HELP!!! What to do? £20,000 debt - no way out?!

[She-Ra13]

Hello all!

 

I am new to this forum, and have had a look round for most of the day!

 

Basically I am in £20,000 debt all unsecured. Bank overdrafts, credit cards, store cards, etc.

 

I started taking these out at the beginning of a university course in 2002. Needless to say, I was an idiot and had no idea how this would consume my life.

 

I quit university to get a jobs, but have suffered depression for the last 4 years. Including hospitalisation for suicide attempts, most recently November 2006.

 

I ran away from home (parents) and have now come back to face the debts and also to get help for my illness.

 

I am currently waiting for benefit money to be paid to me, due to the depression.

 

I have no idea what to do about these debts and debt collectors to whom the original lenders have sold the debts onto.

 

I haven't paid any money to the companies for 2 years (like I said, I ran away).

 

I am not strong enough to talk to them on the phone, this morning I stupidy rang HFO who are now collecting my outstanding Barclaycard debt. I had a woman basically tell me that I should be working to pay these debts off or borrow the mmoney from my parents. But I am under the local mental health team and have ben signed off on the sick by my doctor. These letters and phone calls are making me suicidal and the depression is not going away.

 

How can I pay them anything when I have nothing?!

 

Please help? You certainly are a knowlegdable bunch!

 

Threats of bailiffs coming to the house are scaring me, but I simply have no money!!!

 

Can they take things that do not belong to me?

What will happen to my parents ability to borrow money, if I declare myself bankrupt?

 

Please help gang!

 

Thanks very much.

[bottomburp]

deleted

[bevo]

You should contact your local CAB and arrange to see one of their advisers. They can work out everything for you and tell you what to do. My sister was in a similar situation on benefits etc and she pays £5 a week to creditors.

[She-Ra13]

Thanks so much. Will look into all of your advice

 

thankyou

[She-Ra13]

bevo, was your sister in a lot of debt? i understand if you'd rather not disclose, it's just that i can use it as a comparison.

 

thanks

[birchave0]

Take a deep breath and start reading, this site will tell you just about everything you need to know and if you can't find the answer someone will come along in time and give you the answer. Start sorting out your various debts into sections and deal with one thing at a time. A big problem is so easily changed into lots of little problems, so much easier to deal with. Basically if you don't have it they can't take it away, you can start making arrangements to pay your debts but only what you can afford, it may only be £5.00 a month but it is a start. Declaring yourself bankrupt is not as easy or simple as it sounds, please seek advice on that aspect. Everyone on this site (including me!!!)has problems with money, debt, banks, etc, etc. You are not the only one and your are not alone. So keep your chin up and things will work out for you. I'm by no way an expert on anything financal so can only offer support but there are so many people on this site who do know what they are taliking about, so hang in there!!

Best wishes

Birchave0:)

[She-Ra13]

Cheers Birchave0!

 

It is easy to think you're the only one in the world with these problems!

 

Aaagh, I hate the horrible debt people sooo much!!!

 

How is bankruptcy not simple? I can deal with my name in the paper - couldn't care about that, the only problem I have is that I wouldn't want my parents' credit rating to be affected.

 

I think I'll get an appointment with the CAB, and see what they say.

 

Will they honestly accept that little a month?

 

Thanks for your help!

[diskmandave]

Stop allowing this to consume your life! No-one will judge you here!

 

CCCS -

Consumer Credit Counselling Service

Wade House

Merrion Centre

Leeds

LS2 8NG.

 

Don't pay anyone for debt management either, the CCCS is the best, and they're a registered charity, and they're totally free, and you can call them whenever you have a problem!

 

Also, if I may be a little personal, have you considered The Samaritans?

 

Samaritans > Confidential emotional support 24 hours a day

 

Truely hope things get better for you,

 

Best Regards, good luck, Dave.

