Author Topic: im in a total mess any help or advise would be good :)  (Read 1174 times)

nick1985

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im in a total mess any help or advise would be good :)
« on: Jun 20, 2011, 11:27:53 PM »
hello i am 25 and i am currently in a financial mess. i earn around £1000 a month after tax but currently have debts totally over £330 a month  :-\ ! this is due to two santander credit cards at £2000 each, one halifax overdraft of £1300, an abbey national loan of £1500 and 4 phone contracts totalling £130 a month (they were done for the cashback to help pay other debts). these payments i just cannot afford because after rent of £300 and bills of £300 it leaves me with around £70 to buy food and live on which is not possible and is making me very worried and stressed!
im really not sure what to do i want to pay these debts off as i feel its my fault for making them so big in the first place but i just cant afford to. i was half in the mind of wondering what happens if i just decide to not pay any of them as my credit is ruined i cant get a consolodation loan or balance transfer so im stuck!
so any help or advice on what to do would be greatly recieved!  :)

Debt Support Trust

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Re: im in a total mess any help or advise would be good :)
« Reply #1 on: Jun 21, 2011, 11:05:35 AM »
hi nick1985,
 
I really believe that the best thing for you to do is to get some debt advice so they can get a clearer picture on your situation.
 
From what you have said it looks like a Debt Management Plan is an option. with this you will pay back your debts in full but over a longer period of time, this means you will get a better budget to work with for food etc.
 
Call any of the following not for profit companies like CCCS, National Debt Helpline or Payplan.
 
Regarding not paying your debt I would always advise against not paying your debt.
 
Andy
Qualified Debt Adviser
www.debtsupporttrust.org.uk

James Falla

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Re: im in a total mess any help or advise would be good :)
« Reply #2 on: Jun 23, 2011, 11:56:51 AM »
Hello nick1985
 
Based on what you have said, it looks like you owe c£7000. Given that consolidation is not an option for you, really you have two different debt management otions. The first as Andy has mentioned is a debt management plan. This might be a sensible way to go but it will require you to make monthly payments. The downside to this is that even if you can afford to pay say £100 a month, it is still going to take a minimum of 6 years to pay your debt. Of course this would reduce if your income improves but if not, it is an uphill struggle. The alternative is a debt relief order. This works in a similar way to bankruptcy but at £90 it costs far less to implement. You are in the DRO for a year and then your debt is written off. However, You can only use a DRO if your disposable income is les than £50 a month.
Debt Expert & Author
beatmydebt.com