Author Topic: I'm in debt and it's really getting me down  (Read 8675 times)

icornishi

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I'm in debt and it's really getting me down
« on: Oct 22, 2009, 05:19:23 PM »
Hi Everyone,

Ok where do I start I am 23 and over the years I have managed to get myself into debt. I owe about £9-10k. £5k of that is a loan and the rest on credit cards.

Now I am currently unemployed and looking for work so re-paying this back is very hard, I have missed payments quite often. I could only just get by when I was in work but only paying the minimun payment each month meaning the amount never comes down.

I want to go aboard next year and do a wildlife conservation project for 10 weeks possibly longer but there is no way I can go aboard and have all this debt back here, I need to somehow sort something out.
It really gets me down to the point where I just want/do cry!

I am going to contact the citizens advice tomorrow and see what options if any I have. The one that I can think of that would suit me is to take out a debt consolidation loan and pay of everything I owe and I am left with a affordable monthly amount to pay. But I have no idea where to go for one of these loans, I cannot get credit for a loan so how am I going to get one of these?

I have also thought about going bankcrupt but need some advice on what this involves etc... I guess I am looking for some advice on options for me to deal with this.

Thanks for reading



smallville

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Re: I'm in debt and it's really getting me down
« Reply #1 on: Oct 31, 2009, 03:38:24 PM »
Hi There,
Well at 10K you dont qualify for an IVA so the options are going bankrupt - which is sensible if you have no jobs and no assets.
If you have assets and want to pay it back look into a dmp or consolidation loan.
A DMP is a sensible option but creditors still hastle you to pay back the debts quicker so write to them with letters asking them to stop harrassment. If they continue after this you can take legal action. A letter to stop them is in this link http://forums.moneysavingexpert.com/showthread.html?t=739689.
You can also change your phone number and move house.
Look to work with your debtors negotiating interest freezes and get settlement figures where appropriate.
A consolidation loan will work by putting all the repayments into one loan so you only deal with one company but you could pay more in the long run.

Good Luck and enjoy your wildlife conservation.

icornishi

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Re: I'm in debt and it's really getting me down
« Reply #2 on: Nov 02, 2009, 01:13:23 PM »
Thanks for the reply.

How do people get debt consolidation loans? I don't understand?

No one will give me a loan because of my bad credit history so how am I meant to take out a consolidation loan in order to pay back what I owe and have one small monthly amount to pay? There is options on company's that offer loans for the purpose "debt consolidation" but as I said no one will give me a loan for this purpose.

bigmac1

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Re: I'm in debt and it's really getting me down
« Reply #3 on: Nov 02, 2009, 01:59:48 PM »
hi, firstly I would go to citizen advice.

I wasted 6 months plus trying to get a consolodation loan, and an IVA.

Im 24 and my husband is 25 and between us we owe about 17k, we are both unemployed.

The debt advisor at citizen advice has advised us to go on a DRO (debt releif order)

This is where you cant have debts of more than 15k (each in our case)
No assets more than £300
No car worth no more than £1000
And no more than £50 disposable income a month left.

After 1 year if circumstances have not changed the debts are fast tracked to court and wiped. Its a mini bankrupcy its the last step before.

You will pay £90.00 to apply for the DRO, citizen advice wont let you apply if they dont think you will qualifiy.

If you are accepted - you creditors will stop hassling you and interest and charges are frozen until the year is completed.

Do not get a consolodation loan - it is a vicious circle.

I hope this has helped, i was like you - worried about it but burrying your head in the sand doesnt sort things out.

Good luck with citizen advice - they helped me out. :-)

Debtwitch

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Re: I'm in debt and it's really getting me down
« Reply #4 on: Nov 02, 2009, 04:34:34 PM »
With the brief details here, it does sound that a Debt Relief Order would be an option for you.

You've mentioned wanting to volunteer for the conservation project and seem to have done some research and seem to think that you can't go whilst you have debt.  I'm assuming that you mean this with regards to your conscience rather than actual limitations, but just check both with the CAB that volunteering won't affect your DRO and being in a DRO doesn't affect your application to volunteer.

