Shit load of debt - AIBU to think this can be sorted?

[justthesky]

Surely?

The total is about £5000 which probably doesn’t sound too bad, but the issue is that it is priority bills I’ve fallen behind on and the companies aren’t prepared to wait, so huge interest charges are being added on top of the original debt.

I’ve contacted CAB who have just told me not to open the doors and to park cars away from the house.

Does anybody have any suggestions, at all?

I recommend getting advice on an IVA to tackle it all, sorting jsut the 2k out and then paying minimum balance on others just leads to more debt in the long run, I did this and ended up in over 20k debt as I kept borrowing for minimum payments further down the line, it was a nightmare but all got sorted when I declared bankruptcy. Still paid about a 3rd of it back but needed about £700 (which I had to borrow!) to do this option but an IVA doesn't cost anything as far as I remember.

It was the best thing I ever did, been debt free for several years now.

I was in a similar situation last year and found the bailiffs completely inflexible. I managed to avoid them for a few weeks and in the end they gave up and passed me back to the council. I then agreed a payment plan with them which I could afford and they let me pay it off over two years. To avoid them I just didn't answer their calls and didn't answer the door when they knocked. They can't force their way in. My car was parked in a secure car park so they couldn't take that either, hence the giving up.

Get advice from a debt agency. Even if they can't help with the priority debts, they can advise on the others and help,you get them into a state you are no longer worrying about them. Which leaves you with the priority debts. What is your income, what can you spare to pay off each month?

Absolutely this can be sorted, I owed £45,000 thanks to a long-term gambling problem (now 3 months into recovery).

Accept that you have to pay it back but work with you creditors to make arrangements that you can afford each month. Don't be afraid to make low offers but make sure they're affordable and realistic.

Make sure priority debts are upto date but DON'T ignore letters and calls, they don't go away.

Speak to CAP (not CAB), they are Christians against Poverty. Google and see if they have a debt centre near you or phone their head office on Monday. They are incredible.

First I don't believe the CAB simply said "don't open the door". They would have at the very least signposted you to Stepchange. They might also have given you a money advice appointment. Their website has lots of useful advice about debt too.

Unless you know why you are in debt - as others have asked - then you cannot hope to sort this out.

Whether you are working, have kids, have a DP who gambles or a landlord who has hiked the rent or delayed benefits due to Universal Credit mix up makes a difference to how you can sort it.

No, they really did age, step change can’t help with debts like council tax. Not on any benefits but I don’t really think that is relevant here.

i think you have the advice needed op.
can you work extra?

Had you spoken to the council before the bailiffs were involved?

it feels worse because it is christmas, i understand, but change your outlook for that.

You're not very comfortable engaging with advice, are you OP?

You're not giving details. You're defensive.
Maybe you don't want advice. Maybe you just want reassurance that life can get better. I hope it can for you, but it would be far easier if you would be open to advice, ideas, suggestions, questions etc.
I understand you may be scared. But there is honestly so much advice and support available if you're willing to listen and engage.

@OP, if you are on benefits or low wage and don’t own your own home you could apply for a Debt Relief Order (DRO)

DROs are a form of insolvency in England, Wales and Northern Ireland.
They are meant for people who have little or no spare income and they have a strict set of conditions that have to be met – you must owe less than £20,000, you can’t own a house, etc. It costs £90 as opposed to £600+ for bankruptcy. You can include Council Tax and utility debts in the order and companies can’t come after you once the order is in place. Everything is written off (except student loan and court fines)

There is a lot of information on the Debt Camel website at debtcamel.co.uk/debt-options/dro/

Good luck OP. I’ve been in much more debt than you and have come out the other side once I took my head out of the sand x

I asked because all the answers have been given tbh. Your best bet is getting non priority debts onto a plan of some variety, I suggest Stepchange or cap for starters there.

Then all you can do is negotiate with those responsible for the priority debts. Yes, a ccj is the end result of not paying, but even that has a process. Read up on it, you get the chance to answer the case and if the court thinks it is unfair it has the final say.

I’m not defensive, just wanted to reassure people I’m not a scammer. That’s not being defensive.

I can’t keep repeating myself though - step change and CAP and so on can’t really help with council tax so I don’t know what to do. So I posted here hoping someone might know. Whether I’m on benefits or not isn’t relevant, so I’m just ignoring questions that aren’t relevant.

Sorry @justthesky but people are trying to help you.

If you go on refusing to say anything about your income, whether you are working or not, how can anyone help?

As others have said, you surely must have some income from somewhere, so where is it going, what is left over each week, and how did you get into debt?

I honestly don't know how you expect people to help if you won't give some facts.

Most of these organisations will show understanding if you speak to them and make some sort of payments, even if just a very small amount each week.

Can't you do that?

Of course people can help.

I have contacted the bailiffs and they didn’t show any understanding, so I terminated the call. I’ve spoken to CAB who told me not to let them in. Just wondered if any other help was available.

Whether I’m on benefits or not isn’t relevant, so I’m just ignoring questions that aren’t relevant.

But is IS relevant!

People are trying to help you budget better, which you clearly haven't done, or you have an addictive spending habit you aren't mentioning.

How can anyone help if we don't know what you having coming in each week?

PP is right in that CAB debt advice funding has been cut in recent years and many of them don't offer the financial advice service they used to. It sounds like you've been given advice on what to do when a bailiff is at your door
www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/bailiffs/

Setting up a debt management plan through stepchange is only one option, others are explained here
www.citizensadvice.org.uk/debt-and-money/debt-solutions/

Have you tried the national debtline?

Find out who your local councillor is and write to them to explain you want to agree a payment plan with the council, but the bailiffs are preventing that.

No, I know I haven’t jingling but in all honesty that doesn’t help in the immediate panic. The time to sort out my budget will come when I’ve sorted this debt

@justthesky Sorry but your attitude here is all wrong.

People are trying to help.

You have had bucketfuls of advice.

No one can magic the money into your hand.

The crux of this is that if you have an income of any kind, you need to draw up a repayment plan whether it's £2 a week or £20 a week.

Why are you being so cagey?

The best MSE forum group to start with is the debt free wannabe one, they have Stepchange members who are really helpful forums.moneysavingexpert.com/forumdisplay.php?f=76

. The time to sort out my budget will come when I’ve sorted this debt

Oh dear. You are arse over tit with that.

The only way to sort your debt is to talk to the relevant people and start paying however much you can afford. THAT is the answer.

You need to start small repayments. People are asking about how much money you have coming in so they can help you repay the debts.

Why are you being so unhelpful to posters trying to help?

Can you take a small personal loan out at the bank/credit union maybe and then just pay them off. Then you will just need to pay the bank the minimum payments?? What happened for you to let it get this far OP??

Honestly, many of us have been there.

Call Stepchange. By budget, we mean talk through income and expense with them. They can set up a minimum payment to the non priority creditors, and therefore work out what you can afford to offer the priority ones. They can also advise you on how to deal with them. So you can then go to the council etc, say you have taken advice from Stepchange, and they have advised you that you can afford to pay xyz. If they really can't pull the debt back from the bailiff, then say the same to them. You need to be firm,honest and proactive.