Not sure what to do...

roar349

Got into a bit of a state and not sure what to do. A shedload of bank charges, credit card debt, loan debt. I'm in a good job, but no rise for a few years and bonus not up to much (I tend to rely on this, and face disappointment each year). Other half went self employed (childminder) after our first child and we have another due in the next 5 weeks, she could go back to fulltime work fairly easily, but we've done the maths and childcare would make us worse off.


Just had an initial rejection letter from HSBC today for my bank charges(over 4k of charges in the last 8 years, started when made redundant and has just spiralled over the years). I'm now at a stage where I'm unable to pay all my monthly debts and don't really know what to do. They've started to cancel Direct Debits and with a baby due in the next 5 weeks I'm petrified of loosing the house etc. I've currently got PPI claims with the FOS, this one to send, and the VOA investigating my council tax, but decisions are months away.

I tried CAB last time I got in trouble, they advised going to a different lender when my bank refused to help (which I did). That was 2 years ago and I made the mistake of getting into debt again (stupid I know, but really learnt my lesson now). I'll be calling the credit card/loan companies this week to try and sort something out, but don't really know what to expect.

Ineedaname

Hi, and welcome, you've taken the first step by admitting you need to sort this out.

You do need to contact one of the free debt advice charities listed in the Look Here First sticky thread. They should be able to go through all your finances with you and advise on the best way forward.

How much do you owe in total right now?

PHYTHIAN

roar349 wrote: »

Just had an initial rejection letter from HSBC today for my bank charges(over 4k of charges in the last 8 years, started when made redundant and has just spiralled over the years). I'm now at a stage where I'm unable to pay all my monthly debts.

The banks always start off saying 'no'. You need to write back (using the template letters you can find on MSE) and claim the charges back under ' Financial hardship'. Tell them you will have no hesitation going to the Financial Ombudsman who will no longer look at claims re 'legalese' but will under the 'human' factor.....the bank WILL react!!.....Natwest did when I quoted the FO on my son's behalf.

Here's a link that will explain better
http://www.moneysavingexpert.com/reclaim/bank-charges

roar349

Thanks guys. I reckon outstanding debt is at about 26k.

NeverAgain_2

More income/expenditure details are needed, but 'a good job' and debt of £26K sounds manageable.

You need to take action to reduce expenditure and target the higher interest rate debts now before it gets any worse.

Which it surely will unless you do something.

confused76

hi there and welcome

as ineedaname says, please contact one of the free debt charities for advice
https://www.nationaldebtline.co.uk
https://www.cccs.co.uk
https://www.citizensadvice.org.uk

the cccs website has an online debt remedy tool which may be useful

if you are incurring charges with your current account that you cannot pay it might be an idea to open a basic account elsewhere (coop cashminder or barclays basic account?) to move your wages away from the charges so you have enough to pay your priorities and work out what you are going to do in the long run. good luck x

newyear2011

Your wife could still work as a childminder. you can have 3 under 5 so no childcare as she could watch her own children and still take a full timer on?

kepar

I agree with Ny why do you need childcare when your wife's job is as a childminder?

roar349

I meant if she went back to her old job as a Teacher. She already has two children almost full time (our Daughter is now at school), and the one that arrives in the next 4 weeks will fill her allocation.

alastairq

Hi....................as Confused says, go back to CAB.....they can negotiate with creditors on your behalf.

Change your bank account ASAP....I advise applying to either Co-op or Barclays.....ask for the basic bank account.....maybe set up two?

Then divert all income, and outgoings [DD's, etc] to this [these?]

Once your income is moved, simply leave the old bank to wallow in it for a bit whilst you get your finances sorted......one way or the other.

roar349

Thanks everyone, all the advice has really helped and given me the confidence that I can still sort this out. I used the cccs Debt Remedy tool which gave me a full breakdown of expenses and possible solutions. At the moment they recommend sending letters to my creditors to say I'll be paying a nominal sum for a while, do they have to accept this?