Hi all,

I've been burying my head in the sand for too long about my debts and i really need to do something about it. I have around £10000 worth of debt which i accumulated when i was a student and i need help. I currently living with my parents and work full-time but i just can't make ends meet and can't get any loans as my credit rating is poorer than poor!!!. Can anyone recommend a debt solution that will not stop me from getting a mortgage in the future as i do want to buy my own house one day. PLEASE HELP!!!!!!!

Cally,

You say you are working full time and live with your parents but you can't make ends meet, what are you spending your earnings on?? Even if you are on a modest salary paying back £10,000 over the next 3 or 4 years without having a mortgage to pay should be more than affordable. May I suggest you cut back on luxuries and set up payment plans with your creditors to repay your debts. Remember you spent the £10,000 its up to you to repay it!.

Cally,

you would be surprised how much money you waste without even know it.

get back to basics...

1. get a pen and paper, write down all your outgoings for the month, then your income (salary / allowance etc) take the outgoings from the income and you now have your fun money.

2. once you have done this look at your outgoings and see what you can reduce (ie cut back on phone bills / running around in a car wasting petrol).

3. get a part time night job in a bar - its great fun, give you a social life and instead of spending money you are making money.

4. sell some of your things on ebay . you would be amazed at how much money you can raise for what you deem as junk.

Believe me if you really want to get out of debt you have to make sacrifices. its not easy but if you are serious about this. we have all been there at some point, you just have to have the will power to get yourself out of it.

Good Luck and keep at it.

George

Hi Mr XXX

Thank you ever so much for your kind response. I am a single mother who has a three year old daughter. I have to pay £600 per month for childcare as I don't have anyone to look after her during the day. I help my mother and father out with rent which is £400 per month as I could never ask that they keep me!!!!. I certainly do not spend money on luxuries I wish I could afford them and I know I spent the money I do not need my intelligence insulted by your rudeness

Cally,

it seems Mr XXX thinks bad in all people (including me).

Dont Worry about him. focus on you and your family. Have you spoken to the benefits agency about your benefits. they might be able to (possibly ) find out if you are entitled to more money than you think.

once again good luck and keep at it.

George

Cally,

I was not being rude I was just being straight to the point. Your original post was basically saying "I borrowed £10,000, don't want to pay it all back but don't want to damage my credit rating as would like to get a mortgage in the future, can anyone tell me if this is possible?".

You now throw in the "I'm a hard done by single mother" line. Like I said in my original post cut down on non essential spending, maybe take a 2nd job and try to pay back your creditors gradually by agreeing an affordable payment plan. Other than that contact CAB or CCCS who offer free debt advice and if applicable can set up a debt management plan for you but this will affect your credit rating.

George,

I don't think bad in all people, I just get straight to the point. I may be wrong about you regarding the other post and your plug for a debt management company but I personally feel those sort of companies are all sharks and only add to people's financial troubles.

MR XXX

Do you have a vested interest in the CAB or CCCS?? these seem to be your answer for all debt problems.

as i posted earlier, the CAB are jack of all trades and whilst they can set up a debt management plan, they cannot manage it (as they dont have the means to)

Cally, Mr XXX is right about certain sebt solutions affecting your credit rateing but my friend is using a really good debt management firm at the moment (however i must point out that she has defaulted on her mortgage) however once she has finished paying back her debt and things get marked as satisfied on a credit rating she can start to repair it.

George

MR XXX,

i take on board the above, i myself like to get straight to the point as well. All i am doing is sharing my experiences with people who seem to be in the same boad as me and my friends.

Yes - there are some sharks out there and some even go under the guise of free debt management advice but not all of them are.

I have to say that my friend has never been so relieved to have someone fight her corner for her. and as i said earlier she went to the CAB first.

I would have no hesitation in telling people about the debt management firm she used because if she hadnt have had help from this company she probably wouldnt have been here today. (im even thinking of using them myself - but i am just keeping the wolves from the door at the moment)

im sorry your experiences have left you with a different outlook.

George

George,

No I don't have a vested interest in CAB or CCCS. Yes CAB are a jack of all trades and personally I would say go to CCCS for debt problems. They offer good FREE advice and as they are a charity and not a business they don't push people into unsuitable schemes that only benefit the scheme provider or administrator. Whilst there may be the odd decent Debt Management Company out there the majority are only interested in making money out of people already deep in debt.

I agree with that Mr XXX, "the majority are only interested in making money out of people already deep in debt" these happen to be the free debt advice sites (which are funded by the bainst and earnst and debt free directs of this life who help you with a debt management plan and get a commission from the creditors for efectivbemy becomming debt collectors.

Havent had dealings with the CCCS so cant comment.

Main thing is that Cally keeps her chin up and has some good supporting people around her.

George

Cally,

Have you requested a copy of your CCA (consumer credit agreement)? Basically, if the creditor cannot provide a properly executed signed agreement that contains all the prescribed terms, the debt may not be enforceable. That is not to say that the debt just goes away, but means that the debt cannot be enforced in court - this gives you a much stronger bargaining position with regards to negotiating repayments. In addition, I believe that charges and interest should not be added to an account that the creditor has defaulted on (they are in default if they fail to provide a copy of the CCA within 12+2 working days of your making a request) - although that doesn't always stop them!

Try not to let other people's moralising upset you. The only relevant issue here is how to practically deal with your debts.

Best of luck

Another thing I forgot to mention Cally - if you do have any 'black marks' on your credit rating such as a default, they only last for 6 years and are then cleared. I believe you can only be defaulted once for the same account, so at worst you will be able to apply for a mortgage in 6 years from the date of your last default, etc. I know this sounds a long time, but honestly it will fly by and you can use the time to save for a deposit once you have cleared your debts. I have even heard of people who have been accepted for a mortgage despite having defaults on their account for unsecured debts. Obviously it varies from lender to lender; they all have their own approach to assessing potential borrowers.

Cheer up - you will find a way through this. The important thing is you are now addressing the problem and taking practical steps to resolving it.

In the meantime, enjoy your little girl - childhood is so short. How lovely that she has her grandparents around her as well as her Mum.

Thank you so much George and Underdog for all your advice it's nice to see that some people don't think your some sort of waster I work hard and i'm trying to sort things out so thank you.

And as for Mr XXX try being a single mother some time and you'll know all about it!!! and I never used being a single mum as a sympathy vote you cheeky man!!! why should I want sympathy when I have something so beautiful as my daughter you arrogant arrogant fool !!!!

Glad to see MrXXX hasn't put you off Cally2 - people like him tend to be in the minority on these sites; most people genuinely want to help and offer support. Don't give him another thought.

You are hardly a waster when you are working full time and paying your way with your parents! It is perfectly natural to feel overwhelmed by debts at first, but now you are taking practical steps to resolve the issue. Good for you!

Let me know if there's anything I can do to help.