Financial difficulties
- Thread starter SN06
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I lost my car and went through credit counselling. They negotiated with my debtors and I was given an interest-free payment plan. I got credit counselling through a nonprofit agency. Highly recommend it.
We also went through a severe financial crisis due to the pandemic. My husband lost his job, my hours were slashed and we couldn't pay our mortgage. We were at the limit of our credit when we managed to sell the place.
There is almost nothing worse than severe financial stress. My heart goes out to you and I hope you can find a way to relieve the pressure.
We also went through a severe financial crisis due to the pandemic. My husband lost his job, my hours were slashed and we couldn't pay our mortgage. We were at the limit of our credit when we managed to sell the place.
There is almost nothing worse than severe financial stress. My heart goes out to you and I hope you can find a way to relieve the pressure.
Oh yeah, that's how I ended up here. Last year I owed a crippling amount of money and was about to lose my house and all the security I had built up, about to go from being a homeowner to having to rent someone's spare bedroom and have no onward financial independence, at the mercy of rent rises and loss of income, one step from homelessness. Selling up was a fantasy of fixing it all but it would really have left me in a worse position - but i got to the point of having my house on the market and multiple viewings, and offers.... It was only by a weird quirk of circumstances that something happened that made me explore another avenue, which I had previously not explored due to having a "financial advisor" who was about as much use as a chocolate kettle.
It was so bad I was suicidal and broken, it was a complex situation. I supposed I handled it one day at a time, posted a lot here, and swallowed my pride and took lower paid work, and a lot of it, for about 6 months until I eventually came out the other side.
Everyone's situation will be different, I suppose it depends what you have to lose and your relationship to it. For some losing everything could literally mean becoming homeless and destitute, others might see downsizing their mansion to a small house and swapping their luxury yacht to a pedalo as losing everything.
I hope you can find a way through your situation, sometimes there are ways forward hidden in all the mess, I hope you can find a way!
It was so bad I was suicidal and broken, it was a complex situation. I supposed I handled it one day at a time, posted a lot here, and swallowed my pride and took lower paid work, and a lot of it, for about 6 months until I eventually came out the other side.
Everyone's situation will be different, I suppose it depends what you have to lose and your relationship to it. For some losing everything could literally mean becoming homeless and destitute, others might see downsizing their mansion to a small house and swapping their luxury yacht to a pedalo as losing everything.
I hope you can find a way through your situation, sometimes there are ways forward hidden in all the mess, I hope you can find a way!
Sorry that you're going through this. You're welcome to say more about what's going on if you'd like to.
In most cases there's a way to soften the blow of a major financial loss. It's also possible to bounce back from a major hit eventually. It's probably better for me to learn some of the details before trying to offer advice.
In most cases there's a way to soften the blow of a major financial loss. It's also possible to bounce back from a major hit eventually. It's probably better for me to learn some of the details before trying to offer advice.
knowing some people have overcome this is very inspiring. Thanks a lot 
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
Thanks A LOT for your reply
Basically, I used to make a lot of money, and because of it I used to spend a lot of money. But then my income declined gradually, over the years, very gradually, but spending didn't. I mean, if your bank account has 10 dollars (not actually 10, much more, I might have said 10 million, I am just using easy numbers for my analogy) and then the next month 9.9, then 9.8... then 9.7... so very gradually, you don't even notice it, right?
Fast forward a couple years and the fact that my line of work pays less and less every year, interest on my balances compounded exponentially, I just hadn't noticed.
Now I an contemplating job loss, so after I took a hard look at my finances, I just discovered: I owe a ridiculous amount of money. I might never pay it off. What can I do?
Therefore... well, I'm here, lol.
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
Thanks A LOT for your reply
Basically, I used to make a lot of money, and because of it I used to spend a lot of money. But then my income declined gradually, over the years, very gradually, but spending didn't. I mean, if your bank account has 10 dollars (not actually 10, much more, I might have said 10 million, I am just using easy numbers for my analogy) and then the next month 9.9, then 9.8... then 9.7... so very gradually, you don't even notice it, right?
Fast forward a couple years and the fact that my line of work pays less and less every year, interest on my balances compounded exponentially, I just hadn't noticed.
Now I an contemplating job loss, so after I took a hard look at my finances, I just discovered: I owe a ridiculous amount of money. I might never pay it off. What can I do?
Therefore... well, I'm here, lol.
