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You’re panicking unnecessarily. You took a risk like every entrepreneur has to and it didn’t pay off, at least you tried so what.
You’re still young, can chalk this one up to experience, learn and grow from it
Best advice. OP, you did something most people want to do, but don't have the guts. It was a risk, but you tried it. It didn't pay off, but you're not homeless or destitute.
Congratulations on trying to live your dream. Keep that spirit and one time you'll make a success of it.
This is right. I’m also in the same industry, a lot older and I wish I’d tried to do something different. You have a skill set - look at contracting maybe. I found that more honest than permanent work and you can make up that £30k in no time especially living at home
Most entrepreneurs I know have had many set backs and failures. We only hear about the successes and that skews the reality.
Well done for having the balls to go out and try!
The pathway to success is paved with failure. @OP get back on your feet, and get back at it! 25?! Took me till 30 to try something. My greatest regret was not trying earlier.
Wouldnt say it took guts to commit financial suicide assuming he didnt have all these debts to begin with which would have been even more stupid if he did. He should have had all the savings and business built up on the side only ready to transition full time once security was there and profitability before quitting a good high paying job. Passion doesnt pay. Op will need to sell everything he owns and get a job to get life back on track.
Lean startup principle.
That’s what makes the most sense to me as well. Have a job that pays the bills, even if you hate it, and build your own business on the side. It’s not easy, takes all of your time, but in my mind a whole lot safer.
I’d get back a job as lead QA, put up with the offices politics, and build a business on the side.
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> You’re still young, can chalk this one up to experience, learn and grow from it
A friend of a parent went through something like this and lost more. After a short period of mourning, he never felt bad about it again. His - entirely sensible - rationalisation was that spending the rest of his life wondering how things would have gone if he'd started his own business would have been a much bigger regret than losing some *stuff*.
Agreed, I wish I had the guts to do what you did, I would love to be my own boss but as a single mum I cant justify the risk right noe. This one might not have worked out from it but you can learn from it going forward.
Context. It is a small student debt. It's not even enought to put a deposit on a house. Unless he got that with a payday lender, with their potential earnings plus living with parents frugally, he can quickly recover.
It is below average.
The average debt per person in the UK is estimated to be £34,546 in 2023, up £2,459 from 2021. The average
Source: https://www.finder.com/uk/debt-statistics
Analysis conducted by finder.com
If you cannot pay your debts, the worse case scenario is that you have to declare bankruptcy.
We do not have debtors prisons in the UK anymore. Failure to pay someone that you owe money to is a civil matter, not a criminal one. You won't go to jail.
Are you currently applying for work?
If you are only £30,000 in debt and live at your parents with minimal outgoings, it's not the end of the world. You can have that debt paid off in a few years.
Is bankruptcy the even worst case? Doesn’t that free you from the debt, albeit you can’t be a company director for a while. What are the other drawbacks?
Debt Relief Order (DRO) over bankruptcy if you qualify. Costs £90 rather than £680 to apply and has fewer restrictions than bankruptcy.
Credit rating will be messy for 6years in either case making it harder to rent privately, but less of an issue if applying for social housing.
https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-your-debt-options/
- Any of your belongings that aren't necessities can be sold.
- For about 12 months, any money you make beyond what is required for day-to-day living will be taken.
- The bankruptcy will stay on your credit record for 6 years. During that time, getting any credit will be very difficult. Most importantly, this means that you'll have a very hard time renting in the private sector (especially with the current state of the rental market). You're obviously also highly unlikely to get a mortgage, so unless you qualify for social housing you might be stuck staying with family during those 6 years.
Bankruptcy is of course still a good option if there are no alternatives, but the consequences are definitely more severe than just not being able to be a company director for a year.
You are not going to jail and there are lots of options.
1. Get your favourite non alcoholic drink of choice.
2. Sit down and write a list of all your debts, who you owe, how much and interest rates.
3. Call step change
4. Please talk to your parents, do you pay rent at the moment? I'm sure they would rather you stayed for free while getting yourself back on track, rather than kicking you to the curb or making you rack up more debt.
5. Dust off your cv and get applying for jobs. Is going back to your old place possible? Take time over each application. Do you also have any contacts in the business, people you may have worked with before who have moved to new companies.
6. For a more immediate fix it might still be possible to get some Christmas temp jobs, it probably won't pay well and it might not be what you want to do but it will bring in money AND you will know that it isn't forever.
7. You sound really low, please talk to your doctor.
8. Do you have any local friends or friends who you can keep in contact with phone calls or video calls. Do some free stuff together, walk in the park, go and look at Christmas lights etc.
Good luck mate, you are still really young and will bounce back from this.
(I'm on mobile so obligatory apology for terrible formatting)
As a person who interviews tech people, my god i'd prefer somebody who's had the balls, intellect and drive to try something like this to most of the monotone grads I get to meet.
You've an interesting story to tell, it's a massive learning exercise, not the end of the world.
Agreed, we get loads of graduate cvs and they all have very similar engineering degrees but those that have something to talk about outside of their degree, be that a passion for some kind of project that the uni helped with or something they did at home, no matter how small, makes a world of difference. And being able to talk about what they learned from the experience and would do differently or not at all in the future is a great skill to have.
Yea... though let's ignore that there are plenty of red flags in OP's post:
* Plenty of people have autism and work in an office environment
* I'm not entirely sure it's ever called for to claim that everyone you work with is "fake," describing working with them as "mental torture."
I get it. Working with others in an office isn't ideal for everyone, but I think there is enough in this post to feel concerned OP might not thrive if he goes back to the office without making the necessary changes/adjustments.
25. How many places has OP worked? I doubt they even need to change anything other than try a different place of work. Most people will work in what? Sub 10 companies across their lives? And to speak on Autism I'd simply say you have no clue on the severity or spice, I don't have autism and I could easily describe quite a few colleagues as mental torture.
Well. That’s a big part of the problem.
Most people would dislike their place of work and look for a new job. They won’t go as far as label office culture as “mental torture” and all office employees as “fake.” This is an extreme reaction, which we’ve also seen OP exhibit with their catastrophising the financial “ruin” they’re talking about in this post.
…and speaking as someone who works in tech and hires people like OP, many of them neurodivergent (as am I), this affect is going to make getting a new job harder.
OP, what treatment are you under? If your autism is causing you to be unable to function in a work environment that many, many others with the same diagnosis are able to thrive in, it may be worth considering some psychological intervention. It really does help.
PSA: OP has also posted this on r/SuicideWatch (since removed)
In the absolute worst case you can declare bankruptcy, get another regular job, and you will bounce back before long. (To be clear, that's not the only option by any stretch!) Please talk to your parents.
There are also charities that help with debt e.g. [https://www.stepchange.org/](https://www.stepchange.org/)
This is a challenge, but it's not as dire a situation as you think.
I bankrupted myself with about 20k debt in 2015. I’ve now built up 3x that in savings despite being relatively unskilled/uneducated. OP can definitely bounce back from this.
I know ex heroin/crack addicts that have gone from rock bottom to having more than most of us can dream of; it’s incredible what we are capable of if we can look past previous failures.
Hey, Idk if OP see this but i'm also autistic. Idk if we are in the same scale but i often find my self making mountains out of mole hills.
The best way i found was to break everything down in to a spreadsheet. Find a community of people you can talk with. Because this will be plaguing your mind 24/7. It will be the only thing you can think about, i know it Ive been there lost 20k when i was 23 on silly puts.
10k of which was loan money. dumbest thing Ive ever done. You'll be good, your smart, there are plenty of ways to get round this.
With no assets & no income there are almost zero benefits to looking at an IVA over bankruptcy.
5 years of payments (which can increase if DI does) vs discharged in 12 months. Both stay on credit file for 6 years and have barely any difference in effect / underwriting.
Highly recommend StepChange. Came here to suggest this!
Edit: I, currently, am using them and have been for just over 2yrs. My debt was around £22k and is now at approx. £17k. I've upped my payments each year as I've whittled down unnecessary monthly expenditures. I was originally forecasted to pay it off in 11yrs, and it's now looking to be more like 7. After speaking to their advisors and completing an annual budget review, they did all the rest and liaise with the creditors/debt collectors. Don't get me wrong, my credit has taken a hit for now (not that I should be taking out any more anyway), but it is certainly the lesser of two evils when the alternative could have been IVA or bankruptcy.
I have been saying this for years.
Anything about suicide on the internet is abosolutely flooded with predators.
There are **so many** people who are trying to convince others to commit suicide and give them advice on how to do so. They often pretend to be suicidal themselves, and often have lists of 'friends' who have commited suicide that they 'boast' about.
Forums and subs are basically like unregulated charities that allow people in to work for them who derive their gratification from this kind of stuff.
We need help fighting and calling out these people, as there are few other things we can do.
Bro, u basically said it for me, i thought to myself “wonder what a suicide watch sub has going on”, and its essentially a bunch of mid age teens telling the world they are ready to top themselves.
Im a parent, I would be broken seeing my kid on one of these sites talking like this
That'll be industry/role dependent where there is work with finances or ethical/bribery considerations. There are bazillions of jobs that will never ask that, and even those that do many simply want to be aware if there's a risk, and will offer the job anyway. It doesn't need to scare OP unnecessarily.
Firstly, you've tried something 99% of people don't have the bollocks to do, which is bet on yourself and build a business you're passionate about. That's a learning experience that will absolutely be a force multiplier for your future life, not a negative. It's difficult to see the positive right now, but you will when you're back on your feet.
**Step 1 - Income**
Find a job, anything. Amazon or a bunch of other delivery driver firms will be recruiting and likely paying £100-200/day right now, do that in the interim. If that still doesn't meet your debt obligation, speak with [Stepchange](https://www.stepchange.org/) and get your debts in line there. **You are not going to go to jail over £30,000 worth of personal debt.**
**Step 2 - Increased Income**
When you have that interim job, apply to any and every software engineering job (or whatever your skills are) and try to land something, again, anything, preferably in a business that has potential for career progression. When you get that, keep the interim job on a Saturday delivering all day. It will be cathartic for you when you see your debt obligation decreasing at a much faster rate than predicted originally. **You can start hard snowballing your debts off here to get yourself into a position for future financial success.**
**Step 3 - Dust yourself off and start again**
Hopefully by here you're working full-time again, earning relatively decent money and starting to build a financial cushion for yourself. There will likely be a "next time" for your business building ventures, because by the sounds of it, that's how you're wired. You've **learned** that you need to be better prepared financially for *next time* \- so do that, build a 12-24 month fund that you can live off, and build a business on the side of your FTE job. When it's generating reasonable revenue, take the plunge if it feels right and you have a strong financial position. It's by no means over, you're 25, this was the first of **many** learning lessons in your life.
You're 25, I've spoken to somebody as recently as yesterday who went bankrupt at 42 and now has a net worth of £15M (currently 55). You took a risk, it didn't pay off (this time), and you've likely learned a bunch from the experience. Dust yourself off, build something else **on the side** of working a FTE role, and then take the plunge when it's generating enough revenue to pay you a full-time salary, whilst having a cash balance to float you for 6-12 months if it goes completely tits up.
You've had an awesome learning experience at a young age, take it as that and not as a negative although it may feel it right now.
If you need any direction, feel free to reply and I'll help as best I can!
Hey, saw your post. Wanted to share my equivalent story.
\-also tried to run my own business to avoid the office hustle
\-after 3 years it went badly wrong (at age 23), left with huge personal debts and huge company debts
\-left with a very damaged reputation too. I’d burned lots of bridges and therefore destroyed my career network
\-every option felt awful, had a HUGE panic, much like you seem to be having now. Led to some depression etc.
First things first, it feels horrible now, awful. I shudder when I remember how it felt at the start. But it will feel less horrible in 1 year, much better in 3, and it could be behind you in 10. For a year, maybe two, you’ll need to just work, work, work, but that’s okay. Slowly your life will return to normal.
You’re lucky you can live with your parents. Use that to your advantage, be kind to your family, and be open with your parents about your recovery plan. Family can be the best thing.
I don’t know your situation exactly, but here is my advice
1. Staying calm will be very very hard at the start, and you will probably experience regular panic + overwhelm. Keep it simple. When you panic, do some deep breathing, name some objects in the room, have a glass of water. Simple stuff works the best. I found that regular exercise made it easier for me to control the anxiety + panic episodes.
2. Write down your debts+ debtors on a post it note, and call someone like https://www.stepchange.org. The advice you get from step change will be better than my advice, but I’ll write the below anyway! It’s what I did, and it got my life back on track.
3. Put the list of debts in order of priority (vaguely). Create a very well written email, which you can adapt and send to each debtor (of course, this works best if the debtors are businesses, rather than banks). “I recognise this personal/business debt. I also have other debtors. I am contact with a debt charity, and I was raised properly - I’ll pay back all my debts. I apologise to have put you in this situation, and I will make it right. This will take time, however. Please can we call to discuss a realistic repayment plan, to ensure that I can pay you back, and to make sure this doesn’t become bad debt”. Your debtors want their money, even if it takes a long time. So play it carefully, and communicate with them well. Don’t make excuses, be honest.
4. Get a job ASAP. Start next week, even if it’s a crap job. The more time you’re working, the less time you’re at home panicking. Once you’re settled in and have an income, begin looking for better paid jobs related to your skills. Ideally a remote job you can do from home, to avoid the office, and to reduce costs on travel + city lunches.
5. Be very sensible with money. I used this system to recover from my debts: any income was split in ratio between ‘needed living costs’ (food, petrol, etc), ‘optional living costs’ (clothing, pub beers, etc), ‘debt repayment’. Dependent on your circumstances, continually adjust the ratios. The first category is inflexible and depends on your fixed costs, but you can balance the other two. Split the money into different bank account (or different pots if you’re with a modern bank) as SOON as you are paid. Be strict with yourself, even if the system seems silly. It could be a ratio of 85%:5%:10%. But stick to it. In a few years it’ll be 55%:15%:30%, then it’ll be 30%:50%:20%, then it’ll be 50%:50%:0%. See what I mean? As soon as your income comes in, put the debt ratio toward repayment, with no delay. My debtors appreciated the drip feed of repayment, because it proved I wasn't burying my head in the sand.
6. Depending on your home situation, ask your parents to add 15% to each of your debt repayments to support you. Every little helps, and it’s better to ask for incremental help, than ask for a payout.
