Money is overtaking my life

mrs-stressed

Hi all, I am in deep deep poo over finances. I have decided - (in January of this year) to contact all creditors and am currently paying the token £1 a month until 'they' decide what to do with me. They are unsecured credit card debts. I earn very little and it all goes on bills and debts. Stupidly I took out a loan for £15k (which is now £18k) with Freedom Finance against the house (what was I thinking of for gods sake)and the payments are killing me. I took it as I paid off three credit cards - which then when the going got tough I started using again.

I am very ill and am currently off work again (although I am being paid so far but that will stop as time progresses) and although I switched banks as advised I managed to get one with a £500 overdraft. I use that every month without fail. I have just overshot that limit by £13 and got charged £20. As I do not have any money after bills and groceries and mortgage etc noone will touch me in the way of a DMP. Once again I am flying solo on this one.

I have 23p to last me till 10th June. No sorry - correction 43p - just found 20p on floor. I have no petrol and I have no fresh food. I am at a complete loss as to what to do now. I live alone and there is noone to help me. I seem to have come to the end of a road with no alternative left or right. I have sold everything I have to just get through a month - any month. I have a car which needs urgent attention but cant afford to go anywhere right now so it is parked outside doing nothing. I live a few miles from local shop and 'facilities' so a car is essential, and I need it for when I return to work anyway. Buses run too early or too late for me for work. Not reliable enough time wise. (That is not a moan just a researched observation.)

I have been to CAB with the intention of claiming for the lower rate DLA but I gather this takes months to come through - that is if I am granted it which statisitics show that I wont be (granted it I mean). The reason being that I can reduce my hours and still have some sort of income coming in - albeit Benefits. I have no choice.

What would any of you do in these circumstances? I have tried very proactively to get another job with more money but being 57 I am always without exeption pipped to the post by someone - younger, more qualified perhaps and is better in an interview than I am and my health is a complete nonstarter - although I always tell the truth IF asked about that one. Which they do.

I am so sorry to sound sooo pathetic but I do feel pretty much totalled by all this stress and cant stop crying with utter miserableness.

I own my house but have a massive mortgage on it. All this was bought when I was financially in a 'reasonable' place. I had a very good credit rating and I was well and worked my socks off for my little reward. Since being so ill life has clobbered me as I never managed to recoup the losses made whilst off in 2007.

What a tale of woe - please someone will you help me and advise me as to what to do. Please dont criticise or judge me - I do enough of that myself - it would be too cruel of you to say how stupid I am. I know that.

Regards mrs-stressed

ANewEra

Hi, first of all don't panic, there is always a solution to every problem, you might not see it straight away, but there are many people on these boards that are/have been in your position and will give you good advice and help.

I think you should do a 'statement of affairs' http://www.makesenseofcards.com/soacalc.html
if you go onto this link you can fill it in (remember to take yearly costs ie MOT etc and divide by 12) worth taking your time over this to get it right. I would then post it on the Debt free wannabe board and you will gets lots of help and advice.

Also, please contact one of the FREE debt charities, CCCS, NATIONAL DEBTLINE etc (links on DFW page)

Good luck with sorting this out - you CAN and you WILL!!

woody01

I would sell up to get myself out of it.

euronorris

As ANewEra suggested, fill out your SOA first.

Then, head over to the Debt Free Wannabee (DFW) board and post it there. Lots of people will come up with lots of suggestions of how to cut back and save money etc etc.

Also, on the DFW board is a thread which CCCS advisors respond to. So you can ask questions there.

Do/did any of your debts have PPI attached to them? If so, can you claim money from them now (as you are ill?)? Or, were they mis sold? If they were, you may be able to reclaim the premium money from them, plus interest.

Is there any equity in your house? ie, is Woody's suggestion a viable one for you? You could always rent for a while until things are on a more even keel.

Or, do you have a spare room that you could rent out to a lodger?

Have you looked at the 'Up your income' threads for ideas on how to bring in some extra cash?

There is still plenty of hope and help available, so don't give up!

HUGS!!!

xxx

mrs-stressed

Thanks to you all for replying. I felt better after get rid of all that angst before but I am no further forward in reality.

