat

Speak to a debt charity - step change or similar.

There will be people able to help you, you are not the first or will you be the last.

Be prepared to make some life changing choices.

Good luck

OnlyGuyWhoLikesTwix

First thing is first, you need to actually do a serious budget. Get Excel open on your computer (or similar spreadsheet application).


Take your main current account and copy/paste as many transactions are available in your online banking as possible. This is a proper visual cue of what your real income and outgoings are per month. The direct debits including rent, credit card payments are your hard and fast "have to go out" expenditure. So they come off first. The rest, including petrol, groceries, netflix is all optional expenditure. Of course you need to eat, but you don't need netflix. Of course you need to get to work but is public transport cheaper, or can you walk? Can you cut down anywhere? And be realistic and harsh.


Do your budget properly and figure out how much extra you have free per month.


Second, can you qualify for any balance transfers? Be honest with all your creditors and find out how they can restructure; an application for a balance transfer may help you in terms of interest payments. The idea is to figure out exactly how much extra you have per month by forgoing some services. That includes everything from phones to internet connections to everything else.


As for the car, are you over 50% of your finance agreement? As in is more than 50% paid back? If so you can look at voluntary termination of the agreement.If you are near it, can you find out how many months payments you are away from it? It may be worth with the car finance people as they can give you this information too. If your biggest noose is the car, work towards getting that gone and the finance repaid.



Finally as for outgoings, utility companies can sometimes be sympathetic. Possibly look at changing providers for a cheaper deal or at least call them and ask if they can reduce your payments at least temporarily.




Lastly (and I would view this as a last resort), consider an IVA. I would not "just let things go to collections" as you will still be chased for the money and it will destroy your credit record with inevitable defaults and the rest of it. I would go for an IVA before you let things default.


Do your sums, be realistic, be fierce, any frivolities need to go and good luck!

[Deleted User]

OnlyGuyWhoLikesTwix wrote: »

Lastly (and I would view this as a last resort), consider an IVA. I would not "just let things go to collections" as you will still be chased for the money and it will destroy your credit record with inevitable defaults and the rest of it. I would go for an IVA before you let things default.

That seems really odd to recommend an IVA over a default

-taff

Go to the debt free wannabe board.
https://forums.moneysavingexpert.com/forumdisplay.php?f=76

And ring stepchange or cap for advice.

BrassicWoman

why don't you want to go bankrupt?

[Deleted User]

I think you need to change the thread title to irresponsible borrowing rather than lending.

Gaz83

louise133 wrote: »

I lied and said it was for a car and a house deposit which doesn't go in my favor. A friend has told me to go down the route of irresponsible lending but i dont think that is the way? I lied on my application because i knew they would say no for a consolidation loan.

This is more than just irresponsible borrowing [note: not irresponsible lending], then. This is fraud.

DCFC79

Cant see it being asked but are you getting any help for the mental health issue ?


You really need to get help if not already as it could reoccur if you get the current issue sorted.

sourcrates

Hi,

We will need a lot more detail than you have given so far to make a judgement call on your situation.

Get yourself over to the Debtfreewannabe board, post your statement of affairs, and we can have a look at your likely options.

You should not hope to rely on mis-selling criteria to get you out of this mess, because it won’t.

louise133

sourcrates wrote: »

Hi,

We will need a lot more detail than you have given so far to make a judgement call on your situation.

Get yourself over to the Debtfreewannabe board, post your statement of affairs, and we can have a look at your likely options.

You should not hope to rely on mis-selling criteria to get you out of this mess, because it won’t.

Oh i completely agree with you. This is what i said to my friend. Thats not going to get me out of this mess, it will just make it worse. I am fully aware its my own doing, not the banks.