Serious trouble

Rubyshoes_3

Sorry, but this is going to be quite a long message ! I'm seriously in trouble and don't know what to do. Not sure how far back to go to explain my money problems so I'm gonna start where I think they all started and try my best to keep it as short as possible.
I couldn't stand living at home any longer so with my first wage age 17 I moved out; this was 4 years ago. I was only working part-time for about £500 a month, moved into a shared house for £250 a month including my bills etc. The housemates were an absolute nightmare, so I took it for as long as I could, and then moved out again, into a place on my own. By this time I was working p/t and recieving a bursary for my college course, so I had a combined income of about £1100 a month, and my rent was £525, not including bills.

After living there a while I became ill and had to quit the job, leaving me with only my bursary of £627 a month to pay for everything with. Since I used my first ever wage to pay rent on the first house, I'd never had any chance to save any money. I had an overdraft of £1000, upped to £1500, which I maxed out trying to pay the bills and rent. I struggled with this for months because I desperately wanted to keep the house. Then the letters started dropping through the door - direct debit to Scottish Power cancelled because of insufficient funds, same with Virgin Media, same with my rent.

I was burying my head in the sand and ignoring the letters as much as I could while trying to save some money to pay for it all. I started distributing Avon catalogues to try and earn extra money but this got me even more in debt because when I went to deliver people's things, they weren't in, meaning I'd paid for their stuff, they never gave me the money, and in order for the loyal customers to be able to order more, I had to pay the full bill out of my own money. So then I started getting letters from them, with a £20 charge added every time they sent me a letter to ask for money. I only have one bank account which is with Natwest, and with my direct debits trying to come out every month and failing to, they charged me every time I went over my overdraft £30 a time, which I did often, and obviously the £30 charge took me over it again. On top of this there was interest of about £20 a month.

I got a letter one day from a debt collection agency in Coventry, saying action was being taken against me from my old employer, M&S, because they overpaid me when I left. Apparently this letter was my 'final warning' and I had 7 days from the date of the letter to pay the £344 they wanted, so really I had 4 days. When I sent them a letter saying this was the first I'd heard of it, it turned out they'd been sending all the previous warning letters to my old address (even though M&S had my new address), so they'd been demanding this money for months, sending letters to a place I hadn't lived at for a year. I told them I couldn't afford to pay it since my outgoings were already way over my incomings, and said I'd pay them £5 a month. They agreed to this and I went into the bank every month to pay it (I daren't set up another direct debit in case it kept taking me over the overdraft limit again).

Eventually I couldn't afford the rent at all any more so I had to move house. I had to move in with my grandparents in May 2008 which is where I'm still living today because I just can't afford a private rent, and never get anywhere with the council at all despite applying for properties every week. I still completely max out my overdraft by the end of every month despite not really spending on anything, I get £627 bursary and pay £100 board, and then I have food and travel expenses, but that's it.

When I left my old house I left the bills and the debts. I just couldn't deal with them and was stupid, thought I'll deal with them later, in a couple of months when I get out of my overdraft and can afford it, but of course that hasn't happened. So now they're all finding me and demanding money and I'm absolutely stuck. I got a job but was made redundant in October and am still looking for one, can only work part-time as I'm still on my course.

The landlord of the house also believes I owe her money. I believe I don't. When I moved in I gave a deposit of £630. I also did an inventory check on moving in, and on this I did write that I noticed the carpet had several red spot stains on, like red wine, and some white spot stains which I couldn't remove. These were there before I moved in. There was an accident while I was living there that left a small section of the kitchen worktop burnt around one edge. The kitchen was only tiny so it would've cost about £30 to replace the worktop. She decided that this damage, and apparently damage I caused to the carpet, meant she had the right to keep the entire £630 bond, and also claim that I still owed her a month's rent, which I definitely didn't. For months she was chasing me for these, and probably still is.

A few months ago a letter arrived from the debt collection agency from M&S. I'd completely forgotten to pay them each month so now they were after over £500, which thankfully my family agreed to lend me to pay them off. That debt's sorted now, but now I owe my family.

