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.

https://www.citizensadvice.org.uk/scotland/

@StormingNorman if after my budget I have £270 available but I want £100 safety money will creditors reject this? Or would they be likely to accept?

That's really a conversation to have with stepchange

Depends on her job! If she works in eg finance, that's her career gone as well as her debt!

Contact citizens advice or debt charities and get a debt relief order. Don’t get an IVA - get concrete advice first. A DRO will ruin your credit for 6 years, but let’s face it, it’s already ruined.

You need to go back to work sooner.

She doesn’t have a job 🤦‍♀️ so right now that’s the least of her worries

@ajeo Some kind people on here held my hand this week while I spoke with Step Change. I was terrified. I still have a lot of work to do but their advice was so helpful and I know I have them on my side to help me find a way through. They will not judge you.

You can ring them on 0300 303 5300.

I understand people are trying to be helpful, but there's a lot of recommendations on this thread for debt solutions that aren't available in Scotland. The OP has spoken to Stepchange and the best thing she can do is take their advice.

OP - if you have any questions about your next steps, I'm sure Stepchange would be willing to answer them for you. If you ask on here, you risk getting well-meaning, but incorrect, information.

She says she's going back to work next year. If she's got professional qualifications in a career in eg the financial industry, she can't work in it being a bankrupt. Throwing a career away to end up in some minimum wage dead end job isn't helpful long term, so if that would be her position she'd be better off with an option for dealing with the debt that isn't bankruptcy.

I don't think £270 would even cover the interest payments if the interest rates are as high as you have suggested in earlier posts tbh.

You need to speak to stepchange and be completely open and honest with them. There are a lot of relevant questions that pp are asking that you haven't answered. Which is completely ok on a public forum, but also means that MN can't actually offer any good advice.

Although, I'd recommend not taking any advice from on here without talking to Stepchange anyway

Sorry but yes that is a lot, when the debt is unsecured (i.e, wouldn't be as bad if it was a loan for an asset like a car). Can you not go back to work sooner? I'd suggest a debt charity would be useful.

It’s a very big debt, and completely inappropriate for someone who’s not working. Why do you have to wait until next year to return to work?

She has spoken to Step Change.

She will not divulge why she is not working.

HTH.

OP if you are still reading then look at the money saving expert forum and the debt-free pages. Lots of very experienced posters there who have been where you are now. Good luck with Stepchange - they have helped my friend get back on her feet.

These things are really shitty. I have a similar level of debt and I'm not concerned as it's on interest free credit cards and I'm paying the minimum amount and will repeat the balance transfer until it's paid off. I have previously had much less debt from a similar card and bloody very! If you have bad credit and can't get the balance transfers or a consolidation loan, it feels like an awful trap you'll never get out of.

Can you go back to work sooner or do a smaller job around childcare etc?

"Right now I could offer £200 maybe less a month to pay. Making it 5 years paying back" is this if they freeze the interest? What if they can't.

I'm filling out my application. My Experian finally came back. I had a debt from 2017 for an old phone bill I completely forgot about. It doesn't exist on my Experian

I remember someone saying debts cease to exist after 7 years

Can someone help please?

Is there a reason why you can't get a job now.
It seems as though you are putting your head in the sand.
Also how do you think £12k debt is not bad.
And now you want to ignore old debts.

I don't know if they cease after 7 years but defaults are removed after 5 or so.