About to get into debt, what can I do?

mickeybok

I have been in business for 6 years now, its been up and down every year with my best year being in 2008. At the end of 2008 my work dried up and apart from a few dribs and drabs I have pretty much been living off my 2008 earnings for the past 18 months. I recently paid a lot of money to have my web site revamped in a bid to drum up some work and I put the bill on my credit card, 0% for 12 months. I have just started to use my overdraft but I have calculated that if I get no more work I will have maxed by the end of May. I am having sleepless nights as I have never been in this situation before and with a mortgage and 2 young kids it is very worrying. I have been looking for a job but we all know the situation out there. My problems seem to have begun the day the credit crunch was anounced. I belive that I have made every effort to find work and that I am a victim of the recession, Martin says that you should not panic in these situations and I know that you can make some rash decisions when you are in it, as I think I did by getting my new web site when I couldnt eally afford it, does anyone have any advice on what I could or should do? Thanks.

JA1000

I think you need to explain exactly what it is you do and we may be able to point to you to a correct forum if appropriate.

Some advice you get may be a bit blunt but that's life and it might help.

MoodyBlues

Is there any way you can get benefits?
I was out of work for a long time and had to live off my credit cards, since I couldn't draw benefits.

speedycat

mickey this was us 2 years ago. my heart goes out to you but I promise you will be ok in the end
My husband is self employed and when the recession hit, the bank took away their overdraft facility sending them spiralling into debt and unable to pay salaries. We were taking home just £400 a month from him and I was a stay at home, pregnant mum with an 18 month old to look after and no family support to help look after my daughter so I could go out and work.

Awful scary memories but you will come through it, I promise!
Firstly BREATHE! remember nobody is going to take away your family, your life, your health. Nobody is going to see you and your kids on the street scavenging for scraps!
Firstly, make sure you're getting the maximum amount of benefits. Tax credits, job seekers allowance, child benefit etc. Secondly, we had to move out of our house and put tenants in. Horrible, but necessary and it kept us from going bankrupt.
We moved into a little flat which saved us loads of money.
Went to the CAB for help who were really helpful. There are lots of other debt charities out there too like CCCS.
Had to embark on the whole writing to creditors route - they were reasonably understanding but we do have about 3 defaults and 1 CCJ on our record. I'm going to dispute the CCJ but that's another story.
At the end of the day - if you're not going to be buying anything on credit (which I never never ever will do ever again) then a few black marks on your credit score are irrelevant.
Keep looking for work and keep plugging away at your business/website - warn your creditors that you are struggling with money at the moment - always remember that the mortgage is your most important, priorty debt - if you'd be better off moving out temporarily then do it - you don't want to be repossessed.
Best of luck to you and your family.

Trollfever

Business Debtline can be found here:

http://www.bdl.org.uk/


.

speedycat

oh yeah, don't have a car and learn to love lentils, pasta and value toilet roll! Tesco have been my saviour as live nowhere near an Aldi or a Lidl.