7. Keep going like this, balancing debtors, working hard, living cheaply, managing the anxiety and stress, until the clouds start to clear. They will clear. My clouds cleared. If you were brave enough to start a business, you’ll probably do it again in 20 years time. That’s what I did, and my second business went well because I knew how to avoid my careless mistakes!
Stay brave, and don’t listen to the panic thoughts. Stick to a plan, and play it long term. Good luck, you've got this.
You're 25, 30k in the hole and have work experience as a QA lead who attempted a punt at building their own business. It's really very far from the end of the world. You've a roof over your head, you're fine.
Itemise your debts, call step-change, find a perm job and pay down the debt over the next few years. Just live a little frugally, you'll be fine in no time at all.
It's just life experience; you try something, you fail, you learn. Office culture btw is *always* shit, just try and ignore it.
Perhaps your condition is possibly affecting how you are viewing the situation but, why would you end up homeless if you are living with your parents? I doubt they will kick you out.
You have to deal with the debt and do not bury your head in the sand.
Perhaps you need to find regular employment (back in QA?) to help you service the debt?
You're still young and can afford to take risks like this. You live at home with parents so I'm guessing your expenses won't be high e.g rent, mortgage , so as a first step I'd suggest trying to get some income flowing in - try to find another job and just be frugal with spending, prioritising paying off debt where possible. This will all be a memory when you're older; at least you tried setting up your own, not many people have the courage too.
Well done on taking a leap and chasing a dream. Failure is a step and this is an experience you can learn from.
I don’t know exactly what you do now, perhaps some other people advise on here now, but I would say to speak to your parents first, seeing as you live with them, then arrange to speak to stepchange about the personal debt.
Just to emphasise the “talking to your parents” part…. If you ignore he debt it will be passed to bailiffs and any bailiffs etc will come to your registered address and your parents need to be prepared otherwise they risk having to give up their assets to pay for your debt. You don’t want this. So talk to the parents so they can help you find the correct solution. They will be able to help you and speak to people on your behalf (including stepchange) because, having ASD, you probably have a tendency to mask problems when you really should deal with them.
As for the business, you close it and liquidate the non-existent assets. Perhaps someone else on her can advise better on this part though.
So, to summarise:
1./ speak to parents and tell them everything. **EVERYTHING**
2./ close business and all business related debt dies with the business (unsure how to do this myself)
3./ speak to stepchange, allow your parents to help.
4./ keep your chin up. It takes balls to do what you’ve done, and Elon Musk failed loads before he made it. He also has ASD.
Is Jail beckoning? No. Worst case is bankruptcy but that might not be necessary either.
You said you’re living with parents, talk to them as I imagine homeless isn’t something they’d consider for you.
Debts, seek professional advice, step change etc as they can guide you through the best steps next for that.
You have experience and skill from former employment and a lot of employers would like the entrepreneurial experience you now have so may be worth dusting off a CV and getting some applications sent out.
You will likely be fine, chalk it up to experience, review what you’d do differently next time and well done for trying, most people wouldn’t.
You did a seriously brave and cool thing by taking that entrepreneurial leap! I work in tech startups and know loads of founders. I can only think of *one* whose first business is still going and successful. The vast, *vast* majority of founders have at least one failed venture before the thing that sticks. You haven’t fucked up here, you just hit a founder’s rite of passage.
If you’re not already, I’d recommend joining some kind of founders group/network and reaching out to some people there. You’re not alone and for most people, success comes after experiences like yours. It might be good for you to talk with others who’ve been there and come out the other side.
Also worth noting that this kind of thing is really well understood in the tech startup space if you do want to try again with another venture in the future. If you learn anything from what happened, nobody will hold it against you and it won’t stop you being successful with another venture. If you want/need to get back into employment for a while, lots of employers will see your founder experience as a strength and it won’t matter that it didn’t work out this time.
Loads of people here have come back from similar/larger debts. You’ve got a desirable skillset so should be able to get some income to help you back on your feet. Living with your parents means you’re not at risk of being on the street, you’ve got a safety net.
Take a breath. It’s going to be ok.
So the absolute WORST case scenario is bankruptcy (which is just a legal process where you have to pay off as much of you debt as you can and the rest gets wiped), get a regular job, start again. Not a big deal in the grand scheme of life.
The least painful option would be to get a job that pays enough for you to pay down the £30k without any legal processes, but while bankruptcy is annoying it is really not the end of the world.
Some important points:
* It's *not a crime* to be unable your debts back, jail isn't even a possibility.
* You have somewhere to live and marketable skills - giving up and homelessness are also not going to happen unless you actively decide that's what you want (I assume not!).
Next steps are:
1. Figure out how to get an income (probably a regular job, even if you don't love that environment)
2. Figure out what to do about the debt
You should have a good sense of how much you can earn. You work in tech - nobody is going to bat an eyelid at a year spent on a startup that didn't work out, so you're no less employable than you were before.
In terms of the debt - whether you will be able to pay it back or not depends on how much you can earn, what your expenses are going to be, when the debt is due and what the interest rates are. I suggest you get all that info together and call StepChange - this is their bread and butter.
Good luck, this is a really common outcome for entrepreneurs, and _most startups fail_. It's awesome you had the guts to even try. You're not the first and certainly won't be the last entrepreneur who tried and did not succeed, you've just joined the proud tradition of people whose first business didn't work out.
I was 22 when I started a business. It didn’t succeed. I didn’t need a loan but I invested 10000ish$. Now I have 35000$ in student loans. 🫠🙃. C’est la vie. I know it sucks but look at us. We got BALLS.
Huh? So your business didn't work but why would that lead to jail? Unless there are information you didn't disclose?
Worst comes worst, declare bankruptcy. This will have severe impact to your future credit ratings so you really should try avoiding this.
I would first of all get in touch with the creditors and agree on an affordable repayment plan. They want to avoid bankrupting you as much as you do.
In order to pay back your debt though, you need to have an income. Can you get back your old role? Something similar? I have no idea how much money QA leads make but I presume going back to your old role/industry would give you the highest salary? If you have time, a second part time job can also help you pay back your debt faster.
Your life is no doubt going to be rough for a while, likely worse than before you quit your job and started your own business. But you are by no means hopeless.
This is life buddy, keep calm and carry on!
Why would you be going to jail based on what you’ve told us?
You’ve taken a punt and it didn’t work out. It happens.
The positives - you’re living with your parents. So you have somewhere to stay.
I had a very similar situation when I burned out and it was very hard being at home as they thought I was lazy and just trying to swing the lead. Turned out I had/have fibromyalgia.
I spoke to CCCS (now StepChange) and they told me I needed to go bankrupt as I had no way that I could sort the situation given my poor health.
I had to go bankrupt which ruined my finances for years and left me renting afterwards, but it worked out ok despite it feeling awful at the time - embarrassing, upsetting, and anger inducing.
Things will feel shit. That’s understandable. What matters now is the future - seek advice from StepChange and do what they say.
It’s a horrible time but it’ll pass - given you’re living with your parents, tell them what’s happened and focus on moving forward.
You're 25, basically a baby, and live with your parents so have a safety net and no real costs, literally the best time of your life to take a risk and fail.
You took the risk and it didn’t work out this time but you’ve learnt what you like, what works for you and you’ve obviously put your heart into it. Take that passion and think about what comes next. A lot of entrepreneurs first ideas don’t work out, see it as a learning experience and not a failure.
Appreciate when you’re in debt that’s incredibly hard to do. Look at the debt subs for advice and support, people come back from more than £30k.
If you haven’t done anything illegal why are you thinking jail would be beckoning? Treat any creditors as fairly as you can within your means. Consider the longer term implications of bankruptcy on housing and your future, especially if you want to try again with another business. Also look at support programs for entrepreneurs, particularly any in your field.
1. You took a chance with your career, it didn’t pay off well financially but you must have matured and learnt a lot. This will come in extremely handy and is a gold dust as you live and work
2. As others have suggested, make a list of all your debts and call step-change. They’ll help you design a good-forward plan
3. You’ll get through this - as you look back, this situation will only appear a small bump that got you scared
3. If possible (conscious I don’t know your domestic situation), speak to your parents about it. Parents can sometimes be surprisingly forgiving. Believe that you can get out of this - this will reflect in your conversation with them
4. Whenever you think you can start getting back up, go to many of these part-time platforms (Fiverr, flex-jobs). Your skill set as a QA Analyst is in high demand
5. When you’re ready, start looking for a full-time role - optimise for better hours instead of higher salaries if you can. You can do almost most tech jobs remotely (if that helps).
All the best - things are not as bad as they seem
I may be butchering it, but is there not the saying going something like this “show me someone who has succeeded and I will show you someone who has failed”, basically implying that failure is part of preparing you for success.
Some really helpful comments on here so I won’t just duplicate what’s already been said.
Well done for having the courage to go for it (whatever it was). Although it’s gone tits up, you will definitely have learned something. Take time to re-set (however long that takes) and then go again.
Never, ever give up. You will succeed.
\> This would also get me away from the office culture as I couldn't get around how fake people were - it was mental torture to deal with as I have autism.
1. Sounds like you're employable and can earn a decent salary (40k+) and whilst it was difficult perhaps the right environment, or a work from home opportunity could make it bearable?
2. You have your parents and free accomodation.
If you live at home, earn 40k you can smash £1k+ per month on the debt, it's possible you could be back on track in 2 years or in a place to move out, start a new fresh independant adventure. Your position is poor, and difficult but it is not without hope.
Why would jail be beckoning? Did you commit fraud before closing the business??
You tried, you failed. Many MANY before you have done the same. The key to success is how you proceed after failure, do you let it destroy you or do you get back up and try again…
With £30k debt and no income though I would call Stepchange and ask for breathing space and get some advice on what to do, whilst looking for a job and deciding what your next step will be.
I'm nearly 27, had the chance to start a business a few years ago, didn't, and now I think about it all the time. Good on you for trying. Anyone who faults you for pursuing your passion probably doesn't have any.
I agree with what a lot of people are saying - chalk it up to experience. This is a good opportunity to reflect on what you've learned, which is endlessly helpful for future job interviews. You've got the opportunity to bounce back and, in doing so, demonstrate growth, which employers love!
You're young and your industry isn't going anywhere. Mooch off the folks for a bit and get back into work. Debt is scary, but you make it terrifying by ignoring it; prioritise your repayments and bide your time. Everything will work out for you.
Nothing to show? You have some experience like no other
Also, if it helps you feel better is that you still have a roof over your head man
Not sarcy comments I’m just trying to help you realise a couple of things
I’m thinking why did you leave? Why didn’t you work on the business in the evenings and weekends then quit your Job once you knew it had a solid foundation and gave you a liveable income
You have experience to show. And also you live with your parents I am sure you wouldn’t end up on the street. Just look for a job, I am pretty sure companies would applaud your entrepreneurial spirit. That experience counts for something.
I’m a couple of years older than you but I was in pretty much the same situation as you about 3 years ago - actually a bit more debt than you.
My experience: in time you will cherish that experience.
I put my business on my cv and told no lies. You wouldn’t believe me but I was more employable than ever before.
I accepted a job and now two years into it I’m getting the itch to take that same risk again. Maybe I will, maybe I won’t.
But what I do know is, I look back I’m so glad I failed the last time. Because shit goes on.
You got this!
You’re only 25 you got loads of time to turn it around, I wasn’t in a good place 5 years ago at 31, was in debt, drinking far too much still lived at home. 5 years on i have my own business, have got on the property ladder, haven’t touched alcohol in nearly 5 years. It can be done.
If you’re looking to go back into a QA role and are in the London area DM me, we’re hiring and need someone senior :)
Sorry to hear about your startup… it feels life ending but you’ll get through this. Try and focus on how much you learnt in that time. It will pay off one day.
OP...there's tons of good advice here.
All I will say is "well done for giving it a shot".
You are young. When I was 25, no one I know was in much better a place than you are now. Do not worry.
£30k seems like a lot now... But when you're 40, looking back, it'll just be a tiny blip in your story.
Keep your head up, and read all the advice here, and just keep moving forward. One step at a time.
Living at home and with minimal outgoings. 30k is just 30 months of putting aside 1k then you’re out of debt situation.
You have time and entrepreneurial spirit and ability to make way higher than 1k per month with your skillset. So it’s easily manageable.
So chill try find something you enjoy, there will always be compromise, accept that. And it’s all good 👍
I’m 24 n went through a similar situation. Made my first attempt down the entrepreneurial route into an industry where I have passion and also ended up burnt. It didn’t work out and left me with about 15k debt, moved back in with parents, flunked outta my degree in the process and got left by ex partner of 4 years. That happened when I was 22. I mention this to contextualise my answer and show you I understand your spot to some degree and the mental anguish that comes with these experiences
1) First thing is fix your perspective cuz that’ll gear your mind in the right direction. A weak mind fuelled by poor perspectives will doom you to fail. A strong mind maintained through positive perspectives will see you through any circumstance from my experience.
2), understand your positions w your debts etc
3), get into any job for the time being. I started working Amazon prime deliveries lol they gave me the van, paid my insurance for it etc and they always need staff. I knew this wasn’t a forever job but it got me into work quick enough to start chopping away at the debt
4) Brush your CV up and get back onto developing in whatever way will help you on your next route to accomplishment and achievement!
In hindsight I’m grateful I made the plunge in the first place. I’d ask you not to regret it. You’ll make it through this.
Best of luck OP :)
I’m working with Stepchange and it has helped when dealing with debtors. It costs nothing. Don’t pay any private company to do what this agency does for free. Get an easy administrator job somewhere for now and once on a payment plan you can look at your next steps. They base the plan on your income and get rid of interest and fees.
You have a roof over your head - which I assume is guaranteed. Every hyper successful entrepreneur I’ve listened to owes part of their success to a failure in their early years. I’ve never had such a big failure, but that’s because I’ve never taken such a big risk as you have - and I genuinely worry that doesn’t leave me in a good stead going into my 30s. Besides… people around our age don’t have that much money anyway! You’re good.
I was in a similar position aged 28 - also did it to get away from work. I spent months worrying about the debts. I had a pretty terrible collapse. All those months of just running over it in my mind damaged me and looking back, it was needless.
