Going Bankrupt - 26 & Scared

Hannah232

@Joanthan
Why such a low wage? Ask the local government ( haha) To be fair my role is to support my manager but I don't actually mind going over my job spec. slightly, it means I am preparing myself for when a role is available and I can be ready to apply.
I understand I need to cut back but the car is the main issue, I use it for work a lot to get to different places and I have tried using the train before and in one week it was delayed three times, I was late twice for work, I was so used to being independent as I have driven since 17 it made sense to have a car. Due to the engine failing on my last finance it kind of screwed me over for this finance contract. I never would have got finance for £230 a month the one before that was £80

I thought going BR would be the best way for me to finally see some light, I am happy to cut back where I can.

@comeandgo
Yes I will, as far as I have read I think you have to let work know if you work in finance

Jonathan_Kelvin

What do you plan to do after bankruptcy, when you don’t have a car, you wage is no higher, and you are still likely to be spending more than you bring in each month, but with no access to any sort of credit?

If you are working in the public sector then is “full time” under forty hours a week? If so is there any reason not to find a second job, such as bar work in the evenings, or shop or warehouse work at the weekend?

I just can’t see how bankrupt his going to work for you, or why you are considering it when there are so many other routes available.

Edited to add, do you think that you would be capable of joining the civil service fast stream? Starting salary is £27,000, moving up to £45-55,000 once qualified.

Hannah232

@suki
I appreciate your time writing the post I really do.

I appreciate you think my wage is low, and I agree for someone my age I would love to be on a higher wage but please bare in mind that I do not live in London. My friend worked in the same place I work and was being paid £28,000, they moved to London and received £38,000 for the same job. They were willing to take this job and pay the £7,000 train fare because they were applying for a mortgage at the time to move out. Wages in London are significantly higher due to the increased living cost.

We also have a freeze on wages at the moment which is finally being lifted this year.

As stated in previous responses, I worked 2 jobs at one point, I worked my !!! off and had no days off a week, I was working yet after tax was barely making that much extra to make a dent and there was no room for a social life after working 7 days a week, also this had a massive effect on my full time job as I was so tired.

You are correct in that you cannot finance your life on goals, but what a sad life that would be if no one had any goals or motivation for the future? Goals and dreams are what keep me going.

I think the reason why I am so deflated by this is because I helped someone out and therefore I have suffered immensely for it, this made my own debt snowball and now it is out of control.

I do shop in charity shops, the last time I went shopping was in charity shops. I would just like to point out I do not spend my whole life in my car, I go for walks, I go running a lot outside, all of these things require a decent coat and boots. I am not stating I need designer clothes just staple items to see me through, but again I love going to charity shops and finding a bargain.

The going rate for a single room is £400-500 pounds near where I live now and also near my work, that is the going rate and this 9/10 does not include parking which is another £75.

The emergency fund is only in my outgoings if I was to go BR so that I can save for a car, a used old car under £1,000 as I do need a car for work.

The earliest time I can give up my HP is in 13 months time......

Hannah232

Just to add, I feel like I am really being honest here and appreciate everyones posts.

I am sorry if I come across angry or rude I am just finding this all quite a lot to take in but I need to hear it.

BoGoF

You keep saying you need a car for work.....why?

The train being late 3 times in a week is not justification for spending so much on fuel.

You say goals and dreams are what keep you going.......but seem prepared to put your life on hold by going bankrupt?

Hannah232

I understand all of this, I really do. If I could hand the car back today I would, but I can't?

Having a car was part of me gaining the role, I have to drive for my job because we go out to speak with providers as part of the job, we also complete spot checks on properties.

Trains being late completely effect a job, being late for work does not look good, the train lines have always been terrible in my area.

BoGoF

Yes, you're stuck with the car for now but doesn't mean you need to drive it to work every day if there is a cheaper option.

So if you're visiting clients using your own car why aren't you claiming mileage allowance. I believe local government rates are generous. Doesn't your employer have pool cars for this purpose?

Hopefully you have business insurance to cover these journeys?

girlatplay

Hannah, forgive me if I'm wrong but it appears that the only reason you were considering BR is because you thought you might get to keep the car. Please understand that this is not a given.

I agree with warby, you would be better leaving it at home.
A car is most definitely a luxury which you just can't afford at the moment.

You say the car is on HP. You could terminate the agreement early but it would hurt your credit file. This is a link to an article on Experian about it: https://www.experian.com/blogs/ask-experian/the-impact-of-a-voluntary-vehicle-surrender/ I do think that BR would hurt more though. Please note, I'm only pointing this out to you, I'm not telling you to do this. I'm not qualified to give that type of advice.

