Over our heads with debt-what to do next?

What you do now is get in touch with everyone you owe money to and explain that you are having trouble paying. That always has better results than suddenly finding yourself in a situation where you can't pay but haven't warned them.

Then cut up your credit cards (or freeze them in a thick block of ice if you think you may need them for an emergency).

Also, get in touch with StepChange

StepChange Debt Charity - Free Expert Debt Advice.

and with Christians Against Poverty

CAP UK | Home

who will be able to offer you very good advice about how to deal with the problem debt.

Hope that helps.

This 👆🏻

there is a way of sorting this so get all the info and docs together. Take a day off work and start ringing everyone.

cut up the credit cards or at least all of them except 1, which you can freeze if you really think you may need it.

it will be fine but you need to be honest and do what the experts suggest.

best of luck

Yes definetely do something about it now. I have been in a similar position so be reassured that you CAN get out of it. There are a couple of options but what you must NOT do is to do nothing at all.

First make a list of what you need to live ....rent/mortgage, food, council tax, travel for work etc. Add all of that up and see the difference for what you have coming in.

Then get in touch with ALL the people you owe money to and explain the position. (they will have heard it a thousand times so don't be scared) Tell them what you can afford and tell them the other creditors. (they will probably ask you to fill out a form with all of the information on it about who you owe to). Some might just get a tenner a month or £20 but you need to be honest and don't promise what you cannot afford.

Another way is to go to your Citizens Advice (or local council debt advice) and they have great debt help. Absolutely do NOT go to companies who advertise and tell you they will get you out of debt as they take a huge slice (you pay them) and then they pay the creditors peanuts. It usually ends badly if you do that as there will never be enough money in the pot.

Another way is to apply for an IVF which is a voluntary bankrupt scheme where most of your debt will be written off and you then pay the final 20% or so. However that is a LAST resort as your credit will be shot for years. (it probably is already so it might be an option) If you do that scheme then you absolutely HAVE to make the repayments otherwise you will be in bother. (it's slightly better than going completely bankrupt - it's a managed way of doing it).

The reason I say if you do nothing (and do NOT do nothing) is that what will likely happen is if you can't afford your car tax or insurance you will certainly get stopped by the police and will get a huge fine and they will likely take the car off you. So it will be a lot worse doing nothing.

The good news is there are millions in your boat and if you act now then you really can turn it round. £20,000 isn't the worst debt and it can be sorted. Good Luck and don't worry about it. You will be ok (and like someone else said ...CUT those cards up NOW !!)

Very good advice !

Very good advice!

Bella I’m so sorry to hear about your debt problems. I’ve been there and it’s terrible. Things can seem impossible but even the fact that you’ve sat down and tallied up all you owe.

I agree with the advice you get in touch with StepChange— you can do that right here on Netmums!

StepChange is our new partner and they are answering questions on several of our money boards, including Money Matters. So do ask questions there too. here’s the link: https://www.netmums.com/coffeehouse/money-advice-1127/money-matters-1133/

My advice would be to get out from under the payday loans as soon as possible. In my experiencing the worst thing is servicing all the interest on debts without chinking away at it.

also stick with it. Slow and steady and you will get there! Let us know what your next steps will be…

Hi

Write down all your incoming and outgoings, see what u can do without eg. sky TV, charity payments, things u might be paying u don't need. We got rid of sky and now have free sat. Be thorough and honest, once u have all your figures to hand, go to citizens advice, there are free helpline out there to help you. IVA is something to consider, but seek professional help now before it gets worse. If you start pulling your finances apart now, u might see some stuff u don't need that u paying for. If u open and honest now, things will get better. Don't spend anything without writing it down, don't buy coffee out, it all adds up.

Sorry to hear your situation, everyone’s advise is spot on, I will just add there are plenty of routes to take, and maybe looking at YouTube at budgeting may help, one YouTuber specifically springs to mind is ‘she’s on a budget’ she has managed to clear large debts in difficult situations and I find her incredibly inspiring, also another is ‘budgetmumuk’ these are just a couple I find fab but I could go on with a huge list ….’budgets and dreams’ also a very large debt super low income, it’s a lovely community and they make it somewhat fun with little savings challenges etc.

Of course speak to professionals but I wanted to give you something to hopefully lighten your spirits, a lot of us are in the same boat.

Wish you all the best

I would agree with all the advise given. Nobody can advise where you can cut costs without seeing your expenses but from experience you can normally shave £100+ off a month. I can sympathise as I'm currently stuck paying 2 leases at the moment until march and completely drained my savings so next I'll have to use the emergency credit card. We've cut costs by only using the oven once a week and cooking several meals at once to reheat in chef mic throughout the week. Not putting the heating on and just warming the livingroom with a heater. Switching the hot water off and just using the shower instead of bath. As we only watch netflix so I cancelled tv licence. Depending on your usage a water meter. I only pay £15 a month since getting a water meter but you really need to cost it up. If your struggling for food money then the household support fund can help with upto £750 and you can reapply each month until march I think. There is also a fund which can reduce or wipe off energy debt, sorry you would have to google it I don't have the link. The discretionary housing payment and council tax grant is still available and depending on your council they can give food vouchers out too. Xx

I understand it must be worrying, debt troubles can cause many a sleepless night. I would recommend you get together all your financial information and either visit our website and use our online advice tool, or if you would prefer to chat it through with one of our trained advisors give us a call on 0800 138 1111. We are open 8am until 8pm Monday to Friday, and 8am until 4pm Saturdays.

We offer a free, impartial, and non-judgemental service and bare in mind, the sooner you get help, the sooner you will get back on track. Once we have a good understanding of your financial situation we will then be able to give you your options and provide you a tailored action plan to go with this, there is no obligation to go ahead with our advice either.

Best wishes - Kev at StepChange