Help: Single mum in debt

tasha_557

Hi I need a little help and advise,

I am a 25year old single mother and lost my job in May 2008.I am in about £10'000 worth of debt (Not including student loans) I am now having to Claim income support, tax credits and child benefit and this is the only income I have.
£60.50 weekly income support
£45.10 weekly tax credits
£18.10 child benefit


I am being hassled by creditors and have informed them of my situation but they are still demanding I pay money which I CURRENTLY CAN NOT AFFORD TO PAY BACK.
I have to pay service charges on my property, telephone and internet bills gas and electricity, tv licence and weekly shopping and travel fare.
I can not even afford to buy clothes for my child or myself.

I have tried looking for a new job and been to many interviews but have not been successful. I have a daughter who is 3 years old and is in part time nursery. I have no friends or family who are able to help me out with childminding.

Can anyone give me any sort of help or advice on what I can do. I have offered a min payment which I can't really afford but they have not accepted.
I'm scared bailiffs will come to my home and take my stuff. I don't answer my door and am so stressed out and feeling depressed.

Please help

p.s I know the judgement some people have about people on benefits but I have had no other choice to. I have looked for work and have worked everyday since my 16th birthday. Please don't judge me for being on benefits.

Jesthar

Hi, tasha, and welcome! Don't worry - no-one here is going to think any less of you for being on benefits, especially as this is obviously not a position you want to be in.

I'm sure some of those a little more knowledgable in the art of dealing with hassling creditors will be along to post some expert advice for you soon, but I didn't want to read and run. *hugs*

One thing that would be very useful is if you could put together a Statement of Affairs - a sort of summary of your financial position and your debts. The link for this is here:

http://www.makesenseofcards.com/soacalc.html

If you fill it out and then use the 'MSE' button in the 'Format results for discussion board', you'll be able to copy the results straight into a post in this thread, then the lovely people here can give you some targetted advice.

Also, have you ever had charges applied to any bank account/credit card/cataloghe account? If so, you canlook at reclaiming any made within the last six years, as they have been ruled unfair - see the 'Reclaim 1000s' section of the board for more information.

~Jes

milliemonster

Hi Tasha and welcome to the forum, please don't feel you will be judged on here, your first priority is to your child, so please don't forget how important that is above anything else (job or creditors)

As Jesthar has said when you can, fill in the SOA, and everyone on here will help to see how we can help you budget

While you are looking for a job, make you are claiming every benefit you are entitled to (pop over to the benefit board to get their advice if you can)

In the meantime, don't offer your creditors what you cannot afford, look at what you can afford (even if it is only £1 a month) and offer that, even f they refuse, pay it anyway. Ignore threats of bailiffs etc as they have no power to take your goods (unless it is council tax, make sure you pay this and your essentials like mortgage/rent and utilities)

don't worry hun we're all here to support you xx

fatbelly

Have a look at Martin's list of organisations that will help you without ripping you off. Here.

You will probably need a debt management plan in the first instance.

Then maybe consider bankruptcy or a debt relief order (April 2009) but we'd need more detail before we could tell whether either of those was really suitable.

Either way, you should know that there is a way forward for you.

Also bailiffs cannot be instructed until there has been a court order, and until you have defaulted on that order. Most creditors do not take court action on most debts.

Please keep posting.

lilangel_2

Have you tried the citizens advice they are pretty good to to help out. They will sit down with you and budget if you need help with it.

At the end of the day pay the most important things like rent and utility bills and rates and tax.

Credit cards come last only offer what you can afford hun otherwise you will get yourself in a right little pickle.

Chin up don't get yourself depressed stay strong for your little one she needs you more than ever.

Most charitable organisations like citizens advice can help you with a debt management plan

things can only get better hun x

Jesthar

Oh, and one extra word of advice - you don't ever need to pay fees for a Debt Management Plan! You will come across many companies who offer fee payign DMPs, but the free debt charities (like CCCS and PayPlan) will do everything the fee paying once can, just for free!

~Jes

Penny2myName

I have to second Jesthar and say if you do go for a DMP only use a free one like CCCS and Payplan. CCCS also have a sticky at top of board if you want to ask one of their advisors a question.

tasha_557

Thank you all for your advice... Woke up feeling alot better and contacted cccs they were very helpful and lovely thank you once again