Getting Desperate

xxrobzyxx

Hi I'm new to MSE so you'll have to bare with me if i'm not up to scratch on everything.

I would really like some advice.
Me and my boyfriend are living in a privatly rented flat. He's 22 and i'm 21. Both of us have individual debt mine are about £5000 roughly and his are at least £9000. He is currently on a debt management plan paying £18 per week but they only cover his major debt and even then the company are taking about 5% for themselves. He has just recieved paperwork from the courts as one of his creditors has taken him to court and he just seems to have more and more people coming forward for money. He only works part time and even then his bank takes most of his wages for their charges because he has used the unplanned overdraft (not his choice to go into it they wont take it off his account and they keep taking charges which puts him in it that earns more charges) so he cant afford to pay much and the debt management company have told him he needs to pay more to add more debts which i dont think is fair as they know the situation. he has sent the creditors e-mails offering £5 and £10 per month but i dont know if he will be able to keep it up as money is always tight in our house.

As for myself i am paying all of the bills and only have about £50 per month to spend on food and no money to pay towards my debt. I tried going with the same debt management plan as my boyfriend but they told me it was going to cost me £80 per month which i cant afford. they also took £250 set up fee and then told me i couldnt have it back when i found i was unable to pay them. So right now none of my creditors are getting any money what so ever and i am now worrying that they will take me to court. I have been relying on payday loans to keep me going when i need extra cash and have to use them every month just to keep going. I do have a well paid job i get £937 per month but after bills its nearly all gone. And everyone I have tried to get help from has told me I earn too much money to qualify.

I feel so depressed all the time and I am always in tears because I dont have any money or a life. We have both considered going bankrupt but cant afford the court costs and it will take forever to save up.

Please somebody help me. I'm only 21 and i dont want to be in this situation anymore. I want to settle down and start a family but dont want to bring a child into this povety we live in. Everything is the cheapest i can get (Tesco's own brand of everything).

What should i do? my life seems a struggle right now and i don't know what to. I got into to debt in the first place so that i could get a moped to get to work. i lost that job as the hours werent enough and i couldnt pay my loan back and had to give up the bike as i had no money... its a circle

What do i do? I'm depressed, overweight and desperate.

podperson

Ok hun, first of all your oh needs to get out of this debt management company as sounds like they are doing nothing for him except take fees! There are a lot of debt charities who will the same thing for free and be a lot more supportive, cccs and payplan are the main ones. They should also be able to give you the option to do a joint dmp for both of you which sounds like it might be useful at the moment. The main thing when doing this is to make sure that you have an accurate budget, showing all your incomings and outgoing and what is left at the end of the month to go towards the debts. There's no point in offering amounts to the creditors if you don't think you will be able to stick to them, it needs to be something you will be comfortable with in the long term.
For your oh I would suggest opening a new basic bank account with a different bank (one he has no debts with) and get his wage paid into this instead so he can afford to live and pay the bills. He can then treat the overdraft on the other account as any other debt and arrange to pay it back at so much a month.

xxrobzyxx

i just burying my head in the sand and hoping it will go away. i know it wont but i cant help but hope.

I just wish there was a quick overnight solution. i know it will take time.

I've told him to do that but i had the same problem when i was with that bank. They tried to take the charge for having the account and because the money wasnt in the account kept trying which took it overdrawn further and further and eventually they took that much that they were charging £20 per day because i was in the unplanned overdraft. hes had the same problem.
Thank you

DawnW

it will not go away. Unfortunately you and / or your OH have got involved with a scummy fee paying debt management company who just rip off people while in a vulnerable position, and will keep taking even more money off you - but only if you let them. Time for you to take control now ...

In a decent society, these companies and their like would be illegal, but in the situation we unfortunately live in, I am sure these parasites will get to flourish and proliferate (sp?) even more. However, the good news is that you have now come to the right place - and make no mistake, the industry really are in awe of this site - I was at a financial services meeting yesterday (the better end of financial services I hasten to add, not these parasites - and no, that really is not what I do) - and Moneysavingexpert.com was mentioned several times, and the industry really are in awe of this site. It is probably much more powerful even than most of the members here think. I can't say any more, as my job is quite sensitive with regard to anything vaguely 'political'. However, you will get a lot of help and good advice here !

