In debt trouble and would appreciate any help

MasterG83

Agree with MEM62, using a future pension is not a solution. Its also two years away, therefore you need to get a hold on this now and either find a way of paying down the debt, or investigating a DRO.

Call Stepchange for a confidential discussion and guidance on your options.

RAS

You are currently within the DRO guidelines. You'll probably cross those within months. A DRO is insolvency and will be of public record. It could make finding a new rental harder, but will drop off your credit record in 6 years.

CCJs are also of public record, so they also affect new rentals. And your finances would remain more precarious going forward.

How volatile is your housing situation?

You are clearly a very caring person and have been subsidising and are still subsidising family members. Once this is over you need to have a word with your son, because you can't afford long term to pay most of his rent.

It's nasty and brutal but the adult children of people on lower incomes are not well provided for by current rules. Or rather people on lower incomes don't have the capacity to provide adult children with the same level of support as some of their peers, even though there has long been an expectation that you will house them.

Damaging your future life by paying off debt with pension really isn't a good idea. Preserve that if at all possible.

LondonRiversof

Thank you all for your advice. I really appreciate it. I'm continuing to read up and will seek advice as suggested.

LondonRiversof

Apologies - Researching all the data I will need and noticed a stupid error in my original post.

I added updraft in twice so I've removed one entry. I will post here as it is 12k difference.

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
HFAX Overdraft.................450.......0.........0
Cap One CC.....................300.......0.........0
Zopa CC........................ 1600......0.........0
Zable CC....................... 800.......0.........0
Updraft loans *3.............12000.....0.........0
118118 CC.....................2700......0.........0
Jaja CC........................2400......0.........0
Marbles CC ....................5800......0.........0
MyCommunity Bank Loan..........5200......0.........0
Tesco CC.......................650.......0.........0
Wave CC........................650.......0.........0
Lendable Loan..................2500......0.........0[b]
Total unsecured debts..........35050.....0.........- [/b]

ManyWays

You are now safely within the DRO maximum debt of 50k.

enthusiasticsaver

I would explore a debt relief order. Do not use your pension.

LondonRiversof

I am just awaiting some figures as a couple of the above companies have not contacted me in over a year (118 an example) then I will have everything ready for advice from National Debtline. I fear I may be a little over the £75 after a proper review but will see what they say. (I also had another debt with Salary finance that i had forgotten about - £500 ish). When sorting inc /exp I can see it comes out of my wage before I receive any money. I've been paying that as it comes from my wages so it may look like I've given them priority. But I am getting advice very soon.

ManyWays

A Salary Finance loan does not count as "giving priority". If you are over the DRO £75 a month, then bankruptcy is probably your bast option.

LondonRiversof

Okay so it's been a little while and I've listened to the advice kindly given here. My disposable income is well within the £75.

After tracking down the debt owners of my cards and loans and arranging a Tomlin order through mediation with one who'd taken me to court, I'm now applying for a DRO.

I spoke to a very nice person at National Debtline and they sent me a CAB link. However the link took me to an online affordability passport linked to my bank account. This automatically split my income and came out with an average figure that does not resemble my income and would have meant I was outside scope for a DRO.(It does not reflect reality). I think this is due to a one off overtime payment in May. I haven't authorized CAB any further as my anxiety went through the roof.

I'd been discussing with Money Wellness previously and they have asked for last couple of wage slips as a starter. Things seem a bit brighter in general. the chat on here and with the specialists does help so thank you again. For anyone else reading in a similar position, the biggest blocks seem to be in my head so talking to the specialists and chatting on here has been really helpful.

RAS

So you share with another person? Depending on the relationship, the budget may allocate costs pro rata depending on income.

With respect to income, you need to have a fairly stable income over the year of your DRO. Obviously if you have one off bills, you might cover those in a good month. But if that's happening every month, you need to look at what your expenditure is more carefully as it suggests you aren't making provision for some predictable costs.