Ive got myself in a spot of bother and am in a lot of debt, mostly on credit cards.  Now im struggling to meet the repayments of my cards and paying my mortgage so im ending up paying credit cards off with other credit cards and transferring my overdraft on other credit cards and I just cant see a way out of it.  I could take a loan out secured on the equity of my house (which will cover some) but I dont want to do this until I have sought advice, but I dont know where to go for impartial advice without someone forcing their own products on to me :(

Has anyone else been through this before who can give me some advice on which way to turn ? im seriously at my wits end :(

Claire

PS I can PM my address to you if you would like to send a cheque ;)

A debt councellor is the way to go ..there should be one available at the local Citizens Advice Bureau :) Don't worry too much, there is always light at the end of the tunnel.

Thanks Melody, I was thinking of the CAB but wasnt sure if they could help :)

They are very good ...but you must remember to be completely honest with them about everything you owe ;)

I think I will have to be honest with myself first :(

Yep I agree - go to your CAB office and ask for advice there.  I've been there and done it as far as debt is concerned (20k over various consolidation loans and credit/store cards).

They will ask you for all of your details - ie who you owe and how much etc etc.  They will then produce a list of all your income and outgoings and will act as a go between for you to your creditors and will help to agree an affordable monthly payment for you. 

There are other organisations and various ways to go.  One commonly depending on the severity of your situation is a IVS - which is where they agree an amount you will pay them monthly and then they agree to share that out amongst your creditors for a 5 year period.  After that 5 years they will basically write off the remaining amount of your debt.  You do need at least 3 of your creditors to agree to this though, and you will need to pay an arrangement fee but they generally add this into your debt amount and you pay it off in your monthly amount.

Best thing to do is not to get into anymore debt if you can help it.  Take action now as the sooner you deal with the problem the sooner it will be sorted out.

These places are quite good too as when putting together your outgoings each month they help you include things that you'd never think of!!  When I had it done I was basically paying out all my debts each month and then had enough left to keep a roof over my head and food in the cupboard.  They made me add in money for all sorts of things I hadn't thought of so I wasn't left short.

Good luck and feel free to PM me if you want to chat - I've been there with all of this and so know how you feel.  :-)

Claire
I have sent you a pm.

Good luck
Jane :)

CAB are definately best bet and what ever you do dont take out any more loans or pay for any advice until you have sat down and worked out whats what. May be best to set yourself a list of tasks to get through this and a time scale. I know I try and put these things off, but with this you do need to deal with it now ;)

Best wishes.

Jan

Hiya, like the others I also used CAB about 7 years ago. My contract finished on my job at the time and my start date in my new one wasnt for another 2 months.

Before I went though I had to sit and write down what my incomings were and all my outgoings including who they were.

It meant we could type it up and send to the companies with a suggestion on how much i could pay back.

At least you are taking ownership now and taking back control.

Like the others if you need anything  (apart from a cheque!) just pm me. 

Thanks for all your advice, it helps to know im not the only one.  Ive just put it off for so long because I kept telling myself that I can pay it off, I think reality has finally hit now that I cant :( This weekend im going to sit down and write everything out then go and see someone at the CAB, can I book and appointment does anyone know ?

Yes - its best to book an appointment.  Many CAB offices do run a drop in centre thing but you can find that your sat there for hours waiting to be seen.  Much better to phone up and book an appointment.

Though having said that and wracking my brains I have a feeling that your first meeting with them has to be on the drop in basis and they then re-book you in for further meetings.

Best to phone and check - I can't remember exactly and I think that its different for different offices!!

Good luck sorting it out though - I got into debt when I was 18 and only got round to sorting it out 2 years ago.  I'm 27 and will finally be debt clear by the time I'm 31!!!

Certainly worth calling ahead and asking for a specialist debt advisor. I believe most have one that is used to dealing with people in these situations. Unfortunately rather common these days :( 

Quite right Bluebell.

