DEBT/DONT KNOW WHAT TO DO

sourcrates

ronnies6 said:

Also I have a 1,700 overdraft on my bank account with whom im with now and moving banks is a bit impossible as I think I owe cards on most

Nationwide do a basic account, as do Coop, Monzo is another good choice.

monetxchange

ronnies6 said:

Thankyou so much, I have tried but it wipes off when I try to put it on here. The thing is I actually have nothing left to budget, I pay my debrs then take the payments ive paid on cards back as soon as it clears. The card companies were not helpful (why should they be) really. They offered 30 days which I have not taken yet.  I feel the DMP is probably the only route but Im so worried that having this will still send creditors to my door. At the moment im juggling by paying one late each month then paying it when paid again. Its all self inflicted I actually stopped gambling and drinking and self pity about 16 months now . However instead of sorting my debt its escalated and im facing up to it and its really sickened me how ive done this to myself. Thankyou so much for your advice, im aloner so I appreciate your reply👍

Hey, welcome to the forum. First off, stop beating yourself up. The debt is there. So now we sort it. What's done is done. Many of us have been where you are now. It's not like the old days when you have to be hauled up and publicly shamed for having debt. There's hope!

First things first. An SOA will really help us advise if you can manage one. It's not so much us telling you how to budget what's "left"; it's more about us looking for areas where you can cut back and save money to have extra to get thrown at the debt. For example, you say you earn £2400 and £1050 goes on debts. Where is the other £1350 spent? What's your living situation? Is it just you or does that have to support a family?

I know you're in a panic, but try and focus. The advice on here is good, so don't dismiss it as something you're unable to do. It comes from everybody's experience of being in these positions and wouldn't be suggested if it was only for financially stable people. For example, get that new bank account. No need to use a switching service. Just open one, set all your direct debits to come from it and then treat your old overdrawn account as just another debt. Great way to get started down this road. Well done on coming here and facing up.

ronnies6

Firstly Thankyou all soooo much for all up to now the support and advice. I am at work and will when off sit down and try what youve all kindly suggested and try posting that SOA. (Thing is tried a few times but go to pieces)Its actually more than 1050 on debts. My heads battered (all my fault i know). Will get the SOA up soon if I cant post it il manually input what I owe. Thankyou all

ronnies6

Monerxchange how did you repay your debt so quickly thats fantastic. Was it with  DMP? Hope you dont mind me asking im just scared of a DMP but know now ignoring it gets worse and believe defaults are worse although I dont understand why as surely my credit file is damaged either way. Sorry im a pain. Thankyou for my reply and your advice.....all of you. 

ronnies6

Also is the post office a good bank account to open as that thanks to you all should be my first option another account with some I dont owe.

monetxchange

ronnies6 said:

Monerxchange how did you repay your debt so quickly thats fantastic. Was it with  DMP? Hope you dont mind me asking im just scared of a DMP but know now ignoring it gets worse and believe defaults are worse although I dont understand why as surely my credit file is damaged either way. Sorry im a pain. Thankyou for my reply and your advice.....all of you. 

Good to see you back. Definitely have a look at doing an SOA when you get a chance to sit down. I know how crazy everything is at the moment and how scrambled your head gets when first trying to get to grips with the debt. You'll get there!

I didn't go a debt relief route. I was lucky enough to have an increase in earnings, and instead of frittering it like I used to, I worked day and night to bring the money in. I know that's not available for everybody, but the basis is the same - I stopped spending on anything but absolute essentials. Cancelled all those wasteful subscriptions. Got a Monzo account, set myself a tight budget. Found ways to reduce all my bills and outgoings. Budgeting down to the last penny is a lot of work, but it gets results.

But a DMP has worked for SO many. I'm sure something similar would help you too. Why are you worried about your credit file? The reality is, it will go back to normal eventually, and you really do not need to be taking out any more credit in the foreseeable future and that's the only thing you'd need it for. If you just carry on the way you have been, your credit will be trashed anyway, so why not get a grasp on it now? It's also a good way of learning to live without credit - if you want something, it's budgeted and saved for within your means. Once you get the hang of that, you'll be sorted going forward.

