I need help - lost job from COVID and gambling issues

lixhul

Hi guys.

I am very low at the minute. Back in July I lost my job due to Covid and received absolutely nothing. I live in the Yorkshire area and jobs are scarce, I've applied for 100s and haven't had a single interview. I then started to lose my sense of purpose and then began gambling. In the last 2 weeks I've lost just over £10,000 and this has caused debts to rack up.

I am a new home owner and I am taking a holiday which runs out next month (£349pm). I also pay child maintenance of £100pm (£300 while working). I have £8000 left in the bank, but due to gambling I am now in debt of just over £12,000.

This consists of:

PayPal - £550 (19.9%)
Credit card 1 - £1350 (0% til 2022)
Credit card 2 - £2200 (0% til 2022)
Credit card 3 - £4000 (0% til 2022)
Credit card 4 - £500 (0% til 2022)
Personal loan - £3000 (15.5%, 2 years)

I also still owe £850 for the sofas with Ikano.

With the cards, I performed money transfers and lost most of it gambling. I'm not suicidal but I think I'm 1 step below that. I am extremely depressed and I currently receive £400 a month on benefits.

I guess the obvious answer is to get a job, but I just applied for a Covid aider and didn't even get shortlisted. In my former job I was on £32K. There is nothing else close to that but I'm willing to accept literally anything. I think if I lose my home that's it for me. Also I suppose I should pay the loan off, but right now I feel better with the money as I am currently losing £1000 a month, during the mortgage holiday...

What do I do? Please help any advice appreciated.

2 months ago everything was perfect, now I can't understand what the hell has happened. I think without my girlfriend I'd be much worse.

Pocket9s

Sorry you’re in this situation chief, I’m not the best for debt advice but trust me there is a way back from this, suicide is never the answer mate. I think there are now 3 stages to go through in the next few days:

Stage 1 is get the gambling cut off NOW, before you are tempted to chase losses and lose that 8k as well. Remember you are mentally vulnerable at the minute so it is much easier to lose control gambling, you need to cut yourself off from any temptation in the next few weeks/months (and probably years/for life). Now you are thinking straight get yourself self excluded right now from all casinos/bookies. I recommend you sign up for some gambling blocking software, I’ve heard Gamban is good https://gamban.com/ there is a 7day trial for free. (Can’t stress enough do this NOW so you can’t lose any more, not in the morning, NOW). After the trial there is a fee but worth it to stop potential huge losses. You can also ask your bank to block gambling transactions so do that as well. To be extra safe get yourself self excluded from all the local brick and mortar bookies in the area, more info here https://self-exclusion.co.uk/.

Stage 2 is get some help with your mental health. I would contact your GP in the morning and explain your situation, GP may give medication if appropriate, and can signpost to counselling and other support, don’t feel embarrassed this happens to more people than you would think. Likely to be a good idea to open up to your girlfriend if you haven’t already, as she can help with moral support. Maybe think about some Gamblers Anonymous meetings as well as can get some support there. Gamcare offers support as well. www.gamcare.org.uk

Stage 3 is get a plan to keep things ticking over while you look for work - benefits/managing the debts etc. Someone will likely be along to give better advice on this. You have 8k so hopefully this plus some benefits will see you through until you get work. I would say don’t pay any loans off for now until you get some advice from someone who knows the best strategy here based on your circumstances 

This seems like a nightmare now but trust me it is not insurmountable, £12k is a chunk of money but if you read on here people have owed and paid back 5-10x that amount, get a plan together and a few years down the line you will be back on track. 

Galloglass

Pay off the high interest cards with your savings - it's expensive money. The 0% interest cards can tick along. Keep the rest for your mortgage as you need it to keep a roof over your head. Check for Council Tax Reduction (see council's website) and see if you can get lower tariffs on gas,electricity and water. If you have a spare room, then see if you can rent it out as it is worth £7500 tax free a year.

I've applied for 100s and haven't had a single interview.

The UK seems to have these economic jolts every 5 - 8 years where jobs are scarce but it bounces back. If you are searching for work in an industry that is uncertain (e.g. hospitality) you won't get much luck. Try looking in similar but unrelated areas.

A friend of mine studied neuroscience but couldn't get work so now works for a laxative manufacturer. So has gone from top to bottom - literally.

fatbelly

Pocket9s said:

Stage 3 is get a plan to keep things ticking over while you look for work - benefits/managing the debts etc. Someone will likely be along to give better advice on this. You have 8k so hopefully this plus some benefits will see you through until you get work. I would say don’t pay any loans off for now until you get some advice from someone who knows the best strategy here based on your circumstances 

This seems like a nightmare now but trust me it is not insurmountable, £12k is a chunk of money but if you read on here people have owed and paid back 5-10x that amount, get a plan together and a few years down the line you will be back on track. 

Good advice on all three stages. Let's just flesh out stage three. Your mortgage is a priority debt, the loans and cards are not. If you need the 8k to prop you up while you look for work, that's what you do.

Claim everything you can from the benefits system. Turn2us have a checker

Government Support for your mortgage is now very poor and you won't even become entitled to apply until nine consecutive Universal Credit payments, and hopefully you'll  have something sorted by then

lixhul

Thanks guys.

