Debt Story #51

Posted by: Anonymous on 5th Apr 2014 | 0 Comments | Post Comment

I found myself in an ever spiralling amount of debt. I approached my bank for debt advice as the amount of credit card debt and bank loan was near £22000. The answer they gave me was another consolidation loan for this amount over a 7 year period. I was relieved at this point to have sought help and had signed up without thinking. They gave me this loan without checking to see if I could afford it. As the repayments were £495 per month and my mortgage was £495 also I was quickly back on the credit cards to survive. After 3 years the total debt got to £33000 not including interest, I had to face up to reality. I just couldn't go on like this. I applied for bankruptcy and was made bankrupt and discharged after a year although I still have to pay my creditors £14000 over 5 years at an amount of £250 per month. We still get to keep the house but with a limited income it very hard to make ends meet. We have around £250 left to pay the bills (after mortgage) With fuel and food prices getting higher and higher it is a struggle. Our only consolation is after 5 years we will not have to pay this amount and we will be £250 a month better off and still have a roof over or heads. The moral is do not borrow more than you can afford and as soon as you realise you are getting in over your head seek advice. My mistake was that I went to the bank for advice and ended up with a consolidation loan that I could ill afford. The bank was only to happy to give me this loan as the total amount payable on the loan over 7 years was a whopping £42000. Better going to Citizens advice for help

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