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    • jlb2202
    • By jlb2202 13th Jun 17, 1:07 AM
    • 7Posts
    • 2Thanks
    Debt Advice - Embarrassed to ask
    • #1
    • 13th Jun 17, 1:07 AM
    Debt Advice - Embarrassed to ask 13th Jun 17 at 1:07 AM
    Dear MSE Friends,
    I am at my wits end - any and all advice would be greatly appreciated.

    In my youth I was an idiot (25 now) I got into the trap of credit card then more then loans to cover the cards then loans to cover the loans.

    I have between 13-15K of debt across multiple cards and loan companies. I was barely keeping my head above water and then I was forced to resign due to my mental health and subsequent breakdown.

    I am prescribed meds - see doctors weekly - under psychiatric care etc. I am claiming ESA (first benefit in my life) however my debts are approx 850 month and therefore I cannot under any circumstances afford to pay.

    I have tried StepChange but the results were rather confusing - basically saying I am un-eligible or do not fit any criteria.

    So please...Any advice on my situation?

    I am beyond disappointed in myself - and would love to amalgamate all debts into one 'affordable' monthly payment.

    Thank you in advance.

    "Well done is better than well said." - Benjamin Franklin
Page 1
    • Purplemumof2
    • By Purplemumof2 13th Jun 17, 6:52 AM
    • 6,070 Posts
    • 22,304 Thanks
    • #2
    • 13th Jun 17, 6:52 AM
    • #2
    • 13th Jun 17, 6:52 AM
    Hi jlb2202,

    Welcome to the boards.

    I'm sure someone will come along shortly with more knowledge than me.

    Pmo2 x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
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    • fatbelly
    • By fatbelly 13th Jun 17, 7:07 AM
    • 12,246 Posts
    • 9,280 Thanks
    • #3
    • 13th Jun 17, 7:07 AM
    • #3
    • 13th Jun 17, 7:07 AM
    Amalgamating all debts into one 'affordable' monthly payment is called a debt management plan. If stepchange did not think that you suited one, then my guess is that you did not have sufficient surplus income to produce a plan that cleared your debts in a reasonable time (3-5 years)

    This would certainly be the case if you are on ESA.

    You should look into a Debt Relief Order. Basic Criteria for a debt relief order :

    !!!8226;Must not be a homeowner,

    !!!8226; Debts less than 20,000,

    !!!8226; Can have a car worth up to 1000,

    !!!8226; No other assets of more than 1000,

    !!!8226; Must have 50 or less left at month end, after all essential payments have been made (not inc debt repayments),

    !!!8226; Cannot have had a DRO in last 6 years.
  • National Debtline
    • #4
    • 13th Jun 17, 1:10 PM
    • #4
    • 13th Jun 17, 1:10 PM
    Hi jlb2202,

    I think fatbelly has given some great advice above and getting the debt written off, rather than repaying it may suit you better. So, just to elaborate really, a DRO is a way to get the debts written off as long as you meet the criteria mentioned above.

    A DRO means that for 12 months you do not pay your debts, you would have restrictions placed on you during this time (known as a moratorium), and if after the 12 months you are in the same financial position (i.e. that you still have less than 50pcm for your debts), the debts are written off and you are no longer liable. It costs a one off fee of 90, it is very damaging to your Credit Reference File and you must meet the rules for the full 12 months.

    You could try calling one of the other free debt advice charities if you would like to get something like this started.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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