Every other add on the tv is for a loan or every bit of junk mail is for a credit card.
Funny how that top manager guy from Barclays said he wouldnt let his family have one of their credit cards!

I know it is our responsibility but some unscrup bankers shouldnt let people get into really bad trouble.

Good luck for the weekend. Remember everything needs to go in your list. Even add together all the birthday/ xmas pressies and divide by 12 so you'll not find yourself short in any particular month likewise if you would have to pay excess on your insurance include that too!.

Certainly put me back on the planet reading this thread. I am fortunate to have a Hubby who refuses to pay interest and spend most of my time bemoaning the fact that I never seem to have enough money to do what I want. However equally I am not in debt. Just feels like the spanish inquisition ever time I want to spend any money - perhaps that is why I always look as if I ve been through a hedge backwards, or could that be down to mud and dog hair :)

haha, sounds like a lot of ruff and tumble in your house!

We try and keep it in the field :)

I wish that I hadn't been bombarded with credit card applications when I was 18 - I really didn't have a clue back then and quite happilly spent and spent without a care in the world.

10 years on - and at that stage in my life where I'd quite like to get a mortgage, settle down etc etc and the sins of my younger days have caught up with me.  :-(

As I said though, another 4 years and I'll be back to a zero balance, a clean slate and ready to start again!!

If I knew then what I know now things would have been much different but then again I think most people can say that can't they?!!?

I know what you mean.  My problem was taking out a loan to consolidate all my debt before I bought my house then when I got my house I kept putting stuff for the house on my card thinking I will pay it off when ive finished doing the house up but that has never happened, now the minimum payments are getting more and more and I keep going right into my over draft so keep having to pay that off with a card, its just a vicious circle.  All im really worried about is losing my house or getting black listed, because in a couple of years if I can clear my debt my boyfriend and I would have liked to get a joint mortgage and a bigger place.

But I hope that you did some fun things with it ;) We seem to ahve spent the last 20 years putting all our effort in to paying off morgages. Yes we have a lovely house, but it is expensive to run. We missed out when most of our friends have had nice holidays etc. And at times we have both had to work 2 jobs or loads of overtime to keep up the repayments. We both had high pressure jobs and a couple of years ago when mine nearly pushed me over teh edge and I ended up being made redundant for the 3rd time in 10 years I decided that enough was enough and started working for myself. Need less to say we now have very little money and my fledgling company is eating in to savings at an alarming rate, but I do have a life back and a job that I adore, even when I end up working 90 hour weeks!

Dont worry about your house. Lenders as a rule don't want that option. Most companies sell their 'bad debts' to other companies who buy it at a lower level and would then work out a repayment with you. so please try not to stress.

Try www.nationaldebtline.co.uk before u go to CAB as they might have a list of things you need to list on your incomings and outgoings.

Like the prev post I have a lot of things which are good as a result of a few loans but am defin going to have to pay for these for a few more years before i can really enjoy them!

good luck

I suppose I can say that I had a good time on the money spent, ive had some fantastic holidays, loads of nights out, nice cars and now I have a lovely home (with an unfinished kitchen :( ) so now it really is time to face up to it.  The annoying this is I dont earn bad money which is probably how I got into this mess, I kept thinking "oh I can pay that off when I get paid" which never happened :(

I can't really say that I've got anything to show for mine.  I went off the rails a bit in my early 20's and basically had one very long party - all paid for on my credit cards.  As well as that I had plenty of nice clothes, shoes, perfume - a bit of a penchant for expensive bed linen but most of it came about as I lost my job and started paying my rent each month with my credit cards (I was able to draw money from cash machines on it).

Did anyone ever watch that programme a while back - The Bank of Mum & Dad??  That was quite interesting and I found myself nodding along thinking yep, I've made all of these mistakes like these people have too!!  Still, at least I'm sorting myself out now and you can too!!  :D

would I be black listed ?

