Help! Drowning in debt!!

appletise

Hi, hopefully one of you guys may be able to point me in the right direction...

I'm 23 and became unemployed in Dec 08 and I'm struggling to keep my head above water.

My rent is 475 and I get 438 from Housing Benefit,
I receive 50.95 a week in Jobseekers.
However...!
I have £1700 on an Alliance and Leicester credit card with a £1500 limit = charges!
£900 on a Natwest credit card with a £650 limit = more charges!
£800 overdraft with A&L with a £500 limit (they have charged me nearly £200 for being over my limit by £5 initially - this can't be fair can it? I have no direct debits leaving this account either)
£1400 on a Natwest Graduate account although only the first £500 is interest free - I am paying 18.71% on the rest!

I can't afford to live on just £50.95 from the state, and I really don't know what to do. My family aren't in a position to help me and I really can't see a way out.

If anyone has and ideas on what I can do to start paying back what I owe without leaving me utterly destitute please let me know!

Thanks!

Added a SOA if that helps?

After-tax income - 0

Partner's after-tax income - 0

Benefits – 641.80

Investments (after tax) - 0

Other income (after tax) - 0

Monthly Outgoings
Mortgage or rent - 475

Council tax and other utility bills (gas, electricity, water, telephone) - 20

Insurance (life, home, medical, etc) - 19

Food, drink and other supermarket shopping - 120

Toiletries, medicines, other personal items - 0

Clothing and footwear - 0

Leisure (going out, hobbies cigarettes, takeaways) - 0

Home maintenance and household goods - 5

Petrol, parking and additional travel costs): - 40

Holidays - 0

Loan and credit card repayments - 70

Regular savings - 0

Other expenditure (mobile, internet, paid TV, anything else) - 45

Expenses = £886

Equals -£224.20

samaki

no worries, you have made the first difficult step. try filling in an SOA with all your financial info, incomingings, direct debits and debts.. people will soon be along to help!
good luck!

Fire_Fox

Welcome to MSE!! We could really do with a full SoA using this link
http://www.makesenseofcards.com/soacalc.html

But first off can you move to a smaller place/ room in a shared house? You usually don't get full housing benefit if you are in a home larger than the state thinks you require. Secondly you are spending far too much on groceries - this could easily be reduced to £80 and less with some effort (e.g. veggie meals). See the Old Style board for lots of ideas. Thirdly you seem to be running a car, which you obviously cannot afford - sell it and use public transport for a while. You will get a discount (or even free passes) as you are on benefits. You probably should to cancel your mobile and internet - use the library net instead.

In terms of your debts - stop making the minimum payments, use one of the template letters on this board (see stickies) to explain your change in circumstances to your creditors and offer token payments of £1 a month. They probably won't agree, keep paying anyway as you need this to prove your willingness to pay despite your financial situation. Send the letters recorded delivery or get a proof of posting (free).

bank_of_slate

appletise wrote: »

Hi, hopefully one of you guys may be able to point me in the right direction...

I'm 23 and became unemployed in Dec 08 and I'm struggling to keep my head above water.

My rent is 475 and I get 438 from Housing Benefit,
I receive 50.95 a week in Jobseekers.
However...!
I have £1700 on an Alliance and Leicester credit card with a £1500 limit = charges!
£900 on a Natwest credit card with a £650 limit = more charges!
£800 overdraft with A&L with a £500 limit (they have charged me nearly £200 for being over my limit by £5 initially - this can't be fair can it? I have no direct debits leaving this account either)
£1400 on a Natwest Graduate account although only the first £500 is interest free - I am paying 18.71% on the rest!

I can't afford to live on just £50.95 from the state, and I really don't know what to do. My family aren't in a position to help me and I really can't see a way out.

If anyone has and ideas on what I can do to start paying back what I owe without leaving me utterly destitute please let me know!

Thanks!

Added a SOA if that helps?

After-tax income - 0

Partner's after-tax income - 0

Benefits – 641.80

Investments (after tax) - 0

Other income (after tax) - 0

Monthly Outgoings
Mortgage or rent - 475

Council tax and other utility bills (gas, electricity, water, telephone) - 20

Insurance (life, home, medical, etc) - 19 Can this be put on hold for now?

Food, drink and other supermarket shopping - 120 Have you tried reducing this by shopping at Aldi, meal planning etc?

Toiletries, medicines, other personal items - 0

Clothing and footwear - 0

Leisure (going out, hobbies cigarettes, takeaways) - 0

Home maintenance and household goods - 5

Petrol, parking and additional travel costs): - 40 Can this be reduced, car share, park further away in free space?

Holidays - 0

Loan and credit card repayments - 70 This is not a priority debt payment, make token payments of £1 per month to them with a covereing letter and a copy of your SOA

Regular savings - 0

Other expenditure (mobile, internet, paid TV, anything else) - 45 Can you get a better deal elsewhere?

Expenses = £886

Equals -£224.20

Also, start doing paid surveys - see the Up your income thread on this site to earn extra cash, vouchers etc.

Can you ebay or Car Boot sale anything?

Is there any assistance with payment of rent in your situation?

The priority debts are your rent, council tax, utilities, keep up with these, anything unsecured can be put off or kept at bay with token payments
...Linda xx

Danni_M

My answer for you: GET A JOB!!!
Seriously, even though people are saying how hard it is to get a job under the current climate. I found a job within a month of looking, so did my friend. Look for any job you can find and go for it!
Getting a job does not mean you lose the 50.95/week from Jobseeker but you are making at least 203/week (if you work 7 hours, 5 days a week)

appletise

Thanks guys,

Just to fill in any gaps...

My flat is the tiniest 1 bed in the world at its the absolute cheapest where I live.

My car went up for sale today too so hopefully that should bring in a little extra to get by on.

Also, the council pay all my council tax and the majority of my rent, I only have to find about £35 of it.

Thanks for all your help so far, hopefully these small changes will make some big differences!!

appletise

Danni_M wrote: »

My answer for you: GET A JOB!!!
Seriously, even though people are saying how hard it is to get a job under the current climate. I found a job within a month of looking, so did my friend. Look for any job you can find and go for it!
Getting a job does not mean you lose the 50.95/week from Jobseeker but you are making at least 203/week (if you work 7 hours, 5 days a week)

I've already applied for 23 jobs today...which is something I'm doing on a daily basis. I've had 2 interviews in 8 months and I'm definitely not being snobbish or picky with what I apply for.

The truth of the matter is that it really is difficult, and while I'm actually seeking work, I'm asking for help...if I had a job, I wouldn't need the advice.