Thanks A LOT for your reply
A lot depends on what the laws are like where you live. In many places, you can declare bankruptcy to address debt issues. A credit counselor might be helpful, but you'd have to be careful that the counselor would be representing your interests and not the interests of a creditors.
Do you want to say more about the house you own and issues related to that?
knowing some people have overcome this is very inspiring. Thanks a lot
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
In the end I looked at my debts, the equity in my house, and approached a mortgage broker, and paid off the debts and mortgage all onto one new mortgage. That had been my first resort, but the financial advisor I approached kept ignoring me and not replying to emails, at the time I assumed my financial position was so bad nobody could help, but it turned out this clown was just totally useless. In the end it wasn't that difficult to do, even though mortgage rates had gone up quite a bit.
I guess you're not in UK, the whole thing might be different where you are, along with the avenues of help availabe!
Wishing you the best with it!
knowing some people have overcome this is very inspiring. Thanks a lot
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
Thanks A LOT for your reply
Basically, I used to make a lot of money, and because of it I used to spend a lot of money. But then my income declined gradually, over the years, very gradually, but spending didn't. I mean, if your bank account has 10 dollars (not actually 10, much more, I might have said 10 million, I am just using easy numbers for my analogy) and then the next month 9.9, then 9.8... then 9.7... so very gradually, you don't even notice it, right?
Fast forward a couple years and the fact that my line of work pays less and less every year, interest on my balances compounded exponentially, I just hadn't noticed.
Now I an contemplating job loss, so after I took a hard look at my finances, I just discovered: I owe a ridiculous amount of money. I might never pay it off. What can I do?
Therefore... well, I'm here, lol.
How'd you manage to overcome your debt? I mean that other avenue. My situation is very, very similar to what I highlighted in bold.
And how come selling up wouldn't have helped you?
Thanks A LOT for your reply
Basically, I used to make a lot of money, and because of it I used to spend a lot of money. But then my income declined gradually, over the years, very gradually, but spending didn't. I mean, if your bank account has 10 dollars (not actually 10, much more, I might have said 10 million, I am just using easy numbers for my analogy) and then the next month 9.9, then 9.8... then 9.7... so very gradually, you don't even notice it, right?
Fast forward a couple years and the fact that my line of work pays less and less every year, interest on my balances compounded exponentially, I just hadn't noticed.
Now I an contemplating job loss, so after I took a hard look at my finances, I just discovered: I owe a ridiculous amount of money. I might never pay it off. What can I do?
Therefore... well, I'm here, lol.
The first thing to do is to consider if you can sustain the debt until you die. If for example you have long term debts and you can manage enough cash flow to service them until you die then actually you can live in your own pyramid scheme and just die in debt. Just as you can’t take money with you, you also can’t take debt. This strategy only really works though if you are perceived to be super wealthy.
If you are already at the stage where you are in negative wealth than some kind of bankruptcy might be an option.
Otherwise you have to take the hard path, first thing to do is to try and get the interest rates you are paying as low as possible, that might require refinancing or negotiating. If the owner of a debt thinks that you might not pay it back then they might well be open to negotiation on reducing interest to ensure they do get it back. If you can find free advice for this then take it, just be wary of companies that do this as they often take a large cut for themselves and make things worse for you in the long term. Then you have to reduce spending as much as possible, cut down on everything you can and live cheaply, could you downsize your car or eat out less, could you entertain at home. Then maximise your income, can you get a higher paid job or do more hours or get a second job? Could you take a lodger or rent something out.
Most importantly, whatever you decide, be proactive and act as soon as possible, don’t let fear prevent action and remember you have nothing to be ashamed of, tell your friends and family, ask for moral support and advice but not money.
If you are already at the stage where you are in negative wealth than some kind of bankruptcy might be an option.
Otherwise you have to take the hard path, first thing to do is to try and get the interest rates you are paying as low as possible, that might require refinancing or negotiating. If the owner of a debt thinks that you might not pay it back then they might well be open to negotiation on reducing interest to ensure they do get it back. If you can find free advice for this then take it, just be wary of companies that do this as they often take a large cut for themselves and make things worse for you in the long term. Then you have to reduce spending as much as possible, cut down on everything you can and live cheaply, could you downsize your car or eat out less, could you entertain at home. Then maximise your income, can you get a higher paid job or do more hours or get a second job? Could you take a lodger or rent something out.
Most importantly, whatever you decide, be proactive and act as soon as possible, don’t let fear prevent action and remember you have nothing to be ashamed of, tell your friends and family, ask for moral support and advice but not money.