Just today I got another letter from a debt collection agency - LCS Civil Enforcement saying this:
I write with reference to the above mentioned case number and outstanding Scottish Power invoice. We have recently undertaken an investigation into the utility supply to [my old address] between 04/03/2007 and 27/06/2008. Our investigation has led us to believe that you have moved from the supply address to the address above and are the person responsible for the consumption of this supply. Would you please contact us on 0870... so that we can discuss repayment of the outstanding invoice.

I moved out of the house on 3rd May 2008, and they're saying I owe them £321.93, which I'm sure I don't. I have absolutely no money at all to give them, and don't know what to do. I don't even know how to dispute it because I'm not a complainer - I don't argue with people down the phone and whatever they say, I go with, I'm a complete pushover and won't stand up for myself.

If they all start finding me as they seem to be doing, I don't know what I'll do. All of my income is taken up by living expenses, it's not like I'm frivolous with it, there's nothing I can do about it until my course finishes in August and I hopefully get a job, and I'm in a ton of debt. My credit rating is so appalling I can't get a loan or credit card or increase on an overdraft or anything. I can't borrow more money from family, I owe them so much already.
Avon, when I moved out of the house, were saying I owed them nearly £300.
Landlord thinks I owe her £1155.
Scottish Power are wanting £321.93
I'm not sure how much I owe Virgin Media, it's probably about £100 but with 'admin charges' for sending me letters who knows ?
I owe family £500.
Plus when I finish my course in August, the university library are going to want to know why I haven't paid my (probably about) £300 library fines, which are possibly much more since I lost the books concerned in the house move and have no idea where they are or when I'll find them. I've been told by a tutor I can't graduate with library fines but I don't know if this is him scaremongering or if that's true.

I just don't know what to do, I'm sick of it all. I have serious depression as it is and just feel weighed down by it all but it doesn't seem like there's any way out. I'm desperate and completely stuck. Any advice greatly appreciated.

Rubyshoes_3

Also I'm not considered a 'proper' student. I'm an NHS student, which is why I'm bursaried, and although we're under the University of Leeds, we're not classed as university students, which means I'm not entitled to student overdrafts, student loans, discounts, university hardship fund and services, etc.

Horace

Can you post your Statement of Affairs showing your incomings and outgoings. https://www.makesenseofcards.com/soacalc.html - button on there for MSE press it to format for here then copy and paste it here.

Keep a spending diary because you might be frittering money away and if you can set up a different bank account (not at Natwest).

Unfortunately, what your tutor says is correct you cannot graduate if you have unpaid library fines - these are the rules at most universities.

Sorry I can't advise on the other debts other than to suggest that you speak to one of the debt charities such as CCCS or National Debtline.

TCM_3

Hi Ruby
Hang in there, you've done the right thing in owning up to the problems, which is scary in itself.
I'm not the person to give you financial advice as i really don't know even half as much as alot of the others on this site but I want to say hang on in there, is there any work you could do in the evenings to help pay off somethings? Approaching some of the people you owe money to and explain the situation to them or maybe go to the Citizen's advice or one of the free debt councilling places is something to think about.
Hang in there
T
xxx

Rubyshoes_3

Thank you to both of you for your advice. It always sounds like I'm picking holes in people's advice but trust me I'm not, it's just awkward ! My course is full-time and I barely have a minute to do anything at all, I'm so exhausted all the time. At the minute I work Friday nights, selling keyrings in nightclubs which I hate, and only get commission for (so if I don't sell, I don't get paid), I've been doing this since December, but I'm desperate. I'm always jobseeking but haven't even seen anything I could apply for in months.
Lots of times I've meant to go to Citizens advice but I just don't have the time. I'm not allowed to take any time out of college, I don't even have time to go to the doctors for my medication, or to the housing office to tell them how desperate I am to move, or to my counselling sessions or anything. It doesn't matter how much I need to do these things, I just never seem to have the time. It doesn't help that their opening hours are exactly my college hours, the only time I can go is in the holidays. I hate living like this, but any spare time I do get, I collapse and go to sleep.

I find it really hard to work out exactly what I'm spending on each thing, Horace. I've done things like that loads of times but without actually having proof of what I have and haven't spent in front of me, I find my guesses at what I spend on things are way out ! This is my SOA at a guess...

