Help please

Gh099004

Afternoon,

I've got myself in a huge rut.. 

I'm currently 17,000 in debt 

1 loan for 6000

4 credit cards 

-3700
-4000
-1700
-1400

I have got most the debt because I formed a bad drug habit which I'm aware is my fault but I want my life back. I am on the right track doing absolutely nothing but unfortunately I am facing reality to the damage I have inflicted on myself. 

My credit score isn't amazing. 

I put a deposit on my flat 3 years ago for 40000 I was wondering is there any possible way that the bank would let me use some of it to clear the debt just so I can have a fresh start.

I'm now working 2 jobs trying to pay it off but I have no kind of life at all just sat in the cold when I'm not working thinking about how I can get out of this jam.

Thanks for taking the time to read this and I welcome and appreciate any advice. 

Ebe_Scrooge

Firstly, well done for facing up to your issues and asking for help - that's a massive first step, and takes some guts.  You'll find plenty of help on here.

The first step is to fill out an SOA ( https://www.lemonfool.co.uk/financecalculators/soa.php ).  Use the "Format for MSE" option and post it up here.  That will give both yourself and others on here a (hopefully) accurate assessment of your financial situation.

From there, we can help you work out what is the best approach.

A couple of things from the outset though.  Firstly, ignore your credit score, it's meaningless and has no bearing on how a lender will view you.

Secondly, do not be tempted to turn unsecured debt into secured debt (i.e. extending your mortgage to repay loans/credit cards).  Default on an unsecured debt, that's your credit file trashed.  Annoying, but no big deal in the grand scheme of things.

Default on your mortgage and that's your home repossessed.

So, get an SOA filled out as accurately as possible, and let's take it from there.

Martico

I'll second that advice, and also give kudos for facing up to everything and looking for a way through.
You've already come a lot further than many that seek advice on this forum by being able to pinpoint exactly where the root cause for the debt lay, and that's really positive. 
Good luck, you'll find support and advice here. I look forward to seeing your SOA if you're willing to share it 

EssexHebridean

They've already said the key things above - I'll 100% reiterate the assertion that you shouldn't turn unsecured debt into secured though. Unpaid unsecured debt, you risk losing your "credit rating" - which is a fictional number anyway, there is far more to the way credit works than that. Secured debt unpaid risks the roof over your head. 

I'll also agree that to have faced up to things was such a huge step - well done for doing it, and for staying clean. Make sure you're taking all help on offer on that side of things whether through your GP or via charities like NA. 

Getting your SOA together means you'll be able to work out a sensible budget, and that will also mean no more sitting in the cold - as you will be budgeting a reasonable amount for energy costs - and for all your other priority payments too. Paying the debt comes after those things have been addressed. 

Gh099004

For some reason Soa link just says whoops when trying to post but I have screen shot. It's 2 parts. Thanks for helping me. Very kind of all of you. Also I make about 200 extra on top a month but it's not guarenteed it's just delivering food. So I can't bank on it. 

Grumpelstiltskin

Did you format your SOA  for MSE?

Gh099004

Yes it just said whoops and said to email them about the broken link tried multiple times. 

fatbelly

You've got £273 available to service 17k of debt. That clears in about 5 years in a debt management plan. As you own a flat with equity to protect I'd say that's the way forward.

So you need a bank account unconnected with your debts, stop paying the non-priority debts, save an emergency fund.

If you want to go do-it-yourself, fine. If you want someone to manage it for you without charging a fee, then Payplan or Stepchange is the way to go

kimwp

You've done an amazing job kicking your drug habit, I'm in awe of anyone who can overcome an addiction.

I think you need to work on your SOA, in terms of reducing the amount you spend on food to nearer £200 and also in terms of accuracy. For example you have nothing in there for car maintenance. And you need to have something in there for socialising and entertainment if you are going to do a dmp - you need to have some funds to hang out with friends etc. I suggest you look back over your accounts (the last year if possible) and see what your actual spend is. 

Gh099004

Hey Kim, thank you for your advice. My food bill is high because I'm trying to eat really healthy as it just helps me stay on a good path with the gym and keeps me occupied and food prices have gotten out of hand. All of my debt is litterally all from drugs unfortunately. All of the transactions are just cash withdrawals. Ive just filled out all of the step change forms online and I'm going to call them in the morning. I'm just going to make sure I get life right this time and take this as a very hard lesson. 

Thanks for everybody's help and advice and I hope you all have a lovely week. 

Many thanks

fatbelly

Sounds like a good plan to me.

Let us know how you get on.