newbie desperate for money advice :(

need_more_money

Hi there, Im new here. Feeling rather stressed about money issues and not sure what to do. Im not in a huge amount of debt so may seem silly stressing over it but I dont earn that much (there arent many other jobs going - I've looked) and want to be free from the debt.

Here's a bit of background info...

have slowly been getting further into debt due to personal circumstances...i had to get a loan (5K) with Barclays as my overdraft was at it's limit and they couldnt extend it any further. SO the load paid off my overdraft and my existing credit card. Everything was managable at this stage and was paying off the loan fine. Then I got ill for around 2 months (chest infection, throat infection, ear infection, swine flu - the lot all one after the other - I work in a shop so couldnt even go in if I had the strength to while being ill as I couldnt serve customers ill) you can imagine the rubbish amount of sick pay i received for that amount of time! I have now gone into my overdraft again and am at my limit....bank said there's nothing they can do for me, cant extend overdraft because my hours have been cut at work therefore less income...cant get a credit card with a large enough credit limit to transfer to pay the loan off (in the hope i could put it on the credit card this would lower the monthly payment I would have to make).
I get paid tomorrow, I will still be overdrawn, then i have rather a lot going out next month in the way of bills etc and will be back over my overdraft limit by the middle of feb, thus incurring bank charges grr. What do I do? I am looking for new employment with steady regular income (currently work in retail on a 16hr a week contract...although I had been working 32 hrs per week so earning a lot more) as I am only given around 17-20 hrs per week due to the shop trying to save money etc.

In the meantime until i find a new job Im sinking further and further into debt...what do I do??? I cant get another credit card out can i because it says on this site to stop borrowing as the debt will always be increasing. I have no savings, I'm looking at selling anything I can, looking for any extra jobs i.e. waitresssing etc just to get some extra cash to pop into the bank.

Hope it all makes sense...am so tired and fed up with money I just dont know what to do anymore.

Thanks for any help in advance.

RAS

Start by doing two things.

1. Open a new basic bank account with sopmeone not related to any bank with whom you have debt. Basic because there is no credit check. Then move your salary across to the new account.
2. Do a Statement of Affiars listing your income and expenditure and post it here.

dollybeads

Hi there and well done for posting, as RAS says above you can find the statement of affairs SOA at this link

http://www.makesenseofcards.com/soacalc.html

One you complete this and post it back on here, you will get lots of very practical and sensible advice on how to proceed from some very knowledgeable people. Plus tons of support to help you get sorted.

I look forward to hearing how you get on.

Best wishes Dolly x

need_more_money

thanks for your quick reply.

1. from this bank account do I set up all my outgoings via DD then it leaves me with what I actually have to spend?

2. Here are is the info: (my salary varies each month depending on what shifts I'm given)

currently overdrawn £1,000
current loan statement £4,827

Income this month £537 (after tax)

Outgoings

£130 petrol
£350 mortgage (I am divorced but paying towards the mortgate on old house - which is sold but not gone through yet, just waiting for searches to go through etc, should be completed soon.)
£38 Mobile bill (cant lower the rental until a year into my contract which is May and what I could get for selling the phone wouldnt cover the cost of getting out of the contract)
£30 parking charges for where I work
£117.78 Barclayloan
£67.25 new glasses - for the eyes kinda glasses not drinking :P
Total out goings: £733.03

Projected income for Feb £450 - £500

Currently £1000 overdrawn once paid tomorrow will be £463 o/d then pay out £733.03 outgoings leaves me £1196.03 o/d eeeek!!

need_more_money

Thanks Dolly I didnt realise it was a proper form the statement of affairs, I've just listed my income and outgoings as above, hope that is enough, if not I shall fill in the other form...I really dont know the rate of interest of the loan. Im on an interest free overdraft though.

janeawej

Have you any equity on the house which you are selling? If so will this cover the load and overdraft?

need_more_money

i wont be getting anything from the sale of the house. We had accrued joint debt while we were married but it's in ex partners name so the equity will be going to pay part of that off, but theres not much equity darn housing market!

dollybeads

need_more_money wrote: »

i wont be getting anything from the sale of the house. We had accrued joint debt while we were married but it's in ex partners name so the equity will be going to pay part of that off, but theres not much equity darn housing market!

Hi there, i know it might be a pain but would really help to fill out the SoA online as this covers all outgoings, and income and any assets such as a car etc. It gives a very detailed breakdown so that others can have a look and see if there is anywhere that you can make savings. Don't worry about APRs at the moment you can find these out by ringing the bank or checking any paperwork you may have from when you get the loan out. Don't loose heart, there is plenty that can be done to help sort your situation out. Have you tried CAB yet? If not they are extremely helpful in helping you with managing your debt or the charities CCCS or payplan. Probably best to start with CAB, you can find their offices and opening hours online.

Once you can get the SOA on here, you will be inundated with very helpful advice from far more knowledgable people than may. I have found it invaluable and the support has been amazing. Its really awful when you first start tackling your debts you feel helpless, frightened and embarrassed. Most people on here have been there or still are there, but their experiences give them expert insight into how these processes are managed.

Bes wishes Dolly x;)

theoretica

I suppose you have already committed to the glasses? Selectspecs do amazingly cheap ones.

Stop paying parking for work. Park further away for free and walk or investigate public transport.
Is the petrol all for getting to work?
You could sell your phone and buy a really cheap one on the same network to put the SIM into.

However, the real problem, as you say is lack of income. Have you had a look at the up-your-income forum on this site? You can hopefully find something to do with your extra hours which will bring some money in, even if it is not much.

katsu

Some advice for now....

Sell the phone anyway. Look at completed ebay sales and mobile phone recycling sites to see what it is worth and assuming it is anything decent, sell it and get a cheap £10 handset to put your current sim in. Then you can keep using the contract (if you can afford to).

Can you put off getting new glasses for now? Can you then get them cheaper from an online place like specs direct or glasses direct or whatever it/they are called?

What can you sell on ebay/at cash converters/car boot etc to pay for your glasses etc?

Where/how are you living? You had no rent or food listed above.

HTH start you thinking.

ETA - cross posted with theoretica. Great minds and all that

need_more_money

Thank you for your replies Theoretica and katsu.

Ok, I shall sell the mobile will get £130 for it gutted as its a nice phone oh well needs must and all that!

I will look around for the glasses, I'm sure I probably could get them cheaper, it's just I've already paid half of the bill for them.

I will find out where I can park for free and see how long it would take to walk into work.

And I will take a look at the up your income forum thanks for your suggestions.

I'm currently living with very understanding parents who dont charge me rent or money for food..i just help out when I can afford to, they already do so much for me I cant ask for money from them and they dont have any spare cash anyway.

I dont have any capital in my car as its an old runabout and it's been lent to me I dont own it and do need it as using public transport where I live means taking an hour to get to work on a bus when it takes 20mins in the car, and they dont always coincide with the shifts I work etc.

I'm raiding the loft to see what I can sell at cash converters etc. Have tried to sell my wedding and engagement rings but the swines tried to rip me off so Im going to try and sell it privately. Was going to sell them on ebay but I dont have the original receipt for them!

I really appreciate your help everyone