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 627.5
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 627.5
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 3
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Natwest overdraft interest.............. 20
Total monthly expenses.................. 593

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 627.5
Expenses (including HP & secured debts). 593
Available for debt repayments........... 34.5
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 34.5
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

TCM_3

Hmm. Is there any work available at the college perhaps? Or near to the college? Selling keyrings in a bar on a Friday night would not be my cup of tea either! I see on you SOA that you have pets... would maybe some sort of work with animals be something to look at as if its something you enjoy it may not seem like work at all?
Is it an option to take a year out of college and work for a year then go back or could you continue to study in the evenings? I honestly don't know what to advise you.
I just wish you all the luck in the world and hope that things will get better for you as i am sure they will.
T xx

Horace

Ruby - I know that you are guessing on what you spend on stuff.

Your grocery bill is way too high - I live on my own and can manage to survive on £50 a month. Do you really need to buy clothes every month and your entertainment bill is also high at £60 a month. Look at the freebies board to see if there is anything over there - sometimes you can get free cinema tickets etc.

You need to make time to see your GP and counsellor. It's alright saying that you don't have time but you need to make time. If you are a student nurse, have you thought about going onto an agency listing so that you can pick up some work that way, however, minor it may be.

To find out what you are spending take a little notebook out with you and note down every newspaper, chocolate bar etc that you buy as this soon adds up. Sell what you no longer wear or use either at a table top sale or on ebay.

I am not trying to lecture you but keeping a spending diary will certainly help. Selling keyrings is about as bad as selling cockles and can be demoralising when people won't buy anything. If you can even get some bar work that would be a help.

Good luck.

Lara44

Hi Ruby

First of all well done for coming here and first of all don't panic. This is only money and your health and course are more important here. However, with that said it's important to get this sorted now.

Ok - the first thing to do is gather together all your post and write a list of exactly what creditors are asking you for. This can go in the soa in the unsecured debts section. Include everything for now, even the disputed stuff.

Now we can look at a realistic budget for you to stick to, and help you find ways to pay off the debt. Your rent is great and that's including bills? Are you able to stay with your grandparents until your course completes? This would be ideal.

The sum for groceries is massive, for me it would be about £80, but even this is generous compared to many in the old style board. If you make a rough plan of what you'll eat for the week ahead, you can cut out those costly extras. It's all about the home cooking - visit the old style board for lots of ideas.

Clothing I think is a lot at the moment, can you cut this down to around £10? I use ebay, swap parties with friends and shop in the sales. Can you break down this travel figure for us a bit more?

Do you have lots of prescription charges to pay? If yes, you can buy a yearly certificate that may well work out cheaper (sorry don't know too much about this). What about the vet / insurance bills? What does this cover?

Do you have many presents to buy a year? There are lots of sites where you can earn small bits of money, for example clicking an ad on Pigsback, or writing a review on ciao, or filling in a survey. There is lots of info here on the up your income board which is well worth a look. I try to pay for all presents with points, and they also provide some treats too.

Upping your income is a good idea - your keyring job sounds like hard work! It is well worth keeping your eye on all possibilities. What about something like mystery shopping, where you go and try out a shop or a service for free / get paid? This could provide some much needed treats and some extra cash.

Keep posting - we will get you sorted. The list of debts is a priority now. At least you will have learned about money young, and when you're older will be super savvy!

L x

Rubyshoes_3

TCM wrote:

Hmm. Is there any work available at the college perhaps? Or near to the college? Selling keyrings in a bar on a Friday night would not be my cup of tea either! I see on you SOA that you have pets... would maybe some sort of work with animals be something to look at as if its something you enjoy it may not seem like work at all?
Is it an option to take a year out of college and work for a year then go back or could you continue to study in the evenings? I honestly don't know what to advise you.
I just wish you all the luck in the world and hope that things will get better for you as i am sure they will.
T x

There's nothing at all at the minute, everyone's getting rid of employees rather than taking them on. I'd love to go back to M&S again, but even they aren't employing at the minute, which is really unusual for them. I'd also love working with animals but everything I'm qualified to do tends to be voluntary work, plus you can only really do it 9-5 whereas I need a thing I can do after college really, or at weekends.
It's not an option for me to take a year out. I do dental technology at the dental institute, and our year is the last year of the BTEC course before they swap it completely for some sort of degree, so it's now or never unfortunately. People keep telling me to quit the course and get a job but I don't see the point in doing 2.5 years of a 3-year course only to quit and work in a minimum wage job.
Thanks a lot for what you've said, though, I realise it's a tough one, it's why I'm stuck ! seems like I've tried everything.

