Debts and don't know where to start

[Deleted User]

Hi
I have a number of loans with different lenders, all taken out prior to Covid when I was in full time employment on a higher salary. 
My contract was terminated in April 2020 due to Covid and I was unemployed for three months. 
I am now employed on zero hours contract which means my income is significantly lower and I have found myself in a very difficult position where I am unable or struggling to repay my loans. 
Most of the loans have been passed to debt collection agencies and I have previously had bailiffs sent to my property.
At this point, I am unsure of the exact state of my debts and credit file and don't know where to turn but I know I can't continue like this and it is having a drastic impact on my mental health wellbeing and I'd be grateful if you can offer any advice to get me out of this nightmare.
Thank you in advance. 

MEM62

Deleted_User said:

My contract was terminated in April 2020 due to Covid and I was unemployed for three months. 

Sorry to hear of your problems.  So many are currently impacted in some way. 

Deleted_User said:

Most of the loans have been passed to debt collection agencies and I have previously had bailiffs sent to my property.

If you had visits from bailiffs then you already have court judgement(s) against you.  Perhaps you were already financially stressed pre-COVID?   

Deleted_User said:

At this point, I am unsure of the exact state of my debts and credit file and don't know where to turn but I know I can't continue like this and it is having a drastic impact on my mental health wellbeing and I'd be grateful if you can offer any advice to get me out of this nightmare.

Your first step is to take stock of where you currently stand.  Gather all your paperwork together and check you CRA files to see what is there.  Then head over to the DFW board and post your SOA.  You will get lots of support from some very knowledgeable guys and gals over there.     

enthusiasticsaver

As said above finding out where to start and contacting your creditors is the first step.  Ask for breathing space while you decide on your next steps and tell them you have an income reduction due to Covid.  Do a soa (statement of account) although if you are zero hours part of your problem is probably erratic income which no doubt has contributed to your debt issues.  Bailiffs can only come round if you have court orders so I am surprised if this is just down to Covid as they were supposed to be lenient.  Were you overstretched before this year?

Check on credit karma which is free as to the state of your credit file and which debts are registered against you.  Which debt solution you go for depends on the amount of debt and whether you have assets or any disposable income to pay towards the debts.  It may be  bankruptcy may be the best option if you have no property and your income is unlikely to increase soon. 

The DFW board is great for advice so start with an soa on there once you have found out what debts you have.  In the meantime you have to stop using credit.  Is it just loans or do you have an overdraft and credit cards too? 

macman

Do you mean debt collectors, rather than bailiffs? The former can be ignored, as they have no powers of entry (or, indeed, any enforcement powers at all).
The first thing you need to do is set out exactly what you owe, and at what rates, in the form of an SOA. You can't tackle the problem until you define it.

PinotGrigio41

Just re-iterating what others have said here. You really do need to know exactly what you owe and who to in the form of an SOA. Once its written down things become much clearer and will be helpful in tackling your next steps. A request for breathing space should probably be your next step whilst you put things together and formulate a plan of action. 
I am inclined to agree with macman that perhaps the visits were debt collectors rather than baliffs. As scary and as as stressful as they can be, they have no powers and can be ignored. Head over to the  DFW board and you will receive alot of support . 
Best of luck . 

sourcrates

Moved to DFW board.

Hi OP,

First step is to fill out the SOA (statement of affairs) link here -

https://www.stoozing.com/soa.php

when finished, format for MSE when it asks you, and post on this thread, dealing with the debt is the easy part, asking for help is whats hard.

datlex

without knowing the type of loans size and interest rates it is difficult to make suggestions.  
However,  if you are on a low income it may be best to tackle the smallest first, as if you could clear this it may help open your options for making the debt more affordable.

macman

That's not sound advice without knowing the exact nature of the debts. Generally speaking, the debts to tackle first are the most expensive, not the smallest.

BabyStepper

macman said:

That's not sound advice without knowing the exact nature of the debts. Generally speaking, the debts to tackle first are the most expensive, not the smallest.

And as we all know from frequenting these boards and paying down our own debt, sometimes paying off a small debt first gives you a sense of achievemant and a boost of confidence, encouraging you to continue. Debt is not just about numbers, it's about our emotional experience too. 

OP, I agree with others that we need your SOA before we can comment further.