Tengu
Sorry to hear about your situation.
I've just spent an hour writing response, but it just bombed out so I have lost the lot. So here is an abridged version.
Firstly, I work for a law firm with a recoveries section. I train their paralegals in legal collections, that's to say phone work and court procedures. No door knocking. (No need for hate mail thanks).
I am not offering you any advice here, just sharing some thoughts.
Firstly, I'd want to get some good quality advice form an effective adviser. That counts the CAB out. Don't get me wrong they try to help, but they are ineffective. Some will argue with me and that's fine, but I'd be better served if I went to someone like the Consumer Credit Counseling Services, or the CCCS. They are a registered charity that specialise in advising on debt matters, this advice is free of charge. In addition they will also manage my debts for me, I believe this is also for free.
I would most certainly not employ the services of a debt management company as seen on TV. These guys will workout their fee based on what I owe, this will be up to as much as 75%. So they will get say £70 per month whilst my creditors get just a few quid a month. I'm betting this wouldn't go down well.
I need to avoid companies offering miracle solutions. These just don't exist.
I need to consider whether any of my creditors will accept a settlement figure (will they accept less than I owe). More and more creditors sell debts, £60 billion of debt sold last year. They may accept less than I owe to bring the matter to a swift close. Debts are sold for just a few pence for every pound owed.
A property is an asset for me, but my creditors will also consider it an asset for them as well. I need to be mindful of this.
I need to put together a statement of means. This is a list of all my outgoings and income. Is there anything their I can give up stop or cancel, if so do it! After all I don't think my £50 per week tobacco habit will go down all that well.
I need to speak with my creditors and be honest as to my situation.If see if we can come up with a plan together. After all I'm sure they'd rather get their money than not!
Finally, am I paying at least the minimum of what is expected. If so I'm servicing my debt and my creditors probably don't even know I exist at the moment. If so am I putting to much pressure on myself and do I just need to look at reducing my household expenditure.
Do I need to buy value stuff or taste the difference. Do I need to take in a lodger, local hospitals, police authorities are always looking for short term lodgings for staff!
I think there will be suggestions that you may well turn your nose up at, say taking a lodger, but the reality is and obviously this depends on how bad the situation is, you need to get the cash in so maybe consider giving something like this ago, If it means you have to share your house for three months but you hate it, at least you get the cash and you can try something else next time.
I appreciate that this can be very stressful, try and take comfort in the fact that you aren't alone.
If you want to speak PM me.
Regards
P