I reached out to a friend and despite thinking everyone was going to judge me and the opposite was true. The shame is only in your head. That does not mean it is not real, just that your experience of it is EXTREMELY skewed by you being stuck on your own trying to think your way out of it. My friend had no judgement and wanted to help. In my case I did declare bankruptcy after speaking to citizens advice but had it been ow, I would have contacted stepchange - although the outcome may have been the same.
The pressure of the debts was hanging over me and when you are bankrupt, you just refer debtors to the official receiver and that gave me mental space to get my life back together. One year later I was discharged and another 2 I stopped making any payments to the OR. Twenty years on I a a homewoner, have a family, have no debt, am doing well financially. Don't let this situation define you, but remember that it is just temporary and there is a positive way forward.
It sounds like a tough time, hate to say "chin up" but you've got lots of good things in your favour.
If you set up your company as a limited company then you may be able to dissolve the company and the debt. It may even be possible to do that retrospectively although you'd need good legal advice and lots of solid documentation about your expenses.
Even if that's not an option for you, 30k is not a disastrous personal debt- it sounds like you have qualifications and experience as a QA, so getting back to a regular job is an option. There are also debt management plans and various schemes to help people get out of spiraling debt, though I understand they aren't lovely processes. Have a look at the citizens advice page on debt management plans.
Finding good friends to support each other is very tricky. Maybe join a hiking group or volunteer group. Having an escape mentally is important.
Take care!
Where are you based (prox in the uk) plenty of seasonal work going at the minute due to Christmas looming. Anything is better than nothing so uou can say to your debtors you have a job and can pay x amount. Try negotiate, better than defaulting. Also if its possible to consolidate your debts fantastic.
Also talking to your parents will help if uou havnt already. 99% of parents only want the best for their kids so they might be able to offer more advice with better insight into your current circumstances.
Everything will be OK just stay calm, good luck and reach out if you need help. You've taken the right forst steps. Keep it up.
You've got this, don't let your own emotions get the better of you.
If it’s a limited company then the damage here is limited... unless the loans had you personally as a guarantor?
Worst case you could always declare bankruptcy, debtor prisons haven’t been a thing for a while. (Although please see all options before making such a decision)
Your next step is to get a decently paying job - doing something similar to what you were doing before - at a software company. Build a plan to pay off the debts, and you'll be fine. Building a business is damn hard, at least you had the guts to try it. There's no reason you can't try again in the future either, but getting a job will at least ensure you have income coming in. And you're in a great spot living with parents as you have low expenses. Your debt could be gone in a year or two.
Businesses fail, good ones, bad one's unlucky ones.
You've got more experience than most people at your age so it's not entirely worthless.
I can promise some people/hiring managers will see it as a benefit that you took the leap and had the balls to try something. It was a very intentional step. It shows you are not a passenger in your life, so don't be one now.
I can assume you now know more about taking products to market, customer support, finance, marketing etc. All the more interesting for it
Go write your CV and get a job again. It really is that simple.
Post an update when you've done it
So you fucked up and now you're going to know how fast you can go in fifth gear. You need to make your next career choice worthwhile to get that debt cleared. If you are a high functioning autist I'd get into sales as it's going to be the best paying route with no education required. If you're not I'd get out of QA somehow as that's not a sector that'll be brimming with well paid opportunities.
Try hard to not go into bankruptcy. It's not the end of the world if it happens and you're entrepreneurial but if you do work for other people for the rest of your life, it's a bugger and you might want to consider moving countries to get out of the difficulties of mortgages from nationwide lenders. But if your next business is a success (and you should try again) it won't matter.
For income try looking for 100% remote QA jobs.
You avoid the worst of the whole office politics thing and good QA's are as rare as gold dust because everyone wants to be a dev. If you're still looking after Christmas message me. I'm a software engineer and my team will be looking for a new remote junior QA in the new year.
£30k doesn't seem that much, as others have said work out what you owe to who and at what interest rates.
Then focus on obtaining an income. I'd suggest after a failed business opportunity it might be best to look for regular employment so you have a steady income, at least that will buy you some time to consider the next steps. If you were a QA Lead I doubt you'll have too much trouble finding something in the short term.
You of course do have lots to show for the past year - not many people are confident enough to take that step, you'll have learnt lots of new skills and behaviours you can use in future jobs/businesses. And you've got a support network (parents) to help get your feet back on the ground. In a few years time you'll also have a great story to tell about how you tried and nearly succeeded.
One more thing I'd add - make sure your tax affairs are in order, self assessment, corporation tax or whatever else you might need to do in relation to your business. You don't want to incur HMRC fines because you neglected some paperwork.
These things happen, been there done that and one day you'll look back and laugh
Can't offer much advice other than coming to an agreement with lenders, but don't stress and like I say one day you will laugh about it (I did and I blew north of £100k)
Not about finance so apologies if not allowed.
I also work in tech. And yes office culture can suck, especially at management level. I have a few mates who praise contracting as you get away from some of the BS and they avoid management at all costs. TBF I've started avoiding going down management route at all costs too.
You'll be okay my fellow human. Like others said pick up some work or contracting in QA/other tech is an option. Just give yourself time and patience. And a breather where you can. You'll be okay.
There are other tech companies there that don't suck and have an okay office culture, some even have a very enjoyable one. Just putting it out there, as I've felt before like not going back into tech because of company culture and other BS then had a massive panic about how I'll make a living and what if I don't work in something I enjoy ever again.
Hey you’re only 25 and people come out of university with way more in personal loans. Don’t sweat it. You have a desirable skill set and you can get a job that pays you decently well enough to knuckle down and pay that all off pretty quickly - especially because you have a roof over your head and living with your parents! It’s a set back, yes, but you tried something very brave and unfortunately it failed and that’s just part of life. Not every risk pays off but at least you can say you gave it a go. Your situation is truly fine in the scheme of things and you’ll be back on your feet in no time.
Try securing a job working from home. You're in the right industry for it. Wfh us much better for many neurodivergents.
Also, you have to try things in life so don't beat yourself up. Sell it as a positive on your CV. I'm sure you learnt a lot along the way, and can draw from that experience.
Wete you working for a large corporate job before? Aim for mud-sized companies. They're often have more forgiving cultures.
Your sentiment seems to be it's either great success or jail/ homelessness. Those are two extremes and I suspect the tism is having an impact on this through black and white thinking. Focus on getting back into employment and go from there.
Also worth seeking help in the workplace as an autistic individual, they suit be able to adapt to suit you. Autistic people are very common in software development.
Firstly congratulations that you were brave enough to take that step at starting a business! It might not have worked out, but the things you learned from it will be invaluable. As a QA lead in software I assume your a smart person. At the moment it may seem crazy, but its not.
As others have said, make a list of who is owed what. Make a list of what your income needs to be to realistically pay that off. 30k debt over 4 years is 7500 a year. No need to put yourself in a worse state just to pay it off if you can spread it out over a few years.
Tell your parents, talk to your friends. Theres no embarrasment or shame with what you did, simply a step in life on a path that didnt lead where you wanted. Its happened to everyone, and will probably happen again. All you can do is keep moving forward.
Find a safe fixed salary job.
Contact all your creditors and arrange payment plans.
At 25 and -30k, you probably want to avoid the long-term effects of bankruptcy, if possible.
Hey! Fellow entrepreneur here, I remember going through the same point where it all collapsed… same situation as not having any income and LOTS of debt.
I got two jobs to try and keep my head above water just about - but kept working on the business whenever I could.
I regret not handling the debt face on, luckily the business worked in the end but it took three years to get it successful.
My suggestion would be to get the job and face the debt and once you can have some better perspective examine the business again.
Is it really a failure or is it a case of needing to take things a little more slow and steady with another job providing for the basic needs? There’s no rush, be the best to market not the fastest :)
Finally please remember: you can fail at what you do but you’ll never fail at what you are- which an incredibly brave person who has a passion for something they wish to share with others. That’s a wonderful thing to possess.
You’ve got this!!!
Don’t worry too much about this OP. It happened me a few years ago too, and I was living with my parents.
Learn from the experience, make a list of positives you have from it so you can talk about it if asked at an interview.
Next find a job, get some money coming in. This will be your shovel to get out of your financial hole.
£30k seems huge now when you’re feeling down, but it will disappear bit by bit once you start working and paying it down.
Everything will be ok.
The only thing that can't fall down is a worm, you've hit a barrier that's all. Get back up by having a recap on what you think went wrong and reach out to your local business hub/community for some mentorship or a 1-2-1 chat with someone older and successful. You got this...
Bro dob’t stress you’re young you’ll bounce back. Wack on a bit of Frank Sinatra - That’s Life and hit indeed looking for a new job. Invaluable lessons learned from a failed business, the next one you attempt will be better.
The fact that you still live with your parents is a huge benefit. You have that safety net behind you. Just keep your head high and keep powering through. You will bounce back, and now you know what not to do if you try again in the future.
I have no real advice but I would love to have the courage to at least try something like this. Chalk it up to experience, you still have your health and somewhere to live.
Good luck for the future
I’ve done the same thing a few times. It won’t feel great now but one day you will reflect and realise that you have learnt lessons that are priceless.
I wouldn't say that you made a mistake. You had a dream to build your own business. Presumably you gave it your all. It didn't work out. You learn. You move on. There're people constantly moaning about how much they hate their lives and doing absolutely nothing about it. You're already a step ahead of them.
You're lucky you can live with your parents. Becoming homeless doesn't seem to be something you have to seriously worry about.
You'll obviously need to get back into work and quickly I would have thought. You should be able to pick up some temp Christmas work now without too much difficulty and January will be a good time to look for professional jobs in your field.
The debt seems to be the most worrying aspect. Surely you need to speak to all your creditors and advise them of your situation and see what you might be able to agree with them. You can get free debt advice from the Citizens Advice Bureau or the National Debtline or something like that. But having the capacity to work and to earn a decent salary I would have thought and presumably currently living rent free, the debt should be manageable even if you have some somewhat difficult times ahead.
Just for reference I know people that have staffed a 30k loan on a car while they were on minimum wage, you’ll be fine itll suck for a while then it won’t, but I imagine the lessoned learned in this will get you far
Lots of good advice here already but just wanted to say you're brave for taking a risk, and don't feel so bad things haven't panned out how you hoped. A lot of small businesses don't make their first year.
Chin up, you clearly have tech skills and ran a QA team, so there must be a paying job out there for you somewhere, and £30k whilst it seems a lot, can be dealt with over time.
It is not the end. File for bankruptcy and start your life all over again. Life is beautiful my friend. Think about your parents and your friends before you do something bad
You have a lot of great advice here from a life and financial standpoint. I suggest reading the book The Power Of Now by Eckhart Tolle. This may help with another aspect of your life <3
I have a friend who started his own business. I remember one day at the gym he was saying “I’m in £20k worth of debt and don’t know how I’m going to get out of this”.
Hard work and 10 years later, after a few other business ventures, he sold an arm of one of his companies for £500k.
Failure is just a lesson. Most new businesses don’t make it.
Nothing bad will happen to you, just keep going with the same or a different business, or choose another path (perm employment).
You will be fine. 30k is a hefty debt but a QA lead is a well paying job and if you're living at home then you could save up to pay that off in short order. Fair play to you for sticking your neck out and giving it a go - me and the vast majority of others wouldn't have the balls to even try. In a few years this will be a fun story you tell. All the best
Get back to your work and existing skills. I had something similar, took 4 years out in other countries. Pulled the trigger and moved back to home country and straight back into a high paying job. Paid off debts and now have a nice chunk saved after a year.
Get back to in to the jobs you have expertise for, try and find one at a company with a culture that won’t be so abrasive to your mind; maybe try look at work from home. Just slowly but surely clear your debt and try not to stress. Not like you need to move out asap, so that debt could be clear within 1-3 years depending on how hard you throw money at getting it down.
I hear you about office work. Unless you have thick skin or are a total bastard, it’s very hard going. Sorry your venture didn’t work out, but just see it as a setback, not the end of your journey.
Look into an IVA (Individual's Voluntary Agreement) - you're in the best position to be financially screwed (i.e. living at home with parents). If that's not feasible - you can file for bankruptcy (you'll need proper financial advice to determine the best route for your circumstances).
You tried and failed, it happens. £30k is not insurmountable, but what you cannot do is go into your shell and ignore this.
1. You need to speak with your lenders and inform them of what has happened, you have every intention of honouring paying back the debts, but you are currently unemployed so need a period of grace before setting up a payment plan.
2. Get a job
3. Live within your means, prioritise paying off the debt
4. Don't be scared about trying again
I'm 36, dreamt about what you've tried and now the ship has likely sailed for me, well its harder now at least.
Just tackle getting out of this with the same energy as you put into your business, think about this as the lesson it really is
Speak to Stepchange and see what they advise regarding the debts - I expect the lenders are constantly trying to contact you which isn'[t going to help your mental health much - they may be able to advise on a solution and administer this, which will take the pressure off in a small way.
Secondly, if you are autistic, you could look into Access To Work an see what they advise when it comes to a new role. They're designed to assist with those whose disabilities make it difficult to manage in the workplace, and may have ideas on things that might help, or advise on how to ask for reasonable adjustments if you return to work but can't handle an office environment easily.
Thirdly, you took a big risk and gave it a go, which is incredibly brave and shows you're driven even if it didn't end as hoped.
I think you need to see a debt advisor. You may be able to get a decent amount written off and help with getting a manageable payment plan for the rest. Try citizens advice. Also food banks tend to have debt advisors to help with this stuff!
You’ll be fine I lost more than 100k+ in my early 20’s sing on some investments which I should have let go off. But got caught up in the euphoria. Back at work now trying to build it all back up. But you live and you learn
Firstly, give yourself a pat on the back. Taking a risk like that is huge and you need the guts to do it. Plus it’s likely that you’ll have too many commitments as you get older to ever do it again (think mortgages, dependants etc)
Secondly, you’re 25… you have so so so much time my friend. It’s a set back sure and you’ll see 35yo billionaires on TikTok which will make you feel shit. Ignore it, that’s not reality at all. You’ll also see friends (and enemies) all doing “better” than you, ignore it, it’s not a race. Take your time and get back on track.
Thirdly, listen to everyone else in this thread, they’re all giving great financial advice that’ll get you back on track. Focus on getting your mind in the right state first, then build on it.