Very best of luck.
Angela Rosler
Insolvency Manager  e: [email protected]

icornishi

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Re: I'm in debt and it's really getting me down
« Reply #5 on: Nov 03, 2009, 06:39:48 PM »
Thanks everyone.

Just out of interest is it only certain companies that deal with debt consolidation loans then? The majority of people who want one will have bad credit history so I assume there must be companies that give loans to these people? Anyone know any of these companies?

With regards to not being able to do the volunteering with all this debt back here, I mean there is no way I can go out to South Africa for 6 months and still be trying to pay all the monthly payments. I would not be working so would have no income.


Debtwitch

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Re: I'm in debt and it's really getting me down
« Reply #6 on: Nov 03, 2009, 07:08:43 PM »
You can find companies that give consolidation loans by performing a search on that subject, but as you are currently unemployed, I doubt you'll find someone to consolidate your loans for you.  If you did get a job and consolidate, how were you planning on meeting your payments whilst volunteering abroad?

If you are wanting to deal with your debts whilst you are unemployed, you're probably only looking at Debt Management Plan, Debt Relief Order or Bankruptcy.  If you pursue DMP, you're again faced with the problem of meeting your payments whilst volunteering abroad.
Angela Rosler
Insolvency Manager  e: [email protected]

bankruptcy.co.uk

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Re: I'm in debt and it's really getting me down
« Reply #7 on: Dec 09, 2009, 12:00:50 PM »
Debtwitch, im glad to see you gave the advice about the debt relief order. THis is without a doubt the best option to consider.
 
Go to your local CAB, ask to speak with an approved intermediary for Debt Relief orders.
 
From the information you have provided it would be like a magic wand came and went POOF to all your debts!!!
 
Good luck and enjoy your fresh slate and new life.
Raphael Gilbert
Head of Insolvency Divison www.ban

bankruptcy.co.uk

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Re: I'm in debt and it's really getting me down
« Reply #8 on: Dec 09, 2009, 12:02:08 PM »
sorry I just read the full thread. Cornish why in gods name are you asking for more credit when you cannot afford the credit you currently have?
 
READ up the information on debt releif orders... she gave you some unbelievably good advice and you seemed to just brush it under the carpet.
 
Dont look a gift horse in the mouth, call the CAB, book an appointment and get debt free my man!
Raphael Gilbert
Head of Insolvency Divison www.ban

[Prototype]

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Re: I'm in debt and it's really getting me down
« Reply #9 on: Dec 13, 2009, 11:41:33 AM »
I advice you to prioritize the job hunt before you go asking for a loan.If you somehow manage to get a Job, it will be easier for you to get a loan since you have at least one thing to show that you can actually return back your loan.

Good Luck.

bankruptcy.co.uk

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Re: I'm in debt and it's really getting me down
« Reply #10 on: Dec 14, 2009, 01:31:07 PM »
*sigh* - Using credit to solve a credit problem is lunacy. It only spirals and propogates the problem. Get your debt relief order!!!  >:(
Raphael Gilbert
Head of Insolvency Divison www.ban

jaunty

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Re: I'm in debt and it's really getting me down
« Reply #11 on: Dec 15, 2009, 05:36:57 PM »
*sigh* - Using credit to solve a credit problem is lunacy. It only spirals and propogates the problem. Get your debt relief order!!!  >:(

That is quite true. Unless you're getting a loan at a cheaper rate to pay off the other one. But that's that.

I would say you should try to get any job possible at the moment while declaring bankruptcy. Try to pay off your loans or partially with anything that you might have left.

Sorry

Jules4444

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Re: I'm in debt and it's really getting me down
« Reply #12 on: Dec 17, 2009, 10:10:56 AM »
Hi
 
I would definitely avoid going down the debt consolidation route. All you're doing is creating one very powerful creditor, its better to have a spread of debt over a number of smaller creditors. Have you considered the Debt Management Plan option? You could talk to the the CAB, or CCCS....if you google them you will find your local branch. They offer free advice.
 
Best of luck!
If you need advice just ask....
Julie - Debt Couns

craig1985

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Re: I'm in debt and it's really getting me down
« Reply #13 on: Dec 21, 2009, 06:40:24 AM »
I too am heavily in debt, i am 24 and because of the debt i have done things that i am not too proud of, but everyone needs to know that it can get sorted.