Debt free on benefits

Glynis

So Ok, I don't earn thousands of pounds a year, have a mortgage or credit cards but I fell in to the dangerous 'Catalogue' trap.
When you can't afford to buy things because you are on Incapacity Benefit, this is your only source of credit.

So now I am in about £1600 worth of debt - this is catalogues and general day to day expenses. Call me stupid but for the life of me I have major problems trying to work out monthly costs as I get my benefit every week, no-one seems to understand that dealing with weekly finances are way different than monthly.

My finances are delicately balanced and usually they work OK, but then you get the bank (see reclaiming thread) that decide that as I went over my overdraft limit by £7 (for less than 24 hours) they are going to fine me £28, I say fine because that's what it is, not a charge.

So this week I won't be able to pay all my debts, in fact its lucky I did a cook - up last week and have some food in the freezer as I have only £6 for food till I get my next benefit. This will have a knock on effect as I try to catch up on payments in the coming weeks.

I have already spoken to all I owe money to and reduced my weekly and monthly payments, I have no savings left as I've been on IB for seven years, no chance of going back to work as I am frankly not fit enough.

My main problem is that I need to get my money organised so that I can save a little for emergencies, this worries me a lot, if my fridge / freezer / washing machine died I could not afford to replace them and I can't survive without them.

I asked about the Credit Union but they want a regular £4 a week or £16 a month which I just can't do till I have caught up with payments.

Anybody been it this situation and learned any tricks / tips / helpful ideas?

Cleosmum

Are you getting all you are entitled to? Can you claim disability living allowance? Do you get housing and council tax benefits?

As for the bank account, i would open a basic account away from anyone you owe money to and away from your current provider and start afresh. it would be better to deal only in cash, then you just cant go overdrawn. You should be able to get paying in books, giro slips, or payment cards for pretty much all the people you owe to.

What about posting your statement of affairs here so that the lovely people here can see if there are any areas you can cut back on? if you pay weekly then do a weekly one

brightonman123

1st rule -

** DONT BUY ANYTHING ELSE! **

if anything was bought recently, contact the catalogue co and explain situation; if unused, maybe able to return items for credit to your a/c..

if not, then get try and sell at a carboot, ebay etc.

when your income is low, last thing you should be doing is racking up more credi - been there, bought several t-shirts..

health wise, try and get out at least for a walk- fresh air and sunshine may perk you up, and get brain cells goiung again..

1st trip should be to social services or CAB etc, to see what other help you can get.

hang in there!

Buffythedebtslayer

I know what you mean about the weekly monthly thing! when I worked as a temp I couldn't havve told you what was going on with money!

Do post a SOA and honestly watch the magic start!
I 'd open a new bank account with Alliance and Leciester - I think they do an offer through Quidco(a money back site)so you could get some cash? I am sure an expert will explain in sec,

will be back later - keep postingxxx

Glynis

Thanks for the reply.
Yes I am getting all the benefits I can claim for, at present, I have tried to get DLA on several occasions but I am told I don't qualify for it. Neither do I qualify for a Budgeting Loan or a Hardship Grant of any kind. I'm told that because I get an age supplement on my IB I'm not allowed to apply for them.

An unfortunate set of events earlier in the year means that I can't change my account. Someone cloned my debit card and stole 50 Euros from my bank account, the bank gave me an overdraft of £100 to tide me over and pay my bills.
Although I hadn't used the whole of the overdraft until three weeks ago it was not a problem until I realised that a catalogue transaction I'd made in April wasn't completed till June.
I thought the money had come out of my account in April but it hadn't, the catalogue took it the day before my benefit went in the bank. Hence the overdraw was less than 24 hours.
I rang the bank and explained this but they said they couldn't do anything as they were 'not allowed to give refunds on charges' and that I had to write to them with a full set of income / expenditure sheets so they could 'help me with my financial hardship'. I have written back, sent the forms and explained that if they weren't taking 1/3rd of my weekly income I would not be in hardship!

I'll work on the statement of affairs and post it.

Glynis

I'll just add that I do get Housing & Council Tax benefits and I don't drive, smoke or drink (can't afford it!!)

garnettgirl

Have a look at joining freecycle. If your fridge etc does die, you can post a 'wanted' and see if anyone has one that they don't need.

brightonman123

also check local friday ad- there is a free section there too.

Gillianh2

Also have you contacted the catalogues and asked them if they would consider giving you a reduced payment plan for the next 3 months. I did this a couple of months back for a friend and they were extremly helpful and allowed her to reduce her payment for 6 months. She was afraid to contact them, so I contacted them (with her permission).

Good Luck

Glynis

I've already spoken to everyone I owe money to, asked for and got reduced payments. Not buying anything else after the last fiasco!! Got everything reduced for 6 months +.

tallyhoh

Have you contacted the bank about the £28 fine? Give them a bit of grief over it & tell them you are on benefits & they are making your disability worse. Also starving your family.

Dont forget they cannot touch your benefit money, its actually illegal not just immoral.