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Thread: Desperately need help

  1. #1

    Desperately need help

    Finally come to the realisation today that I can’t continue the way I have and need to get out of the black hole I’ve found myself in.

    Bit of backstory. I’m 22 and in my last year at university and in a complete financial mess. I live at home with my mum and commute to/from University and work. Everything was fine up until about 15 months ago when my dad unexpectedly left. Literally walked in from work one evening, went upstairs, packed his suitcase and told my mum he was leaving her & I’ve not seen him since. My mum didn’t work (I have a younger sibling) and dad earned enough money where she didn’t need to. Turned out, he hadn’t paid any bills for a while and cleared out their accounts & Mum had a complete mental breakdown.

    Fast forward 15 months. My mum is now in work full time, but as she hadn’t worked for nearly 20 years she’s not earning great money (I think with uni + my job I earn about the same if not more than her), we split the household bills down the middle as otherwise we would be homeless. The house is mortgaged, but due to the financial situation my dad left her in her credit profile is pretty wrecked and the bank won’t re-mortgage or anything.

    I spent all my savings & earnings to bring the household bills up to date for the 9 months she wasn’t working, but at the time I wasn’t getting nearly half what I get now so I took out whatever credit I could just to keep us afloat & not homeless, and now I’ve hit rock bottom.

    I’m in a complete and utter financial mess, I’ve been signed off work for 4 weeks because I’m at my breaking point. It got so bad during the summer I was debating on offing myself so my Mum would receive my life insurance pay-out & be set.

    Pretty much everything is on 0% balance transfer or purchases, but these are all set to run out in the next 1-2 months. I've applied for other cards or loans to reconsolidate and get declined. My mum knows the situation and has tried to apply herself to help me but has had no joy either.

    I’ve posted my SOA bellow and would appreciate any help.

  2. #2
    Does your income fluctuate at all ?

    I was going to suggest debt relief order, but the car would be a problem.

    Your budget is a bit frugal to be honest, not too much to be cut, in fact I could add to it.

    I would say look at bankrupcy, but again, you would lose the car.

    You don’t have enough disposable income for an IVA, and in the same vein a debt management plan would take forever.

    Bankrupcy may be your only option.

  3. #3
    Ideally I don’t really want to go down the bankruptcy route, it would completely destroy my credit profile and any hopes I have to go into the police (which is what I eventually want to do)

    I’m graduating in July, and I live in the south east with a 30 minute commute to London. So, I would imagine my income may slightly increase next year if anything.

    I haven’t spoken about my debt to anyone else in my family, my grandparents are in an ok-ish position (not to the point where this will all be cleared) but they may be able to help with Petrol costs or my insurance. If they were able to do this, and free up around 60/80, would this change anything? Or would bankruptcy still be best.

    For instance, if I were to go onto a DMP then I wouldn’t be paying 80+ in overdraft charges, it could actually go towards paying off my debt. Plus help from my grandparents, I’d have around 200/250 to pay? Also, my sister finishes sixth form in June, and I believe she has an apprenticeship lined up, so she will be contributing to the household bills and therefore lowering my expenses, so I imagine that’ll help dramatically.

  4. #4
    You have to understand that the 0 rates on those CCs are going to end, and you won't be in a position to repay them beforehand given your SOA. As for DMP you have almost 20k GBP in debt, even if it will stop accruing interest and you manage to pay 400 a month towards the debt you are looking at almost 5 years to repay it. By that time the bankruptcy will be almost gone for good, and without you have to slave over all those years to repay all these monies.

    And bankruptcy is not the end of the world as it may seem, in few years it will go away from your credit file while you gain a lot of breathing room. It also will not kill your chances of joining the police force, there are plenty of stories online to find where people even within a year of becoming bankrupt manage to join in. High level of debt as you have now will likely be as big if not bigger deterrent.

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