My debts (which were more than yours) were paid off years ago, before MSE and when the landscape was very different, so I do not by any means profess to be an expert in the here and now. But you need to start off by getting rid of these fee charging companies who just prey on the desparate. Get in touch with one of the free debt charities, such as CCCS or Paylan, or alternatively the CAB, (but they are pretty busy I think). You may then (or at the same time) want to set up basic bank account(s) with a bank which is not connected to any of the institutions you owe money to, and have your income paid into this/ these. I understand that Barclays and the Coop do these. Others may do as well - the key thing is that they should not be connected in any way to those you are in debt to. There are links which I am sure someone much more in the current know than I am will soon post! Note that these accounts will not offer overdrafts or anything like that. And your credit rating may get shot, so think carefully about this first - you may be able to cut down your outgoings enough to be able to avoid this - but you would then be in control of your income, and able to pay off your overdrafts as and when you can.

At some stage you will need to do a statement of affairs, which is basically a budget speadsheet thingy. There is a link somewhere, which, now I have bumped your post, someone will send a link to soon. Probably better sooner than later. This will be necessary in any case in your dealings with one of the debt charities. And the good people on here will give loads of tips on how to cut down!

This is incomplete and imperfect advice, but you will receive more and most probably much better!

Good luck - you CAN do it, loads of us already have.
Dawn x

Dellers

can you post an soa ?

Ids61

Hi get help now from national debt line,citizens advice cccs you can find solutions online.Your basic needs are the priority and try not worry.
There is a solution.

traycee

Welcome,

Well done for posting.:T

Here's the link for the Statement of Affairs, post yours and we can start trying to help.

http://www.makesenseofcards.co.uk/soacalc.html

Big hugs

Traycee

ItMightBeUsefulOneDay

xxrobzyxx wrote: »

I feel so depressed all the time and I am always in tears because I dont have any money or a life.
What do i do? I'm depressed, overweight and desperate.

Go get a cup of tea, a pile of biccies and all your paperwork.

You've come to the right place and things can and will get sorted so don't worry.

Step1: Work out a detailed and accurate SOA (via the link above) and post it.
Also Step1 (Just as important): Get rid of these RIP OFF CON ARTISTS who are charging your other half to manage his debts. There are FREE charities (cccs and payplan) who'll make sure ALL hard earned cash goes to debts rather than skimming most of it off in fees.

Without seeing your SOA it's hard to say but at a guess you too may need some debt management especially if you've not been paying them anything so far.

sueeve

You say your boyfriend works part time. Is there any reason for this or could he find a few more hours at something - anything?

Gothicfairy

Call the CCCS or another FREE debt charity agency.

They can help sort out a plan without costing you anything (ie you don't pay them to manage it)

I am paying £1 to each creditor through them as I lost my job and do not receive any benefits..So I bring zero into the household
Most of my creditors have have accepted it and are whilst not happy are at least understanding. One is being a pain in the backside with over 5 calls a day every day but that is fine as I am now working on blowing all their average call handling time out of the water for the day.

xxrobzyxx

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 937
Partners monthly income after tax....... 412
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1349
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 440
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 80
Mobile phone............................ 10
TV Licence.............................. 11.28
Satellite/Cable TV...................... 32
Internet Services....................... 0
Groceries etc. ......................... 90
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 19
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1054.28

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Provident......................197.......52........NaN
Natwest Overdraft..............678.97....30........NaN
Natwest Loan...................3378......100.......NaN
Payday UK......................250.......250.......NaN
Payday UK......................125.......125.......NaN
Compass Group..................209.56....10........NaN
Quinn Direct...................167.69....5.........NaN
DLC............................40.89.....40.89.....NaN
Vodafone.......................346.71....10........NaN
o2.............................441.6.....30........NaN
Mce insurance..................103.......15........NaN
Natwest Loan...................7890......120.......NaN
Total unsecured debts..........13828.42..787.89....-

Monthly Budget Summary
Total monthly income.................... 1,349
Expenses (including HP & secured debts). 1,054.28
Available for debt repayments........... 294.72
Monthly UNsecured debt repayments....... 787.89
Amount short for making debt repayments. -493.17
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,828.42
Net Assets.............................. -13,828.42


He lost his full time job. Hes searching for another one. Hopefully soon.

Thanks everyone for helping me