Debt Help Please - Defaulted

runningbuddy

I've recently gone through some life changes, including a death in my close family, going through a divorce and subsequent admission to a psychiatric unit.

I'm getting back on track and am working again, but during the time I wasn't working, I leaned on credit and loans to get through, thinking I'd be back on my feet sooner than I actually was.

I'm back working again (I'm self-employed), but my monthly payments on the loans and credits were unmanageable and have meant I've defaulted on two loans and a credit card.

I want to pay off my debts as this is the right thing to do, but just wondering if I've defaulted on three already, should I try my hardest not to default on more (realistically I can only do this by borrowing money off family, which I'm reluctant to do unless absolutely necessary).

Or should I accept my credit is screwed for the next 6 years, let the rest default, as I'm better off making manageable payments to a debt collection agency? This, rather than trying to get my credit card and loans back on an even keel, which would amount to £100s and 100s a month and almost certainly not manageable.

I've spoken with Business Debtline, but they've been of little help as my pay is sporadic and isn't a consistent amount, so they don't want to/can't put me on a repayment schedule for this reason in case I can't pay.

For additional info, I'm getting a payout from the equity from my marital home which is about £10k in the next 6 months, and other than child maintenance and my vehicle, I have no other urgent outgoings as I live with my parents. 

I really need some guidance as I have no idea what to do for the best. Thanks in advance.
 

fatbelly

I think you need to default on the other debts and get some stability without further borrowing, from family or anyone.

You have a lump sum coming and defaulted creditors will be open to a settlement deal, but this is not a quick process.

We can give better help if you complete a statement of affairs. Just put something approximate for income. We know it varies. Template here

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

ManyWays

A Statement of Affairs isn't easy when you have an erratic income, but give it a go!

Borrowing off family isn't a good idea here, it complicates getting a debt solution very often so it's best avoided. 

sourcrates

runningbuddy said:

I want to pay off my debts as this is the right thing to do, 
 

No, I disagree, the right thing to do is to prioritise essential spending, the debts can wait if the money won`t stretch far enough, paying the rent/mortgage, putting food on the table and keeping the lights on is the right thing to do, not paying back some bank that treats you as a number.

They conjured up that money out of thin air, they can wait for their payback.