Small Debt built up thanks to unemployment!

Zozo1985

Hi,

Just looking for a bit of advice on a back log of debt that I have built up this year. I was made redundant earlier this year from my full time job and spent 7 months trying to get back into work. During this 7months I applied for help with paying for rent and council tax however didn't get a great deal contributed as I had a 10hour a week job in a pub which I had along side my full time job before redundancy, so basically I struggled a lot over these months and couldn't pay a lot towards utility bills etc.

I now owe probably just less than £1000 in money to my gas and electric supplier, council tax etc. I was just wondering if anyine knows of anywhere I can get help to pay this as I am getting hassled from all directions and it is stressing me out even though I have explained the situation numberous times to these people. I am now back in full time employment but the wage isn't that great but at least its a job. I just want to get some of these people off my back. So if anyone has any advice they could give I would appreciate it.

I don't think I will be able to get a loan though or a credit card to help as I was dumb when I was a student and got bad credit from a store card and credit card! Basically I am useless with money!

Thanks

Tixy

Hi Zozo

Glad you now have found a full time job. Can I ask if you have any unsecured debts (credit cards or loans etc) and if so are you currently paying them anything? Council tax & utilities are classed as priority debt so should be paid before/in preference to any unsecured debt.

Have you worked out a detailed budget to calculate how much you can afford to pay towards the arrears now? In addition to new charges? This is what I would do first and you need to cut right down on any luxuries you pay for until these priorty debts are cleared.
Then write to the council and utility company with suggested repayment plans showing how much you can afford each month to pay off the arrears (written is always better than phone calls in this type of case). Remember that usually people pay council tax for just 10months, so you will be able to pay more off your arrears in the 2 months where there are usually no repayments.

You may also want to get some advice from citizens advice.

DarkConvict

Try giving the national debt line a call (http://www.nationaldebtline.co.uk/ Freephone - 0808 808 4000), they provide some good documentation free though the post on working out your surplus income and how to go about paying off debts.
Its a good idea to contact everyone you owe money to, explain your circumstances. Tell them you are now able to start dealing with it but it will take some time to reach a suitable repayment plan.

gfplux

Hello zozo1985,
Start a spending diary TODAY to find out exactly where your money goes. That knowledge will shock you but also give you power. You only need a pen and a paper.


Make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (click on the help) and you can change it every day if you want.
When making out your SOA (Statement Of Affairs) try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none.
It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery.
If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date.
In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.


If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax is it over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.




Good Luck

Zozo1985

Thanks for the advice guys! All is took on board! I admitidley am rubbish with money so I think I definatly need to do a spending diary and will check out the links you have posted.

Thanks again, an hopefully I will soon be an expert in handling my income and expenditure ! )

SazM030306

Good luck Zozo you've had some fab advice. Look forward to seeing your SOA.
Sarah xxx