Nervous and need help on where to start with £25k debt

Laura721

Hi everyone. Sorry if I am posting in the wrong place however I do not post often/am basically new here.
I want to find to get out of this mess but need advice on the best way to start and what to do.
I originally got into debt problems in January 2018 when I was made redundant from a well paid job.
Debts:
£208 LOWELL
£10,847 AMEX
£12,000 MBNA
£2,300 Tesco Bank
I originally tried to get help firstly from AMEX who said I needed to make a £500 payment and then they might be able to help me. I had no way of doing this, became really nervous and insecure about it all and ran away from all the debt, ignoring it to this day.
I moved to the US on a Visa to be with my partner and had a trainee minimum wage job. Then got pregnant, had a baby, lost my job at the beginning of the COVID pandemic.
Returned to the UK in August 2020 when my Trainee Visa expired, and have now decided I need to do something about this.
I am mother to an 11 month old and live in my father's house and am currently on Universal Credit.
I do not have any way of paying these off currently and do not see this changing in the near future.
Should I go to a debt charity? Government debt assistance? Bankruptcy (I have no idea about this)?
Please be kind with me, I am really nervous and anxious about all of this and just need some help to start actually doing something about this!
Thank you in advance.

MidsHollie

Hi Laura,
Welcome to the forum! You certainly are not alone. 

There will be some super knowledgable people who will be able to give you some advice about the debts. Step change are a debt charity that are often mentioned, and you might get pointed in their direction. 

An SOA (statement of affairs) can be helpful for you to understand incomings and outgoings, and help you set a budget. I used to budget by writing a list of my direct debits and then spend what I wanted and telling myself it was ok because I had a budget!! 

There is a woman on Instagram called Francesca, and posts as the moneyfox. You situation doesn’t sound dissimilar to hers she crawled herself out of debt pennies at a time to start with. You might find some inspiration from her. 

I’d really recommend a diary on here. They are great for support, advice and checking in on your own progress. 

Wishing you all the best

tacpot12

You need professional debt advice, and a debt charity can be a good way to get this, but do investigate whether they really are a charity and whether they are any good. 

You can use this link to help find a local debt advisor and to see what national services are available: 
Debt Advice Locator - Free debt advice service and help locator tool - Money Advice Service

Your local Citizens Advice may have debt advisers who will be able to help you work through the options available to deal with your situation. It would be worth giving them a call in the New Year to see if they can help. 

All professional debt advisors will want to see details of your income and expenditure, so preparing a Statement of Affairs (SoA) is a good way to get started. 

Are you receiving child maintenance from the father of your child? Most US states have reciprocal enforcement agreements with the UK on child maintenance, so if the father is reluctant to pay maintenance, there is the possibility off some assistance.

Suseka97

As has been said, talk to one of the debt charities - such as StepChange (who if you read various posts on here tends to be the 'go-to' organisation) and there's also Payplan who offer similar services.  With both you can go online and put in your details and it will give you an indication of what sort of recommendation you may get - that's if you are struggling to get hold of anyone on the phone, or if you prefer not to speak with someone until you are more informed.    Or you can contact the National Debtline or a local CAB.  All or any of these are completely free and will go through your situation with you and advise on what course of debt busting action would be best.

You mention bankruptcy, which is an option for someone with no physical assets such as a property - it's not as scary and it once was and is certainly an option for someone who has no physical assets such as a property or expensive car, or a job where bankruptcy would be frowned upon.  There is also an IVA or DMP - each have their own benefits and suit certain situations.  Many on here can give you examples of their own experiences with them, but its best to go through your situation with a professional and then come back on here if you want to work through that or ask more specific questions from those who have chosen that particular option.

Finally, just to say that its really good you've decided to do something about your financial predicament and once you've picked up that phone, you won't look back.  Good luck  

fatbelly

When you say you 'do not see this changing in the near future' do you mean that you will be living with your folks and on UC for the next few years?

If so I would say your situation sounds suited to bankruptcy, which is now an online process with £680 fee

https://www.gov.uk/bankruptcy

If you want to post a statement of affairs we can take a closer look

https://www.lemonfool.co.uk/financecalculators/soa.php

ryanm8655

How would bankruptcy impact getting a visa to the States again? 

[Deleted User]

ryanm8655 said:

How would bankruptcy impact getting a visa to the States again? 

The OP would really need to check with a visa agent specialising in US visas, if returning to the US is something she wants to do in the future.  However, my understanding is that applicants need to prove they have "good moral character" and bankruptcy itself is not necessarily a barrier to proving good moral character.  The American culture is more forgiving of bankruptcy and is all for financial second chances.  How many times was Trump made bankrupt and he made it to the White House?

sourcrates

Lover_of_Lycra said:

ryanm8655 said:

How many times was Trump made bankrupt and he made it to the White House?

At last count, 6 times i think.

Although never personally made bankrupt, his buisnesses have been on 6 occasions.

ryanm8655

Lover_of_Lycra said:

ryanm8655 said:

How would bankruptcy impact getting a visa to the States again? 

The OP would really need to check with a visa agent specialising in US visas, if returning to the US is something she wants to do in the future.  However, my understanding is that applicants need to prove they have "good moral character" and bankruptcy itself is not necessarily a barrier to proving good moral character.  The American culture is more forgiving of bankruptcy and is all for financial second chances.  How many times was Trump made bankrupt and he made it to the White House?

Something to consider for the OP. Not sure how it would impact getting another green card.

TheAble

Clearly some professional advice is needed.
Suggest you speak to Stepchange - it will cost you nothing and would be a good place to start.

Laura721

Thank you all. 

I was wondering given the debt is 25k, if a family member allowed me to borrow £5k to pay off some, could I then get a Debt Relief Order? I have no idea if this is possible just trying to find out my options. 

In regards to US visas I don’t believe they ask about bankruptcy at least they didn’t when I previously applied but to be honest this is the least of my worries.