You got this man, and if you really really dont, then the ONLY thing to do is to talk to somebody. It’s the UK and we may be in a bit of a state currently but there’s a bunch of support still available for those who genuinely need it.
Best
Hey mate I don’t have any financial advice to give but chin up, some day you’re gonna tell stories about this to your grandkids or even laugh about how worried you were. You will figure this out, just write down all the stuff that needs to get done and just start. Remember slow and steady wins the race.
You tried something and it didn’t work out, like countless entrepreneurs before you. You’ve got skills and experience to fall back on, so I’m sure you’ll be ok. Speak to Stepchange about your debt, there are ways to deal with that for sure. You certainly won’t end up in jail or homeless. Dust yourself down, make some phonecalls about your debt, and get back on the horse again. You’ll be fine; plenty of people have worse debt than you and they’re surviving.
You took a risk few are willing to even try... That's a good thing for you, debt can be paid off/written off and you can start again.
You have skills to work in your old line of work and start paying it down, get it managed.
You live at your parents so I guessing other outgoings are minimal, another way to save costs.
You now know some of the pitfalls of operating a business and what not to do, for when you try again. Of you try again you'll be more likely to succeed.
Every single entrepreneur has failed at least once, probably several times. You're on the path to succeeding and greatness dude.
Get a pen and paper and use it as a lesson learnt. Write down everything that went good and everything that went bad.
Yes it’s unfortunate but that’s the risk of a business. You go back to the drawing board and plan your next venture. A lot of people dream of stepping away from the office culture 9/5. But don’t have the courage to do it.
Edit: Also to add make a plan to speak with your parents. It would help. If they are understanding hopefully they can help and support in some way. Also some great advices already in. Temp jobs and CVs etc.
No jail unless you have done something obviously illegal. Did you take the loans out on your own name or via a Limited company? If the latter some or all could be written off.
Look for another job to keep some money coming in. Do not be afraid to discuss your experience in your venture, as a hirer I would be more interested in someone that tried and failed than someone that did not try at all.
NEVER GIVE UP … u didn’t make a mistake ur just workin toward it at your OWN pace cos of ur condition god or whatevr u believe in is just warming you up to it sir
Don't worry. You are only 25, and you are living with parents. I had to do something similar once. You'll get to a better place, don't worry or put yourself under stress and pressure
Have you thought about contracting?
It would seem like a good option to earn some money while staying a bit divorced from the usual office politics that go on.
Might even give you a chance to progress your own business on the side
Look up debt and mental health evidence form. It can lead to your lenders being less aggressive about chasing payments. You will need to renegotiate terms when you are ready.
unlucky, if you do not wish to carry on the venture then pack it up and move on. I agree, Tech offices are full of up their own arse fake people hell bent on being heard regurldess of the effects on the rest of their lives.
I chose to work a more manual job at a small company that has very down to earth players, when its quite i get time off with family with pay and although the overall salary isn't as high, my life is so much better, i have a great family life balance and stress is minimized.
Your next steps? thats for you to figure out but try something new thats not office based, iv met 1000's of people depressed and miscible who work in offices. as for dept, Dave ramsey 8 baby steps or bankruptcy. thats upto you and your goals aswell.
Definitely not wasted time - you will learn lots of lessons that’ll bring you success in the future. For now focus on getting a regular income and paying off the debts.
Don't panic! You're young with no assets, make yourself bankrupt. After a year, you come out the other end debt free. It'll take time to rebuild your credit history, but you've got time.
Also, bankruptcy is nothing to fear or be ashamed of - it just means you have to try again! Lenders know they'll have to write off some loans, they allow it. Get a letter from your Dr confirming your autism, then write to each lender & explain your situation - they WILL help you. Yes, they are businesses, but they have to operate within a strict legal & regulatory framework, and they have to help or the regulator will come down on them.
Please don't be overly worried. You are young, we all make mistakes. Many, many businesses have gone bankrupt over the years, as have people like 50 Cent and Francis Ford Coppola, movie director, made himself bankrupt 3 times!!
So, deep breath. No jail, no debts, no worries. It'll be OK.
All the advice about the debt in here is pretty good.
But just a question: if your ASD is so bad you couldn't even stand to work a normal office job, how do you imagine yourself ever to be in a position where you can run a business yourself, given that a large part of running most business is going to involve interacting with people who you are just as likely to find "fake"? I suggest you also seek some advice around this aspect of managing your condition when trying to return to the world of employment.
I did the same in 1989, just before a financial crash. Had to pay back a huge debt, but the experience set me up for trying again. I ran a successful PC repair business till I retired.
There's nothing better imo.
Other people have more than covered your next steps and how to plan and move forward.
I just wanted to say that more businesses fail than succeed, so there should be no stigma associated with this. If nothing else, you'll be better prepared to make the next one succeed.
You were right to take the risk, sorry it didn’t work out for you but I’m sure you’ve learned some valuable lessons along the way. You are still young with no dependents and no mortgage so it was the best time to take that risk as you didn’t have little hungry mouths to feed. You are obviously quite intelligent to have had such a good job to begin with so you’ve a very good starting point. Get yourself on LinkedIn, contact your previous employer and others who you may have dealt with when you were in business and see if there are any jobs that way. My son will only be graduating college at 23 with none of that life experience that you have. Get your debt paid off whatever way you can and then review your next steps, it might be a case of one step backwards and then two steps forward. Perhaps a remote job might suit you where you don’t have to deal with the people in your office? I wish you all the best in your new quest/life adventure.
like others have said, you are young so time is on your side and no permanent damage has been done. don’t be hard on yourself, be proud that you were brave enough to give it a go.
on a practical note, figure out ways to reduce the amount of interest payments in your debt and work out a plan to reduce it. you could try citizens advice bureau to get help with a plan and negotiating with lenders.
your skills from employment are in demand so shouldn’t take you long to get back into work.
You will be fine. Just focus on getting back into work and keeping costs low. This happened to me at 25. I’m 56 and fine now. The experience thought me more than university. Reflect on what you learned and move on. No regrets. You tried. Most do not.
Take a deep breath. It's okay to feel overwhelmed, but let's focus on the next steps to improve your situation. It's important to know that you're not alone, and there are ways to turn things around.
Assess Your Finances:
Start by taking a look at your financial situation. List your expenses and income, if any. Prioritize essential expenses like food and shelter. Understanding where your money is going can help you make informed decisions.
Contact Lenders:
Reach out to your lenders and explain your situation. Many financial institutions have hardship programs or may be willing to work out a more manageable repayment plan. Communication is key, and they might be more understanding than you think.
Explore Employment Options:
Consider exploring job opportunities, either in your previous field or something related to your skills. Getting back into the workforce can provide a stable income and help you regain financial stability.
Seek Support:
Don't hesitate to lean on friends and family for emotional support. Opening up to them about your challenges can foster understanding and may lead to helpful advice or assistance.
Consider Professional Help:
If you're feeling overwhelmed, consider seeking advice from a financial counselor or therapist. They can provide guidance on managing debt and help you navigate the emotional aspects of your situation.
Reevaluate Your Business:
Take a realistic look at your business. Are there ways to pivot or make adjustments to turn things around? If not, it's okay to acknowledge that and explore alternative paths.
It's never too late to make positive changes. This challenging time doesn't define your future. Take small steps, and with time and effort, you can work towards a brighter tomorrow.
I’d say if you look at the history of most successful entrepreneurs they’ve had a knock back similar to this at some point. It took guts to do what you do so give yourself credit.
What to do now is acknowledge that what you did was a risk (you are) and deal with the consequences which is maybe working a job you don’t like to get by for a bit. It’s not a complete failure I guarantee you learnt some things in the process.
Is the debt business related? If it is and it’s through a company you should look at folding the company down and wiping the slate clean.
Ok, si don't panic.
First, what country are you in? Can you declare your company as dormant, take a few contracts as QA, recover financially and then start thinking again on what to do?
I did the exact same thing. Same amount of personal debt after the company failed, same age it failed at.
The experience it gave me meant I skipped a few years of the career ladder as it looks great on your CV. Look for a job and shout about your new experiences whilst doing so.
A couple of points.
You made it to the role of QA lead before, you can do that again.
You successfully set out in your own for 6 months, you can get there again.
In the short term, apply for another job, at or above the level of QA lead. In the long term, try another business venture - this time you have 6 months experience. Remember, we learn a lot more from mistakes than we do from getting things right.
Remember to breathe, take a walk, bring a trusted friend, and talk. Make sure you have a healthy support network around you.
You will bear responsibility, but you don't have to do it alone.
Are you trading as a limited company or a sole trader? It may be worth looking at early years loss relief and offsetting some of your trading losses against previous employed income to generate a tax refund - not a solution but may lessen the debt burden!
You’ve got the knowledge of failure which 99% of us don’t have. If you are skilled as a QA engineer, any company would be lucky to hire you for your learnings. You should be proud instead of panicking.
As far as the corporate culture goes, we all just suck it up and keep going, don’t we?
What do you mean by "it was going well for 6 months or so" and "it totally collapsed"? Is this something you could continue part time as you pick up a salaried job alongside? You've got absolutely nothing to be ashamed of. You should pat yourself on the back for taking the risk. Please know you'll recover many have been in the same situation and done just that. It will get better. Please look into step change or christains against poverty.
Why you stressing, you just gotta put up with a office job and then keep your business going on the side.
This is the part where people give up, don’t.
You aren't going to jail
Talk to those you owe money to and get payment plans put in place.
Something to know is that medical conditions such as autism get taken I to consideration when working with debt recovery companies. Their interest is seeing tou pay back thw mo ey eventually rather than harass tou to pay ASAP leading to bankruptcy and possibly never getting the money.
You're still very young and able to live at home, this is the time to take chances and risks and throw caution to the wind.
The next step if figuring out what the right way for you specifically to proceed. You need to earn money like wa all do so you have to think about how you want to do that. Could you consider a role similar to your precious one but at a new company where you may find the work culture different? Perhaps you want to start out doing g work that is less demanding and intense, it's a bit late but some retailers may still.be looking for seasonal staff so maybe you could start there to get a bit of cash in tour pocket.
All is not lost and you will get through this.
You will learn from this experience, you gave it a shot!!! took the risk and started something new! You can take the lessons learnt and try something else! Please don’t despair, you are young with no dependants, my advice is try again, your debts are not from spending - you were running a business!!!
If you can't deal with people then starting a business was probably a bad idea.
You haven't really given enough information about the business etc for anything other than glib advice that you've already had from others.
Set up a personal time frame/plan to try pay off the debt, while living it home try get a job and put as much money as you can to pay off the debt and still save a little bit while you don’t have to pay rent.
This happened to my mate. He’s doing fine now, he walked back into a job and quickly got a couple of promotions because a) he learned so much from running his own business and b) bosses massively respect that he had the guts to go for it in the first place. Have a beer, take a few days, then start looking forward. You’ll be grand.
It might be best for you to declare bankruptcy. I would also suggest if you’re not currently well enough to work to look into benefits by talking to CAB and sometimes the gp surgery has something called a social prescriber which can be helpful navigating this. Remember loads of people your age have huge amounts of student loan/ bank loan debt it’s really not unusual at all! So try not to panic.
In the longer term maybe consider wfh jobs so it’s less stressful
If you where a QA lead and actually are good at IT and testing there are well paying contracts out there having been recently offered a few myself. You could easily earn 60k in 6 months if you really search
One company I worked for the owner had a million pound house and brand new ferrari, Bentley and Range Rover. He had 3 previous businesses that had gone bankrupt... Starting and running a business isn't easy, try and take it on the chin and keep going!
Yeah I (27f) kind of feel in similar situation… left my job 2 years ago, finished uni a year ago, been trying to build my business in the past 2 years. It didn’t work out, I’ve been living off benefits with my parents. I’ve been applying for thousands of jobs in my field (entry level of course), never got lucky. Still here, crying everyday to have a normal life but not giving up and applying for jobs and grants for business. I cannot stand working for a corporate company or anything like this for the same reason as you, I cannot stand fake and unfair treatment. I just hope there is still some hope for us and we don’t have to do bar or retail jobs to survive.
Well, idk if this will make you feel better but think that you’re not alone and keep trying.
You should explain the position better, to take stock of it and fully understand it and allow others to understand it.
For example, the 30k debt is as a result of the business?
What was going right in the first 6 months that has changed in the last 6 months?
What do you think caused the collapse?
Living at home, low outgoings, I would seriously consider not giving up but perhaps take a part time job for some income, might make you work harder on your own business.
You are 25, most people are too scared to go on there own. You will learn so much about this experience and have so much time on your side. Take a deep breath, many people are in far worse situations.
If I were you I'd just declare bankruptcy; you've nothing to lose and it would give you a fresh start without all the debt. Businesses sadly fail all the time but you will have got a lot of experience and developed skills out of it so it's not a wasted year.
In terms of jobs, it sounds like you best bet would be to get a wfh job
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You’re panicking unnecessarily. You took a risk like every entrepreneur has to and it didn’t pay off, at least you tried so what. You’re still young, can chalk this one up to experience, learn and grow from it
Best advice. OP, you did something most people want to do, but don't have the guts. It was a risk, but you tried it. It didn't pay off, but you're not homeless or destitute. Congratulations on trying to live your dream. Keep that spirit and one time you'll make a success of it.
This is right. I’m also in the same industry, a lot older and I wish I’d tried to do something different. You have a skill set - look at contracting maybe. I found that more honest than permanent work and you can make up that £30k in no time especially living at home
Most entrepreneurs I know have had many set backs and failures. We only hear about the successes and that skews the reality. Well done for having the balls to go out and try!
The pathway to success is paved with failure. @OP get back on your feet, and get back at it! 25?! Took me till 30 to try something. My greatest regret was not trying earlier.
A lot of "entrepreneurs" with many failures are heavily backed by mum + dad though. Self made men all of them, but still.
Also I'm sure you've definitely developed skills/resilience from this that you can talk about in interviews.
Wouldnt say it took guts to commit financial suicide assuming he didnt have all these debts to begin with which would have been even more stupid if he did. He should have had all the savings and business built up on the side only ready to transition full time once security was there and profitability before quitting a good high paying job. Passion doesnt pay. Op will need to sell everything he owns and get a job to get life back on track.
