in debt with household bills

Money_Bunny_4

Hi I've read with interest about others problems and how they are solving them. I feel lucky at times to not have mortgage worries (live in rented property) or huge loans and credit card bills.

But I've fallen behind with some of the household bills and could do with some advice.

Basically I owe around £600 to scottish power for gas and electric and £300 to the water board. Both companies have passed the debt to collectors and I have a CCJ for the water bill. Stupidly I stuck my head in the sand and haven't made any payments or even offered to.

Scottish power want to change the meters to prepayment ones but as I know they charge extra on standing charges for these I don't really want to have to do that.

I live with my partner and 2 kids (10 & 8) and at the moment we're claiming JSA because neither of us are working. we claim £176.20 a fortnight, £110 approx every 4 weeks family allowance and are hoping to claim child tax credits (filled forms in and heard nothing although it's only been 2 weeks).

I also owe £900 approx to my dad and £300 on a £500 lloyds overdraft.

Any advice would be appreciated

jen_jen_2

the first place to start is income and expenditure including what your current usage on water and gas and electric is, you may need to ask scottish power to calculate this for you.
when you know how much your ongoing costs are you can look at whats left over to pay towards the arrears, not a fun task but there is no way round it.

how much does the ccj say to pay? if you cant afford this you need to ask the court to reduce it to what you can afford.
there is also a scheme allowing you to pay for fuel directly out of your benefits - not always a good option so do your income and expenduiture, post it here and see whats what.
The CAB will also help you with court forms and negotiating affordable payments with your suppliers.

Pontoon

The problem with putting your head in the sand is that it just gets worse.
The best thing you can do is to phone them up and tell them your situation and ask them what you need to do to get out of it.

I had to pay off a debt by paying £10 a month at one point. It isn't a lot, but it is a start. It took me about a year before I was earning enough to pay more.
My brother in law works for a bank and one of his comments is that you will be treated with much more respect and kindness if you come forward and ask for help. People who ignore things tend to get hit with the interest and the charges.
You have written down what you owe so you are half way there. Aknowledgement of the problem is half way to solving it.
Make up a budget and make sure the essentials ie gas/elec/rent etc are paid before you spend anything. Make sure you are getting a good deal on everything else by checking out some of the other boards. Be strict with yourself.

Good luck. It can be done!

tango

(Basically I owe around £600 to scottish power for gas and electric and £300 to the water board. Both companies have passed the debt to collectors and I have a CCJ for the water bill. Stupidly I stuck my head in the sand and haven't made any payments or even offered to.)
utility bills are important, have you offered any payments to the debt companies?
(Scottish power want to change the meters to prepayment ones but as I know they charge extra on standing charges for these I don't really want to have to do that.)
Would not this be a good idea,for a while so it took the pressure of you?
.

(I also owe £900 approx to my dad and £300 on a £500 lloyds overdraft.)
Could your dad wait until you get your utilites sorted,and is your overdraft unauthorised? Post back You have taken the first step
Any advice would be appreciated[/QUOTE]

Kimberley

Why not except the prepayment meters until your back on top, then you can go back to paying by DD if you choose, but in your circumstances i would take a prepayment meter if they threaten to cut your supply off. It doesn't have to be forever and if you do then you can ask them to take say £3 a week off your debt. They will set the meter to take the £3 a week when you top up. It's what i done when i owed £400, i asked for a prepayment meter and asked if they would take £3 a week from my debt. They agreed and the pressure of paying the debt was gone and the debt soon clears.

dudleyboy

Is there any reason why both of you aren't working? I'm sure having an income will help with the bills.

Gerradene

pre-payment meters aren't that bad.....

my partner had to have them after he got behind with utility bills. We have a gas card and an electric key. He has managed to pay off both debts without really noticing and now it feels like our money goes further (as money is not deducted for the arrears). i just wish we could have prepay water (still trying to organise payment plan with the water company)

Being on a meter also makes us very energy conscious....turning lights off, TV off and not just on standby, having the heating on slightly lower, we have low energy lightbulbs etc. good for our pockets and good for the environment.

However meters are not for everyone:

places which you are able to buy or top up may be limited, we have to go to separate shops for ours.

it is not much fun when you run out, especially (i think) with children.

Good luck with your bills

Kimberley

I prefer paying by keymeter, payment cards etc, i hate receiving quarterly high bills. paying weekly may be a pain and may be slightly dearer, but at least what i pay is only a small amount compared to paying it off every three months with huge bills. I'd only switch back to DD if i win the lotto

tango

Out of interest Kimberley how much was it to get a meter put in ?

Kimberley

tango wrote:

Out of interest Kimberley how much was it to get a meter put in ?

Nothing, you just ask your supplier to have one fitted

Money_Bunny_4

dudleyboy wrote:

Is there any reason why both of you aren't working? I'm sure having an income will help with the bills.

We were at one point both working but OH was laid off and I've been dogged with health worries.

OH is finding it hard to get another job cos he can't drive the car.

Part of the problem is a lack of childcare in our area - there is only one childminder who will pick up from my kids school and she only accepts kids under 8 - mine are 10 and 8.

We're both more than willing to work but get frustrated at the lack of advice and help offered by our local jobcentre.

tango wrote:

utility bills are important, have you offered any payments to the debt companies?
(Scottish power want to change the meters to prepayment ones but as I know they charge extra on standing charges for these I don't really want to have to do that.)
Would not this be a good idea,for a while so it took the pressure of you?
.

(I also owe £900 approx to my dad and £300 on a £500 lloyds overdraft.)
Could your dad wait until you get your utilites sorted,and is your overdraft unauthorised? Post back You have taken the first step
Any advice would be appreciated

Not offered any payments as of yet but will do so tomorrow.

The prepayment meters work for some but I disagree with the fact that you are charged more for having them when the main reason for having them is to owe less money.

My dad will wait for the money, he's a good man. And the overdraft is authorised (think I pay about 84p a month interest)