bad credit history, advice please (long, sorry)

[badcredit22]

I have NCd for this as I hate this part of my life and try to not think about it as much as I can because if I did I would stress really bad.

When I was with my ex I worked full time but was on very low pay. I had to support us both. I didnt qualify for WTC and he got some benefits but spent them on dope. He was abusive both emotionally and physically. I cannot entirely blame that ofcourse but it played a part.

During that time I got into debt. In total its about £15k. Its from a credit card (my ex stole £600 cash from that. I reported to police but didnt press charges.) a store card, a personal loan, the outstanding balance on a HP car and a phone contract. Theres also unpaid telephone bills that my ex ran up phoning sex lines while I was at work.

I swear I am not making this up.

Anyway, 4 years ago I got pregnant (contraception fail) and the stress of the abusive relationship, money problems, pregnancy and an awful work environment forced me to leave work at 20weeks. I tried to enter into payment plans but as I was then on benefits I was advised that I couldnt have a payment plan as debts cannot be taken from them.

The car was repossessed. I had debt letters for two years and then they tailed off before I moved house.

My question is, what the hell do I do now? I am looking for work again so when I get a job do I try to get a payment plan?

Will it all drop off my file after 6 years as I have read online? Could I have CCJs that I dont know about? Should I file for bankruptcy?

Also, I was thinking of retraining as an accountant (I realise how ironic that sounds but I have learned so much from all this, Im good at budgeting money now) but would this bad credit affect my ability to get a job in say two or three years?

Thankyou if you have got to here. Any advice is much appreciated.

If you have no assets (like a house) & it's under 15,000 there's something known as a DRO, which would write the debts off & isn't as costly or "full on" as bankruptcy.

Are you paying anything off the debts at the moment?

Do you have a payment plan in place?

Do the creditors know your new address or have you not heard from them?

Is the outstanding hp for the car on the car which was repossessed?

The car was reposessed but there was an outstanding balance of £1500 on it after.

Im not making any payments as I cant get a payment plan due to being on benefits.

They dont know my address. I havent purposely evaded them. I just havent had any letters since I moved two years ago.

I looked up DROs but I dont qualify due to where I live.

The onus is on you to inform of your address. They will track you down eventually , probably via an agency who will add on their fees, and you will need to acknowledge it as part of any payment plan. Trying to become an accountant while possibly having undisclosed financial issues is not a good idea. Which type of accountancy did you have in mind , you might wish to check the criteria for membership.

Not sure which type to be honest. I havent looked into it in depth because I fear this will mean I cant do it.

A friend told me to wait another two years and then the debt drops off my credit file, but surely they could still chase me so would I be better getting an IVA when I am working again and getting it resolved that way?

It's 6 years from the acknowledgement of a debt so a long time to be in limbo!!!

It is something like 6 years without acknowledging a debt before you can no longer be pursued. If you end up with a CCJ that would count against your hopes of a career.

Ok, speaking from someone with experience I would suggest.....

Getting in touch with each creditor one at a time. Some creditors will be happy to help, others will want your blood! Ask how much the outstanding balance is.

Work out how much you can afford to pay towards your debts each month. Even if it is £10 a month to each creditor. Ask again for a repayment plan.

When you speak to them explain your situation. Explain (if they can't put you on a payment plan) that you will phone them up each month on a set date a pay £x towards the debt you owe.

They may not give you a payment plan, but you are showing willing by phoning them and giving then regular payments. They may not agree to you phoning and paying £x amount each month-but when you phone to make a payment, they won't refuse to take your payment. They will take the payment.

But you have to let them know your address. All the missed payments will now be in your credit file and will be for 5 years +. So you shouldn't avoid paying them just because they don't know where you live.

This won't go away.

And after you've spoken to them, arrange a meeting with citizens advice. They will be able to help you and point you in the right direction.

And look at your credit report online at experien.co.uk. That has all the information on there of who you owe and why's outstanding.

I was you three years ago. It's hard when you owe out money and it seems like a lot and seems like it will take forever to pay off.

But you 'll get there in the end and you'll feel brilliant for achieving it.

Also, I wouldn't hedge my bets on the six year thing.

Financial regulations change all the time.

And it will all still be on your credit file for a long time.

Which part of the country do you live badcredit22?

Northern Ireland.

Is it acknowledgement that I have made or they have made?

I know it wont go away. I just havent a clue where to start because we literally havent even got a penny spare to pay it off.

You should go to citizens advice or equivalent.

They know everything and be able to help you with your individual case.

or call one of the free government helplines. The creditors just need to track you down and ask you if these are yours.

www.stepchange.org/DebtadviceinNorthernIreland.aspx

Step Change - free debt advice charity - operating in N Ireland as well as elsewhere in the UK, can give advice and get involved - liaising with creditors - working out a payment plan with you and so on. Get in touch with them or a similar agency.

Things seem so bleak now - but they won't be always and I think that thinking positively about a new career is a good idea - perhaps a branch of accountancy or similar - once you're on top of things, things like this will seem much clearer.

It was payplan that I spoke to who told me they couldnt help as Im on benefits and to call back when I was working.

Thanks for all the advice. I will have to get a job before I can take action it seems.

You can't enter into a formal DMP while not working, but you can call them yourself to make payments - no company would refuse you! My DH had old debts and they began contacting him again after 5 years of no acknowledgement so I wouldn't count on them falling off your credit file. If you haven't changed your address with them they have still tried to make contact so it won't leave your credit file if they do.

Long term as long as you have no CCJ's and debts are repaid it shouldn't prevent you working as an accountant, however if you get CCJ's you will struggle to get work in any financial role.