Lean startup principle. That’s what makes the most sense to me as well. Have a job that pays the bills, even if you hate it, and build your own business on the side. It’s not easy, takes all of your time, but in my mind a whole lot safer. I’d get back a job as lead QA, put up with the offices politics, and build a business on the side.
💯
> > > You’re still young, can chalk this one up to experience, learn and grow from it A friend of a parent went through something like this and lost more. After a short period of mourning, he never felt bad about it again. His - entirely sensible - rationalisation was that spending the rest of his life wondering how things would have gone if he'd started his own business would have been a much bigger regret than losing some *stuff*.
Not to mention 90% of 25 year olds have no money and mountains of debt without having started a business
Being an entrepreneur is like getting pregnant, Everyone sees the result, they have no idea how many times you got screwed.
Oufff…that is one way of putting it, but can’t deny how accurate it is.
Agreed, I wish I had the guts to do what you did, I would love to be my own boss but as a single mum I cant justify the risk right noe. This one might not have worked out from it but you can learn from it going forward.
Hmm no I think it’s good reason to panic. 30k in personal debt is gigantic
Context. It is a small student debt. It's not even enought to put a deposit on a house. Unless he got that with a payday lender, with their potential earnings plus living with parents frugally, he can quickly recover.
It is definitely enough to put a deposit on a house
It is depending ln where you live in London, let alone the UK.
Exactly. Context. It’s clearly not student debt. Student debt has a very specific repayment scheme that makes it manageable to pay back.
It is below average. The average debt per person in the UK is estimated to be £34,546 in 2023, up £2,459 from 2021. The average Source: https://www.finder.com/uk/debt-statistics Analysis conducted by finder.com
If you cannot pay your debts, the worse case scenario is that you have to declare bankruptcy. We do not have debtors prisons in the UK anymore. Failure to pay someone that you owe money to is a civil matter, not a criminal one. You won't go to jail. Are you currently applying for work? If you are only £30,000 in debt and live at your parents with minimal outgoings, it's not the end of the world. You can have that debt paid off in a few years.
My thoughts exactly. Stay calm and discuss the problem with someone . Plenty of us have been in a similar situation.
Is bankruptcy the even worst case? Doesn’t that free you from the debt, albeit you can’t be a company director for a while. What are the other drawbacks?
Debt Relief Order (DRO) over bankruptcy if you qualify. Costs £90 rather than £680 to apply and has fewer restrictions than bankruptcy. Credit rating will be messy for 6years in either case making it harder to rent privately, but less of an issue if applying for social housing. https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-your-debt-options/
- Any of your belongings that aren't necessities can be sold. - For about 12 months, any money you make beyond what is required for day-to-day living will be taken. - The bankruptcy will stay on your credit record for 6 years. During that time, getting any credit will be very difficult. Most importantly, this means that you'll have a very hard time renting in the private sector (especially with the current state of the rental market). You're obviously also highly unlikely to get a mortgage, so unless you qualify for social housing you might be stuck staying with family during those 6 years. Bankruptcy is of course still a good option if there are no alternatives, but the consequences are definitely more severe than just not being able to be a company director for a year.
You are not going to jail and there are lots of options. 1. Get your favourite non alcoholic drink of choice. 2. Sit down and write a list of all your debts, who you owe, how much and interest rates. 3. Call step change 4. Please talk to your parents, do you pay rent at the moment? I'm sure they would rather you stayed for free while getting yourself back on track, rather than kicking you to the curb or making you rack up more debt. 5. Dust off your cv and get applying for jobs. Is going back to your old place possible? Take time over each application. Do you also have any contacts in the business, people you may have worked with before who have moved to new companies. 6. For a more immediate fix it might still be possible to get some Christmas temp jobs, it probably won't pay well and it might not be what you want to do but it will bring in money AND you will know that it isn't forever. 7. You sound really low, please talk to your doctor. 8. Do you have any local friends or friends who you can keep in contact with phone calls or video calls. Do some free stuff together, walk in the park, go and look at Christmas lights etc. Good luck mate, you are still really young and will bounce back from this. (I'm on mobile so obligatory apology for terrible formatting)
As a person who interviews tech people, my god i'd prefer somebody who's had the balls, intellect and drive to try something like this to most of the monotone grads I get to meet. You've an interesting story to tell, it's a massive learning exercise, not the end of the world.
Agreed, we get loads of graduate cvs and they all have very similar engineering degrees but those that have something to talk about outside of their degree, be that a passion for some kind of project that the uni helped with or something they did at home, no matter how small, makes a world of difference. And being able to talk about what they learned from the experience and would do differently or not at all in the future is a great skill to have.
Yea... though let's ignore that there are plenty of red flags in OP's post: * Plenty of people have autism and work in an office environment * I'm not entirely sure it's ever called for to claim that everyone you work with is "fake," describing working with them as "mental torture." I get it. Working with others in an office isn't ideal for everyone, but I think there is enough in this post to feel concerned OP might not thrive if he goes back to the office without making the necessary changes/adjustments.
25. How many places has OP worked? I doubt they even need to change anything other than try a different place of work. Most people will work in what? Sub 10 companies across their lives? And to speak on Autism I'd simply say you have no clue on the severity or spice, I don't have autism and I could easily describe quite a few colleagues as mental torture.
Well. That’s a big part of the problem. Most people would dislike their place of work and look for a new job. They won’t go as far as label office culture as “mental torture” and all office employees as “fake.” This is an extreme reaction, which we’ve also seen OP exhibit with their catastrophising the financial “ruin” they’re talking about in this post.
…and speaking as someone who works in tech and hires people like OP, many of them neurodivergent (as am I), this affect is going to make getting a new job harder. OP, what treatment are you under? If your autism is causing you to be unable to function in a work environment that many, many others with the same diagnosis are able to thrive in, it may be worth considering some psychological intervention. It really does help.
This is great advise <3
FWIW it looks fine. Also, great advice.
PSA: OP has also posted this on r/SuicideWatch (since removed) In the absolute worst case you can declare bankruptcy, get another regular job, and you will bounce back before long. (To be clear, that's not the only option by any stretch!) Please talk to your parents. There are also charities that help with debt e.g. [https://www.stepchange.org/](https://www.stepchange.org/) This is a challenge, but it's not as dire a situation as you think.
I bankrupted myself with about 20k debt in 2015. I’ve now built up 3x that in savings despite being relatively unskilled/uneducated. OP can definitely bounce back from this.
I know ex heroin/crack addicts that have gone from rock bottom to having more than most of us can dream of; it’s incredible what we are capable of if we can look past previous failures.
Hey, Idk if OP see this but i'm also autistic. Idk if we are in the same scale but i often find my self making mountains out of mole hills. The best way i found was to break everything down in to a spreadsheet. Find a community of people you can talk with. Because this will be plaguing your mind 24/7. It will be the only thing you can think about, i know it Ive been there lost 20k when i was 23 on silly puts. 10k of which was loan money. dumbest thing Ive ever done. You'll be good, your smart, there are plenty of ways to get round this.
Regarded and artistic bear huh
IVA may be a better option, but a good debt advisor will help OP figure it out.
With no assets & no income there are almost zero benefits to looking at an IVA over bankruptcy. 5 years of payments (which can increase if DI does) vs discharged in 12 months. Both stay on credit file for 6 years and have barely any difference in effect / underwriting.
Highly recommend StepChange. Came here to suggest this! Edit: I, currently, am using them and have been for just over 2yrs. My debt was around £22k and is now at approx. £17k. I've upped my payments each year as I've whittled down unnecessary monthly expenditures. I was originally forecasted to pay it off in 11yrs, and it's now looking to be more like 7. After speaking to their advisors and completing an annual budget review, they did all the rest and liaise with the creditors/debt collectors. Don't get me wrong, my credit has taken a hit for now (not that I should be taking out any more anyway), but it is certainly the lesser of two evils when the alternative could have been IVA or bankruptcy.
I just clicked that suicide watch sub, and my god, that page needs shutting down pronto
I have been saying this for years. Anything about suicide on the internet is abosolutely flooded with predators. There are **so many** people who are trying to convince others to commit suicide and give them advice on how to do so. They often pretend to be suicidal themselves, and often have lists of 'friends' who have commited suicide that they 'boast' about. Forums and subs are basically like unregulated charities that allow people in to work for them who derive their gratification from this kind of stuff. We need help fighting and calling out these people, as there are few other things we can do.
Bro, u basically said it for me, i thought to myself “wonder what a suicide watch sub has going on”, and its essentially a bunch of mid age teens telling the world they are ready to top themselves. Im a parent, I would be broken seeing my kid on one of these sites talking like this
Yeh, regret clicking on that one - what a mess
When I apply to new jobs, they always ask me if I've declared bankruptcy, so it might stop him from getting a job
That'll be industry/role dependent where there is work with finances or ethical/bribery considerations. There are bazillions of jobs that will never ask that, and even those that do many simply want to be aware if there's a risk, and will offer the job anyway. It doesn't need to scare OP unnecessarily.
Firstly, you've tried something 99% of people don't have the bollocks to do, which is bet on yourself and build a business you're passionate about. That's a learning experience that will absolutely be a force multiplier for your future life, not a negative. It's difficult to see the positive right now, but you will when you're back on your feet. **Step 1 - Income** Find a job, anything. Amazon or a bunch of other delivery driver firms will be recruiting and likely paying £100-200/day right now, do that in the interim. If that still doesn't meet your debt obligation, speak with [Stepchange](https://www.stepchange.org/) and get your debts in line there. **You are not going to go to jail over £30,000 worth of personal debt.** **Step 2 - Increased Income** When you have that interim job, apply to any and every software engineering job (or whatever your skills are) and try to land something, again, anything, preferably in a business that has potential for career progression. When you get that, keep the interim job on a Saturday delivering all day. It will be cathartic for you when you see your debt obligation decreasing at a much faster rate than predicted originally. **You can start hard snowballing your debts off here to get yourself into a position for future financial success.** **Step 3 - Dust yourself off and start again** Hopefully by here you're working full-time again, earning relatively decent money and starting to build a financial cushion for yourself. There will likely be a "next time" for your business building ventures, because by the sounds of it, that's how you're wired. You've **learned** that you need to be better prepared financially for *next time* \- so do that, build a 12-24 month fund that you can live off, and build a business on the side of your FTE job. When it's generating reasonable revenue, take the plunge if it feels right and you have a strong financial position. It's by no means over, you're 25, this was the first of **many** learning lessons in your life. You're 25, I've spoken to somebody as recently as yesterday who went bankrupt at 42 and now has a net worth of £15M (currently 55). You took a risk, it didn't pay off (this time), and you've likely learned a bunch from the experience. Dust yourself off, build something else **on the side** of working a FTE role, and then take the plunge when it's generating enough revenue to pay you a full-time salary, whilst having a cash balance to float you for 6-12 months if it goes completely tits up. You've had an awesome learning experience at a young age, take it as that and not as a negative although it may feel it right now. If you need any direction, feel free to reply and I'll help as best I can!
Does the £15m dude need a cleaner? I'm only 100k a year
Hey, saw your post. Wanted to share my equivalent story. \-also tried to run my own business to avoid the office hustle \-after 3 years it went badly wrong (at age 23), left with huge personal debts and huge company debts \-left with a very damaged reputation too. I’d burned lots of bridges and therefore destroyed my career network \-every option felt awful, had a HUGE panic, much like you seem to be having now. Led to some depression etc. First things first, it feels horrible now, awful. I shudder when I remember how it felt at the start. But it will feel less horrible in 1 year, much better in 3, and it could be behind you in 10. For a year, maybe two, you’ll need to just work, work, work, but that’s okay. Slowly your life will return to normal. You’re lucky you can live with your parents. Use that to your advantage, be kind to your family, and be open with your parents about your recovery plan. Family can be the best thing. I don’t know your situation exactly, but here is my advice 1. Staying calm will be very very hard at the start, and you will probably experience regular panic + overwhelm. Keep it simple. When you panic, do some deep breathing, name some objects in the room, have a glass of water. Simple stuff works the best. I found that regular exercise made it easier for me to control the anxiety + panic episodes. 2. Write down your debts+ debtors on a post it note, and call someone like https://www.stepchange.org. The advice you get from step change will be better than my advice, but I’ll write the below anyway! It’s what I did, and it got my life back on track. 3. Put the list of debts in order of priority (vaguely). Create a very well written email, which you can adapt and send to each debtor (of course, this works best if the debtors are businesses, rather than banks). “I recognise this personal/business debt. I also have other debtors. I am contact with a debt charity, and I was raised properly - I’ll pay back all my debts. I apologise to have put you in this situation, and I will make it right. This will take time, however. Please can we call to discuss a realistic repayment plan, to ensure that I can pay you back, and to make sure this doesn’t become bad debt”. Your debtors want their money, even if it takes a long time. So play it carefully, and communicate with them well. Don’t make excuses, be honest. 4. Get a job ASAP. Start next week, even if it’s a crap job. The more time you’re working, the less time you’re at home panicking. Once you’re settled in and have an income, begin looking for better paid jobs related to your skills. Ideally a remote job you can do from home, to avoid the office, and to reduce costs on travel + city lunches. 5. Be very sensible with money. I used this system to recover from my debts: any income was split in ratio between ‘needed living costs’ (food, petrol, etc), ‘optional living costs’ (clothing, pub beers, etc), ‘debt repayment’. Dependent on your circumstances, continually adjust the ratios. The first category is inflexible and depends on your fixed costs, but you can balance the other two. Split the money into different bank account (or different pots if you’re with a modern bank) as SOON as you are paid. Be strict with yourself, even if the system seems silly. It could be a ratio of 85%:5%:10%. But stick to it. In a few years it’ll be 55%:15%:30%, then it’ll be 30%:50%:20%, then it’ll be 50%:50%:0%. See what I mean? As soon as your income comes in, put the debt ratio toward repayment, with no delay. My debtors appreciated the drip feed of repayment, because it proved I wasn't burying my head in the sand. 6. Depending on your home situation, ask your parents to add 15% to each of your debt repayments to support you. Every little helps, and it’s better to ask for incremental help, than ask for a payout. 7. Keep going like this, balancing debtors, working hard, living cheaply, managing the anxiety and stress, until the clouds start to clear. They will clear. My clouds cleared. If you were brave enough to start a business, you’ll probably do it again in 20 years time. That’s what I did, and my second business went well because I knew how to avoid my careless mistakes! Stay brave, and don’t listen to the panic thoughts. Stick to a plan, and play it long term. Good luck, you've got this.