Go online and look for experian and alos equifax. Costs a couple of pounds to get them to send you your credit rating. They will ask for your addresses as far back as you can go.

Your credit goes on a point system.  If you default on any repayments it does show but again dont panic.  These ratings only really affect you if you want a new loan etc.  Likewise the more payments you put in between your default the better it shows on your ratings.

You are only blacklisted if you dont pay so you would have to have county court judgements or come very close :0

I have to say that I do think it is easier to overspend when you are earning good money. It is only since I have been earning very little that I stop to think about each purchace. When I was well paid I would spend almost anything to save time or take the pressure off. Hadnt realised just how much went on cleaner, dog walker, convenience foods etc. 

I thought you could be arrested for that !!! :D :D

Only if you get caught ;) :)

Hi Blondebird88

CAB is the best way forward, they will give good solid advice and have your best interest to the forefront of the situation, and the most cost efficient way to do it. It is a real start of recognition of the problem by starting this thread, and I am quite sure you will be able to sort everything out.

What ever you do, don't go to one of these companies that advertise putting all your repayment into "one easy monthly instalment", as the interest rates, when calculated are huge, and in most cases it will take years to pay it all off.

You are not alone in this. Good Luck and PM me if you need to.

Patricia

Hi, yes I agree CAB will definitely be the way to go.  CAB centres do sometimes have specialist debt councellors which would certainly be very helpful but, as others have said be totally honest (with yourself first of all).  We went through a period of hefty debt a number of years ago, our flat was repossessed (the years of sky high interest rates), arrears of poll tax, credit card debts, we had a very low net income but just too much to receive any help and we should never have been given a mortgage in the first place.  It took several years but we cleared every penny and now own a lovely house and have enough to manage on although we'll never be rich.  We never use credit cards and only ever buy on credit if it is interest free - I will never risk our home again.  Do get it sorted, it may take a long time but the relief when everything is clear is wonderful.  I remember the last payment of our consolidation loan and you suddenly have that money to spend each month, it really is worth it.  Good luck.

Treacle your story goes to show that it can be done. Well done! I only wish id learnt from my past mistakes, its easy to say you'll never take out a loan again but takes strong will not to actually do it.

Thanks guys, you have all made me realise that there is light at the end of the tunnel ( in fact I have tears of relief in my eyes) I think what I really dont want to do is admit to my parents how badly I have screwed up, they were so proud of me when I bought my own house and because it was such a wreck my dad worked really hard on it doing the re-wiring and fitting central heating, knocking down walls and decorating he also spent alot of his own money on it.  Whatever happens I cant tell my parents, I know they would try to help me out but they are both nearing retirement so I dont want them spending anymore of their money on me.

There is no reason to tell your parents anything at the moment as you are taking control and you will get it sorted.

It is harder when you feel they will be disappointed but parents are funny creatures, they will love you and they would feel more disappointed if you got into dire straits and didnt tell them tho.  In your case tho you will get it sorted.

Thanks Juliemil and yes it is very very hard sometimes not to be tempted by the offers that come through the door daily.  Blondbird, your parents will understand I'm sure although it's up to you whether you tell them or not.  We had to as we had to move and we were given a lot of support at that time, not particularly financially but just a lot of moral support and help moving, things like that. People make mistakes and they'll be very proud of you if you sort it out.  The worst thing about losing our flat was the fact that our respective parent's had loaned us the deposit but we have never heard one word from anyone about this.
All the best.

There is a gonverment run - non profit organisation called Payplan who deal specifically with your kind of situation - they take your disposble income (more or less all of it im afraid), contact your creditors and make the right noises to suspend late/interest charges etc. and, in some occasions can actually reduce your debt before you start paying - some creditors, if approached in the right way can be willing to write off a certain proportion off as dabt debt if it can be shown that you are physically not capable of clearing it.

Then basically you pay them a lump a month and they split it between the creditors.

It's pretty much the same arrangement that all of the debt management agencies offer you but without all of the charges and offers of loans etc...