-taff

the reality is you can't pay your debts at the moment. Your credit file will be affected for 6 years, but unless you intend to take out more credit, then there's nothing to worry about.

You've had what people call a lghtbulb moment where you've realised you can't shift the debt around and borrow more to pay other debt off. This is a good thing. It means you're ready to sort your debt out. Once you've committed to doing that, then you can stop worrying about all the other stuff. Your basic bils that you must pay are mortgage and council tax. Do not stop paying these. All the other stuff can wait.

|If a DMP is for you, then you stop paying everyone else [with caveats depending on whether you have secured loans] [ if you can, pay your utility bills] for six months. This gives all your debtors time to default you and you time to start an emergency fund. Write to them to begin with to tell them you're in financial difficulty and are taking steps to manage that. They may start sending letters, they may not. Either way, you don't have to deal with them on the phone if you don't want to [ in wiriting is better anyway] and you gain some breathing space.

Open your new basic account as soon as you can.

And remember, tomorrow is a bank holiday so nothing will be open and you don't have to rush to do anything right now this minute.

sourcrates

ronnies6 said:

im just scared of a DMP but know now ignoring it gets worse and believe defaults are worse although I dont understand why as surely my credit file is damaged either way. Sorry im a pain. Thankyou for my reply and your advice.....all of you. 

Solving a debt problem is just the same as solving any other problem, identify the cause, take steps to rectify the problem, apply solution.

But because its money, we tend to fuss about the other related stuff, such as credit files, creditors responces to our non payment, letters, calls etc etc.......when in reality non of that matters, the debt is the problem, and solutions exist to deal with it.

Its a good time to look up your rights in such situations, possible consequences of non payment, defaults, legal action, what a debt collector can and cannot do, there is a lot to learn, in a short space of time, but learn you must, you must know the rules of the game, and yes, it is a game, if you don`t have the funds to pay your debts in full, there is actually very little a creditor can do about it, they can obtain all the court orders they want, but if there is no money, no court in the land can physically make you pay.

Your first step is an SOA, as that determines which debt solution is right for you, as they are tailored to individual circumstances, so for example, a homeowner has a house as an asset to protect, which they may lose in Bankrupcy, but be able to keep in an IVA., if you don`t own a house, and have debts of less than 20k, a DRO may suffice, most homeowners opt for debt management, as its flexible, and informal, there are four choices provided in law in England & Wales for dealing with debt, they are :

* Bankrupcy

* Individual Voluntary Arrangement

* Debt Relief Order

* Debt Management Plan

Each is dependant on personal circumstances, and each has different qualifying criteria, except Bankrupcy, which once the £680 fee is paid, pretty much releases you from any and all liabilities you may have.

So until we see a fully complete SOA we cannot comment further on your individual case.

ronnies6

Hi Ive all day sat and gone through everything I owe....what a biggar shock Ive got. Ive cried and cried but realise thats no good and know its all my fault and gosh facing up to my mess hurts. Ive battled gambling/drinking or should I say am always battling it but facing up to this and getting help(a long road but better) has led me to be strong enough to deal with my debt. Just before I do my SOA im doing it on my take home pay now which is £2090. I was bringing home £2,520 but a shift change recently lost me £200 a month. I then realised I actually save £220 in shares separately but would lose money as its a 3 and a 5 year plan and be taxed if I take these now. They are worth £3000 I think. I actually forgotten about this unbelievably until I questioned myself on only clearing £2090. If I claim these I will add £250 to my £2090 but If I remember rightly my tax or insurance is a bit lower because of works shares but not sure. Anyway im going to try and fill in the template kindly copied for me. Here goes....dont know how long it will take. Thankyou

ronnies6

Hi tried filling it in on the template and wouldnt post . Im sorry im on a mobile and tried filling in the template by clicking the quote button at the end filled in the best I could then clicked post comment. .it hasnot. Maybe I need to write everything down in here then post it.