[HALIBUNNY]

Well I pay £1 a month to each of my creditors (with backing of CAB) so I don't see why anyone else can't if they can't afford more. You can't pay what you haven't got. Personally, I would never recommend IVA to anyone - I think they are a bunch of unnecessary sharks making agreements you could make yourself but charging the earth and making you lose your home in the process. That's my personal opinion. I'm not telling anyone what to do just letting you know from my humble experiences. You will be fine.

[She-Ra13]

Hiya!

 

Wow! Really? How long did it take to put that in place? Did the creditors kick up a fuss? I'm definately going to go to the CAB.

 

If you can't pay, I suppose they have no choice!

 

thanks

[biffinplate]

Hi She Ra

 

I cound't agree with diskmanDave more, speak to CCCS the will not judge and offer you the best advice for your circumstances.

 

Good luck

 

Biff

[HALIBUNNY]

About 4 weeks. Nope. Good luck.

[emmerson2000]

I have had horrendous debts to deal with............the key thing is to contact the CCCS..........they will give you a case number........the next time anyone rings tell them the CCCS are dealing with it and give them the reference number. They will not bother you after that.........hold your ground and if they keep pestering you ...tell them it is out of your hands and the CCCS are dealing with it!!!

 

Take a deep breath there is loads of support out there...just ask and people will help...........

[djweeble]

20 Grand at a couple of quid a month will take the rest of your life to pay off. Your credit rating, if your bothered about it, will be buggered up for the duration, and the creditors will definately pester you occaisionally for increased payments.

 

If as you say you have no property, then IMHO you'd be better off in the long run by going bankrupt, but it's not a decision to be taken lightly, talk to someone about it before jumping in with both feet.

 

Good luck, and let us know how you get on.

[gizmo111]

All good advice above have a read here also

 

http://www.consumeractiongroup.co.uk/forum/general-debt/56970-insolvency-dealing-debt.html

 

basically as you are on benefits an IVA is not an option as you wil lnot have enough surplus income.

Your priority must be your health, the rest is just bits of paper and metal.

[bevo]

bevo, was your sister in a lot of debt? i understand if you'd rather not disclose, it's just that i can use it as a comparison.

 

thanks

 

More than your amount. Make sure you contact the CAB and arrange an appointment. Obviously with large debts the likelihood of every paying them off is very small but to stop them calling and threatning etc you need to get professional advice. Any more help you need just let me know.

Also there is an offical debt counselling organisation where advice is free and I believe they are very helpful and can send you free of charge leaflets explaining what to do if you find you cannot pay debts.

[harrythehawk]

I am currently working out things on my own having got excellent professional advice & counselling at the start and don't feel I need to resort to Debt Management and have sorted my statement, written letters etc and am happy to handle things and deal with people (the force is strong with this one !!). However, one Creditor is being a pain saying they need me to go to Debt Managers, the reason given for this in a phone call was to check I wasn't "trying it on" !! (wish I had recorded that one, it was a "manager" too !). If I did involve CCCS how much or little would they or could they be involved ?, owing to the way I discovered debts in my domestic situation I do now need to be very much in control of things myself and if it is a case of logging my details and getting a reference number online then fine but I just think it will be wasting their time as I am very much on top of everything and the thought of handing things over and other people running my affairs just scares me after what has happened when I allowed/trusted someone to do this in the past.

[emmerson2000]

I was in the same position..........I wrote before I defaulted....sent copies of everything.......Income/Expenditure statemnets etc etc. The only fly in the ointmnet was Amex who would not play ball an dhanded the debt to RMA resolve who are not a very desirous organisation to deal with.When I went to CCCS and got a case reference number it shut them up .I never actually engaged CCCS to do anything for me except use th ebudget sheets etc they produced after a telephone interview. It seems daft but they take you so much more seriously if you have talked to CCCS!!

[harrythehawk]

Thanks Emmerson, think for the sake of a phone call and some time online I will do that now myself, don't like to give in on things where financial institutions are concerned and prefer to show them I am in control but I understand the game very well now and I will probably get more benefit from doing this now in the long run and I can look at it as a hassle removal exercise !!

 

Cheers

 

Harry