Help please...

bb66_2

Over the last few years I have had a few light bulb moments but today I have decided that it can't go on any longer as the situation is slipping further and further out of control. I'm not sure if bankruptcy is the option?

I am totally lost for direction as to what is the best way to tackle this. Baring a lottery win this debt is going to take me a long while to clear. I have no other sources of income and it really terrifies me. I am not sure if I am best fighting it and trying to pay everything off or just giving in and going bankrupt.

I have literally wasted all the money I have had on holidays and leading a lifestyle outside my reach in London. I am not proud of it at all but this is where all the debt has come from. I have stamped this out before so I know its possible to completely leave that lifestyle. I'm also very sporty so I have good reason to do it. I will not let myself down here....starting with a fresh outlook I will turn the corner in this respect.

I take home a monthly income of £1912 into my account each month.
Out of which comes:

£484 on minimum payments
£535 on rent (I can't realistically make this much lower for the foreseeable future)
£57 on council tax (again I am stuck with this)
£35 on phone bill (I will turn to pay as you go when the contract is done in april)
£125 on food (can I make this lower?)
£5 on internet
£5 on landlines phone
£40 on travel
£50 on electricity and gas

So a total of £1336 (I don't think there is much scope to lower this anymore)


I currently owe:

£5498.55 (HSBC Credit Card) 16.9%
£4650 (Virgin Credit Card) 0% until Jan 2009
£1832.84 (Egg Card) 26% (I aim to pay this straight off after Christmas with money that has been left to me)
£3908 (Egg Loan) 24 remaining monthly payments of £160.98
£5000 (Student Loans)

So a total of just over £20k

I am a single guy, 29 years old with no assets.

Worst case scenario my parents could help out slightly but this news would literally devastate them and I'm not prepared to do that. Realistically other than a few hundred pounds they couldn't help in any case. This is my problem and they are just about to retire. I don't think I can do that to them, especially as they know I have a good salary and have literally wasted everything I have had for the last ten years.

I would be more than grateful for any advice about my best way forward.

Thanks

TaxAvoider

You could write to all your creditors and ask them what they would accept if you cut up your cards ? Not sure about student loans ?

But if you could get a reasonable agreement out of all of them, maybe you could manage to start afresh.

You really , really DO NOT need credit - trust me , I have not had credit for around 4 - 5 years, and although a lot older than you, it is easier than you think.

If you are serious about this, then maybe you will find that your income does go up at an unexpected time in the near future, if you can get on top of it right now, then maybe with less stress your long term view will improve.

If they don't come to a reasonable offer, and you find the debt spiralling out of control, then take advice from many of the debt charities on this site and if BR is the best option, then do not let people make you feel guilty about it.

madoldbat

Hi BB66 well done on facing up to your problems.1st step taken.:T
TaxAvoider is spot on try to negotiate with your creditors and seek advice from debt charities such as CAB and CCC (never pay for debt advice).
Please make sure you understand all your options.BR is a last resort and not an easy solution but some times the only one.

backontheup

Hi BB

Give either National Debtline or the Insolvency Service a call for advice.

Of course BR is an option for you as a last resort, but given your monthly surplus, the OR would expect 40% (or thereabouts) to be used towards paying off your debts.

A DMP (debt managment plan) might be of more use to you. If you give payplan a call they can help you with this

tigerfeet2006

Links in my signature for you.

Homework

Well done in identifiying this and taking advice. The links in the post above are all very good and will give you great advice. The great thing is that if you concentrate on this now you can have this debt cleared and then start saving for your future while you are still young - gives you many years of debt free living. Good luck, hope it all goes well