£23k in debt. Do i go bankrupt(im in Scotland) or do I do a Trust Deed.

[PoppyPandrop]

I am 23k in debt from 5 credit cards and 1 personal loan and a catalogue. I am now at panic stage as I am living off my last credit card that has any credit on it. I have never missed a payment until this month but each card is costing me around £175 repayment a month which is of course interest only as well as my other debts I pay monthly. I need to sort this out once and for all but after reading so many reviews on different methods of getting out of this mess I am a bit unsure. Do i go bankrupt and for 6 years live with a bad credit record or do i try another way such as a trust deed(i hear very bad things about these) I know i need to speak with CAB or someone but I wanted to hear from you all first of all before I go make any calls. I am in Scotland, single, renting and do not own anything apart from my furniture etc. I also earn 27k a year. My job situation is on a shaky peg at the moment and my mental health is diminishing rapidly. After rent and bills I am left with nothing at all. So, this months missed payments are now chasing me via calls texts and emails. Any advice would be much appreciated.

You need to address this before it gets any worse.

Ring up each company you are in debt to and tell them you are having problems repaying. That will give you some breathing space.

I would get some free independent advice on the best way forward - this will help

www.moneyadviceservice.org.uk/en/categories/taking-control-of-debt

Do address this as it will only get worse if you don’t.

You need to phone a debt charity.

I declared bankruptcy 4 years ago in different circumstances and it was a huge relief walking out of court "debt free". My rating is still low but I have recently got a credit card (crap rate but its a start to rebuilding) and still have mobile contracts etc.

The debt charities can talk through your circumstances and advise you best.

There is no reason why you should be paying interest on a credit card. Do a balance transfer to a 0% card, condensing as many of the cards as possible onto one card. A CAB can help you do this. Set up a direct debit for the minimum amount.
If you are skint after rent and bills can you move to a cheaper place or take a lodger for a few months?

Stepchange should give you advice - there's also an online calculator if you add in all of your debts it'll give you basic help as a starting point (it does in England I'm not sure if it's different in Scotland). If bankruptcy may be a route you may take, read the forum on moneysavingexpert it will give you lots of information about how to prepare. If you write to your creditors and request to pay £1 for a few months as you're in financial difficulty they should be able to help. I've been in the same position as you where I just couldn't do it anymore. A few months break will give you time to think. Good luck!

There is no reason why you should be paying interest on a credit card. Do a balance transfer to a 0% card, condensing as many of the cards as possible onto one card. A CAB can help you do this. Set up a direct debit for the minimum amount
problem is the OP might not get another card to transfer onto, and if she does she might not get a high enough limit

OP speak to a debt charity they will help a trust deed or bankruptcy may be the only option

Call the Christians Against Poverty (CAP), they will help you. You don't have to be Christian.

capuk.org/i-want-help/our-services/cap-debt-help/help-in-scotland

There is no reason why you should be paying interest on a credit card. Do a balance transfer to a 0% card, condensing as many of the cards as possible onto one card. A CAB can help you do this. Set up a direct debit for the minimum amount

Ridiculous advice. OP credit rating provably won't be good enough to do this hence why they have interest payable cards in the first place, CAB won't advise to take more debt out to clear a debt generally either. Call steps to change they are really good.

Stepchange is a good one to call, they offer a free service and will contact all your cards, freeze the interest payments and work out a debt management plan to pay them all off. It also means the card companies won't hassle you provided you stick to the plan agreed with Stepchange. If you've been managing to keep up with the payments this far, it's important to get things moving quickly and pay these off - credit cards charge 20%+ and more to bad payers. This blip in your finances will take a few years to clear and a few years to disappear off your credit rating but you'll find once it is under control as 1 payment to pay back per month to Stepchange who repay the cards for you, you'll find a great relief like my friend did that it is under control. She went from not knowing what to do and it was affecting her work, to knowing she could afford the repayments which in turn meant she performed better at work, got a promotion and is now paying off at a higher rate and will clear the last amounts in a couple of months.

Under no circumstances should you go bankrupt or screw your credit rating. You are renting so life will be impossible after that you will end up in state housing but earn too much so God knows how much trouble after that.
Thankfully it is easy to sort out and credit can be easily explained by doing your best. So phone each of them, you will find them very friendly and non-judgemental, its just business. Ask for a 3 month payment break, I believe they are legally obliged to do this on non-secured debt. Ideally you want to consolidate all of it into one payment but its unlikely you'll secure more credit to cover it all so work out what you can reasonably pay each and start negotiating with them. As long as you are making any agreed payments your credit score wont take too much of a hit.
Once you start taking control you'll feel a hundred times better.

Thanks so much for all the advice. I have now done a quick debt plan online with Stepchange and the site sent me to Carrington Dean in Glasgow.

On the site they say they take a fee and for the first 3-5 months any money i pay goes to them and after that my creditors get paid. I am reluctant to call them back (my online query has my phone number on it) since they have called me. Does anyone here have any dealings with Carrington Dean?

I dont Im afraid but I do have a little advice.

I used to do this kind of thing in financial services. I swear to God you can do it yourself, it really is easy, if not time consuming. You dont have to speak to them if you dont want, you can write to them. Sort out what you can feasibly pay each one, then half it, and tell them thats what you can pay for the immediate future. You really might surprise yourself.
And is the best way because your credit report still gets payments registered. Thats all the IVA company will do and clearly they are taking their share first, not entirely fair.

Im not sure about Scotland but in England creditors [non secured debt] have to give you a payment break and freeze the interest. Thats all this company will be doing, yet youre still paying them.

Sorry coming off as coercive but I really hope you'll have a try.

A quick update. I called CAB and I'm waiting on an appointment being sent to me. they have advised me to contact my creditors and ask for a payment break until I can get my appointment with them. I have called 3 of my creditors(all minimum payments of around £180 a month) and the 3 of them have agreed to help. Barclaycard has put me on a payment break for a month to help me sort myself out. Personal loan is asking for £80 a month instead of £180 and Vanquis asking for £48 a month(instead of £185) for 3 months until i know what i'm doing. I only have another 2 credit card companies to call so i am seeing a wee bit light at the end. Once i get my appointment with CAB I will be in a better of state of mind to think more clearly and get my mess sorted out. As for Carrington Dean, I spoke with 2 people about them and they advised me to stay away from them. I will be taking that bit of advice. Again thank you to all who has given me advice, I will keep you updated as this mess is far from over but I can actually put a little smile on my face instead of tears.

I tell you, CAP (not CAB) are the experts. Yes you could do it yourself but mentally it is so much better to have support.

They come round, analyse every penny that goes in and out of your life, and set up a budget that puts essentials such as rent, food & utilities first.

They negotiate with creditors to set up manageable payment plans.

They will help you access any relevant help agencies.

And it's all free.

@CheeseyToast Yeah I had a look at them and then did a review search and they did not come out favourably. So with that in mind I chose CAB. Also the part 'they come round and analyse every penny didn't sit too well with me.

Fair enough, everyone's different. Good luck with getting debt free!