I'm 12,000 in debt and don't work. I'm very worried is it as bad as I think?

[ajeo]

It's all through money building cards, over draft and a very account for £6000. It all adds up to £12,000

I'm trying to get a payment system set up (I'm from Scotland). They have debt repayment schemes were they freeze the debt

How bad is this? I'm so worried.

Well, no, because I have an official car loan and the interest is nowhere near what the OP will be paying.

That's why
1- the first step should be to move the amount own onto 0% CC
2- consolidate the debts so she doesn’t pay such extortionate interest.

The issue here isn’t the amount but the fact it’s about CC rather than a loan

You make it sound easy but sadly it isn't always easy to do either of these things.

You really need to look at why you've built up the debt.
6k on Very isn't essentials like food is it, so you need to ask yourself do you have an issue with impulsive spending, seeing things you want and feeling you 'ought' to be able to have it although you can't afford it? If so is there any support you can get to help you manage this?

I think it sounds a lot. I hate owing money and earn about £100k and have a £5k credit card debt on 0% with a sensible plan to pay it off soon and it still feels like a big debt. I can't imagine having £12k with interest being added and only £100 to pay it off each month.

How is this helpful in anyway?

This.

I guess because it might make the OP face up to the fact it's a huge debt?

I agree it won't make the OP feel better.

£6000 with Very 😮😮😮😮

Disgusting that Very would give someone 6k of credit!

Why can't you go back to work?

Very is extortionate. I got an account there as bought Nintendo switch and you got 20% off first purchase and I was shocked by the interest rates. I paid off the switch in the interest free period but it was a real eye opener into the easy availability of expensive credit. I think in Canada you’re legally limited to the percentage interest you can charge and I’d like to see that in the UK too. I’m not against profit but 40%+ is akin to loansharking rates back in the day.

Yes, it is a lot of debt. A huge amount. It is really bad if you have no means to pay it back.

Of course, you really need to be honest and understand how and why you got into so much debt. If it was paying the rent and buying food to live because you lost your job, then it's a lot but it is understandable and unfortunate and you need some financial help. If it was accrued because you fancied a new outfit/branded trainers for your kid/a new sofa suite/an air-fryer because everyone else has them (as I suspect it was because so much of the debt is with Very) then you won't be able to clear your debt without changing your behaviour and your expectations in life. If you are so used to buying whatever takes your fancy because it's on credit, be honest - can you really just go cold turkey for 5 years?

Either way, you need to seek help from an organisation such as Step Change or CAB.

Yes I built up some debt with Very and the interest rates are astronomical. Everything is expensive from there as well.

Honestly OP, a debt charity is your best bet.

You have to fulfil strict criteria though, it’s not for if you just don’t fancy paying it back.

Are you going back to work next year, or in a year?

Because OP asked is 12k a lot to owe, and PP answered Yes it is, even with a high salary.

As others have said, get immediate help from a debt counselling charity.
I got myself into a huge debt, it kind if crept up on me.
I got out of it by one day realising "omg this cannot go on" ... just as you have.
From that point forward before I spent a single penny I'd think about whether I REALLY needed it, if not then I'd not buy it. If I DID need it then could I defer it, get it free somewhere or get secondhand.
Every spare penny then went towarsd paying off my debt. I also took out balance transfer zero interest credit cards and moved my debt to those as just the interest alone was a huge amount.
Food was my major expense, as I'm always dieting I moved to more wholesome natural products and cooked (air fryer or hob only) myself. My food bill dropped by 60%
Anyway good luck. First step is get free advice.

Why don't you go back to work now?

I have applied for debt repayment plan, I've done my budget. I need to wait Experian coming back with my credit files and I'm uploading my documents. I hopefully will be done by the end of the week

Please can anyone give positive stories wiping their debts please

My reasons for the debts are actually very sad and it's only now that I'm healing from trauma I understand how it got so bad when I didn't understand it was

Growing up I was in an extremely abuse household and even now my mum is still the same. I'm always made to feel everything I do is wrong and growing up in that environment I never future planned I always just thought I'd not make it past the next few years etc so I've always made bad choices. With everything not just money and debt. Bad choices with company etc. now I'm healing from it, it's like a slap in the face and I'm trying to face up to it and deal with it and hope in 5 years things are positive with money.

It sounds as though you’ve signed up for a debt repayment scheme online? What website/company is that through?

@INeedNewShoes step change

Please don't worry.

And please please please contact StepChange.

I had debts much much more than you. You'd faint if I told you how much.

I left it years to contact them. I wish I'd done it sooner. They are an amazing charity. They literally saved my life.

They will give you the most up to date and relevant advice. Maybe an IVA?

Phone them now

0800 138 1111

I now have no debt! Wish I'd phoned them years ago.

I had higher debts than you and repaid them with an arrangement.

One thing I would say is that your case for an informal arrangement would be stronger if you were working and maximising how much you repay monthly from day one.

Is there a reason why you can’t go back to work sooner?

It’s not just about paying it off. The interest on top of it makes it hard to pay off. Like swimming against strong current. Swimming hard isn’t enough, you need to swim even harder or find a smarter alternative to get around it .

Use excel spreadsheet and analyse what part is interest and what part is the actual debt. And come up with a plan to pay this off. But if you don’t have this skill, certainly get help from debt charity. I suspect they will help you with this..?

No pain no gain. Credit cards are for those who knows how to play the game. I use it to my advantage- pay later and increase cash flow to buy appreciating asset/ invest. Not buy more liabilities. I also use credit card to control/ keep monthly spending to the same each month…etc. Takes a lot of maths/ budgeting and personal finance training to get good at it. Credit cards or store cards are not for buying things when you don’t have the means. so Good lesson to reflect on.

You said you were returning to work next yr, are you currently unemployed, on maternity leave or in education/training etc? If you're with an employer, is there anything in your employment contract which prevents you from taking on another job?

I'd take on a remote admin job and start earning some money. Is the £12k debt for daily living expenses or for holidays & treats? How are you going yo to pay for Christmas? Please don't put it on the card.

You need to review your spending, draw up a budget and stick to it. Look at what belongings that you can sell to put towards debt repayment & a separate Christmas fund.

https://www.stepchange.org/

https://capuk.org/