I'm in big trouble

Mqq

My debts are as follows.......

cc1 - 1600
cc2 - 600
cc3 - 1100
cc4 - 1000
cc5 - 2500
Loan 1 - 1800
Loan 2 - 2450
Buy Now, pay next year (or not in my case) 1 - 250
BNPNY 2 - 250
BNPNY 3 - 900

TOTAL DEBT IS APPROX 12,450

I lost my job in January and basically, since then I have been 'flying on petrol fumes'. I started a new job on may 5th and have just recieved my first wage, 5 weeks later. However, it is much less than I was expecting.

I also have a student overdraft of 2500. Although some of my DD's have bounced, the bank has been paying the smaller DD's. This meant that prior to being paid, I was about 300 quid over my authorised overdraft. The larger DD's however have all bounced, creating an appalling backlog. So all my wage has done is lower the unauthorised overdraft.

I had made arrangements with some of the creditors to take payments just after I get my first wage. However, these are now going to bounce. They said I would be hit with legal action if this happened. I don't even have any money to travel to work, let alone pay them. I will not get paid for another 4 weeks, and in that time, I am going to be under terrible stress and pressure. Even when I do get paid, I will still have a backlog, as I will have to pay THAT months debt, as well as the backlog. I have been in debt for over 3 years, and although it hasn't been fun, I have always managed to stay afloat. This is the worst situation I have ever faced.

I am thinking of another small loan (1000) with the option of paying it back early. Obviously I know I will have to go with a high interest option. What else can I do?

squealy

Hi Mqq,

first of all welcome to the forums. Secondly, my sympathies as I was very close to your situation and I know how much stress I felt.

I'll leave it to others to help you out as I'm not qualified, but good luck and I'm sure you can beat this.

tallyhoh

I suggest you should cancel your DD's to stop any bank charges making things worse. Then call your creditors & explain the situation & make a token payment to show good faith.
When you know how much your wage will be next month, ask them if they can re-arrange your payments to take into account the missing money (ie normal monthly payment + a bit extra).

Make sure you pay your priority debts first. Dont take out another loan, it will make things much worse.

Merlot

First thing...take a deep breath, grab a mug of tea and calm down, we are here to help.

It would help greatly if you could post a list of your incomings and outgoings and list your APR on your debts.

Your priority debts are your mortgage/rent/council tax and ultilities and any secured loans.

As soon as you post your SOA, you will get loads of advice, do not take a loan, it will not solve anything in the long run, can you extend your OD for a month or two, can you sell anything on EBay/Carboot sale to make some money to enable you to travel to work?


Cancel the DD today, the none priority debt one, eg: Credit cards.
Merlot.x.

MrsTinks

First of all I think we need you to do an SOA and my advise would be to speak to one of the debt charities in my signature for help.
As your credit rating will be shot anyway I think so far the best option might be a DMP which would help you repay your debts but still allow you money to live on.

And whilst you're at it - open a BASIC account with another bank for your wages to go into. That way you can treat your overdraft as another debt and deal with your priority outgoings and debts seperately

best of luck

Tigger1983

Take a breath...have a cup of tea and chill for a mo!! There are loads of people (inc me and OH) in a similar situation, who can help or at least listen!

Post an SOA for the nice people on here to help you...they've cut our
monthly out goings loads already! Keep checking the board daily too, there are loads of things you can do to make some extra cash or save some, and loads of encouragement along the way too!! We did it last month and have pretty much cleared our overdraft already (mostly due to things we have been told or found on DFW). If you post your SOA the DFW nerds can pick through it and help you to make some cut backs :-) Also contact the CCCS and national debt line, they can give you advice, letter templates and all kinds of things to help you deal with creditors.

Good luck, it's really not as bad as you think it is. Last month we thought it was a hopeless situation and were even looking at bankruptcy. This month everythings a bit brighter :-)

Tig xxx