...I guess it's lightbulb day!

DinaSaw

Hello all you lovely people..

I've been lurking unregistered for some months, watching, reading, and picking up lots of really helpful tips from you all, and admiring every single person who has been brave enough to face up to their problems and take action. Well, it seems today is my day to join in and take action too.

I've been in and out of debt problems since my eighteenth birthday - I'm now 25. My mother (with the best of intentions) encouraged me to get a Barclaycard when I was 18 to build my credit rating. It took me less than a month to spend the £700 limit and over the next three years I spent close to £2000 paying that back off in total - but I didn't learn.

I ran up catalogue bills and mobile phone bills to the tune of around £300 and continually defaulted on repayments - all now paid off, and as it transpires it almost feels like a good thing, as I ruined my credit rating before I could take out any more credit.

However, as these things do I guess, years later I'm still struggling with lots of other debts. I'm a single working parent to a three year old, and there's no financial input from his father.

Here's how I stand:

Monthly take home earnings: £1033

Benefits: WFTC £311
Child benefit £63

Total income: £1407

Outgoings:

Rent (+ water) £237.50

Council tax £72

Gas approx £60

TV license £11

Electricity approx £30

Petrol £95

Car insurance £63

Car tax £10

Nursery fees (childcare) £386.45

Prepay mobile £20

Home telephone and BBand £43 (average)

Cigarettes £60

Groceries / household £150

Life insurance policy thingmy £13

Bank account fees £13 (Barclays additions plus)

Overdraft interest fees £35

Pet insurance £5.95

Birthday and Christma saving fund: £30

Monthly outgoings: £1334.95

DEBTS TO CLEAR:

Council tax arrears: £1269

Rent arrears: £354

Old BT phone bill: £269.54, 2 weeks away from court action

Old broadband bill £27.99 (in dispute)

Car tax fine £68.75, increasing by £40 on Saturday

2 always-maxed overdrafts: £1850

Total debt: £3839.28

I used to overspend badly on useless rubbish, to the extent where on 1st December 2005 I was almost £300 over my overdraft limit. I was paying for everything by cheque and incurring a massive £180 per month in bank charges. I've now burned one cheque book and given the other to my dad for emergency use only, I know I'll never be brave enough to ask for it back!! And I'm living within my overdraft limit, albeit only just.

Here's where I plead for advice. I've managed to fight my way back to here, but I'm stuck. I don't know who to tackle, in what order, or how best to go about it, and it's keeping me awake at night. I'd really appreciate any advice that can be thrown my way.

My aim is to clear these debts so I can buy my council house, recovering my credit limit for a mortgage and saving around £2000 as a deposit.

Thanks in advance and sorry for the essay,

Dina x

aimme13

Hi and welcome,
First i like to say i know how hard it is trying to sort out debts, being a single parent and getting no financial help from the childs father...is tough but if your anything like me it makes you more determind!

i had a look at your income and outgoings..

Im sure others will be along soon to give you some more in depth advice but heres what popped into my head when i looked through it all...hope it is of some help

1- are you entitled to any housing benefit or council tax benefit??
2- Cigarettes......do i need to say it...not just financially but for the sake of your 3 year old....(i dont want to lecture but its got to be worth trying to quit)
3-Gas and electric seem very high, have you looked to switch to a cheaper company
4-your car insurance seems very high, can you get a car with a lower insurance band? or change insurance companies?
5-you can get your home phone and BB for cheaper, look on the telephones board they were a big help to me
6-Groceries and household, you can def get that down look on the OS board for some great ideas.
7-Bank account fees????? i dont think you need this if its still the same as when i was with barclays
8-Have a look at the thread on here about claiming back unfair bank charges, i havnt done this myself but sounds like you have a good chance of getting your money back.

Well i hope thats a help, sure you will get lots more help from others
keep posting

DinaSaw

Hi Aimee.. thank you, very much, for taking the time to look. You have no idea how much I appreciate it.

Housing and council tax benefit - I earn too much for either, I lost them over a year ago.

Cigarettes - I agree, and should point out that it's both cigarettes and the nicotine replacement gum I buy, I've come down from close to 40 a day to 13 a day and I will get there this year.

Gas and electric - I could use some help here. I'm on prepayment meters for both as my poor credit rating means I can't be switched onto bills and I'm with British Gas for both as they were cheapest when I last checked, though some time ago, but because I'm on prepayment I do seem to pay substantially more per unit - any advice?