Selling up isnt an option. Renting is more expensive than my mortgage. its too small for a lodger (done that before - what a nightmare!!). Ill health prevents me from taking that HUGE challenge as alot of my illness is stressed based anyway. I think I would go to the dark side if I had to do that!!!! I dont want to sound self-obstructive on not sellling the house but after alot of soul searching and research I came to the conclusion that it would cost me more to sell up so therefore it would be a false economy as a result. Unless anyone knows better - LOL...

I dont drink, smoke, eat alot. I dont go 'out', I dont buy clothes ( no need really). I cut my own hair (except the back which I cant see anyway) - I'll think of other things as we go through this! I went to Payplan and although they were very pleasant they couldnt help. CCCS were the same. Verbally supportive but couldnt actually help. hence me flying solo as it where. The biggest drain is the loan repayments I think. I have contacted them and they wouldnt entertain the 'holiday break' thing. My mortgage cant do that either as it is an interest only mortgage.

I think I will do the SOA though anyway. Someone out there may just have the key to releasing this awful pressure......

Cheers and thanks for all your support - regards mrs-stressed.

greenjourno

So sorry to hear about your loan repayment problems - sounds horrendous. Do you have any spare mobile phones? Envirophone has a good recycling scheme that pays well - sorry as a new user, I can't post a link!

mrs-stressed

Hi everyone who is interested!!! I have just posted my SOA so that will give you an idea of what my incomings and outgoings are. I am not sure where it will be - I just followed instructions as per so I am hoping it wont be floating around in cyberspace for the Clangers to read.....

love mrs-stressed.

BoGoF

Hate to say it but is sounds like, sooner or later, you are going to default on your mortgage, especially if your pay eventually stops.

ljonski

i don't normally come on this board and am relatively solvent and never had a mortgage. I am a great believer in getting out of the kitchen if you cant stand the heat. Its no big shakes to admit defeat to yourself and sell up. I think even if you say this is not an option i think you will find that in reality it is. i would suggest at your relatively young age you should consider sheltered accomodation where you buy your flat and just pay service charges and utility bills. You also may not feel so lonely and isolated and it could be the beginning of a new life.My friend lives in a Mcarthy and Stone property a\nd though it is not perfect it is ideal for his needs. Hth.

hugheskevi

I own my house but have a massive mortgage on it.

it is an interest only mortgage.

I took out a loan for £15k (which is now £18k) against the house

I am being paid so far but that will stop as time progresses

I have tried very proactively to get another job with more money but being 57 I am always without exeption pipped to the post by someone - younger, more qualified perhaps and is better in an interview than I am and my health is a complete nonstarter

You have severe short-term problems, but it looks like you also have medium and long term issues based on the parts of your posts I've quoted above.

It would be worth considering these issues in developing your solution.

Given you are approaching the age retirement starts to loom, what is your strategy with paying the mortgage in the future? Are you intending to pay it from pension income? If so, could you draw the pension early? If there is no pension, then how long will you be able to sustain the mortgage?

Whilst the priority is to sort out the short term problems, you will also need a plan that works into the future.

and cant stop crying with utter miserableness.

You've started developing a plan, stick with it, decide what you are going to do, and then pursue it step-by-step. Don't give up and things will get better. Best wishes.

mrs-stressed

Hi hugheskevi - thanks for your reply. Everything I have now was bought and paid for (!) when I was solvent and reasonably secure. It has all gone downhill since I became ill after moving here 4years ago and was off work for a year. I know you are right about the house selling thing. I am not expecting someone to come along and say 'right then, leave everything with me, it will be OK' . Everything is down to me. Every decision I make - rightly or wrongly (that 2nd loan was a complete and utter ..ck up) is made by myself. I do not have a 'financial advisor' or a kindly relative - in fact one brother calls me a loser and the other one says I am stupid.......However, I do think long and hard about everything. I tackle every problem and then act on what I think is the right way of doing it.

Sorry to sound sooo miserable. Its a fact of my life and I cant seem to rise above this one....

Love from me to you x x x