Please help - in total debt crisis

destroyedbydebt

I'm really sorry if this is not the place to post, but I just need to get this out!

I was made redundant due to ill health at the end of 2008 (I suffer from severe depression), but was offered a job with a lower salary elsewhere. However due to my sickness record I have had to wait to get accessed by the company's occupational health people. That meeting is next Wed. I'm also still waiting for CRB clearance as I'll be working in a centre with children. In the meantime I've been looking for temp work and other jobs (I haven't been formally offered the job as it's dependent on the occ health assessment) as obviously I need income. I have no idea if or when I'll be able to start the new job.

So far I have had no luck, and I am in a massive financial hole. I have approx £35k of debt, and last year decided to finally do something about it. I started a DMP with CCCS, and felt like I was starting to get a handle on the situation. I also opened a basic bank account with the Co-op as they recommended.

Now though, I've had a huge backslide - I stopped making the CCCS payments, and with no income, the last couple of months have been the worst I've ever known. I am selling everything I can on ebay and Amazon in an attempt to scrape together my rent money - I couldn't pay February's but my amazing landlady agreed to keep my deposit money in lieu of that, and my parents very kindly bailed me out by paying March's rent. However, they do not have much money so I have to pay for April, as well as trying to pay them back.

To top all this off, the Co-op are going to close my account on 3 April as my rent standing order bounced and it's the second time something like that has happened.

Right now I have £1.52 to my name, creditors wanting to take me to court, and I'm so worried and stressed I can't sleep (and I can't afford to eat!). My mobile's been cut off cos I haven't paid my bill, and basically I'm terrified.

I just feel very alone and hopeless about this situation, and I'm starting to feel really very depressed. Having lurked on the boards for a long time, I'm asking all the lovely DFW's out there to offer me some comfort cos right now I literally don't know where else to turn.

Thanks

Angela

mrcow

Hi Angela,
I would say that one of the things you'd need to do ASAP is to contact CCCS and explain your change of circumstance.
Simple fact is that your creditors, no matter how much they'd like to, can't get blood out of a stone.
The main thing is to keep your sanity.

It is stressful. But it is only next Wednesday that you'll hopefully hear some positve news though.
Take care.

Merlinexcalibur

I am sure someone here will help. But you are not alone, that is the important thing to remember.

I just feel very alone and hopeless about this situation, and I'm starting to feel really very depressed.

I would visit your GP in that case. Not just carry on, because it will get worse. And yes I DO speak from experience.

I couldn't pay February's but my amazing landlady agreed to keep my deposit money in lieu of that, and my parents very kindly bailed me out by paying March's rent.

All I can add to this is I hope you have properly drawn up tennancy agreement. Now, the cynical in me is going to say 'well, of course, your landlady is going to be amazing and take my desposit because it's money when said and done' but further down the line things may not be so transparent. I am not being harsh, just presenting what could potentially be a very real scenario for you. Why I said hoped you had a legally drawn up tennancy agreement. Because, on the face of what you've posted it sounds like you are renting not through an estate agents but through a private landlord, there in lies the dangers because you do not automatically have the same protection. Just thought to mention that, not trying to upset you, but just putting another spin on this because no landlord is going to refuse money are they, deposit or otherwise? But now be aware you have now lost that money for the future. And when you leave that property. I've had extensive experience with landlords private or commercial. I would maybe get further advice now on your rental position as this has now happened from CAB or a similar organisation.

The other thing I note is missing is you don't mention housing benefit of any kind? This isn't just exclusive to people on benefits incidentally but anyone who has a low income. So may be worth your while asking your council.

But, of course, I recognize if you are not familiar with this world eg how to or who to approach I do appreciate that. But I would approach your council, as you are out of work so you ARE elligible to claim CTX and assistance with your rent. The draw I can see, because it happened to me once, is whether your landlady is declaring to the council they have tennants. Because the landlady I lived with briefly was claiming rent off 2 tennants in her home and NOT declaring it to the council. She wasn't short of a few pennies, either; did it to get away paying extra council tax. Just something to be aware of.

tuppie

i have no advice but i have a spare hug if you need one as we all need a hug from time to time just if it means a little release


(((((((((((((HUG)))))))))))))))))))))))

10past6

Hi Angela

destroyedbydebt wrote: »

my rent standing order bounced

You must pay your rent, this is a priority bill and cannot be ignored.

Your other priority bills that must be paid are

Gas / Electric
Water
Council tax

CC / loans / O/D are NON priority, and because of that, you need to send the following letter, making an offer of £1.00 pm until your circumstances change


Dear Sir/Madam

Re Account No/Reference No:− xxxx

Since making that above agreement with you, my circumstances have changed.

I cannot now afford to agreed monthly payments because ... [your paragraph added here]

I enclose a Personal Budget sheet which shows my total income from all sources, and my outgoings. As you can see I have only £xx per month left for my creditors. The offers I have made to my creditors have worked out on a pro−rata basis, and I have written to all my creditors asking them to accept reduced payments.

In view of my rcumstances, please would you agree to accept a reduced offer of £1.00. If interest or other charges are being added to the account I would be grateful if you would freeze these so that all payments made will reduce what I owe you.

Should my circumstances improve I will contact you again.

I would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. I look forward to hearing from you as soon as possible.

Yours faithfully

Fire_Fox

Why no income? Your should be entitled to either Incapacity Benefit or Jobseekers Allowance at the very least, possibly housing benefit, council tax benefit as well?

GeorgeUK

I would also advise posting up a statement of affairs so you can see exactly where all the money is going and if there is any way to reduce your expenditure.
http://www.makesenseofcards.com/soacalc.html

You may also be able to reclaim bank charges or credit card charges you have had.

DawnW

Merlinexcalibur wrote: »

All I can add to this is I hope you have properly drawn up tennancy agreement. Now, the cynical in me is going to say 'well, of course, your landlady is going to be amazing and take my desposit because it's money when said and done' but further down the line things may not be so transparent. I am not being harsh, just presenting what could potentially be a very real scenario for you. Why I said hoped you had a legally drawn up tennancy agreement. Because, on the face of what you've posted it sounds like you are renting not through an estate agents but through a private landlord, there in lies the dangers because you do not automatically have the same protection. quote]

Actually the law is EXACTLY the same, and you have the same rights whether you rent from a private landlord or an EA. Variations may occur depending on when your tenancy started (eg re tenancy deposit schemes), and whether your tenancy is classed as an AST, or if you live in property which your LL also lives in. There are no variations that are dependent on whether or not the LL uses a LA/EA though. Landlords are subject to the law just as agents are - in fact more so, as they have the ultimate responsibility for the tenancy.

Georgie4

You really need to do a SOA - link was provided above - if only to have a true picture of your actual situation. Agree with other posters you needto prioritise your debts and try to segment them and worry about them one at a time. Your rent and your council tax are always the highest priority so that you have somewhere to live and you are not taken to court which will always compound your problems. After that you just need to write to all creditors with token £1 payments explaining the situation

Nargleblast

When you found yourself in this hole you should have got in touch with CCCS immediately as they cannot help you if they don't know the full ins and outs of things. Do they know why you stopped making the DMP payments? Or have you indeed been in touch and they've said they can't help?

Remember your priorities are as agreed on your original DMP - you have to house yourself, feed yourself, keep yourself in lighting, heating and mains water services. All other creditors will just have to join the queue and lump it. Do your SOA and get back on to CCCS.