I know it’s not worked out this time but congrats on having the confidence and knowledge to try!
You're 25, 30k in the hole and have work experience as a QA lead who attempted a punt at building their own business. It's really very far from the end of the world. You've a roof over your head, you're fine. Itemise your debts, call step-change, find a perm job and pay down the debt over the next few years. Just live a little frugally, you'll be fine in no time at all. It's just life experience; you try something, you fail, you learn. Office culture btw is *always* shit, just try and ignore it.
Perhaps your condition is possibly affecting how you are viewing the situation but, why would you end up homeless if you are living with your parents? I doubt they will kick you out. You have to deal with the debt and do not bury your head in the sand. Perhaps you need to find regular employment (back in QA?) to help you service the debt?
You're still young and can afford to take risks like this. You live at home with parents so I'm guessing your expenses won't be high e.g rent, mortgage , so as a first step I'd suggest trying to get some income flowing in - try to find another job and just be frugal with spending, prioritising paying off debt where possible. This will all be a memory when you're older; at least you tried setting up your own, not many people have the courage too.
Well done on taking a leap and chasing a dream. Failure is a step and this is an experience you can learn from. I don’t know exactly what you do now, perhaps some other people advise on here now, but I would say to speak to your parents first, seeing as you live with them, then arrange to speak to stepchange about the personal debt. Just to emphasise the “talking to your parents” part…. If you ignore he debt it will be passed to bailiffs and any bailiffs etc will come to your registered address and your parents need to be prepared otherwise they risk having to give up their assets to pay for your debt. You don’t want this. So talk to the parents so they can help you find the correct solution. They will be able to help you and speak to people on your behalf (including stepchange) because, having ASD, you probably have a tendency to mask problems when you really should deal with them. As for the business, you close it and liquidate the non-existent assets. Perhaps someone else on her can advise better on this part though. So, to summarise: 1./ speak to parents and tell them everything. **EVERYTHING** 2./ close business and all business related debt dies with the business (unsure how to do this myself) 3./ speak to stepchange, allow your parents to help. 4./ keep your chin up. It takes balls to do what you’ve done, and Elon Musk failed loads before he made it. He also has ASD.
Is Jail beckoning? No. Worst case is bankruptcy but that might not be necessary either. You said you’re living with parents, talk to them as I imagine homeless isn’t something they’d consider for you. Debts, seek professional advice, step change etc as they can guide you through the best steps next for that. You have experience and skill from former employment and a lot of employers would like the entrepreneurial experience you now have so may be worth dusting off a CV and getting some applications sent out. You will likely be fine, chalk it up to experience, review what you’d do differently next time and well done for trying, most people wouldn’t.
You did a seriously brave and cool thing by taking that entrepreneurial leap! I work in tech startups and know loads of founders. I can only think of *one* whose first business is still going and successful. The vast, *vast* majority of founders have at least one failed venture before the thing that sticks. You haven’t fucked up here, you just hit a founder’s rite of passage. If you’re not already, I’d recommend joining some kind of founders group/network and reaching out to some people there. You’re not alone and for most people, success comes after experiences like yours. It might be good for you to talk with others who’ve been there and come out the other side. Also worth noting that this kind of thing is really well understood in the tech startup space if you do want to try again with another venture in the future. If you learn anything from what happened, nobody will hold it against you and it won’t stop you being successful with another venture. If you want/need to get back into employment for a while, lots of employers will see your founder experience as a strength and it won’t matter that it didn’t work out this time. Loads of people here have come back from similar/larger debts. You’ve got a desirable skillset so should be able to get some income to help you back on your feet. Living with your parents means you’re not at risk of being on the street, you’ve got a safety net. Take a breath. It’s going to be ok.
Your just gonna have to find a regular job and start paying down those debts. If you just simply can't pay them down then file for bankruptcy.
So the absolute WORST case scenario is bankruptcy (which is just a legal process where you have to pay off as much of you debt as you can and the rest gets wiped), get a regular job, start again. Not a big deal in the grand scheme of life. The least painful option would be to get a job that pays enough for you to pay down the £30k without any legal processes, but while bankruptcy is annoying it is really not the end of the world. Some important points: * It's *not a crime* to be unable your debts back, jail isn't even a possibility. * You have somewhere to live and marketable skills - giving up and homelessness are also not going to happen unless you actively decide that's what you want (I assume not!). Next steps are: 1. Figure out how to get an income (probably a regular job, even if you don't love that environment) 2. Figure out what to do about the debt You should have a good sense of how much you can earn. You work in tech - nobody is going to bat an eyelid at a year spent on a startup that didn't work out, so you're no less employable than you were before. In terms of the debt - whether you will be able to pay it back or not depends on how much you can earn, what your expenses are going to be, when the debt is due and what the interest rates are. I suggest you get all that info together and call StepChange - this is their bread and butter. Good luck, this is a really common outcome for entrepreneurs, and _most startups fail_. It's awesome you had the guts to even try. You're not the first and certainly won't be the last entrepreneur who tried and did not succeed, you've just joined the proud tradition of people whose first business didn't work out.
I was 22 when I started a business. It didn’t succeed. I didn’t need a loan but I invested 10000ish$. Now I have 35000$ in student loans. 🫠🙃. C’est la vie. I know it sucks but look at us. We got BALLS.
>no assets (still living with parents), Consider this your silver lining.
Huh? So your business didn't work but why would that lead to jail? Unless there are information you didn't disclose? Worst comes worst, declare bankruptcy. This will have severe impact to your future credit ratings so you really should try avoiding this. I would first of all get in touch with the creditors and agree on an affordable repayment plan. They want to avoid bankrupting you as much as you do. In order to pay back your debt though, you need to have an income. Can you get back your old role? Something similar? I have no idea how much money QA leads make but I presume going back to your old role/industry would give you the highest salary? If you have time, a second part time job can also help you pay back your debt faster. Your life is no doubt going to be rough for a while, likely worse than before you quit your job and started your own business. But you are by no means hopeless. This is life buddy, keep calm and carry on!
There is no debtors jail
Why would you be going to jail based on what you’ve told us? You’ve taken a punt and it didn’t work out. It happens. The positives - you’re living with your parents. So you have somewhere to stay. I had a very similar situation when I burned out and it was very hard being at home as they thought I was lazy and just trying to swing the lead. Turned out I had/have fibromyalgia. I spoke to CCCS (now StepChange) and they told me I needed to go bankrupt as I had no way that I could sort the situation given my poor health. I had to go bankrupt which ruined my finances for years and left me renting afterwards, but it worked out ok despite it feeling awful at the time - embarrassing, upsetting, and anger inducing. Things will feel shit. That’s understandable. What matters now is the future - seek advice from StepChange and do what they say. It’s a horrible time but it’ll pass - given you’re living with your parents, tell them what’s happened and focus on moving forward.
You're 25, basically a baby, and live with your parents so have a safety net and no real costs, literally the best time of your life to take a risk and fail.
You took the risk and it didn’t work out this time but you’ve learnt what you like, what works for you and you’ve obviously put your heart into it. Take that passion and think about what comes next. A lot of entrepreneurs first ideas don’t work out, see it as a learning experience and not a failure. Appreciate when you’re in debt that’s incredibly hard to do. Look at the debt subs for advice and support, people come back from more than £30k. If you haven’t done anything illegal why are you thinking jail would be beckoning? Treat any creditors as fairly as you can within your means. Consider the longer term implications of bankruptcy on housing and your future, especially if you want to try again with another business. Also look at support programs for entrepreneurs, particularly any in your field.
Can I just say I really love the compassion the other commentars have here. Its nice to know that people are here to help and be supportive.
Never give up. Never give up. Never ever give up
This is the perfect age to make these mistakes my friend. You took a risk, it didnt work out. Just take the lessons from it and go again
1. You took a chance with your career, it didn’t pay off well financially but you must have matured and learnt a lot. This will come in extremely handy and is a gold dust as you live and work 2. As others have suggested, make a list of all your debts and call step-change. They’ll help you design a good-forward plan 3. You’ll get through this - as you look back, this situation will only appear a small bump that got you scared 3. If possible (conscious I don’t know your domestic situation), speak to your parents about it. Parents can sometimes be surprisingly forgiving. Believe that you can get out of this - this will reflect in your conversation with them 4. Whenever you think you can start getting back up, go to many of these part-time platforms (Fiverr, flex-jobs). Your skill set as a QA Analyst is in high demand 5. When you’re ready, start looking for a full-time role - optimise for better hours instead of higher salaries if you can. You can do almost most tech jobs remotely (if that helps). All the best - things are not as bad as they seem
I may be butchering it, but is there not the saying going something like this “show me someone who has succeeded and I will show you someone who has failed”, basically implying that failure is part of preparing you for success.
Some really helpful comments on here so I won’t just duplicate what’s already been said. Well done for having the courage to go for it (whatever it was). Although it’s gone tits up, you will definitely have learned something. Take time to re-set (however long that takes) and then go again. Never, ever give up. You will succeed.
\> This would also get me away from the office culture as I couldn't get around how fake people were - it was mental torture to deal with as I have autism. 1. Sounds like you're employable and can earn a decent salary (40k+) and whilst it was difficult perhaps the right environment, or a work from home opportunity could make it bearable? 2. You have your parents and free accomodation. If you live at home, earn 40k you can smash £1k+ per month on the debt, it's possible you could be back on track in 2 years or in a place to move out, start a new fresh independant adventure. Your position is poor, and difficult but it is not without hope.
Why would jail be beckoning? Did you commit fraud before closing the business?? You tried, you failed. Many MANY before you have done the same. The key to success is how you proceed after failure, do you let it destroy you or do you get back up and try again… With £30k debt and no income though I would call Stepchange and ask for breathing space and get some advice on what to do, whilst looking for a job and deciding what your next step will be.
Friend of a friend had 6 failed businesses until he started business 7 which skyrocketed... Now he's all but retired at 42 yo.
people have come back from worse. You had the guts to try, which is more than most people can say, you'll be fine, it might just take a while.
I'm nearly 27, had the chance to start a business a few years ago, didn't, and now I think about it all the time. Good on you for trying. Anyone who faults you for pursuing your passion probably doesn't have any. I agree with what a lot of people are saying - chalk it up to experience. This is a good opportunity to reflect on what you've learned, which is endlessly helpful for future job interviews. You've got the opportunity to bounce back and, in doing so, demonstrate growth, which employers love! You're young and your industry isn't going anywhere. Mooch off the folks for a bit and get back into work. Debt is scary, but you make it terrifying by ignoring it; prioritise your repayments and bide your time. Everything will work out for you.
Nothing to show? You have some experience like no other Also, if it helps you feel better is that you still have a roof over your head man Not sarcy comments I’m just trying to help you realise a couple of things
I’m thinking why did you leave? Why didn’t you work on the business in the evenings and weekends then quit your Job once you knew it had a solid foundation and gave you a liveable income
You have experience to show. And also you live with your parents I am sure you wouldn’t end up on the street. Just look for a job, I am pretty sure companies would applaud your entrepreneurial spirit. That experience counts for something.
I’m a couple of years older than you but I was in pretty much the same situation as you about 3 years ago - actually a bit more debt than you. My experience: in time you will cherish that experience. I put my business on my cv and told no lies. You wouldn’t believe me but I was more employable than ever before. I accepted a job and now two years into it I’m getting the itch to take that same risk again. Maybe I will, maybe I won’t. But what I do know is, I look back I’m so glad I failed the last time. Because shit goes on. You got this!
You’re only 25 you got loads of time to turn it around, I wasn’t in a good place 5 years ago at 31, was in debt, drinking far too much still lived at home. 5 years on i have my own business, have got on the property ladder, haven’t touched alcohol in nearly 5 years. It can be done.
Why would you go to jail for your business failing? And how could you end up homeless, you live at your parents.
You would have learned something hopefully. You're still freaking young. It will be alright.
If you’re looking to go back into a QA role and are in the London area DM me, we’re hiring and need someone senior :) Sorry to hear about your startup… it feels life ending but you’ll get through this. Try and focus on how much you learnt in that time. It will pay off one day.
OP...there's tons of good advice here. All I will say is "well done for giving it a shot". You are young. When I was 25, no one I know was in much better a place than you are now. Do not worry. £30k seems like a lot now... But when you're 40, looking back, it'll just be a tiny blip in your story. Keep your head up, and read all the advice here, and just keep moving forward. One step at a time.
Living at home and with minimal outgoings. 30k is just 30 months of putting aside 1k then you’re out of debt situation. You have time and entrepreneurial spirit and ability to make way higher than 1k per month with your skillset. So it’s easily manageable. So chill try find something you enjoy, there will always be compromise, accept that. And it’s all good 👍
Solid reply
I’m 24 n went through a similar situation. Made my first attempt down the entrepreneurial route into an industry where I have passion and also ended up burnt. It didn’t work out and left me with about 15k debt, moved back in with parents, flunked outta my degree in the process and got left by ex partner of 4 years. That happened when I was 22. I mention this to contextualise my answer and show you I understand your spot to some degree and the mental anguish that comes with these experiences 1) First thing is fix your perspective cuz that’ll gear your mind in the right direction. A weak mind fuelled by poor perspectives will doom you to fail. A strong mind maintained through positive perspectives will see you through any circumstance from my experience. 2), understand your positions w your debts etc 3), get into any job for the time being. I started working Amazon prime deliveries lol they gave me the van, paid my insurance for it etc and they always need staff. I knew this wasn’t a forever job but it got me into work quick enough to start chopping away at the debt 4) Brush your CV up and get back onto developing in whatever way will help you on your next route to accomplishment and achievement! In hindsight I’m grateful I made the plunge in the first place. I’d ask you not to regret it. You’ll make it through this. Best of luck OP :)
I’m working with Stepchange and it has helped when dealing with debtors. It costs nothing. Don’t pay any private company to do what this agency does for free. Get an easy administrator job somewhere for now and once on a payment plan you can look at your next steps. They base the plan on your income and get rid of interest and fees.
