Problem paying a loan and credit cards

LindaLondon

I have found myself in the unfortunate situation of having money problems, this is really my first experience of something this serious and I don't know what to do.

I lost my job back in July last year and and have since found part-time work and also doing some self-employed work on the side. But what I earn does not cover my outgoings. My part-time work also finishes in five weeks and so far I haven't found any further employment.

I really do not know what to do! I contacted my bank a few months ago and they agreed to reduce my payments for two months. i asked all the right questions but was not given the correct response. They informed me that the money I owed from two months will be added to the end of my loan account with extra interest and that if i was in the same situation I could extend this.

I received a letter to say they have taken the arrears from my bank account £550 (this was my rent money!) as the agreement has come to an end. Apparently i am not allowed to enter into another agreement within one calender year. (Despite what I had been initially informed). The bank agreed to return £450 of the money and given me one month to find the other amount and to resume the normal loan repayments. (which is £288 including insurance and protection).

My total loan is about £2300 to pay off, credit card bill £1200 and a supplier is chasing me for £1200 from a few months ago.

The bank has advised me to see a debt advisor - would love to hear about any others experience on this as I do not have any experience on this at all. Basically all my outgoings are around £1600 and I am earning around £1100 per month and my savings are fading fast. Sleepless night, more grey hair and stomach problems are the result of all this!

I am single and too embarrassed to talk to any friends or family about my situation, but am trying hard to find more full time work to coincide with my self employment but there isn't much out there, but i keep on being positive but I also have to realistic about what this means especially if I am unable to find work after my part-time job finishes.

I have cut back on my spending quite a few months ago and also walk home from work sometimes (4.5 miles) to save on bus / tube fares. All my available money is spent on necessary items - food, toiletries, transport, rent, bills and so on.

Any advise/suggestions/personal experience would be greatly appreciated.

Many thanks
L

pwally2

Hi there would suggest a trip over to the DFW forum loads of help and advice on there from the lovely MSE people!!! I know its daunting but would suggest you do a list of all your income adn outgoings and post it on the forum over there and loads of people will come along and offer lots of useful advice. Youve taken thefirst step in realising you have a problem there is lots of help out there. If problems really bad can recommend poeple like the CCCS and CAB who can offer impartial advice to you.

Good luck with it all!

[Deleted User]

and also doing some self-employed work on the side.

tut tut what is the world coming to !

Tixy

Hi Linda

You mention that you have insurance/protection on your loan. Did you make a claim when you lost your job last year? did they pay out?

It sounds like you do need to speak to a debt advisor - this link shows the are the recommended (non-charging) organisations - http://forums.moneysavingexpert.com/showthread.html?t=2077631

Also, as pwally says, it might be worth completing and posting your statemet of affairs (see this link - http://www.makesenseofcards.com/soacalc.html) and posting on the debt-free wannabe board. People there may be able to suggest other ways you can save money on your outgoings.

Good luck with your job hunt.

LindaLondon

Thank you Tixy and Pwally2 thanks for your supportive message - very much appreciated. Will check out the other forum and thanks for the link to some debt advisor sites. Just looking forward to tomorrow afternoon when I can speak to someone about this and see which way is the best forward. I am thinking much more clearly now.

It's nice to know other people out there are supportive and understand.

Woodbine, I am not sure why you choose to post your response or judge me and my situation. My part-time job just covers my rent and council tax so I have had to be creative and become self-employed as well offering my services to small business to survive until I find more full time work so I can stop living a hand to mouth existence.

[Deleted User]

my comment wasnt related to what you do but to the fact that you gloated about doing it on the "side"

JohnF_027

i would really try and shake off the embarassment and talk to your friends and family, if anything it will shift a huge weight off your shoulders and keep you from going insane. I have a friend in a not too disimilar situation and i know it's helped him alot. Give it a go, i'm sure you'll find people will show empathy and won't judge. Either way, best of luck.

AMILLIONDOLLARS

woodbine wrote: »

my comment wasnt related to what you do but to the fact that you gloated about doing it on the "side"

From what I can gather this person is not claiming benefits she has a part time job, plus earning some money on the side, so what is your problem:cool:?? You didnt bother to ask what other work she was doing, you naturally assumed it was under-handed.

AMD

LindaLondon

JohnF, thank you, you are right - i have realised I can not go through this alone. If it was a friend or family member I would be supportive, so of course they will be supportive back to me.

AMD, thank you for your comment, the self employed work on the side is more like in addition and it is all above board e.g. I am registered as self employed and received my reference number etc. Thank you for not judging that comment i wrote - it was done at a time where I was emotionally stressed and wasn't thinking clearly - but I can see how it may look to someone who has a suspicious mind.

Once again thank you for all your support I feel in a much better place than two days ago! Just spoke to the national debt line and the young man gave me some good advice and is going to send a pack so I can start organising things minimal payments to me creditors until I find more employment and then can start thinking about organising proper payments with them.

Regards
Linda