Your grocery bill is way too high - I live on my own and can manage to survive on £50 a month. Do you really need to buy clothes every month and your entertainment bill is also high at £60 a month. Look at the freebies board to see if there is anything over there - sometimes you can get free cinema tickets etc.

I don't know, I might not spend that on groceries, but included in groceries is what I spend on food when I'm out of the house as well, and it's really expensive. As for entertainment, I'm not sure exactly what's to be included in that so I just guessed a sum, because I know I must be spending my money somewhere, I just don't know where.
I don't think I do buy clothes every month but again it's just another stab in the dark at somewhere or other my money must be being spent, because I honestly don't know what I do with it ! My travel expenses are probably more than I put in the SOA.

You need to make time to see your GP and counsellor. It's alright saying that you don't have time but you need to make time. If you are a student nurse, have you thought about going onto an agency listing so that you can pick up some work that way, however, minor it may be.

I know you're right, but I don't know how to. They don't do appointments on weekends or outside of college hours, and I definitely can't take time off, I can't pull time out of nowhere, I don't know how to find time for the appointments, I've been dealing with this dilemma for years and always have to do one or the other, I can't be at college and go to the doctor's. I'm a dental technology student. Do you mean an agency for office temping etc. ? My worry with them was again that problem with hours, only being 9-5.

To find out what you are spending take a little notebook out with you and note down every newspaper, chocolate bar etc that you buy as this soon adds up. Sell what you no longer wear or use either at a table top sale or on ebay.

I will do that, it seems the only way I'm gonna find out where it's all going. I've thought about the Ebay idea recently as my boyfriend has made a fair bit selling old computer games etc., but after having looked, I don't have anything worth selling ! I've even made a load of greeting cards to put up on Ebay but nothing sold.

I am not trying to lecture you but keeping a spending diary will certainly help. Selling keyrings is about as bad as selling cockles and can be demoralising when people won't buy anything. If you can even get some bar work that would be a help.

Oh no I completely understand, I think the diary thing is the only thing that will tell me exactly what I am doing with my money because it always seems like I have nothing to show for the £500 a month I have obviously spent on nothing !
Yeh, sometimes I'm lucky just to make my travel expenses (I have to get a taxi home at 2.30am which costs £10), sometimes I'm glad just to break even by the end of the night. It can potentially be a good earner but as things are at the minute, the clubs are pretty deserted and not many want to buy. I'm still looking for jobs everywhere, there's not many things I'll rule out so I'd be willing to work in a bar if I can find anywhere that's hiring. Thanks for all the info !

TCM_3

Ruby, a quick thought.... I could be barking up the wrong tree completly!!
I see no point in you quitting your course, you've put your heart and soul into it and with such a short time to go it would be mad to quit. Are there any of the dental labs in your area who would take you on as a work experience student? It may be voluntary to start with but I took on a student who wanted to work for free last summer (nothing to do with teeth!) and she has turned out to be a god send, working for me a late evening and a Saturday. I would be lost without her!
The students union place is sometimes a good place to go for support, although i do agree with the others that you need to make time for your health and well being.
What about doing some of the online surveys to earn a bit extra? You could fit that in between studies. I think you should do something that will help you find "Ruby" again as she's been studing so hard she's gone missing - you need to find something that will make you feel good about yourself again - not that it will solve the financial situation but it will help you feel stronger to address it.
i'm thinking of you
T
xx

Rubyshoes_3

LaraHoust wrote: »

Hi Ruby

First of all well done for coming here and first of all don't panic. This is only money and your health and course are more important here. However, with that said it's important to get this sorted now.

Ok - the first thing to do is gather together all your post and write a list of exactly what creditors are asking you for. This can go in the soa in the unsecured debts section. Include everything for now, even the disputed stuff.

Now we can look at a realistic budget for you to stick to, and help you find ways to pay off the debt. Your rent is great and that's including bills? Are you able to stay with your grandparents until your course completes? This would be ideal.

