Struggling....

LeopardPrintLover

Hi, I have over £24,000 of debt between two loans and a credit card. My relationship ended a year ago and I have been trying to get on top of it all. My loans are paid every month and I haven't fallen behind with them at all. My credit card is a different story. I went on a payment plan with Barclaycard but fell behind due to the payment date being mid month and I would forget and send it over end of the month when I got paid and I did miss a couple. The credit card is on hold at the moment and I have been offered a plan that comes with a default. The thing is, with everything else going up, I am ending up in my overdraft most months buying the essentials as most of my money is paying the loans that I am beginning to find unaffordable. All of this debt was built up when I was with my ex. As previously mentioned, we split a year ago and I am getting no help from him towards it. The debts are in my name so just chalk that up to my own stupidity that I didn't demand joint loans. I have 4 children and I work part time and claim UC. I need my car to do the school runs and commute to work so I can't get rid of that. I really need to get my !!!!!! in gear with it all. I don't know whether to go for a Debt Management Plan and take the hit on my credit file as its probably looking quite bad now anyway or to keep paying what I can and not have much left for anything else. It scares me that if something goes wrong with my car or my house, I don't have any spare cash to fall back on. My mortgage (which is joint with my ex, I cannot afford to buy him out and both our children together are under 18 so I can stay in the house with my children) is due for renewal in 2024 and I am terrified that the black marks I have accrued on my credit file is going to blow back on interest rates and I am just thinking about it all the time. If anybody has any advice for me, it would be much appreciated.

Rob5342

I'm sure others will be along with more detailed advice, but I'd say its better to start on something now so you can get it sorted. If you try and carry on as you are things will just get worse and worse.

You can move to a new mortgage rate with the same provider without requiring a credit check. I have four defaults and had no trouble moving onto one of fixed rate deals at the same rate they'd offer anyone else.

EssexHebridean

Hi OP - first up, take a breath! Believe it or not, you've actually done the hardest bit now - realising there is a problem and understanding the scale of that problem is often the bit that people struggle the most with - so well done for that, and for already beginning to think towards constructive solutions to the problem as well. 

The first thing to do is to put together your SOA (Statement of Affairs) so you have not only a full picture of what you owe, but also of what is available after your outgoings to service that. Make sure the SOA is full, open and honest (with yourself) - and remember to include things that might not be regular monthly payments, but do still need paying - school uniform might be an example. If you put down amounts being budgeted for certain things - car maintenance say, or clothing, or holidays - if those are not being put aside at the moment then make that clear - there's no harm in including them in your budget from now, but you do need to acknowledge where there are holes at the moment otherwise it gives a false impression - for example, someone saying they put aside £50 for car maintenance each month might be perceived to have no issues covering the costs of an upcoming MoT Test & Service - whereas if that money hasn't in fact been budgeted, an alternative means of covering those costs will need to be found. 

Once the SOA is done, you might post it into here ("format for MSE" then copy/paste) and we can take a look, if you'd like, and see what suggestions we might be able to make for savings that perhaps you've missed. 

Try not to think too far ahead right now - the whole financial picture could have changed by 2024 so for now just concentrate on taking one step at a time - that's by far the most certain way of making progress! 

sourcrates

Just try and relax, when mortgage renewal comes around, if you renew with the same lender, no credit checks are usually done, so your credit file should not be a hindrance to you.

So, if these loans and cards are starting to cause you grief, don`t be a martyr, take steps now to reduce your monthly outgoings, I would stop paying your unsecured non-essential debts, take a couple of months to get myself together, work out what I can afford to pay which leaves me room to save an emergency fund, then go on a DMP with stepchange or the like.

Write to your lenders and ask if they will stop interest on your borrowing, if you wait long enough, they will eventually default you, so no more interest, don`t struggle on with unaffordable payments, do something now to start to make this better for you.

Just as a side note, Barclaycard will only ever do a temporary arrangement with you, much better to stop paying that one, and let it go to collections, or a debt collector, as they are much more flexible with payment options.

enthusiasticsaver

As others have said even if you have a bad credit record you will be able to remortgage with your currrent mortgage provider without a credit check so no reason why you will not get a new fixed deal. 

If you are unable to live without resorting to credit then defaulting on the unsecured debts and doing a DMP may be the best option.  If you do an soa we can advise further. There is a link in EHs signature.  

My advice would be stop the unsecured payments now and any spare money put into emergency savings.