Please help...don't know where to turn!

needsyourhelp

Hi all,

I am finally posting here in the hopes that someone can make sense of my situation and help me climb out of this horrible place I am heading...

First of all, my back story: A year ago I left my husband when finding out he was having an affair. We had racked up some debts IN MY NAME because his credit was shot and I was stupid enough to allow it to happen.

I went on Income Support as I had a care job requiring 12 hour shifts and a three year-old to look after (no nursery is open for the hours I needed to be available!), claimed child tax credit, housing benefit, and council tax credit in order to see me through.

Tax credits and Income Support took about 12 weeks to come through, and in that time I paid my rent and food and bills using credit cards (no savings, no assets, and NO family help). I was managing to pay my minimum payments until Christmas, when my Littlewoods minimum payment increased to £110/month and I simply could not pay them that amount. SO I did the stupid thing and stopped paying them at all. All other minimum payments for debt have always been paid.

In April I did some calculations and decided to go back to work, working 30 hours a week at £6, hoping to claim Working Tax Credit, Child Tax Credit, and Housing Benefit to top up my low income.

I am still awaiting being awarded my tax credits, being told "there is no timescale" and it's "being processed." I get paid monthly. I just received my council tax bill, which is £100/month. I owe nursery £200 in fees. I am now in my overdraft as my monthly income is just over £700, my rent is £575, and I have not been able to apply for Housing Benefit as they need the award letter from Tax Credits in order to award me anything.

In short, I am now receiving letters from Littlewoods that they are threatening action against me, I have £226 in the bank with a £500 overdraft limit (so £726 in the bank with overdraft) and my rent of £575 is due in 3 days. My council tax is overdue now by 3 days, my nursery is chomping at the bit to receive payment (I am claiming childcare costs but obviously my hands are tied while the tax credit office is processing my claim).

Here's a small and brief summary of incomings and outgoings:
Incomings:
Income - £715 a month
Child Benefit - £80 a month
Tax Credits - ? as still being "processed"
Housing/Council Tax Benefit - ? as I can't apply until Tax Credit is awarded
Total right now: £795/month

Outgoings:
CC - £80/month
Next Card - £40/month
DFS sofa - £40/month
Littlewoods - £100/month (now in arrears of £500)
TV License - £30/month (I was late to apply for this as I didn't know I needed to. I'm from the US and was unfamiliar with this bill.)
Rent - £575/month
Food - £80/month
Nursery - £200/month
Housing department rental deposit loan repayment - £40
Phone/Internet - £70
Utilities - £60 (in arrears £30 with water company)

I have no luxuries, try to live as frugally as I can so I can replay my debts.

I do no receive any child maintenence because my ex-husband is currently unemployed.

I should also mention that I am from another country and married an Englishman, so all of my family/friends/support network are thousands of miles away, which means I have no moral or financial support.

I am only in my early twenties and feel so overwhelmed by all of this. I can't sleep, I can't eat and I am desperate to get everything under control and feel ok again. I feel so alone and helpless and don't even know where to begin to solve these problems. I know getting into debt was stupid and irresponsible, but they were debts made by 2 people with the promise that he would help me repay them, only to be dumped on my own and no legal responsibility for him to help me repay them.

Please, I will be forever grateful if someone would come and virtually hold my hand and tell me where to start. I am so afraid that after paying my rent, I will be overdrawn and will start to rack up more arrears this month. I also am terrified of bailiffs and CCJ's that it gives me nightmares. I have been to Citizen's Advice and while semi-helpful, they seem to want to hurry me out of the door with no REAL answers to these issues. Thank you so much for any help.

Happytogetdebtfree

Hi and welcome I did nit want to read and run hopefully some one will be along to offer some advice x

whitewing

Hullo,

I know it feels overwhelming but you are already getting there. Find out who your local MP is, and get on the phone to them. They may be able to get your tax credits hurried up.

Would work give you an advance to cover nursery fees - keep them happy (others may tell you there are greater priorities)?

What about maintenance? Is your ex paying anything? That won't affect tax credits. If not, try the CSA.

Council tax - is that at single person rate or still based on the two of you (assume ex has gone)

Keep your chin up.

whitewing

Phone/internet looks high. Is that for calls home? Try checking out this from the main site:

http://callchecker.moneysavingexpert.com/

whitewing

Just read about your ex being unemployed so no maintenance. Perhaps someone can advise you on whether it is worth still contacting the CSA for getting something in place for when/if he starts working...(bear in mind there are haters of the CSA here too so worth listening to both sides. You could arrange something privately but if you do please ensure that it covers regular rises in the amount.

needsyourhelp

Hi and thank for replying so quickly.

I don't know how to contact my local MP. I have had several problems with Tax Credits, namely not getting any answers and the last time I spoke to them they said they held an insufficient address. I told them my address and they said "Oh, that's the one we have for you on file." I sent in my change of circumstances request in the middle of May and have yet to be sent any forms or anything?? And of course they have stopped all payments.

My ex does not have to pay child maintenence as he is currently unemployed.

I do not think it is the single person's amount, and it should be as I live on my own with my child. Will it be reduced?

My phone/internet is based on £30 mobile, £25 mobile internet (contracted for another 16 months), and VAT.

whitewing

Find your MP (and don't take no for an answer):

http://findyourmp.parliament.uk/

Don't email, phone and speak to someone - they have assistants who are usually very good. Better still pop and see them.

whitewing

Try this for council tax:
http://local.direct.gov.uk/LDGRedirect/index.jsp?LGSL=57&LGIL=8&ServiceName=Find out more about Council Tax

You will have to contact them to see.

needsyourhelp

I am afraid to let work know of my financial difficulties (trying to retain some dignity I suppose?) but I guess it's a last, drastic option. I am starting to think I was better off on Income Support because atleast all of my Benefits were coming in regularly, my rent was being paid, I had no childcare costs, and I was maintaining. It's just for me, personally, I have a strong work ethic and was raised to work hard and make my own living. It just seems impossible to earn a decent wage and not rely on government assistance here. The cost of living is so high... I actually thought about going back on Income Support for now until my son starts full-time Foundation in January, but I just KNOW there will be ANOTHER HUGE delay in getting it all processed which means going months without anything at all coming in. I just really don't know how to solve this.

whitewing

I think you are doing the right thing by being in work. From my limited knowledge, once your tc are sorted, then you will be able to break the cycle of despair.

There is a tax credit forum:
http://forums.moneysavingexpert.com/forumdisplay.php?f=139

Post another note on there specifically regarding the issues with your tax credits.

There is also a user called RAS who seems pretty clued up about most situations like yours - doesn't seem to be online at the mo, but may be worth you sending a PM (private message) asking them to take a look. Other users are equally good but I can't remember names, sorry.

whitewing

Also look at this:

https://forums.moneysavingexpert.com/discussion/2077631

It is the sticky on where to seek professional impartial advice on your debts.