Car insurance - I lost my no claims last year. I switched from a 1.8l to 1.1l car in January to bring down all my travelling costs and my car insurance is up for renewal in July.

Phone and BB - I made a poor decision in December and now I'm locked in for 12 months with Telewest.

I'm off to find grocery tips!

Thanks again, from the bottom of my heart.

Dina x

youngandreckless

Hiya,

Well done for posting! I'd say the priority would be the council tax arrears & rent arrears as the advice on here is always to make the roof over your head and related household stuff (esp council tax) your first task.
Once you've got them sorted then you can look at the others - the overdraft may be last, but it depends what interest you're charged.
I don't think you should pay for your bank account. I'm with the woolwich and my account is excellent, but thats just my experience - best to consider a wide range of views.
I'm also a smoker (sorry guys). I have a thread going that aims to either cut right down or quit - might be worth a look?
Is there any way of getting any maintenance for your child? I understand this may not be an option.
At the end of the day your debt isn't beyond help by a long way yet and I'm confident you can do this.
Post some more details on the debts, any payments you've got set up etc. There is a lot of help to be had.
Y&R x

gallygirl

Have you been with B Gas long? Would they reconsider if you've been there a while?

Ask them if they would allow a swap if you overpaid for a little while and had built up a credit (if you spend £10 a week put £15 on every other week for example). I know this means spending more temporarily, but as the weather is warmer you should be spending less than you were.

Good luck.

oops_a_daisy

Hi Dinasaw and welcome to the DFW threads - well done for posting. I know you have had some tips already but just a few other points. You do not always have to wait untill your car or home insurance is up for renewal to change. Check your policy or make a quick phone call to check. You will definately be able to lower your food/household bills by visiting the OS threads and budgeting. If you are using patches are you getting them on prescription or via a smoking cessation service or your doctor - you may be able to get more for your money on prescription. Your electric and gas are high but I dont have any experience with pre pay meters - would suggest you look at the threads on the utilites boards and post a question there as somebody there may have good advice on it. DEFINATELY CLAIM BACK UNFAIR BANK CHARGES - YOU WILL GET EVERY PENNY BACK. Why do you have to pay for a current account ? Can you get anything back for the childcare costs that you have - again sorry but I have no experience with this. Is there anyway that you can get maintenance ?
I hope you manage to get sorted out and dont forget you will always get support here

Old_iron_balls

alot of quality advice posted above so just saying welcome & good luck

fizzel81

hello and welcome well done for posting, goodluck with your dfw journey

westie666

If i've read this right,

Your a single working parent. So you live on your own (with your 3 year old of course). If this is the case, im 99% sure you can file for single occupancy council tax. 25% discount on normal rate.

I'm also in arguement with telewest about their packages. I had telewest installed in October and had to move from the premisis in January, so cancelled the contract. Where I now stay Telewest dont cover, so I have them at bay as because they cannot provide the service - i'm not paying...maybe (and if this is against MSE rules i will remove) tell a little lie and tell Telewest that you have moved from your home. They will tell you that blah blah blah.

Alternativly you could tell then you wish to cancel.

This would cost you for telephone and BB - at basic rate (which they would place you on) 8 * 23 = £184.

If this doesn't help...please just ignore....just my 2p

DinaSaw

It all helps, every single suggestion is worth its weight in gold guys.

I'm going to ring british gas and my car insurance people today.

Sadly, maintenance for my son is a no-go as his dad "doesn't exist" i.e. doesn't have a driving license, passport, bank account, isn't registered to vote, doesn't officially live anywhere... so for the purposes of child support it makes him untouchable. Frustrating, huh?

I haven't made any arrangements to pay the current debts I have and it's the Council Tax I'm most worried about. I'm terrified of telephones as a general rule - can I write to them?

Thanks,

Dina x

lynzpower

Dina

Has your CT bill been passed to the bailiffs/ debt collection agencies yet? I say this as I had head in sand with them for a good few motnhs. Once it had gone there it was £40 a letter etc,

Phone them up, ( bite the bullet on this one) and tell them that you cant afford to pay off all these arrears at once, offer a token payment of say a fiver a month. As it is you are likely to be able to get single persons discount, ask if it can be backdated, worth a stab if it is, you have less to pay back.

Quite rightly this is the one to worry about, I woudnt ever get into arrears with them now, as my 1000 debt turned into 1500 when it went to the DCA, and what did I do? Borrowed the money off my folks at 0% to pay it back... if you have to do something like this, do consider it

And another big :hello: from me, and welcome!!!
xx