Hi Aloootka and welcome to the forum.

Well done on taking the brave step to reach out for advice and help. Now you have done that you will find plenty of advice and support on the forum.

When it comes to deciding which option best suits your circumstances the most important thing is to go over a budget with you to see what you can afford to pay per month.

On a Trust Deed you need pay a payment which the lenders will be happy to accept but there is no point in committing to a payment which isn’t affordable or sustainable.

On a Bankruptcy there is no minimum payment required and you only pay whatever you can afford to pay. If you can’t afford a payment then you don’t pay one.

Who do you have the loans and credit cards with?

The best thing to do would be to reach out to an expert for some advice on your options. We can work through a budget with you to see what you can afford to pay and then take it from there.

Try not to worry too much there are solutions to help you deal with the debts and these will make your situation a lot better.

Welcome to the forum Aloootka.

I hope it will reassure you to hear that there will definitely be a way to get all of this sorted out. You're being smart trying to work out which will be the very best way for you.

Do you have a sense for how much you could genuinely afford to pay towards your debts each month? The way debt advisers work this out is by subtracting your household bills (and other general expenses like food, clothing, petrol etc) from your income.

@David loans are in Lendable and Community Bank... Plus credit cards :aqua card, vanquis, Barclaycard and capital one... Also PayPal credit and credit on very.co and simply be... It's a lot... I'm paying around 700£ only for payments for loans... Then my phone contract is 65£ and my car insurance which is around 100£... I could easily pay around 400-500£ every month...

Hi Aloootka,

Thanks for confirming all of that. Very useful information.

I know you think you can afford to pay £400-£500 per month but that is still a big payment based on your income of £1,300 a month.

Often clients will try and cut back or reduce their expenditure and bills too much in the hope that they can go onto a plan. It’s the opposite, we want to ensure that you have a good standard of living and only then think about what is an affordable payment per month towards a Trust Deed or Sequestration.

The key thing is to work through a very thorough budget with you to see what you can realistically afford to pay per month. If for example this is £100 per month then that is all you would pay on a Sequestration for up to 4 years. You can reach out to me or any of the other experts on the forum for help with your budget if you want.

How do you have your bank account with? If you have debt with that bank you will need to change. Don’t worry this is really nice and easy and I can keep you right about it and tell you what you need to do.

Hi Aloootka
The most important thing at this stage is to work out what you an afford to pay to your debts based on a realistic budget being set aside for your living costs, that will mean that you aren't struggling to get by each month. This will then help us to advise you on suitable options.

A money adviser, or insolvency professional such as one of us experts here on the forum, can help you with this. We do them all the time with people so can usually tell what is realistic or not.

You don't need to worry about your car - if it only worth £1500 then it would not be affected by a Trust Deed or a Bankruptcy as long as it is reasonably required by you.

Well done for reaching out for advice - it really is a brave thing to do and hopefully should prove to have been the hardest part of the whole process, as your situation can now get resolved and put behind you.

@Hi David i have send u a private message with all the details.
@Kevin I need my car to work as i'm working as a community carer so car is essential in m y work...

@David Tannock thank you so much for all of Your help! I can finally sleep during night without worrying and I can really see a light at the end of this tunnel of money problems! To everyone who is looking for advice regarding bankruptcy: it really is not ad scary and bad as u think! With Davids help it's a straight forward thing!

Hi Alootka.

It's great to hear that you have a plan to bring everything under control and that you're sleeping better. As you say, bankruptcy is a totally appropriate solution for many people and generally much less scary than some people imagine.

Best wishes with everything.

Hi Aloootka,

I’m delighted to hear that you are now feeling much better about having a plan in place to deal with your debts and you are now sleeping better. I know how worried you were to begin with so as an advisor to be able to help with that is great.

People often focus on avoiding Bankruptcy but actually under the right circumstances it can actually be a very straight forward process to help deal with unmanageable debts. It can also be more suitable sometimes than a Trust Deed or a Debt Arrangement Scheme.

Thanks also for the kind words and positive feedback.