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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
Topic starter  

We often read forum threads here where people mention that they wish they'd taken advice and action about their debts earlier than they did in reality.

Advisers sometimes find this a bit frustrating as the options to deal with debt issues tend to be more numerous and less severe the earlier that advice is taken. However, it's understood that taking advice for the first time can be a really difficult step to take.

I wondered if any members would mind sharing their experience of:

1 - The obstacles in the way of reaching out for advice when they first realised that there might be a financial problem.

2 - What triggered them to take advice when they actually did.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@neverendingstory)
Estimable Member
Joined: 13 years ago
Posts: 181
 

Hi TDA

My personal experience is:

1. My obstacle was myself! I didn't feel that I needed advice - I thought I could deal with it on my own. There is also the huge embarassament factor that you need to tell a complete stranger that you can't manage your money. The fear of the unknown was a massive factor too - help, how to get it, what happens, when does it happens, how does it affect my life going foward etc etc.

2. My credit card company stating that I needed to repay the balance in full or else....£15K isn't easy to find! I was robbing peter to pay paul and unfortunately peter ran out of options!

I was going to go with one of those companies advertised on TV as complete and utter panic set in - but luckily I decided to review said company when I came across this site and read about other people's experiences which steered me in the direction of my IP.

Hope this helps.


   
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(@gillian)
Reputable Member
Joined: 14 years ago
Posts: 355
 

For the 1st question. I was the obstacle. My lack of acceptance of how bad my financial state was (£65000 in debt and rising by the day). I kept telling myself 'when I pay the loan off, I'll put it into my credit cards'. I also had a massive fear of banks. After going in to ask about a car loan when I was 19 and being made to feel like I was 5, I never went near them and only knew there was a problem when a letter dropped through the door.

Question 2. One card getting declined for the sake of a £1 underpayment. Also, 2 other cards cutting my limits to a third in one swoop. That way, I was over my limit right away. I had lost the facility to write credit card cheques to get me to the end of the month. At the lightbulb moment, I had £800 per month over what I actually earned trying to leave my account.

I phoned up the first company I saw in the Yellow Pages and the whole thing was signed off in less than a week - not counting the five weeks to become protected. Looking back, I should have looked into it more instead of being emotional about it. Other than a couple of glitches, it worked out and was the best thing I ever did. I've lost the embarressment factor as well. I don't care that people know my position and how I got there. It was completely my fault and I accept that.

Nothing left to discharge - everything's done and dusted!


   
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(@worriedmary)
Eminent Member
Joined: 13 years ago
Posts: 26
 

hi for the first question the obstacle was me in that I hoped I could just keep going for another few years until one of my loans was paid off which would allow me to then work on paying back another one. I was also faced with the possibility of redundancy and thought I would be unemployable if I had to enter into debt arrangements. I was also scared of putting my head above the parapet as I did not feel that the banks would be helpful as to my mind they were only out to make sure they got their money back and if that came at the expense of another company not getting their money it would not matter.

As to the second my washing machine broke down, the car needed new tyres all at the same time. Also and more importantly to me anyway I needed to take my dog to the vet and I did not know how I could pay for this without using my credit cards which would take it to the max and then what would I do to manage. I sat down and tried to work out a budget and realised that even a small increase in any payments to my creditors ie interest rate rise would push me over the edge financially.

I have gone through years of worrying and wish now I had taken advice earlier I am just starting the 5 week period and hope that my TD will become protected but although I am worried about this I feel for the first time in many years that there is hope for me and that I can take control of my finances back, the simple action of not using cards and paying for anything by cash is so satisfying. For anyone out there hesitating about getting advice please don't it costs nothing to speak to someone, probably, for the first time, you won't be judged or looked down on and it is up to you whether you take the advice or not but you will find just speaking to someone will make you feel so much better.


   
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(@pinalta)
Reputable Member
Joined: 13 years ago
Posts: 315
 

Myself , that was the problem and the fear of admiting I can't cope anymore not just to myself but to my wife as well . She new nothing about it until I said we need to go to the council advice shop there is no way I can cover things up anymore . Of course maxing out your credit cards to pay just the minimum each month at high APR'S does not help . Debt getting bigger by the month , then BANG can't take any more cash off the cards to pay the other bills etc . Looking back the best part was entering the deed , worst parts , self pity and numerous phone calls from the card companies at all times of the day and night , got so bad that the phone was always unpluged , then the letters etc . Worst of all is once I got help , the very company that was meant to sort things out has been constantly avioding me and also at times quite threatning about eviction etc , and 3 years has turned into 6 !!. Though thanks to Mark who is a credit to his profesion , he has put me on the right path , and what my trustee has been telling me is not gospel . Once it's sorted out I hope to share my eventful journey !. Feel , that my present company has severly let me down , however thanks to this forum and honest and trustworthy persons who work within them , the common person will always have a voice to speak up for them , BRAVO TDA , and all the experts and fellow posters , we are a big family pity we can't give a hug to each other in person but we can do it through this site .


   
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(@pinalta)
Reputable Member
Joined: 13 years ago
Posts: 315
 

Sorry forgot to say , the goverment will always support you robbing Peter if Paul happens to be them !.
[}:)]


   
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(@ann910)
Trusted Member
Joined: 13 years ago
Posts: 92
 

Hi TDA

1. The obstacle for me was thinking that things would improve and that I would ultimately be able to manage. I thought remortgaging might be the answer. However that credit line folded with the recession. Even then I didnt think I would have to 'give up' , I thought it would still work out. I had some debt which caused me a lot of stress. However this rose fairly quickly over 2 years and I suddenly realised things had become unmanageable. I was given help from a partner who does not live with me. This took the strain off me for some time, but recently it has been clear how much strain this put on him. Even with the help I was just managing.