If you do contact Citizens Advice they will be able to put you in touch with the relevant people.

Dont let it get you down - your certainly not the only person who has got themselves in this situation and its possible to recify it with time.

Andy :-)

i got into loads of debt in my early 20s & took a overdose,which clearly didnt work!!!
CAB,gave loads of advice,helped with letters & stopping the interest. ive just finished paying it off last year.
it can be sorted!!!! :)

Im sorry to hear that Michelle, but im glad your life is back on track - hopefully mine will be soon too :)

im sure it will!!! everything happens for a reason!i got tara just after to cheer me up,now ive got three of the little sods!!!!!

One very good bit of advice that I heard on the television recently was that if you are only paying the minimum repayment on your credit card, then you are already in trouble and you should seek advice immediately !! If you are doing this, then the interest that you are paying will mean that you will NEVER be able (at that level of repayment) to pay off the debt :(

Daisy

Thats a good sobering thought Daisy. I still live in a dream world  I think so im going to adopt that point of view...well i hope i am.

I think I watched something on Watchdog that was saying about that - particularly with The Halifax.  You should always aim to pay your bills at least a week before the minimum payment date - not on the date, even if by cash and should always aim at paying a little bit more (or as much as you can) more than the minimum payment.

The only real way to control your money is not to buy anything on credit. If you can't afford it, then don't buy it :) It may be 'old-fashioned' but it worked well in our parents' day.

Daisy

I certainly wish I had followed that rule Daisy :(

The majority of my credit cards are interest free for 9 months so im not paying any interest and the minimum im paying is making a difference, the problem ive got is the minimum is getting too much for me to pay :(

At least you are facing up to your problems :) The others have given really good advice about the CAB :) Whatever you do, don't go to one of those debt-management companies. It may get the credit companies off your back, but you'll be paying for it the rest of your life. I'm sure that you will manage if you are prepared to make a few sacrifices - but it will be worth it to get rid of the problem as soon as possible, so that you won't have the debt sitting there for ever :)

Daisy

I now live by that rule Daisy - learned from my mistakes!!  I don't have any credit cards or store cards anymore and all I have is my loan which I am paying off.

As you said - if you can't afford it then don't buy it!!  I am a new believer in this way of life!!!  :D

thats what i do now too!!!!
all ive got to show from my mistakes are 100s of clothes i can no longer get into & a half knacked liver from too many nights out!!!!!!

michelled - you and I sound very similar!!  ;o)

Hi Blondebird,
Make a list of all your outgoings including things like food etc.. and add it all up. It will seem like alot but you know exactly where you stand. Then add all incomings. If your outgoings are more than your incomings then you need to see if there is anything you can live without. For example if you have sky movies stop it till you get sorted then have it again when you can afford it, we did this and although it only saved £16 a month and all the other little things like this were called luxurys and were stopped. it was better than going into more debt
We sorted our money problems by having 2 bank accounts. The main account the wages got paid into and then we transferred enough money into the second account to pay all the bills. What was left in the main account was for food for the month and anything else we wanted. If there wasnt enough in that account (apart from food) we went without.
It is daunting writing it all down but CAB will need to see this and it might not be as bad as it looks once youve done it.

its wreid,alot of people on here,sound alot like me!! here i was thinking i was unique!!!!!

No michelle, I am just like you.  I call the summer of 2003 "the lost summer" I went out 5 nights a week, got so drunk every night that most nights I didnt know how I got home ( the nights I made it home ;) ) I always had to phone friends the next day to see if I had said anything I shouldnt have :rolleyes: I spent a fortune on clothes and at the same time was paying a mortgage and trying to do up a house - what a muppet :(

Think we're all alike in that way!  You only live once but its a case of finding the right balance!

Youve got to think tho how lucky we all were that nothing bad happened when we were drunk!

I just got thru my yearly mortgage statement this am. so depressing. Another 20 years to go!