If you really knuckle down and take the advice that you are being given here (on the forum, not particularly my advice) then you could get out of this mess relatively unscathed. You really need to wake up and see the damage you are doing by wanting to keep your, currently unaffordable, lifestyle. You have many years of life ahead of you, make changes now and it will be better in the future. It'll be here before you know it!

comeandgo

Are you claiming any mileage expenses from HMRC? Do you get a mileage rate from your work?

suki1964

Hannah232 wrote: »

@suki
I appreciate your time writing the post I really do.

I appreciate you think my wage is low, and I agree for someone my age I would love to be on a higher wage but please bare in mind that I do not live in London. My friend worked in the same place I work and was being paid £28,000, they moved to London and received £38,000 for the same job. They were willing to take this job and pay the £7,000 train fare because they were applying for a mortgage at the time to move out. Wages in London are significantly higher due to the increased living cost.

We also have a freeze on wages at the moment which is finally being lifted this year.

As stated in previous responses, I worked 2 jobs at one point, I worked my !!! off and had no days off a week, I was working yet after tax was barely making that much extra to make a dent and there was no room for a social life after working 7 days a week, also this had a massive effect on my full time job as I was so tired.

You are correct in that you cannot finance your life on goals, but what a sad life that would be if no one had any goals or motivation for the future? Goals and dreams are what keep me going.

I think the reason why I am so deflated by this is because I helped someone out and therefore I have suffered immensely for it, this made my own debt snowball and now it is out of control.

I do shop in charity shops, the last time I went shopping was in charity shops. I would just like to point out I do not spend my whole life in my car, I go for walks, I go running a lot outside, all of these things require a decent coat and boots. I am not stating I need designer clothes just staple items to see me through, but again I love going to charity shops and finding a bargain.

The going rate for a single room is £400-500 pounds near where I live now and also near my work, that is the going rate and this 9/10 does not include parking which is another £75.

The emergency fund is only in my outgoings if I was to go BR so that I can save for a car, a used old car under £1,000 as I do need a car for work.

The earliest time I can give up my HP is in 13 months time......

Hannah, I was earning what your earn in 1999, at near your age, 20 years ago. You live in Hampshire, the rich south ( my family still live there ), the pay disparagy is not that great and Im just pointing out, you are not earning a lot, certainly not enough for your outgoings

If you are using your car for work, you should be getting allowances for it - millage at least. Luckily I lived in London so just put my travel cards in to be refunded. If you are expected to have a car for work purposes, your employer needs to be paying

Or is it that the role you are in doesn't have these perks and you have just taken them on on your own back just in case of promotion possibilities?

Well done on the charity shopping btw. I can afford to shop retail but I prefer to spend less on more, so I can afford a wee luxury now and then

When I worked 3 jobs, two were cash in hand, which whilst aren't totally above board ( unless you declare them and pay the tax) are plentiful and Im sure most of us have done it or know someone doing it. I worked 4 evenings in a pub plus the weekends and 1 day a week cleaning the communal areas of the block I lived in ( got £20 a month rent reduction ). Working in the pub gave me a semblance of a social life. Id also do the odd Saturday night doing private function bar work in another pub. I always had Sunday afternoons to sleep

I had been in the equivalent debt, I defaulted so many times and the interest rates back then were in the high double figures but the extra jobs, the cutting back to the bare bones, I was debt free within 2 years and had a savings pot of £1k. Since those days I have never had debt that I couldn't service because I learned the hard way. I did consolidate my debt and worked out a payment plan with the bank, with a strict withdrawal limit on my account each week. No way was I going to be declared bankrupt . Ok so it was a bigger deal back then, but even today you are basically screwed for the next 6 years. Imagine trying to rent that flat and the credit check reveals you are a bankrupt? do you think a landlord is going to take you on? Imagine trying for that preferred rate mortgage? imagine attempting to buy a washing machine on the HP?

Yes I agree that goals and dreams are what keep us going but at the same time, goals and dreams need to come in bite size pieces. You cant run before you learn to walk

Go back to Stepchange and discuss your options more fully and seriously forget about bankruptcy. Going bankrupt sure it means your debt is written off, but in exchange for what? Your debt isn't much at all. Theres hundreds of people who come to these boards with debt in the hundreds of thousands and they get advice, knuckle down and pay it off and then move on with their lives with new skills that ensure they don't slip back into their old ways of living beyond their means