Debt and Mental Health - How have your debts affected you?

whambam wrote: »

Has anyone got their debt written off due to mental illnesses? What documentation do you require for your creditors to consider it?

No one knows anything about debt and mental illness and your rights?

Not sure if anyone has managed that. It is certainly a good point but from my personal pov I doubt I would try to get my debt written off this way down to the stress it would cause to prove it and cause me more issues.

I would say tackling the debt head on via Stepchange or that would be more beneficial as you have the options there.

I'm right at the start of the process and was offered to file for bankruptcy but declined it as in the grand scheme of things my debts are rather small think under £5k.

Being honest something I have never really thought of before would love to see others views.

I have suffered with Depression for the last 15 years and my debt started around that time.
My debt fed my depression and subsequent anxiety and my depression fed my debt.
I would go shopping to cheer myself up or go out drinking, not thinking about what I was spending, the high would be short lived and I would go into a deep depression again with the guilt. This cycle continued. I never really saw the connection between my debt and MH until I was honest with myself.
It reached a head when I became suicidal. I was so embarrassed about my debt I couldn't tell anyone and the only reason I didn't kill myself was the worry about the shame of what I would leave behind for my loved ones to see.
I ended up in excess of £30k debt with nothing to show for it other than severe depression (there were a lot of other factors involved). I declared myself bankrupt in March 2014. I still cant tell my close friends about this because of the shame and its hard when you are trying to keep up with people (part of the problem!).
I am a discharged Bankrupt now but will be paying my IPO for over another year.
I still suffer with depression and anxiety but am finding other ways to manage it and have been off my medication for nearly 6 months.
It is a battle and always will be but I will never see myself in that much debt again.

sourcrates wrote: »

Hi,

Thanks for posting this.

Would you be able to give us your experiance of the Bankrupcy process ?
New rules are due to come into force in April to make the whole thing easier, people who are in a similar position, and are concidering Bankrupcy, may benefit from knowing what to expect.

The thought of the Bankruptcy and the worrying about the process caused me a great deal of stress and anxiety. But it was the thought of it that was the worst part. The actual attending court was a very smooth process. I didn't see the Judge and the person I saw couldn't have been nicer.
The problem with MH is the anxiety of it all and thinking that the worst will happen and getting worked up and panicked when the reality was no where near as bad.
I mentioned my MH throughout my application and this was never questioned. I could have got supporting evidence from my medical records if required but it was never asked for.
I had my OH with me at court which was a support as I don't think I could have gone by myself so I would recommend someone to go with you if at all possible. It was honestly a very smooth process. The hardest part was filling in the paperwork which I found stressful but got some advice for this.
All you can do is be honest. I just felt relief afterwards and yes I was still anxious and stressed about sorting a bank account and my job and all the other thoughts going around my head but I couldn't have carried on with the debt. Everything else was sorted quite easily. I was mortified going to the bank and opening a basic account and explaining my situation but again they couldn't have been nicer.
I had an interview on the phone with the OR which was quite stressful, more so than going to court. I couldn't stop crying with pure stress and emotion and the OR was quite stern but I got through it. They sent me a letter for my IPO which was an unrealistic amount and I was scared and anxious about that. I wrote back and offered what I could pay realistically and it was accepted.
I never started my debt ever thinking that I would become Bankrupt but I have accepted it now and the fact that I am now not worrying on a daily basis about where I can get money from to pay for this or that or how I can turn down tea out or being upset from cancelling on friends because I cant afford it, means that I have slowly managed to get myself sorted.
Yes I am ashamed of it all but I have faced up to it which was not easy.
I hope this helps someone.

Hello everyone, I too am a survivor of depression as well as complex PTSD which was caused by a fifteen years domestic abuse. Thankfully I and my children now 22 and 16 left in 2007 and we are doing well. When I left I had over £25000 savings and little mortgage. As you can imagine that soon changed! I had to buy a new house and had a modest £75,000 repayment mortgage. All well and good! However, I overspent to such a degree that my mortgage is now a £94500 interest only as I consolidated debts into it. My badges say I am debt free and so I was for a glorious three months - until I became more depressed than usual and ran up a car loan of £4000 for a car I did not need and £1000 on a credit card.

I have read and re-read the MSE Mental Health and Debt guide over the years and haunt the MSE forums! Very gradually I have made improvements to the extent that although I am in debt now I have stopped myself spending more and have a budget that I generally stick to. My overspends are on groceries (so much for the £3000 spent on a popular quick results starvation diet two years ago!)

I am and will probably be medicated for the rest of my days but I am not ashamed of that. It's like insulin for a diabetic, absolutely necessary. What does cause me shame is my spending history but I am overcoming that.

Here are some of the things that have helped me in no particular order....

The Samaritans when I felt suicidal and alone. They are excellent! Please call them if you are in despair.

My GP who I was very honest with and one of my sisters. It is worth taking a risk and trusting even just one person with your burden. Which brings me onto ........

CAP UK - absolutely could not recommend them highly enough. I went on their free money management course and we worked out a budget together. I still use their spreadsheet which I have access to for life. Don't be put off by the fact they are Christians if you are not. They don't preach and are motivated to help without judgement. If you are in desperate straights they will also completely free of charge handle every single one of the companies and people chasing you for money. They work out a manageable repayment plan with you and the companies and you get loads of prepaid envelopes so you can send letters straight on to them. No more having to read stressful letters! PLEASE look them up on line as they will help no matter how bad you think your situation is.

YNAB budget spreadsheet - having moved forward I now access this every day. It does cost money but has helped me to keep on top of everything since things have got better. Possibly one for when you have got to a more comfortable place in life.

My bank & my mortgage company both know that I have mental health challenges which can affect my spending. I have voluntary notes on file that if I ask for additional borrowing of any kind they are not to give it to me. If I insist then they are to contact my trusted person (my sister) and ask her about my current state of health. This might seem dramatic but it gives me far more peace of mind knowing that they know and it gives me more reason to be disciplined.

Strange one but I reduced my hours at work last year when I had just got the car loan. I now work four days per week. It might seem stupid to do this but it worked for me. I am less stressed and have a day to recover my mental health and regroup. This is the day when I try to take more care of myself and can gather my strength. It has also stopped me spending so much money and I actually have more money available at the end of the month than when I earned £5000 more per year. It might work for some of you too!

Having a simple cash account with no overdraft facility. All banks do them and they have no problem setting one up for you. I have one account for all my direct debits and then another for groceries, petrol, entertainment of ten pounds per week and my daughter's allowance of a fiver a week. I send £300 to it per month and take out the £90 per week that I need. When it's gone it's gone.

Catching myself doing something right - even on my bleakest days I try hard to think of everything I have achieved in my life or that week.

We are all survivors of the most cruel and nasty disease and we deserve credit for actually getting up in the mornings and getting on with life. Every day we move forward is a day towards our brighter future and I think you are all marvellous! Much love and best wishes to everyone on here. xxxx