Debt Crisis

Hi, I hope you guys can point me in the right direction. Any help at all would be greatly appreciated.

Over the past few years, I have let accumulated credit card debt over 6 cards, totaling just over £12,000.

I have also accumulated £500 worth of council tax arrears which are due in the next month and £300 energy bills arrears.

These have since defaulted and turned over to debt collectors. I have been in and out of employment, had problems with depression/anxiety and I've been burying my head in the sand. 

I had contacted the debt collectors a few times when I go back to employment, but obviously, I cannot keep up with the payment plans arranged as I become unemployed from jobs.

Again, any help/advice on would be greatly appreciated.



  • sourcratessourcrates Forumite
    26.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Council tax is a priority debt, so come to an arrangement with the council, they will let you spread any arrears over the coming years bill.

    You don`t say if you are currently working or not, without more information I can only go through generic options that you may have open to you, so if your not working, and you are contacted by any of these DCA`s, just send a copy of your budget showing you can`t afford any payments right now.

    If your only income is benefits, you won`t have much to play with.

    If you do work, then you can make individual arrangement with these companies, or you can enter debt management, which is an informal solution to repay your debts.

    Then there are the formal debt solutions, DRO or perhaps bankruptcy, depends on your circumstances, whether you are a homeowner or not, if you have any assets, its best to complete a statement of affairs which will tell us a lot more about your situation -

    SOA Calculator (
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
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