I did eventually re-mortgage but unfortunately I could not re-mortgage for the required amount. So my debt continued to rise as my mortgage payment had increased.

I also did not want to have choices taken away - like not being able to get credit for - car or to move house. I saw it as taking away my own personal choices and I felt like a failure.

2. Not being able to just buy food and pay bills without using cards was causing me a lot of stress and I know my health was beginning to be affected. As a parent it was doubly hard. I was reaching the max in my only 2 cards I had kept since remortgaging and I knew it could not go on.

I have only just signed and hoping for a Protected Trust deed. But I already want a life without credit and want to try to value what I have rather than worrying about what I dont have - which will include some choices. (not always as easy as it sounds)

I have found a lot of comfort from reading the posts here and hope the journey wont be too painful.


   
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(@ann910)
Trusted Member
Joined: 13 years ago
Posts: 92
 

Hi

Also just wanted to say as I quite often became overdrawn , sometimes only by a small amount, but the bank charges from my bank helped in a big way to push me over the edge.


   
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(@tomthumb)
Eminent Member
Joined: 16 years ago
Posts: 29
 

Have to agree with most of the post here... I was at fault and thought I could get out of it, one bonus and its all gone (after 2009, it was over). I could not admit it was over until I blew all our savings on outstanding debt and the stark reality set in... I was in trouble and on the verge of breaking down totally. I talked to my financial adviser in the end and he pulled the plug and advised we seek help.

In the end it only when your at the tipping point you know you have to do something, silly as it may sound, allot of it has to do with pride and looking like a failure to your family.

TT


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

I thought I was in control and a head in the sand attitude prevented an earlier cry for help.

What tipped us over was the attitude of the lloydstsb staff when we went in to discuss our debts and they offered to extend a loan,remortgage the house and up our platinum credit cards limits.

We were so mad we marched over the road into the local cab office and the relief in just telling a stranger how much debt we were in was unbelievable!! Best move ever.

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi TDA

In my experience;

1. People are generally afraid to lift the phone to seek help as there is an assumption that things will always be worse than the think. They very rarely are anywhere near as bad as people think.

Then you have the obstacle of what is good advice. I would have to say the level of technical advice is shocking and has certainly got worse as the TV 'experts' going for the mass audience simply cannot employ sufficient staff to deal with things.

2. I think legal action tends to force people, although the increase in awareness has perhaps made information easier to obtain. People can also now sit and research via the Internet.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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(@leeper1974)
Trusted Member
Joined: 14 years ago
Posts: 84
 

For me, the same, I was the problem, a huge part was admitting it was REALLY bad, and the "oh if I keep making the minimum payments, I MIGHT just be clear in 20 years"...sunk in that this was NEVER gonna be the case.

I also needed to admit to my parter that it was worse than thought but thankfully stood by me..

The last 2.5 years have been hard of my TD but it's the BEST decision I ever made.


   
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 cal
(@cal)
Estimable Member
Joined: 14 years ago
Posts: 122
 

For me there was a combination of both husband and I being the problem in that he would say "its ok we will manage" and me going along with that even though I knew we wouldnt!!
Then deciding what to do.TV and radio bombarding us with fixes sent alarm signals in me,particularly the one with the soothing annoying tune singing "your not alone" ..I literally sat one Saturday and typed in trust deed forum and found this site...read for weeks trying to keep my paranoia in check before taking plunge...and thank God I did.10 months paid and 26 to go....cheers Mark


   
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(@blacklily)
Estimable Member
Joined: 16 years ago
Posts: 105
 

Hi, I was the same as most. I buried my head in the sand (I was embarrassed and didn't want to admit to a partner how bad it was)and things got really bad. When I eventually pulled my head up I was determined that I had borrowed the money so would pay it all back. I started phoning all creditors, most were a little helpful but only offered to reduce payments for two months (way past the stage where that would help) and one inparticular just refused to help me at all. Once they refused I knew I had to do something so found a webiste and ended up paying a middle man to put me in touch with an IP firm and signed my trust deed within 2 weeks. Looking back I wish I had not used a middle man and looked into it myself (at the time I don't think this site was up and running). My IP firm were very good and my TD went for 3 years with no issues and I was discharged and creditors paid very quickly. Not a decision I will regret.

Probably like most people the real thing that spiralled out of control was the bank charges, once they hit I just couldn't keep up the minimum payments and my finances went donw hill fast.


   
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(@sigario)
Trusted Member
Joined: 13 years ago
Posts: 53
 

In my case, my previous DMP company suggested i go for the Trust Deed back in 2009, I was happy with the idea but had i nagging question/fear which they could not provide me with a definite answer. I just acquired my Tier 1 General Visa then and was afraid the TD would prevent me from renewing my visa or worse settling permanently in the UK. They could not provide me with a yes or no answer and i could not get an answer either fron UK border Agency (believe it or not). So i decide to play it safe and stick with the original DMP plan costing me £220 a month. 3 years later (May 2012) I decide to switch to Payplan and they answered my question saying only bankruptcy would hinder my stay in UK not TD. I never knew about this forum back then(3yrs ago). Its a bit painful that if i was advised properly i would have been home dry by now. My TD just got published in the Edinburgh gazzette last week and hoping all works well.


   
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