What the hell can I do?

cctps88

Hi all,

Please bear with me, this is a complicated one.

My CC/loan debt has spiralled to £35K after having cared for a parent through a breakdown and then suffering my own mental health issues. Up until now, I've been able to keep up with repayments (around £1000 per month) as my salary is £45K. However, I've now been forced to leave my job due to bullying and have been placed on gardening leave until the end of August, at which point my contract will end.

I have signed up with a couple of teaching agencies, but will technically be on a zero-hours contract. Due to my mental health, I will only be able to work 3 or 4 days per week, at least for now. Therefore, I'm not going to be in a position to make repayments.

I really, really don't want to go bankrupt and the Step Change website says an IVA is the best choice, but what I'm worried about is being forced into bankruptcy if I miss a payment due to having no work.

I currently have my car on a lease (personal contract hire) and have gone over my miles. They've estimated that when I give the car back in March, I'll also owe them £3k due to mileage and a couple of scratches. I'm also not going to be in a position to pay this back.

I'm thinking of getting an IVA, in spite of the risk, but don't know if I'll be better off waiting until March, as I don't want the £3k car debt as well as paying my IVA.

I'm also going to need a car for getting to and from work, so will need to save money from my final three salary payments to buy a cheap runaround (I can only drive an auto, which makes things pricier).

With all that considered, I can make no further payments to my loan provider and 3 CC providers, save for a gesture payment.

Anyone got any advice? This has affected my mental health so much. I feel like a complete failure, having worked so hard over the first few years of my career, to now be in a position with no job and mountains of debt.

Any advice really would be gratefully received

Willing2Learn

Hi,

Sorry to read about your mental health struggles. Are you receiving any support and treatment for this?

The first thing I would do, would be to write all my creditors, advising them of the situation, and that you require your accounts to be put on hold while you seek advice. A letter template is linked below. It will give you the breathing space to fully explore your options...
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

The second thing I would do, is to prepare a financial Statement of Affairs (SOA). You can post up your SOA in this thread so that MSEers can see your exact circumstances and give appropriate advice, guidance and support.

There are always a variety of options. So don't be too down on yourself.

Edit: I forgot to say that you should open up a new Basic current account with an independent bank such as Nationwide or the Co-Op. This will ring-fence your income.

Clouds88

Sorry to hear about our struggles but I’m sure we can help you.

Do you own your home?

cctps88

Thanks Willing2Learn. I'll send that letter to my creditors and go from there.

I am on antidepressants, which aren't particularly helpful. I was assessed by community health to see if I needed therapy and was told I didn't, in spite of a recent suicide attempt. I've pretty much lost faith in the NHS at this point.

The SoA sounds like a great idea too. I feel so grateful to have found this forum :j

cctps88

Thanks Clouds88. I'm afraid I have no assets at all.

RecentPost

if you have no assets, is there a reason you wouldn't consider bankruptcy ?

EssexHebridean

It sounds like the first thing you need to do is to go back to your GP and explain that you think that the way things are right now, you need more help and support than you are being given, and also perhaps a medication review assuming that you are past any timescale you have been given for the antidepressants to start to take effect. It's far from uncommon to need several different changes of medication before you find the one that will be right for you so definitely don't feel shy about making an appointment to discuss. It's not necessarily that the antidepressants aren't helpful, it's that they're not the right ones for you, perhaps, or that the dosage needs tweaking.

EssexHebridean

RecentPost wrote: »

if you have no assets, is there a reason you wouldn't consider bankruptcy ?

It's certainly something worth thinking about - if you fear the stigma of it then be assured that there is FAR less of that around bankruptcy than there used to be. It could be that it would free you up to focus on your MH issues and getting yourself on an even keel without also having to fret about your finances.