Time to face up to my debts

Jakdaniels94

Hi all,

I’ve struggled with debt since the age of 18, now 10 years later I need to sort it out and think about the future.

My debt consist of loans, overdraft and credit cards. I’ve always worked hard and maintained my priority bills and never missed a payment but with the debt I’ve barely touched the sides and find every year or so i’m taking one loan to pay another off or the same with credit cards and balance transfer.

Things have come to a head through a combination of the cost of living, taking out a loan that I probably shouldn’t have been approved for and my own personal circumstances which now mean I can’t make the payments and be able to live.

My overall debt is £32k. I’ve spoken to step change and they advised I would be best to enter into a DMP and have worked out I can afford £330 per month which would take me approx 8 and several months to complete.

I just want to rebuild my financial life and be able to have savings, buy a property and start a family but this is holding me back. I’m constantly worried and don’t know what to do. When I move forward with things such as starting a new job the debt is always hanging over me.

I have no assets (my most expensive item is my Apple Watch) and I have no savings so I’m genuinely wondering if going down the route of bankruptcy and starting afresh would be my best option.

thanks for listening!

fatbelly

You would have hoped that stepchange would have considered that option as 8-9 years is a long time for a dmp if bankruptcy is an option, which in your case would probably involve a 3-year income payment agreement.

Do you own property/ Do you have any expensive assets that you want to protect? Do you work in an industry where bankruptcy would cause a problem?

Jakdaniels94

fatbelly said:

You would have hoped that stepchange would have considered that option as 8-9 years is a long time for a dmp if bankruptcy is an option, which in your case would probably involve a 3-year income payment agreement.

Do you own property/ Do you have any expensive assets that you want to protect? Do you work in an industry where bankruptcy would cause a problem?

Hello 👋 

Step change was steering towards DMP being my best option but did also list bankruptcy and IVA. On my DMP the estimated date of completion is left blank however based on the payment and it being the same it’ll be just over 8 years!

I have no property and no assets. Bankruptcy would also not affect me in my current position.

Thanks 😊 

flipflopflo

Just on that basic information then I don’t see why bankruptcy would not be for you.  

Would you mind filling in this SOA for us and it’ll give us a better idea on what we are dealing with. Fill it in, format for MSE and then copy and paste it in here.  

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

fatbelly

Sounds like bankruptcy would be your best (cheapest) option then. £680 fee and income payments for 3 years