Help... feel sick

Luna69

Hi
Not really sure where to post this and don't want to waffle on for too long, I'll try to keep it as simple as possible... but... basically since December 11th we have gone over our very large overdraft, have had 7 bills unpaid, and thus charged £38 for each one by the bank.. totalling £304.00, the bills totalled up are £346.93.

A bit of history, we have our own business, although I am a full time mum too, 3 kids. Unfortunately our debts have mounted and although we were managing to stay afloat and pay our bills, over this last month we have not been able to, due to our payments not coming in in time to cover our outgoings.
Therefore we need to find the money to cover the unpaid bills ( also have 3 credit cards now overdue as well). We did put some money into our account a week or so ago which didn't even make a dent adn we were still over the overdraft.
We're still waiting for money coming in, which we are due ourselves.

I haven't contacted the bank yet as we've been so busy I've only just sat down and worked it all out and feel ill.
I need to compose myself before I ring and I also need some peace, since i have 3 kids running around I'd not be able to concentrate on what I need to say to them. At the moment I'm not sure what anyway.
My partner is going ballistic about it but he can't ring as it's in my name.
Should I stop all my direct debits and contact all of the companies?
thus stopping anymore coming out of the account and getting much worse?
I've tried to increase our overdraft online (on the 22nd I think) I got a letter to say it was going ahead. I didn't really want to but couldn't think of anything else to do. However so far nothing is showing up, despite it saying it would take 48 hours, even with the holidays. My available money on my account says £0 but my overdraft at it's original amount is showing as less now, I've had some money go on today, but it hasn't changed.

Any suggestions?
I know most things are probably a bit vague, if there is anything you need to know to try and help, I'll go into more.

Best place to start though?

we do have a very large amount of debt now, which once we're paid ourselves we can start chipping away at, but at this rate we won't be able to as we'll be having to pay off the bank charges and the bills we haven't paid. Help!

I know about reclaiming bank charges but haven't gone into that yet, bit scared, but I have been trying to read up, when I have time.

Thanks if you got this far
Yvonne

Broken_hearted

If you havn't got the money to pay cancel the direct debits, then phone everyone you owe money to and sort out a payment plan to cover the payments missed.
Now you have a bit of breathing space do a full SOA to see where its going wrong.

moozie_2

Hello and welcome

It is very daunting when you first sit and work it all out, isn't? :eek: I certainly know how you feel.

Have a look at this post http://forums.moneysavingexpert.com/showthread.html?t=107280 and then post a statement of affairs (soa) for your personal stuff and then for your business. Best to keep it separate if possible.

It will get easier, just take one step at a time.

skinterint

Hi Yvonne,

I really can sympathise! It can be tough owning your own business.

My suggestion would be to open a new bank account immediately and put all incoming monies in there rather than have them eaten up by your existing overdraft.

Once you've done that you can get in touch with your current bank, explain your predicament and agree a repayment programme.

If you've got other debts too you can go through a Debt Management Company who will do all the negotiations for you. Payplan are good, IMHO.

Don't let it get you too down! Best wishes for the new year.

Skinterint

Morglin

Ask the bank to stop all Direct debits due out, for the moment.

That way, you will avoid more charges because they bounce them.

When you've had a chance to think, then sort out who needs paying, who is priority, and get some proper advice from a professional.

I'm sure others on here will be more able to suggest the way to go.

Lin

Luna69

Thank you all. I think cancelling our direct debits will be the way to go first I think. Trouble is because we are having to work that much right now, sitting down and sorting all this out isn't easy, although I know we have to do it. the business side is just as bad to be honest.
My partner has a bank account for the business bills with another largeish overdraft.. it's never ending. sometimes wonder if it's all worth it.

thanks again
Yvonne

Luna69

oh and as for the likes of payplan and cccs.. my partner won't have bar of them! Think he's too proud, wants to think he can get us out of this himself.. which will be great, but I'm not sure if it's gone too far for that. Our business is actually doing well, it's just waiting for the money is the hard part.
He has a ton of work in and only him doing it, and me helping out when I can.

I've tried to suggest pp or ccs, but he just screws his face up. My sister went through cccs and had no problems and a friend of mine is going through payplan although they are having problems with their bank I believe.
Just difficult to know what to do, when you're faced with a lot all in one go.
Head swims.

Yvonne

hypno06

Firstly, take a deep breath and remember that whatever happens, there is always someone here worse off and plenty who are happy to help with advice etc.

Now make time in your day, a couple of hours is ideal and I know it is easier said than done, but get together an honest list of your income and expenditure on a monthly basis and post it on here.

Others will be able to look at it from a different angle to you and will be able to give you ideas as to how you can cut back, or get through this in other ways.