I need the £8K because I am negative £1000 a month will all bills considered. Card repayments are £450 a month at minimum and I'll have to keep that there until I find a job.

I just can't find any. I applied for a low skilled job and never even got shortlisted. I am in the Yorkshire area and there is just nothing. I have no idea where to gambling came from, never done it before, I just lost sense of purpose and I've unemployed for 2 months now.

lixhul

I have done an SOA. Any help much appreciated. I need a job but I just do not think I'll get one. I can't even get an interview and I have absolutely no idea why. I have a top Master's, a top Bacehlors, management experience, and cant get a bloody interview. I am in a bad state right now and I am worried. I have about 8 months of money left.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 0

Partners monthly income after tax....... 0

Benefits................................ 409.89

Other income............................ 0[b]

Total monthly income.................... 409.89[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 349

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 30

Gas..................................... 15

Oil..................................... 0

Water rates............................. 22

Telephone (land line)................... 0

Mobile phone............................ 16

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 25

Groceries etc. ......................... 80

Clothing................................ 10

Petrol/diesel........................... 60

Road tax................................ 2

Car Insurance........................... 30

Car maintenance (including MOT)......... 10

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 100

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 10

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 10

Haircuts................................ 15

Entertainment........................... 30

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 814[/b]

[b]

Assets[/b]

Cash.................................... 8000

House value (Gross)..................... 117000

Shares and bonds........................ 0

Car(s).................................. 7800

Other assets............................ 2000[b]

Total Assets............................ 134800[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 87000....(349)......4[b]

Total secured & HP debts...... 87000.....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

MBNA...........................4040......120.......0

MBNA...........................500.......20........0

Virgin Credit..................2040......50........0

PayPal.........................550.......45........19.9

Rate Setter....................3000......125.......15.9

M&S............................1350......35........0[b]

Total unsecured debts..........11480.....395.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 409.89

Expenses (including HP & secured debts). 814

Available for debt repayments........... -404.11

Monthly UNsecured debt repayments....... 395[b]

Amount short for making debt repayments. -799.11[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 134,800

Total HP & Secured debt................. -87,000

Total Unsecured debt.................... -11,480[b]

Net Assets.............................. 36,320[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

pjcox2005

I'd echo the points on get the gambling stopped and mental health worked on. Perhaps contact Gambling Annoymous or similar support groups who may be able to help with why you've gambled that much and the impact of continuing.

You mention girlfriend - what conversations have you had with her on this, general feeling and plans for short term or future.

I've not had to job hunt so this isn't first hand experience but I expect it's a grind, scary and demoralising. I wonder if you can do something around focus - so spend 3-5 hrs each morning applying, searching, putting yourself out there for jobs in person. But then I would make a packed with myself that you then do something for yourself without guilt - probably has to be cheaper but is there something you enjoy - gym, walking, running or hobbies you do or want to learn that you can focus an hour or two on and have something worthwhile. Can you think of doing smaller nice things for your girlfriend in that time. My point being, use the time off to accomplish something you want or get enjoyment rather than letting months pass by and getting into a rut. I appreciate though that's easier said than done but I think it will also help with gambling/mental issues, perhaps even more so if it's part of a group.

ZaSa1418

Make sure the mortgage is paid, try and stay away from gambling, delete apps of your phone and seek help with gamblers anonymous. 
Claim any benefits you may be entitled to and whilst i don't ever like saying this but if you have no job and get extremely desperate i would cut the child maintenance down again to half, if the csa/cms were involved you would pay £7 a week potentially even nil if you have your child overnight once a week.

sourcrates

Your priority now is to ring fence what savings you do have to pay essential bills such as your mortgage and council tax etc etc.

Wasting money paying non essential, non priority card debts that will eventually default anyway is a pointless excercise.

And as said above, claim everything you can benefits wise.

Be proactive now, write to your unsecured creditors, explain your unemployed due to Covid-19, the 3 month payment breaks are still available, the same may apply to your mortgage again as well, and obviously the gambling must stop.

Your unsecured debts can be dealt with once things improve, don`t keep paying them because you feel compelled to do so, that makes no sence whatsoever, and you will exacerbate the situation further if you don`t take control of that now.

lixhul

I've just secured a job interview for Covid prevention staff which is temporary but would help immensely so hopefully I get that. The pay is half of my former job but will get me in surplus. I must admit I gambled another £2000 though and I'm at a low, but the information of gaining interview has made me feel much better. I'm definitely mentally harmed thinking I can get back what was mine. It's such a strong urge and I am trying to get away from that. As a result I've taken out another £3K loan over 5 years with NatWest.

I haven't discussed money issues with the girlfriend as we're fairly new together and it's not something she'd find appealing, but I have mentioned I need to stick to a budget on good etc.

lcc86

I really hope this job interview works out for you. Keep applying for stuff and eventually you will get something. However you need to stop taking on more debt NOW. Why have you taken out a loan? If it is to clear some of the cards I can understand but you then need to cancel all the cards and remove them from any websites so you can't use them. As you've gambled and lost a significant amount again please revisit the information others have posted about getting yourself blocked from these sites. You will never win long-teem with gambling and it will make your current situation worse, it is a vicious cycle. I wish you all the best.