The sum for groceries is massive, for me it would be about £80, but even this is generous compared to many in the old style board. If you make a rough plan of what you'll eat for the week ahead, you can cut out those costly extras. It's all about the home cooking - visit the old style board for lots of ideas.

Clothing I think is a lot at the moment, can you cut this down to around £10? I use ebay, swap parties with friends and shop in the sales. Can you break down this travel figure for us a bit more?

Do you have lots of prescription charges to pay? If yes, you can buy a yearly certificate that may well work out cheaper (sorry don't know too much about this). What about the vet / insurance bills? What does this cover?

Do you have many presents to buy a year? There are lots of sites where you can earn small bits of money, for example clicking an ad on Pigsback, or writing a review on ciao, or filling in a survey. There is lots of info here on the up your income board which is well worth a look. I try to pay for all presents with points, and they also provide some treats too.

Upping your income is a good idea - your keyring job sounds like hard work! It is well worth keeping your eye on all possibilities. What about something like mystery shopping, where you go and try out a shop or a service for free / get paid? This could provide some much needed treats and some extra cash.

Keep posting - we will get you sorted. The list of debts is a priority now. At least you will have learned about money young, and when you're older will be super savvy!

L x

Thanks for replying ! Yes, my board includes bills. I'm hardly ever in the house anyway so it's not like I use much of anything ! I probably can stay with them until the course finishes, but it's a double-edged sword in itself. The housing situation is making me so depressed, I attempted suicide in January because I can't stand living here. I know they're doing it as a favour to me, but it's a nightmare, it really is. My grandad's brother also lives here (he's always lived with them), and makes it very clear I'm not welcome. I could go on all day about the ways I hate living here and how unbearable I find it but I won't subject you to that !

My travel, I spend £4.40 a day on bus fares, except Friday when I spend £5.20, plus a taxi home for £10 from my job. My boyfriend lives in Harrogate which is £5 to get there, and £5 back, but I don't visit him regularly, it varies whether I'll go over there or he'll come here. Normally he comes to Leeds since he has a bus pass. I also get the train to and from York once a week (costing £13.30 for a return), but usually my travel expenses for this are paid by my work experience placement.

I looked into the pre-payment thing but I think I worked out it would cost me more. I'm supposed to have two prescriptions a month to pick up but a lot of the time I don't because I can't afford it or haven't got the time to go for an appointment to renew my prescription. I've told the doctor a million times there's not a lot of point in me being prescribed anything because I can't afford to get them anyway (and now the price is going up, yet again).

The life insurance thing is a policy for gender-specific cancer I signed up for when I was 18 through M&S, I pay £3 a month and supposedly if I get a gender-specific or breast cancer, you're insured, I don't know, I didn't know half of what it was when I signed up. Have thought about pulling out but then it's only £3 a month I will otherwise spend on a magazine or summat else I don't need, and I've put a lot into it now.

The vets bills are where I put my pet food expenses. It's a complete guess as it might be more or less, but I spend £3-ish on a bag of rabbit food (lasting about 3 weeks), about £2.50 on degu food (lasting about 3 weeks), £3 on bird food (lasts him about 2 months), £3 on hamster food (lasts about 2-3 months), I buy frozen bloodworm for the newts and frozen shrimp for the turtle, these come in packs I can get 3 for £5. The newts will probably only get through one pack in their lifetime, and a pack lasts the terrapin about 2 weeks. I buy a big bag of dog biscuits to mix in with rabbit food for the rat, which is £1 and lasts about a month or more. Then there's frozen mice I buy for the snakes, they eat 2 mice once a week, sometimes once a fortnight, at about 50p a mouse for two snakes, and 30p a rat for one snake.
Luckily they're all quite fit and haven't needed the vet, but if they did I don't know what I'd do, and this weighs on my mind a hell of a lot because I should be able to take them for any attention they need at a moment's notice and I can't. Just a few months ago I had a snake who needed the vet, the day before payday. She had to be nebulised and kept in overnight, and it cost me £140, which I had to borrow and pay back the next day. Had I not been able to, I've no idea what would have happened.

I do go a bit mad when I have to buy presents but it's hard to put into a monthly expenditure. I make my own cards now but I probably spend more than I should presents-wise.
I'd really enjoy mystery shopping, I've signed up for it twice now but never heard anything from them.