Author Topic: Advice for first steps in dealing with debt  (Read 1224 times)


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Advice for first steps in dealing with debt
« on: Feb 21, 2012, 09:56:57 PM »
I'm looking for help with a debt problem that began several years ago. I've had a long-running anxiety/depression disorder which led to difficulties getting work. I could no longer pay instalments on an HSBC graduate loan, so my current account was cancelled, and I began receiving bailiff letters. I spoke with the creditors on the phone to say that I was currently on benefits and could only offer token payments on the debt. I also spoke to the CCCS and National Debtline. But by this time, the letters had been arriving from several companies and I didn't know who to contact first and how. They gave me various options including a debt relief order.
The amount is about 3000 from the current account, and 3500 from Mastercard.

In addition, I have unpaid rent - I had applied for LHA when I moved into private rented accomodation with my partner, but HSBC then closed my account. By the time I was able to open a basic account with another bank, I had missed out on over two months of LHA payments. I then missed the period set for an appeal (my GP was willing to provide medical support for an appeal during that period).

I have caught myself up in a cycle of procrastination over this and would be very grateful for any advice.

Simon Wyllie

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Re: Advice for first steps in dealing with debt
« Reply #1 on: Feb 23, 2012, 10:26:34 AM »
Hello RichardP.
I'm sorry to hear that you find yourself in this position.
Could you confirm whether you are now in work or, if not, whether there is a prospect of that happening soon?

James Falla

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Re: Advice for first steps in dealing with debt
« Reply #2 on: Feb 24, 2012, 06:08:34 PM »
Hi RichardP
From the information you have given I understand that you owe c£6500 plus rent arrears and I assume that you have a relatively low income. If this is the case then a debt relief order would seem a sensible solution to the problem.  The alternative would perhaps be a debt management plan. However this would require you to make payments of arround £100 per month towards the debts. If this is simply not possible then a debt relief order is the right thing to consider and would mean that you are debt free in 12 months.
Debt Expert & Author