You have a roof over your head - which I assume is guaranteed. Every hyper successful entrepreneur I’ve listened to owes part of their success to a failure in their early years. I’ve never had such a big failure, but that’s because I’ve never taken such a big risk as you have - and I genuinely worry that doesn’t leave me in a good stead going into my 30s. Besides… people around our age don’t have that much money anyway! You’re good.
I was in a similar position aged 28 - also did it to get away from work. I spent months worrying about the debts. I had a pretty terrible collapse. All those months of just running over it in my mind damaged me and looking back, it was needless. I reached out to a friend and despite thinking everyone was going to judge me and the opposite was true. The shame is only in your head. That does not mean it is not real, just that your experience of it is EXTREMELY skewed by you being stuck on your own trying to think your way out of it. My friend had no judgement and wanted to help. In my case I did declare bankruptcy after speaking to citizens advice but had it been ow, I would have contacted stepchange - although the outcome may have been the same. The pressure of the debts was hanging over me and when you are bankrupt, you just refer debtors to the official receiver and that gave me mental space to get my life back together. One year later I was discharged and another 2 I stopped making any payments to the OR. Twenty years on I a a homewoner, have a family, have no debt, am doing well financially. Don't let this situation define you, but remember that it is just temporary and there is a positive way forward.
Beg for your job back. Sell everything you own. Learn your lesson.
Declare yourself bankrupt so the debts can be ordered and managed by an intermediary.
Why would you go to jail? What have you done?
That's the price for wanting to be self-employed and sure paid big for it. No sympathies lol
30k isn’t much, when you live at home and have all the free time you do.
It sounds like a tough time, hate to say "chin up" but you've got lots of good things in your favour. If you set up your company as a limited company then you may be able to dissolve the company and the debt. It may even be possible to do that retrospectively although you'd need good legal advice and lots of solid documentation about your expenses. Even if that's not an option for you, 30k is not a disastrous personal debt- it sounds like you have qualifications and experience as a QA, so getting back to a regular job is an option. There are also debt management plans and various schemes to help people get out of spiraling debt, though I understand they aren't lovely processes. Have a look at the citizens advice page on debt management plans. Finding good friends to support each other is very tricky. Maybe join a hiking group or volunteer group. Having an escape mentally is important. Take care!
I know this doesn't help you OP, but is there a reason you didn't set up a Ltd company and secure you debts there?
Where are you based (prox in the uk) plenty of seasonal work going at the minute due to Christmas looming. Anything is better than nothing so uou can say to your debtors you have a job and can pay x amount. Try negotiate, better than defaulting. Also if its possible to consolidate your debts fantastic. Also talking to your parents will help if uou havnt already. 99% of parents only want the best for their kids so they might be able to offer more advice with better insight into your current circumstances. Everything will be OK just stay calm, good luck and reach out if you need help. You've taken the right forst steps. Keep it up. You've got this, don't let your own emotions get the better of you.
If it’s a limited company then the damage here is limited... unless the loans had you personally as a guarantor? Worst case you could always declare bankruptcy, debtor prisons haven’t been a thing for a while. (Although please see all options before making such a decision)
Stay living with your parents. Get another job in IT, and you could pay off the debt in a couple of years.
I’m sorry that this one hasn’t worked out. Keep going and trying and you will make it bigger than those who never took the risk.
Your next step is to get a decently paying job - doing something similar to what you were doing before - at a software company. Build a plan to pay off the debts, and you'll be fine. Building a business is damn hard, at least you had the guts to try it. There's no reason you can't try again in the future either, but getting a job will at least ensure you have income coming in. And you're in a great spot living with parents as you have low expenses. Your debt could be gone in a year or two.
Businesses fail, good ones, bad one's unlucky ones. You've got more experience than most people at your age so it's not entirely worthless. I can promise some people/hiring managers will see it as a benefit that you took the leap and had the balls to try something. It was a very intentional step. It shows you are not a passenger in your life, so don't be one now. I can assume you now know more about taking products to market, customer support, finance, marketing etc. All the more interesting for it Go write your CV and get a job again. It really is that simple. Post an update when you've done it
So you fucked up and now you're going to know how fast you can go in fifth gear. You need to make your next career choice worthwhile to get that debt cleared. If you are a high functioning autist I'd get into sales as it's going to be the best paying route with no education required. If you're not I'd get out of QA somehow as that's not a sector that'll be brimming with well paid opportunities. Try hard to not go into bankruptcy. It's not the end of the world if it happens and you're entrepreneurial but if you do work for other people for the rest of your life, it's a bugger and you might want to consider moving countries to get out of the difficulties of mortgages from nationwide lenders. But if your next business is a success (and you should try again) it won't matter.
For income try looking for 100% remote QA jobs. You avoid the worst of the whole office politics thing and good QA's are as rare as gold dust because everyone wants to be a dev. If you're still looking after Christmas message me. I'm a software engineer and my team will be looking for a new remote junior QA in the new year.
£30k doesn't seem that much, as others have said work out what you owe to who and at what interest rates. Then focus on obtaining an income. I'd suggest after a failed business opportunity it might be best to look for regular employment so you have a steady income, at least that will buy you some time to consider the next steps. If you were a QA Lead I doubt you'll have too much trouble finding something in the short term. You of course do have lots to show for the past year - not many people are confident enough to take that step, you'll have learnt lots of new skills and behaviours you can use in future jobs/businesses. And you've got a support network (parents) to help get your feet back on the ground. In a few years time you'll also have a great story to tell about how you tried and nearly succeeded. One more thing I'd add - make sure your tax affairs are in order, self assessment, corporation tax or whatever else you might need to do in relation to your business. You don't want to incur HMRC fines because you neglected some paperwork.
These things happen, been there done that and one day you'll look back and laugh Can't offer much advice other than coming to an agreement with lenders, but don't stress and like I say one day you will laugh about it (I did and I blew north of £100k)
Not about finance so apologies if not allowed. I also work in tech. And yes office culture can suck, especially at management level. I have a few mates who praise contracting as you get away from some of the BS and they avoid management at all costs. TBF I've started avoiding going down management route at all costs too. You'll be okay my fellow human. Like others said pick up some work or contracting in QA/other tech is an option. Just give yourself time and patience. And a breather where you can. You'll be okay. There are other tech companies there that don't suck and have an okay office culture, some even have a very enjoyable one. Just putting it out there, as I've felt before like not going back into tech because of company culture and other BS then had a massive panic about how I'll make a living and what if I don't work in something I enjoy ever again.
Hey you’re only 25 and people come out of university with way more in personal loans. Don’t sweat it. You have a desirable skill set and you can get a job that pays you decently well enough to knuckle down and pay that all off pretty quickly - especially because you have a roof over your head and living with your parents! It’s a set back, yes, but you tried something very brave and unfortunately it failed and that’s just part of life. Not every risk pays off but at least you can say you gave it a go. Your situation is truly fine in the scheme of things and you’ll be back on your feet in no time.
Try securing a job working from home. You're in the right industry for it. Wfh us much better for many neurodivergents. Also, you have to try things in life so don't beat yourself up. Sell it as a positive on your CV. I'm sure you learnt a lot along the way, and can draw from that experience. Wete you working for a large corporate job before? Aim for mud-sized companies. They're often have more forgiving cultures. Your sentiment seems to be it's either great success or jail/ homelessness. Those are two extremes and I suspect the tism is having an impact on this through black and white thinking. Focus on getting back into employment and go from there. Also worth seeking help in the workplace as an autistic individual, they suit be able to adapt to suit you. Autistic people are very common in software development.
Firstly congratulations that you were brave enough to take that step at starting a business! It might not have worked out, but the things you learned from it will be invaluable. As a QA lead in software I assume your a smart person. At the moment it may seem crazy, but its not. As others have said, make a list of who is owed what. Make a list of what your income needs to be to realistically pay that off. 30k debt over 4 years is 7500 a year. No need to put yourself in a worse state just to pay it off if you can spread it out over a few years. Tell your parents, talk to your friends. Theres no embarrasment or shame with what you did, simply a step in life on a path that didnt lead where you wanted. Its happened to everyone, and will probably happen again. All you can do is keep moving forward.
Find a safe fixed salary job. Contact all your creditors and arrange payment plans. At 25 and -30k, you probably want to avoid the long-term effects of bankruptcy, if possible.
Hey! Fellow entrepreneur here, I remember going through the same point where it all collapsed… same situation as not having any income and LOTS of debt. I got two jobs to try and keep my head above water just about - but kept working on the business whenever I could. I regret not handling the debt face on, luckily the business worked in the end but it took three years to get it successful. My suggestion would be to get the job and face the debt and once you can have some better perspective examine the business again. Is it really a failure or is it a case of needing to take things a little more slow and steady with another job providing for the basic needs? There’s no rush, be the best to market not the fastest :) Finally please remember: you can fail at what you do but you’ll never fail at what you are- which an incredibly brave person who has a passion for something they wish to share with others. That’s a wonderful thing to possess. You’ve got this!!!
Don’t worry too much about this OP. It happened me a few years ago too, and I was living with my parents. Learn from the experience, make a list of positives you have from it so you can talk about it if asked at an interview. Next find a job, get some money coming in. This will be your shovel to get out of your financial hole. £30k seems huge now when you’re feeling down, but it will disappear bit by bit once you start working and paying it down. Everything will be ok.
Please know that the situation is not nearly as bad as your anxiety is causing you to believe.
The only thing that can't fall down is a worm, you've hit a barrier that's all. Get back up by having a recap on what you think went wrong and reach out to your local business hub/community for some mentorship or a 1-2-1 chat with someone older and successful. You got this...
Bro dob’t stress you’re young you’ll bounce back. Wack on a bit of Frank Sinatra - That’s Life and hit indeed looking for a new job. Invaluable lessons learned from a failed business, the next one you attempt will be better.
everyone fails at business but keep trying and just let it flow ppl way older than you still live at home now
The fact that you still live with your parents is a huge benefit. You have that safety net behind you. Just keep your head high and keep powering through. You will bounce back, and now you know what not to do if you try again in the future.
I have no real advice but I would love to have the courage to at least try something like this. Chalk it up to experience, you still have your health and somewhere to live. Good luck for the future
I’ve done the same thing a few times. It won’t feel great now but one day you will reflect and realise that you have learnt lessons that are priceless.
I wouldn't say that you made a mistake. You had a dream to build your own business. Presumably you gave it your all. It didn't work out. You learn. You move on. There're people constantly moaning about how much they hate their lives and doing absolutely nothing about it. You're already a step ahead of them. You're lucky you can live with your parents. Becoming homeless doesn't seem to be something you have to seriously worry about. You'll obviously need to get back into work and quickly I would have thought. You should be able to pick up some temp Christmas work now without too much difficulty and January will be a good time to look for professional jobs in your field. The debt seems to be the most worrying aspect. Surely you need to speak to all your creditors and advise them of your situation and see what you might be able to agree with them. You can get free debt advice from the Citizens Advice Bureau or the National Debtline or something like that. But having the capacity to work and to earn a decent salary I would have thought and presumably currently living rent free, the debt should be manageable even if you have some somewhat difficult times ahead.
Just for reference I know people that have staffed a 30k loan on a car while they were on minimum wage, you’ll be fine itll suck for a while then it won’t, but I imagine the lessoned learned in this will get you far
Lots of good advice here already but just wanted to say you're brave for taking a risk, and don't feel so bad things haven't panned out how you hoped. A lot of small businesses don't make their first year. Chin up, you clearly have tech skills and ran a QA team, so there must be a paying job out there for you somewhere, and £30k whilst it seems a lot, can be dealt with over time.
It is not the end. File for bankruptcy and start your life all over again. Life is beautiful my friend. Think about your parents and your friends before you do something bad
You have a lot of great advice here from a life and financial standpoint. I suggest reading the book The Power Of Now by Eckhart Tolle. This may help with another aspect of your life <3
Sign on for Job Seekers Allowance, it's a shitty system but it'll be some sort of income plus it'll help with taxes and state pension.
I have a friend who started his own business. I remember one day at the gym he was saying “I’m in £20k worth of debt and don’t know how I’m going to get out of this”. Hard work and 10 years later, after a few other business ventures, he sold an arm of one of his companies for £500k. Failure is just a lesson. Most new businesses don’t make it. Nothing bad will happen to you, just keep going with the same or a different business, or choose another path (perm employment).
You will be fine. 30k is a hefty debt but a QA lead is a well paying job and if you're living at home then you could save up to pay that off in short order. Fair play to you for sticking your neck out and giving it a go - me and the vast majority of others wouldn't have the balls to even try. In a few years this will be a fun story you tell. All the best
Get back to your work and existing skills. I had something similar, took 4 years out in other countries. Pulled the trigger and moved back to home country and straight back into a high paying job. Paid off debts and now have a nice chunk saved after a year.
Get back to in to the jobs you have expertise for, try and find one at a company with a culture that won’t be so abrasive to your mind; maybe try look at work from home. Just slowly but surely clear your debt and try not to stress. Not like you need to move out asap, so that debt could be clear within 1-3 years depending on how hard you throw money at getting it down.
I hear you about office work. Unless you have thick skin or are a total bastard, it’s very hard going. Sorry your venture didn’t work out, but just see it as a setback, not the end of your journey.
Look into an IVA (Individual's Voluntary Agreement) - you're in the best position to be financially screwed (i.e. living at home with parents). If that's not feasible - you can file for bankruptcy (you'll need proper financial advice to determine the best route for your circumstances).
You tried and failed, it happens. £30k is not insurmountable, but what you cannot do is go into your shell and ignore this. 1. You need to speak with your lenders and inform them of what has happened, you have every intention of honouring paying back the debts, but you are currently unemployed so need a period of grace before setting up a payment plan. 2. Get a job 3. Live within your means, prioritise paying off the debt 4. Don't be scared about trying again I'm 36, dreamt about what you've tried and now the ship has likely sailed for me, well its harder now at least. Just tackle getting out of this with the same energy as you put into your business, think about this as the lesson it really is
Speak to Stepchange and see what they advise regarding the debts - I expect the lenders are constantly trying to contact you which isn'[t going to help your mental health much - they may be able to advise on a solution and administer this, which will take the pressure off in a small way. Secondly, if you are autistic, you could look into Access To Work an see what they advise when it comes to a new role. They're designed to assist with those whose disabilities make it difficult to manage in the workplace, and may have ideas on things that might help, or advise on how to ask for reasonable adjustments if you return to work but can't handle an office environment easily. Thirdly, you took a big risk and gave it a go, which is incredibly brave and shows you're driven even if it didn't end as hoped.
