I am in serious debt - and I need to raise £28,000 - I have a job, so please no flippant 'get a job' remarks..

Question

Any help or advice would be greatly appreciated....help before I have another sleepless night worrying....

Answer 1

Go to a financial adviser .. they will help you. Or seek Debt Consolidation companies they will help you as well. DONT file bankrupt because then you can pretty much consider yourself screwed for the next 7 years.

Answer 2

Your local CAB may provide debt counselling so that is an avenue you could try. Mean while contact all your creditors and explain the situation to them. If you have to declare yourself bankrupt then they aren't likely to get anything so mostly they will be prepared to help. Try and negotiate for a reduction in the debt or repayments.

Avoid a consolidation loan if you possibly can, they end up costing you more in the long run. Also be wary of these advertisers who offer "free" debt advise. Somebody pays for those adverts, most likely their customers AKA you.

Don't do any unnecessary spending, not even a cup of coffee. It can be very isolating but remember this is temporary. You might find a spending journal helps, write down every penny you spend, it may help you identify areas where you can cut back.

finally do what you can to release your assets, sell anything you don't need or want any more. Consider taking a second job temporarily, you can't afford to go out much so you might as well. If you have a family make sure that everybody is pulling together to resolve the problem.

I know it's hard not to worry in a situation like this but remember that those sleepless nights aren't going to resolve the problem and are only going to mean you don't operate efficiently during the day. You can get out of this, and you will. Don't panic.

Answer 3

I can't offer a 'magic wand' solution to your problems, for the simple fact that there is'nt one. You just have to be smart, and have a plan.

Consider the following:

- Consolidation of debts: Transferring all you existing debts to a central account. You can then pay that account off individually instead of paying lots of accounts at a given time. This facilitates the ability to manage your money better.

- Prioritization: All the debts you have are not of equal importance. Pay the most urgent ones first, and then to a lesser extent, pay the ones that you have more flexibilty with after.

- Two jobs: If need be, working overtime or having a second job will undoubtedly quicken the cash flow and the ability for you to pay your debts of your quicker and with more substantial sums.

- Reducing overheads: The best way to pay MORE money towards your debts is by LESSENING your overheads. Shop smart. Don't buy the most expensive brands - be selective. You'll be suprised by how much loose change you will have in your pocket if you do this. Also try to get rid of any unnecessary vices.

- Declaration of Bankcruptcy: In some countries, just simply declaring yourself bankcrupt and providing the necessary proof (such as bank statements vs. overheads) will dismiss all of your debts immediately. Most people will favor this one, since this is a 'lesser of the evil' of the options you have available. Expect to have a rock-bottom credit rating for at lease five years though.

Hope this helps.

Answer 4

Write to your creditor(s) and ask to make reduced payments. You will have to provide an income and expenditure sheet, but if you are struggling to afford the repayments, then this will show you where things are going wrong. It may have a detrimental effect on your credit rating for the next 6 years, but it helps to stop any more borrowing. Your creditor(s) will try every trick in the book to get you to pay more, but don't give in to them. At the end of the day, if they take you to court then the court will view your income and expenditure and they will more than likely have to end up settling for what you offered in the first place.
DON'T BE BULLIED BY THESE PEOPLE. The truth is that all lenders are too quick to give you money and there are millions of people struggling to pay them back. They are greedy and don't give a damn about the consequences. Let them wait for their money. Stay calm and clear headed and you be very realistic about what you can afford - even if you think it's a really small amount.

Answer 5

Ok, so before you go to bed tonight write down exactly what you spend your money on (I used to keep my Gold book where I wrote down everything, but it's sort of wierd and obsessive so I stopped) and then find where you can cut down. Even the little pennies count so when you go shopping insteda of picking up the normal stuff have a look around and buy a cheaper version. See what i mean? Thats the only long term thing really.
If you want the money now I can only think of another job, like delivering Avon catalogues and that as a second income. Good luck though.

Answer 6

What you need to do is a write a list of everyone you owe money to and the amount owed to each creditor. Then figure out how much you are going to pay towards your debt each month. Let say it is 100 pounds. Then figure out how much to pay each creditor the share of the 100 pounds so that they are all being paid equitably -in that way you are not favoring one creditor over the other but treating them the same in terms of the payment schedule.

For example if Smith has loaned you 70% of the debt, he should receive 70 pounds of the payment, and Jones who loaned you 30% would only get 30 pounds. In this manner, you are paying them both back in a fair manner, not favoring one creditor over the other.

If you are receiving harassing calls like in the US, if you write them telling them to put all communications in writing, and to cease and desist the calls, in the US they will have to stop calling. Tell them in the letter that you are paying all creditors back equitably, and their share will be Xpounds per month.

I would suggest finding a professional to help you, and it is well worth it to pay them to take control of a situation that has gotten out of control. These people are better at negotiating with your creditors that can result in reducing the debt. The creditors would rather get some money than no money.

Finally do not continue in whatever behaviour you did to get into this debt. Cut up your credit cards or stop doing what you did to get in this hot water. Look at your overall budget and see where you could save money- stop eating out, limit yourself to only beer in the pub or get rid of any unnecessary expenses. Buy second hand clothes instead of new ones or any other techniques you can think of being frugal. You may have to live like that for the next 2 years.

I would think that with being proactive and doing everything you can by taking actions, you can ge rid of this debt. Plenty of others have dealt with debts like yours, so you can do it.

View the whole situation positively like you are open to learning about finances and this is actually an opportunity to become wealthy. There are many gifts for you in this situation if you look for them. There are many books on prosperity- in the US a popular one now is The Millionaire Mind. Good luck!

Answer 7

That is a lot of money...........i really dont understand how you could let this happen????????/

You need to apply for an IVA. This is a last resort before bankruptcy.

With an IVA the interest can be frozen on what you owe, and some debts can be written off altogether.

Please think seriously about getting one, and ensure you know the consequences of not keeping up with an IVA agreement.

Answer 8

Get a bank loan or sell off your car. Are there anything that you have worth selling off? Or you could borrow some from friends and family if it's something serious. If it's something that can wait, get a part time job. You will have to sacrifice more for a while, but that's how you'll get the money you need.

Answer 9

Get in touch with Consumer Credit Counselling Service (CCCS) you can find their number on the web. They will go through a realistic budget with you. Any money left over after essentials they can divide up and send to your creditors. They are a charity and therefore do not charge you anything. They will deal with your creditors and most creditors will freeze the interest. I hope this helps. Good luck

Answer 10

Apparently, by EU Law, all debt above 19001 GB pounds
has to be written off. It is not your burden to bear. The remainder
may be paid by small regular amounts thus servicing the debt by
say direct debit. Don't worry: you're plight is recognised by the Law
which can be brought into play free of charge so that you can
sleep well and enjoy your job. Suggest ring round Citizens Advice
Bureaux till you find somebody who knows EU debt law and knows
what to do so that your problem is resolved.