Deep in Debt and Petrified

Absolutely_Petrified

I really hope some of you kind souls out there can offer me some helpful advice. I know that I have been really stupid and it's all my own fault but it's too late now. I need help to sort the situation.

I am working, married with 2 kids. I have a lot of debt. My OH doesn't know about it. It is not an option to tell him. I need to sort this myself. Basically about 6 years ago when I was on SMP things got a bit tight and I borrowed £500 from Black Horse. From then things spiralled out of control. My details are below:

Income

1030
115 (child benefit) - paid to family member for childcare

Debts

Cahoot 10000 150
Halifax Visa 5500 110
Egg Visa 5200 112
Barclaycard 3500 80
Halifax Overdraft 1500
Halifax Overdraft 1000
Next 500 60
GE Money 550 24
B&Q 400 12
Argos 400 20
Studio 240 20

Total 28790 588

Other expenses

Mortgage 900
Gas 200 (no other providers available)
Electric 100 (no other providers available)
Council Tax 90
Car Insurance 50
House Insurance 25
Personal insurance 25
Pet Insurance 20
Food 200
School activities etc 80
Petrol 100 (essential for work)
Kids policies 40
OH's visas 200

Total 2030

My OH brings in around £1500 per month. My salary pays my debts and his covers the bills and expenses. The reality is though that every month I use cards etc to cover the essentials thus making the situation worse.

Mortgage - we have £2K in arrears. I wanted to lengthen the term of the mortgage so as to bring down the payments to allow me to throw more at the debt. I also asked about changing product. I was turned down on both.

Bank Accounts - both Halifax who are evil (as you all know). Would really like new accounts but doubt with me missing payments etc and always being overdrawn that I have a hope in hell. Any advice on this would be great. I have got to the point where I have cancelled most direct debits and use other methods of payment just so they can't screw me for charges.

Cahoot - have missed 2 payments. They are ringing me all the time. I need to answer them today. I had asked if I could pay £50 a month for the next while but they refused saying it's a fixed rate product.

Halifax Visa - Interest city. I asked if I could pay reduced payments on it for a while. Again told no.

The Inland Revenue will also soon be chasing me for £3K overpayment in tax credits.

My aim is to have new bank accounts so that the money is fresh each month and then pay off amounts to the overdrafts. I want to somehow if possible reduce payments on the other stuff to make life more bareable. I thought I would go for a consolidation loan but I know I probably have no chance. Is CCCS or payplan or something likely to be open to me?

I would really appreciate some help. I do realise that my situation isn't as bad as some but for me it's a major crisis and I need to sort it as it will get worse. I can't sleep at night, I can't eat and I'm terrified of the postman and phone. I have sold what I could on Ebay over the past 2 years and used the money to get by.

Thanks.

Broken_hearted

Hugs. You need to talk to your partner if you are behind on payments they will find out.

beyond_help

im not as in debt as you seem to be but i know the feeling of people calling you demanding money you just dont have.
I cant really offer any "advice" but just know that there are people out there who are in similar situations whatever the scale from £1,000 to £1000,000.

Good Luck

anniestar

Hi just wanted to say welcome. There will be loads of great advice along shortly. Just try not to panic, and keep posting.

gettingitsorted

i would certainly gice the cccs or payplan a call we are using payplan and they have been great with us .

sorry cant offer more advice but the regular guys will be along shortly

adypem

Absolutely_Petrified wrote:

I really hope some of you kind souls out there can offer me some helpful advice. I know that I have been really stupid and it's all my own fault but it's too late now. I need help to sort the situation.

The Inland Revenue will also soon be chasing me for £3K overpayment in tax credits.

Thanks.

Regarding the Revenue, if they have over paid you and you can't repay the amount then I thought that they could just stop your monthly child tax credits/working tax credits until the overpayment has been paid ?

I know this may take a while, but at least you don't have to hunt around for a spare 3K.

Hope this helps

sheryldoc

You have to tell your husband.. I kno you say this is not an option.. but there is no way you can pay this all off on your own without him noticing!..

dancingfairy

Just wanted to say hi :hello: and welcome. So are you paying the miniumum £588 per month debt repayments every month? I got a bit confused, sorry.

In this case you should have £1030 - £588 per month left over? Is this right? What sort of expenses are you putting on your card- food? clothes?

Don't worry- it'll get better.

bananakinz

You say that your salary covers the debt. Does this incude OH credit cards?

Your salary is 1030, your debts minimum payments £588, difference of £442? maybe a spending diary would help?

What are the APRs on the cards?

The gas and leccy are VERY high - are you in arrears with them?

You do need to speak to OH as he will find out, and then you can tackle together - why isn't it an option for him to help?

Xbigman

OK, your income is half your outgoings, thats definately DMP territory so you need to open a new bank account. It will have to be a basic one so you will only have a cash card. Switch your salary to the new account. Once that is organised (get your wages dept at work to confirm your pay is going into the new account first) then write to all of your creditors offering £1 token payments (I think they are all unsecured except the mortgage). As for the mortgage, you must send them the full payment and definately go no farther into arrears. You also need to make an extra payment off the mortgage this month to show you will start clearing the arrears, say £20. Is this with Halifax too?

Also look at reclaiming any bank charges from halifax, once you have switched accounts.

Lastly, contact CCCS and get expert advice on setting up a DMP and working out a long term budget.

Is you OH in debt with you? Is he with Halifax too? Is the mortgage in joint names? If it is his credit rating will be affected too, so if he is moving from Halifax he needs to do it now. You will have to tell him everything.
Is anything else in joint names? Once you default they will come after him for the full payment if there is.
Regards



X

Xbigman

Actually, what does your OH spend his money on (IE car)?

You should add those to the hat and do a joint income / expenditure. My advice on the other reply is still applicable even for joint income/expenditure.
Regards



X