Is it hopeless?

johnsof75

Thank you. I can cut clothes to zero, and reduce  groceries . Other insurance is for fridge/washing machine, cooker, laptop.   . Hair is for dye rather than cuts - I need to look presentable for work.  Will do that but it still won't help me reach the minimum payments. I work very long hours in my job so can't take on another. 

Grumpelstiltskin

johnsof75 said:

Thank you. I can cut clothes to zero, and reduce  groceries . Other insurance is for fridge/washing machine, cooker, laptop.   . Hair is for dye rather than cuts - I need to look presentable for work.  Will do that but it still won't help me reach the minimum payments. I work very long hours in my job so can't take on another. 

Council tax?

Are you sure the other insurances are value for money instead of putting the money in a savings account every month?

OK there will still be a shortfall but with everything you do you are giving yourself a bit more wiggle room.

johnsof75

Thank you. i claim the discount on council tax.  I dont know about the value of the insurance as have never claimed- so you are probably right, I can change this. Thank you

Grumpelstiltskin

OK What you have got to do now is get a basic ( no overdraft ) current account with a banking group you don't owe money to.

Don't use the banking switch service but transfer all vital direct debits manually

Then stop paying all unsecured debts and use the money you have to save an emergency fund as you won't have access to credit.

Nothing terrible will happen when you don't pay, nothing moves quickly in debt collecting.

You will then wait for the debts to default, some may default in a couple of months, some can take 18 months.

There may  be affordability claims down the line, but leave that at the moment.

You don't pay anything until they default. Under no circumstances speak to your creditors and ignore texts, E Mails and phone calls ( block numbers ) but open any letters you get by snail mail.

Keep posting on here with anything you don't understand or are worried about.

johnsof75

Thank you. Would that mean I could never get credit again and would need to live in this flat forever. Appreciate that may be the only option and consequence of the mess I have got myself into. 

johnsof75

Would it mean I would be made bankrupt or can I still repay the money I owe? sorry for asking so many questions. I am worried I might loose my job if I was made bankrupt. 

Grumpelstiltskin

johnsof75 said:

Thank you. Would that mean I could never get credit again and would need to live in this flat forever. Appreciate that may be the only option and consequence of the mess I have got myself into. 

NO but you are not gong to be able to get any cheap credit whilst the defaults show on your credit report.

If you look on the mortgage board on here you will see mortgages are possible, whist you have defaults you should have no problem getting a new deal on your flat with your current provider as there will be no credit check.

Once defaults have been registered they disappear after 6 years even if you haven't repaid a penny in the mean time so the sooner you get defaults the sooner they disappear.

johnsof75

Thank you so much for taking the time to respond. I am afraid I dont really understand the process. Won't they just add lots of charges onto the amount I owe and I will end up in even more debt? Is there somewhere I can go to read about/understand what happens?  Sorry for asking so many questions. 

badmemory

Do you think it might help to read some other debt free wannabees diaries to give you some idea of what happens.  It may well set your mind a rest a little.

johnsof75

When I called Step Change they recommended a debt management plan but do you think defaulting is a better option. Sorry for asking so many questions.