Age 50, in debt, aspergers, bad investments.

lifemistakes

All seems like solid advice so far. . . . .

I'm on my break at work ATM. . . . . . . .

A few of my main dilemmas are, I've calculated that if I did manage to pay off 6-7 of my smaller debts (to the tune of say 20k), and then improve my credit rating enough for say a 5-7 year unsecured consolidation loan for the remainder of my larger unsecured debts,. . . .the dilemma there is if I didn't get any overtime I would only be left with about £50 per week after all bills and petrol (£50 for everything else, food etc). Clearly to me anyway, that's cutting it fine.

I don't particularly want to be "anti-establishment", and so far have never failed a single payment, but now at age 50 I'm beginning to wonder if doing another merry go round of consolidation is wise, or if this time I could be stricter with myself and make it work.

What concerns me from my initial conversation with Stepchange is they appeared vague when I asked about how my overtime would be treated. Let me be clear for the past 3 years I have maintained regular overtime, week in week out, but it is physically taxing, and it comes with no guarantees, it could stop anytime for any reason. So, in the situation that I went down a traditional route of consolidation, I would be absolutely reliant upon overtime for any quality of life whatsoever (I suppose even if I did consolidate I could revert to a dmp at any time as long as it was unsecured), but that feels like putting a lot of pressure on myself, and the past 10 years has given me a lifetime of it already.

But what concerns me about a dmp is being pressured to use my "regular" overtime (even if it strictly isn't "guaranteed" as leverage for paying more to my creditors. If I did overtime I'll be honest going forward, I need to feel it's for my personal benefit outside of any arrangement, . . .IF I go down the route of a self managed DMP. Is this possible please without risk ?

I have more to ask but that's a lot of detail I can appreciate for now thank you.

Grumpelstiltskin

If you do a self managed DMP you are 100% in charge, you decide what you can pay no one forces you into anything.

Please do not consolidate, all that does is move the debt sideways.

Do not rush into anything, debt collection is often a very slow process and you will have plenty of time to work out what is best for you, for you not your creditors. Keep asking questions but don't be tempted into doing something you could regret.

ManyWays

what is the interest rate on the secured loan?

lifemistakes

https://forums.moneysavingexpert.com/discussion/comment/81933391#Comment_81933391

Actually I'm not entirely sure now you mention it (that's probably the only debt I've not got online info for). I took it out in 2022. I believe it was initially a 5 year "product" term, (a fixed rate for 5 years but taken over 20 years in total if memory serves correct paying about £220 pm I think with about £28.500 remaining). . . (my actual mortgage of £50,000 ends when I'm 67, I'm currently 50, again the mortgage "product" I think has about 12 months to run ending at a similar time to the secured loan.

Should I be concerned about any of this, will the interest rate shoot up if I'm in a dmp ? Or any other issues ? Thanks.

lifemistakes

https://forums.moneysavingexpert.com/discussion/comment/81933071#Comment_81933071

Thanks, this is something I need to explore more, and get an appointment with the doctor to explain everything and fill in the mental health form. Thank you.

lifemistakes

Thank you. Trying to remain calm.

jifmoose

I'll leave it to the very knowledgeable other posters on the subject of the debts and DMP - but one thing that is always emphasized in these threads is nothing moves fast in debt collection.

So I'm wondering on what the nature of your investments were, and whether it might be a good idea to take a pause before you sell them right now and lock in the loss? You mention that they were long-term, but that the current geopolitical situation in Iran has affected them. Perhaps they were more speculative - you mention precious metals and leverage?

For many types of even well-diversified investments, volatility of 10-20% in the short term is not unheard of and you might be better off riding it out rather than selling low. If you believe these are sound long-term investments, then you should have some time to consider as a DMP etc. solution is set up - even waiting a few months might mean the whole geopolitical situation may have changed and some value has recovered.

If you think these are more like speculative investments, and there's a gambling aspect to this - say you are trading CFDs with leverage - then that's different.

lifemistakes

https://forums.moneysavingexpert.com/discussion/comment/81933490#Comment_81933490

I think the secured loan is with Oplo who changed name to Tandem (or the other way around)

lifemistakes

https://forums.moneysavingexpert.com/discussion/comment/81933499#Comment_81933499

It was a combination of the two. Initially the investments were without leverage and then against my better judgement I took on leverage and went in way over my head, as I had been obsessively watching YouTube videos on silver mining companies and silver shortages. My investments were doing exceptionally well at one point, and then within the space of a few weeks, because of my stupid leverage, my £10,000 gain very quickly moved £17,000 the wrong way. Absolutely gutted wrenching but only myself to blame (well actually I'm considering separately whether I should have been allowed such leverage but that's a separate matter, and whether I should have been allowed to use credit cards for the margin). So yes it started off more traditional, then it spiralled with silver dropping 40% very quickly, then the Iranian situation all while I was leveraged. I know it was irresponsible of me but my mental health was in the toilet to be honest.

I have already sold 60% of the investments, certainly all of the leveraged ones of which portions have been refunded back to my credit cards and some of the none leveraged ones in pure panic more than anything else. I've kept about £4000 worth (I think from memory) plus my silver coins worth about £4500.

lifemistakes

The other question that springs to mind is (after I've updated on here my statement of affairs), is it shortly after that I start a process of requesting 60 days breathing space (or perhaps I may qualify for 90 days via mental health I don't know yet how serious the GP will deem things, I've always brushed this aspect under the carpet even though often spending days in bed or drinking on my days off just hiding all the stress and anxiety from myself).

Is the 60 or 90 day breathing space the best wah to technically start defaulting, and does this process mean interest should be frozen? I'm concerned that my interest will grow so high if not that any future potential full and final settlement or even just general dmp repayments won't look attractive enough to be accepted. Thanks again .