Not Quite Rock bottom

Mupeteer

Well, it's finally happened and I'm in a much worse financial state than I ever thought possible. I only hope this is really as low as I can go.

I received a letter from my bank the other day to tell me that they will be reducing my overdraft limit on 23rd December. Merry Christmas! Big surprise, I'm over the new limit at the moment and the wont extend the current term. So basically I'm screwed. To add to that, last night my internet banking wasn't working and wouldn't tell me what I still had available on my credit card. Long story short - today I'm over my limit. So charges to look forward to there.

I have no money to pay bills that are due out in the next couple of weeks, never mind eating and generally surviving. My car needs to be MOT'd by the 28th and I don't expect it to pass.

I'm not working just now but I am looking for something desperately, not that it'll help me out they way things are at the moment.

I've lost my paddle and the water in sh*t creek seems to be getting thicker.

I'm away to look at it all in more detail but I've a feeling that it'll only be worse than I'd hoped.

Piquant_2

Oh Mupeteer, how horrible you must be feeling. I wish I could help. I can only offer a virtual hug and know that the financial wizzs will be along in a little while

Piq

GeorgeUK

Hi Mupeteer

Might be worth posting up a new SOA so we can see if there is any room to manouver. Have you reclaimed bank charges and credit card charges? Hope you find something soon.

sammy115

I thought the banks had agreed to not pulling the rug out from under people's feet at such short notice...

What is your overdraft at the minute and what are they reducing it to. Are they doing it in stages....

I would very quickly get yourself a new basic bank account and arrange for any benefits you get to be paid into the new bank account. I am sure someone with a bit more knowledge will come along and let you know but i don't think the bank can use benefits etc to the extent that you cannot live..

Not sure you can do anything about the credit card charges except ask nicely, but it does seem like you need to do a SOA for us to look at so we can help you get back on your feet.

RAS

What you can do about all these charges is reclaim them.

Defo get a new basic bank account not associated with your current bank.

doodledo_2

Mupeteer so sorry to hear you are in a crappy place at the mo.

Do come back and post all your details once you know them and maybe someone somewhere may have an idea.

Have you spoken to the bank about the overdraft, would they consider reducing it gradually?

falady

hi mupeteer,

sorry to hear things aren't so good for you at the moment. What kind of work are you looking for? Is there anything you can do to bring a bit of extra cash in in the meantime? eg helping out a friend with decorating, babysitting etc? It might just bring a free meal or a bit of cash your way.Also have a think about selling stuff on ebay if you have anything that might sell.

Hope things improve for you soon,

Ali

tesuhoha

When you get your car MOTd go to a government testing station. As they havent got a vested interest in doing repairs they are more likely to be honest. Good luck with everything else.

Mupeteer

Ok, here's my latest SOA. Any suggestions would be welcome. I've added a few notes at the end so I hope it all makes sense.


Monthly Income Details
Monthly income after tax 467
Other income 370
Total monthly income 837

Monthly Expense Details
Mortgage 123
Secured loan repayments 0
Council tax 0
Electricity 18
Gas 30
Telephone (land line) 0
Mobile phone 15
TV Licence 12
Satellite/Cable TV 0
Internet Services 15
Groceries etc. 60
Clothing 0
Petrol/diesel 120
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car parking 40
Other travel 0
Medical (prescriptions, dentist etc) 0
Pet insurance/vet bills 12
Buildings and contents insurance 15
Presents (birthday, christmas etc) 0
Haircuts 0
Entertainment 0
Holiday 0
Emergency fund 0
Total monthly expenses 460

Assets
Cash 0
House value (Gross) 45000
Shares and bonds 0
Car 2000
Other assets 0
Total Assets 47000

Secured Debts
Description Debt Monthly APR
Mortgage 28000 (123) 5.5
Total secured debts 28000

Unsecured Debts
Description Debt Monthly APR
Lloyds TSB CC 12618 210 19.9
Cahoot Flexiloan 5975 150 17.9
Barclaycard 4600 103 5.9
Lloyds TSB overdraft 1408 0 0
Cahoot overdraft 1995 0 9.8
Egg Card 2540 63 19.9
Total unsecured debts 29136 526

Monthly Budget Summary
Total monthly income 837
Expenses (including secured debts) 460
Available for debt repayment 377
Monthly UNsecured debt repayments 526
Surplus(deficit if negative) -149

Personal Balance Sheet Summary
Total assets (things you own) 47,000
Total Secured debt -28,000
Total Unsecured debt -29,136
Net Assets -10,136

1. The £467 shown as monthly income is my student loan so it's only paid for 9 months of the year (Sept - May).
2. As I'm a student I don't have to pay council tax.
3. I've recently cancelled my home phone and sky package in a bid to save some money.
4. My grocery bill is a complete guess but I know I don't spend a huge amount.
5. I haven't shown anything for car running costs such as servicing, tax and insurance as I can't afford them on a monthly basis so, terrible as I know it is, I pay them annually on one of my (now maxed) credit cards and worry about them later.
6. No idea how much I spend on things like birthdays and Christmas.
7. I haven't included anything for clothes or entertainment because my situation is so bad that there is no way I could justify spending in either of these categories.

I think that covers anything but feel free to let me know if not.

sammy115

okay first things first...student loan is for 9 months so what you should do is times it by 9 and then divide by 12 to get the 'real' monthly figure...

that works out at about £350 per month. Is there any chance of you earning in the 4 months you are not a student or getting a part time job while you aren't studying.

Next is you should really be on a DMP with payplan or CCS...

£60 is NOT enough for food and as you have only guessed at the figure you need to go down the next piece of the plan and that is writing down what you REALLY spend on everything...Keep a spending diary.

You should put in figures for car maintenance and car tax - putting them on a credit card is what brought you to this situation now so you need to budget for them properly.

You have to know what you REALLY have to give to your creditors.

As a student you must claim back bank charges that you have been hit with at the bank...you should be able to claim them back right away under the hardship rules. Check out any of your loans and credit cards to see if you have any insurance on them that can be cancelled.

As i said previously open a new bank account - natwest do a step account that can be used online.

misspoppy

Hi
have you tried to get a job? Can you call all the pubs in the local area and see if anyone needs staff this time of year you may just be lucky. I think its best to get a new bank account, but don't go for a student one with od etc as you will just be getting in a worse situation. If you have nothing for food etc you could approach your uni/college hardship fund.