NO MONEY -Help! How can I live on fresh air???

Up2myneckindebt

Hi Everyone
I have been looking at the forums for a few days and now decided to register as I'm in big trouble with overdraft, credit cards and personal loans, all with Barclays and you guys clearly know your stuff! Split from my OH who's still in the house which is mortgaged and stopping with friend at the mo. Have no income at all - used up all avenues of credit I had on cards just trying to keep afloat and 1 step ahead of everything. Failed miserably & now awaiting result of claim made on 31 July for Income Support & Carers for my Dad who's disabled anyway and has just been diagnosed as terminal so will be spending more than 35hrs a week helping him. Financial situ's complicated and claim being held up by pension people, so no sign of any financial help coming my way any time soon.

Barclays are heaping loads of interest on overdraft and bouncing DD's. Same with CC's. Have an arrangement with CC Co to pay reduced payment which I'm struggling with and they are still piling on over £500 a month interest. This has been going on for 4 months so debt to them is escalating at a rapid rate.

I will also have to commute by 4 buses to Dads each time I go (cud be 4days a wk) and I haven't got any money to pay for fares, never mind money for my own food, bills & essentials. Intended to use the Carers payment to help with fares 2 Dads.

I know I've got to get to grips very soon with all the debt problem whether by IVA, BR or DMP and will seek advice very soon BUT my most pressing problem is getting to see my Dad so my question right now is:-

Q. I'm really embarrassed about this but would I be able to OR qualify for a Crisis Loan through DWP whilst I have to wait for my IS/Carers claim to be sorted out?

Any advice would be greatly appreciated.

Sorry this is longwinded and hope I posted to right board!

Buddingblonde

Anyone can apply for a crisis loan - ring in the morning to get a same day decision (it takes about 4 hours for a decision to be made)

I am sure that someone else will be along to help with the other stuff soon - thinking of you and Dad!

Ax

Up2myneckindebt

Thank you so much for rapid reply - will give it a go. Mx

Ames

A crisis loan's the one loan I haven't had from the DWP, but from what I know of them you're a prime candidate.

I know a bit about claiming IS and carer's, I'm disabled myself so know about the system from that side, if you want to know anything more just let me know, I know how totally confusing it all is.

Tixy

Definatley worth trying a crisis loan.

Is there anyway you could stay with your dad rather than your friend? Does he have a spare room? That would at least save you all the time & money in buses and would mean you could give him more of your time.

Have you spoken to any of the debt charities? This would be a good move. Also you would be best to write to your creditors asking them to freeze interest & charges and either offer a £1 token payment per month to each creditor, or if you can't even afford that then tell them you can afford no repayments at all.

Here are a couple of sample letters that may help. http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54
http://www.nationaldebtline.co.uk/england_wales/temp/2202_89781.pdf

With regard to the DDs if they are going to bounce then you may as well cancel them, yes you will still have the debts to pay but won't be paying as many bank charges. Also cancel any unneccesary expenditure (gym memberships or similar).

It would also be be worth setting up a new basic bank account away from any organisation you owe money to, to have your income support or benefits paid in to. Otherwise your money will be swallowed up by bank charges. You can then treat your overdraft as another debt and offer the £1 token payment until things improve.

Do you have any items you could sell? Car boot / gumtree/ ebay / amazon?

Do you have equity in your house? Where are you with sorting out your share of the property and any furniture etc?

Good luck

Up2myneckindebt

Thank you so much Ames.

Never had to claim anything before so it is very confusing! Crisis lines are all busy and I've only got a mobile! Held for 10 mins but conscious its racking up my bill as its an 0800 number. Have no choice so will keep trying before I go to Dads. Got enough for todays fares at least!

Mx

Up2myneckindebt

Thank you for so much for info Tixy – really appreciated.

Dad only has a 1 bedroom house. We’ve always had a strained relationship but he is my Dad so I have to do my duty and my best, but have to escape to my space at friends to keep me sane, so staying at his isn’t an option and don’t think he’d want me to if there was room for me.

The DD’s they are bouncing are DD’s to themselves! Presumably so they can rack up even more charges. Bounced my temporarily reduced mortgage payment too.

Already sold my jewellery apart from marital rings and also my “Sunday best” dinner service and cutlery set. Not much else of value to sell apart from furniture, but I felt terrible when I suggested that because it was my choice to leave and know it would break him completely to be rattling around in an almost empty house in the meantime!

Everything to do with the house is on hold at the moment as I’ve been utlising every spare minute trying to raise money to keep ahead of the debts. My husband is still in it but he knows it will have to go. If we can sell it before its repossessed there may be sufficient left to pay off the debts, depending on price achieved and there may be very little leftover for us to split anyway. Not much to show for 30 years of marriage. If its taken by the mortgage company and sold its doubtful the proceeds would cover all the other debts. I would really like to avoid my husband losing out financially because of debts I’ve incurred if at all possible as I do still care about him.. The fact he is going to be losing his beloved home is very difficult for him and it has made him very poorly as well.

Will look into the basic bank account route but do you know whether DD’s can be setup on one of those accounts?

Thank you for your help Tixy. Mx

Tixy

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

Hi here is a factsheet all about basic bank accounts, including a list of the ones on the market (pg4). Yes you can still set up DDs (but there is no overdraft on these accounts so you do need to be careful that you don't set up more than you can afford). Having other debts with your current account makes you very vulnerable to offsetting, where they take your benefits and pay them off your CC (or whatever) leaving you with no money to live on, so try to set one of these up as a priority.
Co-op cashminder & nationwide seem to be fairly popular on here but most important is to choose one who isn't linked to anyone you owe money to.

I assume your ex can't afford to buy you out of the house at a fair price? Is it actually on the market at the moment? I know its not your number one concern (with your Dad and everything) but better to put it on the market than for it to be repossesed which is stressful as well as financially bad.

Up2myneckindebt

Thank you for link Tixy - going to check it out now.

No ex hasn't got anything - was laid off last September so overdrawn himself. He's working now but struggling as self employed builder working for Barratts who are only paying the tradesmen as and when they feel like it at the moment - dependant of the company's cashflow! Without the builders they'd hae no properties to sell and the fats cats in the ivory tower are still getting their salaries paid regularly! Should be weekly paid but waiting 2-3 weeks at a time and the prices they are paying have been pared to the bone. The full mortgage payment is £1500 a month and we've been paying interest only for last 10 months of £332 and that is a struggle. He's 62 and there's no way he could raise any money or be able to service an increase in his outgoings now or in the future.

Trying to juggle balls ie time but will ahve to get it on the market & know thats got to be a priority too.

Thank you for your help Tixy. Mx

Ames

Does your dad have a landline? If you could call from his then it wouldn't cost anything, or does where you're staying now, or another friend?

Up2myneckindebt

Yes Dad has a landline but can't really use that as I don't want him to be aware that I'm having problems. House is very small and he would hear. He wouldn't understand and certainly couldn't help even if he wanted to, which I doubt. He was only told he's terminal yesterday so he's consumed with that. Never had time for me all my life so doubt he's going to change now.

No landline here and I am too far away, not only from Dad's but also other friends and don't have money spare to travel at the moment.

Keep redialling crisis loan peeps.

Many thanks for yo rpost Ames x