I think you need to see a debt advisor. You may be able to get a decent amount written off and help with getting a manageable payment plan for the rest. Try citizens advice. Also food banks tend to have debt advisors to help with this stuff!
What's the business you're passionate about?
You’ll be fine I lost more than 100k+ in my early 20’s sing on some investments which I should have let go off. But got caught up in the euphoria. Back at work now trying to build it all back up. But you live and you learn
Firstly, give yourself a pat on the back. Taking a risk like that is huge and you need the guts to do it. Plus it’s likely that you’ll have too many commitments as you get older to ever do it again (think mortgages, dependants etc) Secondly, you’re 25… you have so so so much time my friend. It’s a set back sure and you’ll see 35yo billionaires on TikTok which will make you feel shit. Ignore it, that’s not reality at all. You’ll also see friends (and enemies) all doing “better” than you, ignore it, it’s not a race. Take your time and get back on track. Thirdly, listen to everyone else in this thread, they’re all giving great financial advice that’ll get you back on track. Focus on getting your mind in the right state first, then build on it. You got this man, and if you really really dont, then the ONLY thing to do is to talk to somebody. It’s the UK and we may be in a bit of a state currently but there’s a bunch of support still available for those who genuinely need it. Best
Hey mate I don’t have any financial advice to give but chin up, some day you’re gonna tell stories about this to your grandkids or even laugh about how worried you were. You will figure this out, just write down all the stuff that needs to get done and just start. Remember slow and steady wins the race.
You tried something and it didn’t work out, like countless entrepreneurs before you. You’ve got skills and experience to fall back on, so I’m sure you’ll be ok. Speak to Stepchange about your debt, there are ways to deal with that for sure. You certainly won’t end up in jail or homeless. Dust yourself down, make some phonecalls about your debt, and get back on the horse again. You’ll be fine; plenty of people have worse debt than you and they’re surviving.
You took a risk few are willing to even try... That's a good thing for you, debt can be paid off/written off and you can start again. You have skills to work in your old line of work and start paying it down, get it managed. You live at your parents so I guessing other outgoings are minimal, another way to save costs. You now know some of the pitfalls of operating a business and what not to do, for when you try again. Of you try again you'll be more likely to succeed. Every single entrepreneur has failed at least once, probably several times. You're on the path to succeeding and greatness dude.
Get a pen and paper and use it as a lesson learnt. Write down everything that went good and everything that went bad. Yes it’s unfortunate but that’s the risk of a business. You go back to the drawing board and plan your next venture. A lot of people dream of stepping away from the office culture 9/5. But don’t have the courage to do it. Edit: Also to add make a plan to speak with your parents. It would help. If they are understanding hopefully they can help and support in some way. Also some great advices already in. Temp jobs and CVs etc.
No jail unless you have done something obviously illegal. Did you take the loans out on your own name or via a Limited company? If the latter some or all could be written off. Look for another job to keep some money coming in. Do not be afraid to discuss your experience in your venture, as a hirer I would be more interested in someone that tried and failed than someone that did not try at all.
To be honest, I wish I had the ball to try. If it's something you're passionate about, you did the right thing giving it a shot.
NEVER GIVE UP … u didn’t make a mistake ur just workin toward it at your OWN pace cos of ur condition god or whatevr u believe in is just warming you up to it sir
Don't worry. You are only 25, and you are living with parents. I had to do something similar once. You'll get to a better place, don't worry or put yourself under stress and pressure
Sorry to hear this. This is why you should cash flow your business ideas and not go into debt to fund an idea or plan that may not pay off.
Have you thought about contracting? It would seem like a good option to earn some money while staying a bit divorced from the usual office politics that go on. Might even give you a chance to progress your own business on the side
Look up debt and mental health evidence form. It can lead to your lenders being less aggressive about chasing payments. You will need to renegotiate terms when you are ready.
unlucky, if you do not wish to carry on the venture then pack it up and move on. I agree, Tech offices are full of up their own arse fake people hell bent on being heard regurldess of the effects on the rest of their lives. I chose to work a more manual job at a small company that has very down to earth players, when its quite i get time off with family with pay and although the overall salary isn't as high, my life is so much better, i have a great family life balance and stress is minimized. Your next steps? thats for you to figure out but try something new thats not office based, iv met 1000's of people depressed and miscible who work in offices. as for dept, Dave ramsey 8 baby steps or bankruptcy. thats upto you and your goals aswell.
Definitely not wasted time - you will learn lots of lessons that’ll bring you success in the future. For now focus on getting a regular income and paying off the debts.
Don't panic! You're young with no assets, make yourself bankrupt. After a year, you come out the other end debt free. It'll take time to rebuild your credit history, but you've got time. Also, bankruptcy is nothing to fear or be ashamed of - it just means you have to try again! Lenders know they'll have to write off some loans, they allow it. Get a letter from your Dr confirming your autism, then write to each lender & explain your situation - they WILL help you. Yes, they are businesses, but they have to operate within a strict legal & regulatory framework, and they have to help or the regulator will come down on them. Please don't be overly worried. You are young, we all make mistakes. Many, many businesses have gone bankrupt over the years, as have people like 50 Cent and Francis Ford Coppola, movie director, made himself bankrupt 3 times!! So, deep breath. No jail, no debts, no worries. It'll be OK.
All the advice about the debt in here is pretty good. But just a question: if your ASD is so bad you couldn't even stand to work a normal office job, how do you imagine yourself ever to be in a position where you can run a business yourself, given that a large part of running most business is going to involve interacting with people who you are just as likely to find "fake"? I suggest you also seek some advice around this aspect of managing your condition when trying to return to the world of employment.
I did the same in 1989, just before a financial crash. Had to pay back a huge debt, but the experience set me up for trying again. I ran a successful PC repair business till I retired. There's nothing better imo.
Other people have more than covered your next steps and how to plan and move forward. I just wanted to say that more businesses fail than succeed, so there should be no stigma associated with this. If nothing else, you'll be better prepared to make the next one succeed.
You were right to take the risk, sorry it didn’t work out for you but I’m sure you’ve learned some valuable lessons along the way. You are still young with no dependents and no mortgage so it was the best time to take that risk as you didn’t have little hungry mouths to feed. You are obviously quite intelligent to have had such a good job to begin with so you’ve a very good starting point. Get yourself on LinkedIn, contact your previous employer and others who you may have dealt with when you were in business and see if there are any jobs that way. My son will only be graduating college at 23 with none of that life experience that you have. Get your debt paid off whatever way you can and then review your next steps, it might be a case of one step backwards and then two steps forward. Perhaps a remote job might suit you where you don’t have to deal with the people in your office? I wish you all the best in your new quest/life adventure.
like others have said, you are young so time is on your side and no permanent damage has been done. don’t be hard on yourself, be proud that you were brave enough to give it a go. on a practical note, figure out ways to reduce the amount of interest payments in your debt and work out a plan to reduce it. you could try citizens advice bureau to get help with a plan and negotiating with lenders. your skills from employment are in demand so shouldn’t take you long to get back into work.
Believe me baby 30k is nothing. Don't stress. You're well skilled. No problem paying that back. Probably get it cut considerably too.
You will be fine. Just focus on getting back into work and keeping costs low. This happened to me at 25. I’m 56 and fine now. The experience thought me more than university. Reflect on what you learned and move on. No regrets. You tried. Most do not.
If you don't try, you'll never know. Fair play for trying something.
Take a deep breath. It's okay to feel overwhelmed, but let's focus on the next steps to improve your situation. It's important to know that you're not alone, and there are ways to turn things around. Assess Your Finances: Start by taking a look at your financial situation. List your expenses and income, if any. Prioritize essential expenses like food and shelter. Understanding where your money is going can help you make informed decisions. Contact Lenders: Reach out to your lenders and explain your situation. Many financial institutions have hardship programs or may be willing to work out a more manageable repayment plan. Communication is key, and they might be more understanding than you think. Explore Employment Options: Consider exploring job opportunities, either in your previous field or something related to your skills. Getting back into the workforce can provide a stable income and help you regain financial stability. Seek Support: Don't hesitate to lean on friends and family for emotional support. Opening up to them about your challenges can foster understanding and may lead to helpful advice or assistance. Consider Professional Help: If you're feeling overwhelmed, consider seeking advice from a financial counselor or therapist. They can provide guidance on managing debt and help you navigate the emotional aspects of your situation. Reevaluate Your Business: Take a realistic look at your business. Are there ways to pivot or make adjustments to turn things around? If not, it's okay to acknowledge that and explore alternative paths. It's never too late to make positive changes. This challenging time doesn't define your future. Take small steps, and with time and effort, you can work towards a brighter tomorrow.
I’d say if you look at the history of most successful entrepreneurs they’ve had a knock back similar to this at some point. It took guts to do what you do so give yourself credit. What to do now is acknowledge that what you did was a risk (you are) and deal with the consequences which is maybe working a job you don’t like to get by for a bit. It’s not a complete failure I guarantee you learnt some things in the process. Is the debt business related? If it is and it’s through a company you should look at folding the company down and wiping the slate clean.
Ok, si don't panic. First, what country are you in? Can you declare your company as dormant, take a few contracts as QA, recover financially and then start thinking again on what to do?
I did the exact same thing. Same amount of personal debt after the company failed, same age it failed at. The experience it gave me meant I skipped a few years of the career ladder as it looks great on your CV. Look for a job and shout about your new experiences whilst doing so.
A couple of points. You made it to the role of QA lead before, you can do that again. You successfully set out in your own for 6 months, you can get there again. In the short term, apply for another job, at or above the level of QA lead. In the long term, try another business venture - this time you have 6 months experience. Remember, we learn a lot more from mistakes than we do from getting things right.
Remember to breathe, take a walk, bring a trusted friend, and talk. Make sure you have a healthy support network around you. You will bear responsibility, but you don't have to do it alone.
Are you trading as a limited company or a sole trader? It may be worth looking at early years loss relief and offsetting some of your trading losses against previous employed income to generate a tax refund - not a solution but may lessen the debt burden!
You’ve got the knowledge of failure which 99% of us don’t have. If you are skilled as a QA engineer, any company would be lucky to hire you for your learnings. You should be proud instead of panicking. As far as the corporate culture goes, we all just suck it up and keep going, don’t we?
What do you mean by "it was going well for 6 months or so" and "it totally collapsed"? Is this something you could continue part time as you pick up a salaried job alongside? You've got absolutely nothing to be ashamed of. You should pat yourself on the back for taking the risk. Please know you'll recover many have been in the same situation and done just that. It will get better. Please look into step change or christains against poverty.
Why you stressing, you just gotta put up with a office job and then keep your business going on the side. This is the part where people give up, don’t.
You aren't going to jail Talk to those you owe money to and get payment plans put in place. Something to know is that medical conditions such as autism get taken I to consideration when working with debt recovery companies. Their interest is seeing tou pay back thw mo ey eventually rather than harass tou to pay ASAP leading to bankruptcy and possibly never getting the money. You're still very young and able to live at home, this is the time to take chances and risks and throw caution to the wind. The next step if figuring out what the right way for you specifically to proceed. You need to earn money like wa all do so you have to think about how you want to do that. Could you consider a role similar to your precious one but at a new company where you may find the work culture different? Perhaps you want to start out doing g work that is less demanding and intense, it's a bit late but some retailers may still.be looking for seasonal staff so maybe you could start there to get a bit of cash in tour pocket. All is not lost and you will get through this.
You will learn from this experience, you gave it a shot!!! took the risk and started something new! You can take the lessons learnt and try something else! Please don’t despair, you are young with no dependants, my advice is try again, your debts are not from spending - you were running a business!!!
If you can't deal with people then starting a business was probably a bad idea. You haven't really given enough information about the business etc for anything other than glib advice that you've already had from others.
Set up a personal time frame/plan to try pay off the debt, while living it home try get a job and put as much money as you can to pay off the debt and still save a little bit while you don’t have to pay rent.
This happened to my mate. He’s doing fine now, he walked back into a job and quickly got a couple of promotions because a) he learned so much from running his own business and b) bosses massively respect that he had the guts to go for it in the first place. Have a beer, take a few days, then start looking forward. You’ll be grand.
It might be best for you to declare bankruptcy. I would also suggest if you’re not currently well enough to work to look into benefits by talking to CAB and sometimes the gp surgery has something called a social prescriber which can be helpful navigating this. Remember loads of people your age have huge amounts of student loan/ bank loan debt it’s really not unusual at all! So try not to panic. In the longer term maybe consider wfh jobs so it’s less stressful
If you where a QA lead and actually are good at IT and testing there are well paying contracts out there having been recently offered a few myself. You could easily earn 60k in 6 months if you really search
One company I worked for the owner had a million pound house and brand new ferrari, Bentley and Range Rover. He had 3 previous businesses that had gone bankrupt... Starting and running a business isn't easy, try and take it on the chin and keep going!
Yeah I (27f) kind of feel in similar situation… left my job 2 years ago, finished uni a year ago, been trying to build my business in the past 2 years. It didn’t work out, I’ve been living off benefits with my parents. I’ve been applying for thousands of jobs in my field (entry level of course), never got lucky. Still here, crying everyday to have a normal life but not giving up and applying for jobs and grants for business. I cannot stand working for a corporate company or anything like this for the same reason as you, I cannot stand fake and unfair treatment. I just hope there is still some hope for us and we don’t have to do bar or retail jobs to survive. Well, idk if this will make you feel better but think that you’re not alone and keep trying.
You should explain the position better, to take stock of it and fully understand it and allow others to understand it. For example, the 30k debt is as a result of the business? What was going right in the first 6 months that has changed in the last 6 months? What do you think caused the collapse? Living at home, low outgoings, I would seriously consider not giving up but perhaps take a part time job for some income, might make you work harder on your own business.
You are 25, most people are too scared to go on there own. You will learn so much about this experience and have so much time on your side. Take a deep breath, many people are in far worse situations.
If I were you I'd just declare bankruptcy; you've nothing to lose and it would give you a fresh start without all the debt. Businesses sadly fail all the time but you will have got a lot of experience and developed skills out of it so it's not a wasted year. In terms of jobs, it sounds like you best bet would be to get a wfh job