Strange Famous

Salary (GROSS) - 16,000 GBP 30048 USD
Salary (NET) - 12528 GBP 23528 USD

Combined Debt (23953 GBP) (44984 USD)

that's where it's at. Do you think it is at a point I consider bankruptacy? At the moment I am strugling to stay above water, making minimum payments by borrowing from one source to pay another, with debts in 5 places.

I have pay review this month but wouldnt anticipate it working out at more than 100 USD a month. If I am more prudent, start cancelling expenses I can lose, I could keep my head above water on this - I think, but wouldnt make quick progress in paying it all off.

Obviously, both stupidity and stupification have lead me to this point, but... I cant go on just drifting further into the shit because I cant face up to the situation... but... what do I do now?

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jwoody

You need to make an appointment with your local Citizen's Advice Bureau. ( http://www.citizensadvice.org.uk/ )

f6twister

Before trying bankruptcy, I would look at consolidation loans and see if that will help. It is a better option than bankruptcy because you are still paying back all the money, just in smaller portions over a longer period of time. It takes less time to recover your credit rating going through consolidation.

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NoSoup

Although the rules may be different in the UK, this is not necesarily the case. Often times, it looks just as bad to potential lenders if you are in credit counceling as if you filed a bankruptcy.

I suppose it depends on your situation, and what kinds of debts you have (ie student loans, credit card debts, vehicle loans, ect) but bankruptcy may be the better option for you at this point, rather than spending the next five years struggling to pay off your debts, all the while barely keeping your head above water.

If much of the debt is not secured (ie credit cards) I would probably lean towards declaring it, but if you owe a lot on your vehicle/student loans, you may not actually get rid of those debts - here in America, bankruptcy typically is not able to be used to get rid of student loans, and although it can be used on a vehicle, the vehicle will then be taken away.

If you do decide to declare bankruptcy, I would suggest to immediately begin building your credit up again. Bankruptcy will damage your scores and stay on your credit report for 7-10 years, but as time goes by and you show that in more recent times you are more creditworthy, your score will increase substantially within 3 years or so.

*Just want to clarify a bit - all this applies in America. Providing the UK's rules are the same or similar, my opinion would still stand. If the laws are quite a bit different, just ignore me*

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Just in case you were wondering...

kutulu

Furthermore, If you aren't planning on buying a new car (via loan) or house in the next 7 years, why would a bad credit score matter to you?

StephenSa

Don't know UK rules but I went through a bankruptcy in the US and I can relate my experience. My debt with minimum payments had reached a point that my nut each month was more than I brought in. I tried credit counseling and the best they could do would have had me debt free in a little over five years but the payment schedule left me with no money to spare. No money for car repairs, no money for life's emergencies, no clothing allowance, no money for dental bills, nothing. Heck even a larger than expected utility bill would have put me over. On top of that I'd still have a bad credit rating for many years to come. I checked into bankruptcy and in my situation it was just the better choice. Yes, your credit will be screwed for sometime but it already is anyway and the longer you carry heavy debt the worse it will get. You won't be able to get credit for a while but without the crushing debt you can probably just live decently on your salary anyway which is always better than the credit card lifestyle. Within six months of declaring bankruptcy I had offers of credit to buy a car. I wouldn't do it, the rates are astronomical and I don't need a new car but it shows bankruptcy isn't the end of the world. My only regret is not doing it sooner and gotten on with my life. The important thing, at least for me, was to learn from the experience and not let myself fall into the debt trap again. From what little info I have about your situation, it sounds like you might well be a good candidate. I'd at least look into it.