Don't look at it as not having time because too busy elsewhere - look at it as an investment in YOUR future. You can't deal with a problem until you know exactly what that problem is and you don't want to stress yourself without knowing what you are stressing about.

As I said, I know it is easier said than done to find the time but it really is worth it and you need to do this.

Now, take that deep breath....

Luna69

hypno06 wrote:

Firstly, take a deep breath and remember that whatever happens, there is always someone here worse off and plenty who are happy to help with advice etc.

Now make time in your day, a couple of hours is ideal and I know it is easier said than done, but get together an honest list of your income and expenditure on a monthly basis and post it on here.

Others will be able to look at it from a different angle to you and will be able to give you ideas as to how you can cut back, or get through this in other ways.

Don't look at it as not having time because too busy elsewhere - look at it as an investment in YOUR future. You can't deal with a problem until you know exactly what that problem is and you don't want to stress yourself without knowing what you are stressing about.

As I said, I know it is easier said than done to find the time but it really is worth it and you need to do this.

Now, take that deep breath....

thanks.. I know big deep breaths....
I normally keep track of our bills every month, or had done until a lot of things happened in April this year one being an arson attack on our business which meant working from home, which was a mighty upheaval, house virtually unliveable and couldn't get ot any of our financial details during this time (lasted 6 months!).. plus a week after this our 3rd child was born.. at home!
So we have had a pretty difficult year with one thing and another and so now we've come to this, it's not good.
I will be getting back to sorting it all out again. I'm fine with our household expenditure and my own credit cards.. I have 4 all of which I don't spend on, only paying off.. however after the fire, my partner borrowed one to buy much needed equipment that was lost and unfortunately not covered by insurance, needless to say it wasn't paid back as hoped, so majorly increased our already bad debt.
business outgoings/incomings aren't so easy, plus my partners credit cards/loan etc.. this will take some time.

Kids are off school another week, so after that I will have more time to get sorted, however things may be even worse by then too.
Will start tomorrow I think as we're off out today.

thanks again for help.
Yvonne

In_Search_Of_Me

Firstly welcome & big hug. This is the worst bit to get through as it is so frightening to sit down and work it all out. When I did mine I cried for 2 days because it was so much more than I thought....It does take time & at the end of the day only you and your husband can do it - we cant do it for you. Could your OH take the kids out for a day so you have time to sit down & go through all the paperwork? At least when you know what you're dealing with you can move forward with a cunning plan. Whileyour Oh may be proud is that pride worth loosing it all for? When it gets to the stage where payments are refused it aint good and you need to tackle this as a priority. When I rang CCCS (in tears) they were great & they have the knowledge & experience to advise you on the best course of action but the choice is yours...
Just hang in there, sit down & sort & then make plans for how to fix it depending on what you find but PLEASE dont put it off...start the new year in control of your finances rather than them controlling you.

Luna69

fishface-69 wrote:

Firstly welcome & big hug. This is the worst bit to get through as it is so frightening to sit down and work it all out. When I did mine I cried for 2 days because it was so much more than I thought....It does take time & at the end of the day only you and your husband can do it - we cant do it for you. Could your OH take the kids out for a day so you have time to sit down & go through all the paperwork? At least when you know what you're dealing with you can move forward with a cunning plan. Whileyour Oh may be proud is that pride worth loosing it all for? When it gets to the stage where payments are refused it aint good and you need to tackle this as a priority. When I rang CCCS (in tears) they were great & they have the knowledge & experience to advise you on the best course of action but the choice is yours...
Just hang in there, sit down & sort & then make plans for how to fix it depending on what you find but PLEASE dont put it off...start the new year in control of your finances rather than them controlling you.

Thanks...I know it has to be done and sooner rather than later, it's just taking that first stride forward isn't it?
trouble is that as far as the business goes, I've no idea how much we have coming in. OH has to do the accounts NOW, they haven't been done for a while due to the paperwork going in the fire, so it is pretty urgent now.
so the only income we have that we definitely know of is the tax credits and child benefit.
Money we get into the business is paid into OH's bank account, then if he has enough after his overdraft has come down, he pays into mine, but mine is wehre all the household bills come out of.
It's a nightmare.
we want one account, but I was a bit frightened of cancelling everything and being left with teh large overdraft.
then having to sort outall the bills to pay again. Plus getting one account between us.
Don't even know which teh best bank is.. I know really there all one and the same and we count for nothing really. Unless we have a lot of money, but even then, once it's gone they don't want to know. I've been with my bank for about 20 years now and I know loyalty doesn't come into it at all, I've just never really thought about changing.

Yvonne