£15,000 debt just had a baby HELP!!

donch03

Hi guys,

I am a new mum with debts of around 15 grand from credit cards loans and an overdraft. I currently make mimimum payments on 2 credit cards totalling around £120 per month then I make a payment of £263 on an unsecured loan, my overdraft is £1050.

I am now unable to afford all this debt as my monthly income is now £620 (Stat Mat Pay and Child Benefit). I have applied for Child Tax Credit of which I am currently paid £20 per week and Housing/Council Tax Benefit, I have not yet heard from my LA although I will be ringing them today.

My monthly income is gone the second its in my account to make the payments on my debts, car insurance and mobile leaving me nothing to buy food pay rent or utilities etc. For the last 2 weeks I have relyed on hand outs from the family. I was advised by job centre plus to contact CAB as they may be able to negotiate with my creditors to half monthly payments to them and then free up my Mat pay money. Can anyone else advise what I might be able to do? As getting hold of CAB is a nightmare!!

Should I contact the creditors myself and explain my circumstances??

Thanks

gonzo127

first thing first write up and post a SOA (statement of affairs) http://www.makesenseofcards.com/soacalc.html this will allow us and yourself to see exactly where you sit financially and hopefully allow us to offer advice on where you could make savings

there are other debt charities which can help contact details in the link here https://forums.moneysavingexpert.com/discussion/2077631

Tixy

Hi donch and welcome.

I would agree you do need to speak to one of the debt charities, as you need to be prioritising other things over your unsecured debt repayments. If you complete the statement of affairs gonzo has linked to we may be able to make suggestions as to how you can improve things. Its also info that CAB or any charity will need to see to be able to help and advise you.

I would do this before you contact your creditors, otherwise they may get you to agree to more than you can afford.