Desperate...need some help/support

Toomuch

Am being absolutely overwhelmed by everything at the moment

My husband and I have been setting up our own business over the last two years, and are now in £50k of unsecured debt, and £30k of secured, plus our mortgage.
Writing that down is terrifying.
We have started on a DMP with CCCS, but everything seems to be falling apart at the seams, could not make our last payment, one of our creditors has sent us a claim form (have returned this), and our bank account is in a state. They have so far charged us £300 in bank charges this month, I feel powerless to stop this spiralling even further out of control.
Because we are still working on the business, I am the only wage earner and the pressure of it all is really starting to get to me, I feel sick to my stomach every time I walk through the door in the evening because I don't know what letters are going to be on the doorstep.
My husband is supportive but TBH we are both as depressed as each other about this.

I guess what I am saying is that I want to know how I start 'afresh', I can't get out of this spiral with the bank.
I am terrified we are going to lose our house, and even more so, our business (we are both directors), as it is something we feel very passionately about, things are on the up business wise, but times are tough at the moment in the industry.

Sorry, that was such a ramble.

vikki400

I'm really sorry you are feeling so overwhelmed; I don't know if I can offer any advice, but I'll try.

Have you talked to the cccs about the missed payment and the letter from one of your creditors? It might be an idea to look at the reasons for missing the payment: was it something unforeseen and unusual or something that is going to be happening every month so causing you to miss more. They will probably be able to suggest how to alter your payments to suit your new situation if it is the latter.

I would also say it is worth talking to the bank about your charges. If you explain that it is causing you such problems they may refund them. Worth a try.

TBH it sounds like you need to relook at everything afresh - try doing another SOA a lot of costs have changed for us all in recent month and it is worth keeping an eye on this in a changing market. If you get a chance you could post it up and everyone can try and help find the problem.

Most of all, remember how good it feels just to understand the problem and see a way out and try and get back there.

Toomuch

My SOA is very realistic and fine, but I can't stay within a monthly budget when the bank keep adding charges upon charges upon charges...I'm now £300 down (which came about because someone who pays me rent bounced a cheque on me), so then other payments bounce, and I get even further down....and so it spirals, then I miss my CCCS payment and the situation with the debts gets even worse.

Toomuch

Meant to add, the bank is Alliance & Leicester (it said on here they were good), I have tried speaking to them, their customer service is absolute zero, they won't even enter into discussion re. the charges. They are charging £25 for every payment returned, £25 everytime I go overdrawn and then £5 a day for every day I am overdrawn.

scaredy_cat

have you opened a new bank account so that the money you get isn't just swallowed up by the od? Have you included the od as part of your debts on the DMP?

Jesthar

Toomuch wrote: »

Meant to add, the bank is Alliance & Leicester (it said on here they were good), I have tried speaking to them, their customer service is absolute zero, they won't even enter into discussion re. the charges. They are charging £25 for every payment returned, £25 everytime I go overdrawn and then £5 a day for every day I am overdrawn.

*hugs*

Have a look at this on reclaiming bank charges due to financial hardship:

http://www.moneysavingexpert.com/reclaim/oft-bank-charges#hardship

No idea if it will work, but it has to be worth a try! If I read it right, you may even get past charges repaid too, if they have levied charges before. Make sure you read it all, including the success stories, too. Anyone else got any thoughts on this? Not my specialist subject!

Also, have you spoken to CCCS about this? What did they say?

REALLY hope that helps a bit...

monday_blues

Hi there Toomuch

I can totally sympathise with your position,it sounds like us! TBH I can see a lot of benefits of being "employed" and as such, suggested to my OH that he return to work, even a lesser paid job, whilst running the business in addition to this. Basically changing the structure, as the business couldnt get established financially because we needed so much money from it to keep afloat, and vice versa because there wasnt enough funds in the business a/c for unforseen things, we added to our CC for essential vehicle repairs etc etc. And so a vicious circle.

Is it a possibility to go back into employment to keep afloat, as the way the economy is, who knows how many small businesses will fail. Sorry to be a pessemist. Good luck though, whatever you decide.