£31,000 Credit Card Debt and My Anxiety is Unbearable

Hi everyone,

I’m in around £31,000 of credit card debt across four cards, and the stress and anxiety is seriously affecting my health. I’ve struggled with anxiety for over 20 years, and this situation has made it so much worse.

I missed my minimum payments in March and will likely miss them again in April. The constant calls from lenders are just too much. I haven’t answered any and blocked them because I know I’ll start panicking. Will not answering the calls make things worse?

I’ve done a rough income and expenditure breakdown and have around £400 surplus each month. I’m 61 and work two jobs day and night, but I still feel completely stuck.

I’m also a homeowner, and the fear of losing the home I’ve lived in for 25 years is keeping me up at night. I can’t even bring myself to tell my family that we could lose our home.

Out of desperation, I contacted StepChange, and after doing the online income/expenditure, they advised me to enter a DMP. I’m seriously considering it, but I’m also scared, and I know that many people here don’t recommend going through StepChange. What is the best thing to do?

I feel like I’ve let my family down and am honestly embarrassed to be in this situation. But I know I can’t carry on like this.

I would appreciate any advice, experiences, or reassurances from anyone who has been through this.

«134567

Comments

  • Misslayed
    Misslayed Posts: 15,222 Senior Ambassador
    Tenth Anniversary 10,000 Posts Homepage Hero Name Dropper
    I’m not in a position to offer you advice, but I didn’t want to read and run - there are several very knowledgeable, experienced and kind folk here, who will be along soon to help you. 🤗
    I’m a Senior Forum Ambassador and I support the Forum Team on the Competition Time, Site Feedback and Marriage, Relationships and Families boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com All views are my own and not the official line of Money Saving Expert.
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,255 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Please do not rush into a DMP with anyone until you have done research and 200% understand what you are doing.

    If you can't afford to pay your debts then just stop paying them. Nothing terrible is going to happen as long as your debts are unsecured there is no risk to your home, no bailiffs are going to turn up. It is only money no need to get so worked up about it.

    Read through this thread In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

    Complete  a honest SOA and post on here and we can give you the best advice.
    If you go down to the woods today you better not go alone.
  • husnu1
    husnu1 Posts: 39 Forumite
    Part of the Furniture 10 Posts Name Dropper
    Please do not rush into a DMP with anyone until you have done research and 200% understand what you are doing.

    If you can't afford to pay your debts then just stop paying them. Nothing terrible is going to happen as long as your debts are unsecured there is no risk to your home, no bailiffs are going to turn up. It is only money no need to get so worked up about it.

    Read through this thread In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

    Complete  a honest SOA and post on here and we can give you the best advice.
    Thanks. I have read the attached thread. Can I ignore the calls for the moment, and how can you be sure this won't lead to repossession in the future?
  • Penguin_
    Penguin_ Posts: 1,533 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    As long as the debts aren't secured you will be ok with regards to your house.

    Get the Statement of Affairs done & people will be able to help.
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,255 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 31 March at 4:46PM
    A debt has to be secured on your house, usually through the mortgage before there  is any risk of repossession.

    If you debt is normal, loans, store cards, credit cards etc. they are unsecured.
    If you go down to the woods today you better not go alone.
  • sourcrates
    sourcrates Posts: 31,048 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    edited 31 March at 7:21PM
    First off, take a step back from the edge, you`re in full panic mode, and thinking worst case scenario here.

    No one is going to take your house, credit card debts are non priority, non essential debt, basically they are of no real importance at all, the very worst a lender can do is obtain a CCJ which you repay monthly according to your budget, so that fear is irrational and you shouldn`t dwell on that any longer.

    With £400 a month free, your looking at a 5/6 year DMP, possibly shortened by settlement offers.

    You can use one of the free debt charities or do it yourself, both options work well, but self managed is better as you retain all control, not some 3rd party.

    This can be sorted with no panic or alarm, DMP`s are easy to set up.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 22,553 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Stop paying the cards.

    Block calls, ignore texts, file letters

    Save an emergency fund

    Give each creditor their share of the £400 (preferably a bit less) when the defaults come in

    You will not lose your house because of nonpriority debts
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    As people have said, if they are unsecured debts then nothing terrible is going to happen if you stop paying them.

    Are any of your debts with whoever you bank with? If they are you will want to think about who you could do basic banking with that is not in anyway related to your debts. Not to take action yet, but consider and be prepared for.

    Posting a Statement of Affairs is a great place to start to really get some experienced advice.
  • husnu1
    husnu1 Posts: 39 Forumite
    Part of the Furniture 10 Posts Name Dropper
    Please do not rush into a DMP with anyone until you have done research and 200% understand what you are doing.

    If you can't afford to pay your debts then just stop paying them. Nothing terrible is going to happen as long as your debts are unsecured there is no risk to your home, no bailiffs are going to turn up. It is only money no need to get so worked up about it.

    Read through this thread In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

    Complete  a honest SOA and post on here and we can give you the best advice.
    I will post my SOA tomorrow once I go through it again to make sure it is accurate. Should I edit my original post and add it in there, or should I just add it in as a reply/comment? I'm sorry, but I am new to this forum and don't know the best way to do it.
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,255 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Just add it as a comment. You will have to format it for MSE and copy and paste.

    Try not to worry tonight, it will be solvable.
    If you go down to the woods today you better not go alone.
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