Up financial shit creek without a paddle

[mummydoingamasters]

Just as the title suggests really!

I've had to pull my head out of the sand today and face my reality. Not including my husbands debt (which is loose change in comparison) I have nearly £20k of debt. Not including my student loans (UK so not earning enough to pay back).

I did an online enquiry and got a call back and I was given the advice that bankruptcy is probably my only option. I just feel so bloody defeated.

The advisor said I wouldn't get a DRO as I'm married and our income is too high! The only criteria I can find is that we have to have less than £75 a month spare, no cap on what comes in.

I want to avoid bankruptcy if I can because our car is on finance and can't afford to be without a car that fits us all in.

I'm just at a bit of a loss really and want to go back to ignoring it which isn't very grown up I know, but I just don't know how to get out of this hole 😞

The fact that you are used to paying £400 a month to service that debt is great. Now, with the help of one of those organisations linked to above, you need to get the interest rates reduced to zero. Then that £400 is paying off the balance - reducing your debt by almost £5k a year!

How often do you get paid?

the reason being if you pay off debts on weekly or fortnightly schedular then the interest will be less than monthly payments in some cases

Can your DH take on a second job, if you can't?

You can find comprehensive information about this here ukpersonal.finance/debt/.

And a very supportive community with many people in similar situations and worse, and many that have found the route out. Here www.reddit.com/r/UKPersonalFinance/.

You can absolutely get your head above water very quickly. Good luck.

£400 is loads but it’s probably mainly interest you’re paying so you’re not actually making a dent.

A PP said about stepchange.
My friend did this and she said it’s the best thing she’s ever done.
I would speak to you them and your car finance to see if it will impact it.

You could look into getting a consolidation loan but I’m not sure you’d be able to under your circumstances.

Exactly. What did you spend it on and why don’t you want to pay it back?

Spent all the money on clothes and having a good time knowing you couldn’t repay it? Best option is to get a full time job, sell what you don’t need and cut back on everything.

Issue is that when it’s paid back, you’re likely to borrow it again. That’s what you really need to resolve. Why did it happen in the first place.

Definitely contact Step change. They'll help you set up a plan so the £400 is actually paying off the debt rather than servicing the interest. And MSE debt forums - the posters on there are the experts at advice on paying off debts.

Good Luck. You will come through this.

@Zeus44 OP hasn't stated what they spent it on?

Ignore @Zeus44 . Clearly looking to upset op. There's always one.

Have you looked at all the interest rates?

first thing is to try and get as much on the lowest interest debt- any chance you or dh could qualify for a 0% credit card?

put everything on minimum payment and throw all your spare cash at the debt with the highest interest rate. Pay that off, then move to the next one.

Speak to step change and they will set you up on a dmp. Bankruptcy is not good advice. They will assess your income v outgoings and then split what you have left over all your creditors. You won't have to deal with the creditors anymore and you can do it all online if you want to. I've been there, the relief is unbelievable and I am now debt free.

I never stated I don't want to pay it back. I've never actually said what the money was spent on but as you're so interested -

3 lots of admin rental fees before the clamp on estate agents ripping people off. We were unfortunate to have our private rental sold and then evicted from the second rental due to the landlord wanting the house back. Van hire for said moves. Storage unit deposit. Clothes and school supplies for my children. Sometimes I even need clothes myself. Beds and furniture for the children. Car insurance deposits, fuel if I'm in a tight spot.

I am not denying my choices haven't been great, I'm here holding my hands up asking for help to resolve it not help to avoid it. Trust me, no one is judging me more than I am.

You will be laying it back on a DMP, the interest will be frozen. Shit can happen to the best of us.

You are doing the right thing. I too was in huge debt 16 years ago and contacted Christians against Poverty. 4.5 years it took to clear my debt but it was the best thing I ever did. Plus the emotional/practical support they also gave was incredible.
Honestly, as soon as they step in and things get moving, it lifts a huge weight from you.

The first step is acknowledging there's a possible. Life can be a bit shit sometimes - but everything can be worked out in the end. How much (realistically) do you think you can pay towards your debts? Can you give a breakdown of the balances and the interest rates - could look at if either the snow ball or avalanche method would work for you.

Is it possible to get a consolidation loan? (I know this may not be possible).

Whose name is the car loan in and how much is this a month?