On Income Support with £2k debt !!

liz_uk

Hi there,

Some advice would be really appreciated !!

I`m currectly claiming income suporrt (single mum) and get the grand total of just under £100 a week.

But still creditors seemed to throw credit in my direction. being unable to afford the little luxuries, I started by putting just a couple of gifts on them, and promised myself to pay it off the next month. Well this has been going on for a long time now and I owe nearly £2000. I`m only just managing the minimum monthly payments, and it is just a never ending circle.

I`ve finally faced up to the fact that something has to be done. I have cut up all of the credit cards and binned the catalogues. Income support only allows me to earn an extra £20 a week, so I`ve been doing some mystery shopping here and there which is only an extra £12 or so.

It is frustrating as before I had my daughter, I workedasa successful senior sales consultant in the mobile hone industrry and had the money to do what I wanted.

i`m in a rut and need some guidance, can anyone help??

x

Trow

Would it be possible for you to do some 'unpaid' work in return for items or services that you need? For example - if a friend needs some babysitting done, instead of getting money, getting some groceries?

Is there a LETS scheme near you? This would allow you to do some 'work' - whatever you can offer lcoally - and get whatever other people can offer in return that is of use and can help cut your costs.

Could it be worth your while to get a part time job (over 16 hour per week) and instead of IS claim Working Tax Credits? Maybe a visit to your local CAB would be in order as I believe they can do 'what if' calculations to see if you would be financially better off.

ALso - do you have items that you no longer need that you could sell to raise cash to put directly against your debt? You might be amazed at what people pay for stuff that others no longer have a use for.

I'm sure others will come with more useful suggestions, but whatever happens good luck, I am sure you will get out of this it will just take time and planning.

DiggingOut

Congratulations on getting rid of the cards! First step accomplished, you're on your way.

£2K is not a mountain, but it probably feels like it right now.

Obviously, anything you can avoid spending is good, so check out the old fashioned savings board for handy ideas. They may not go far, but every little....

Have you looked into changing your utilities to a cheaper provider? What about landline and mobile phones, are you spending unnecessary money there?

How old is your daughter, by the way? Is she in school?

I agree about asking CAB about Working Tax Credits. Although if your daughter isn't in school, that is less attractive than if you could get a job during school hours.

What are the debts and the interest rates? Nothing over credit limits, I hope....

scouselass

If you approach your local CAB, or any Advice Centre that has Money Advisers they will be able to help you.

If they can take your case on, they will negotiate with your creditors. As you are on Income Support, and if your income is fully utilised on priority outgoings, the CAB would offer your creditors norminal payments whilst you are on Income Support. A nominal payment would be £1 per month per creditor. More importantly they will usually negotiate for the interest payments to be frozen and that legal action against you is put on hold. There are no guarantees that creditors will accept, but usually they do as the calculation to work out what you can afford is carried out in the same way right across the Money Advice Sector. Now this will not rid you of debt, and clearly it will extend hugely the time it will take to pay off your debts, but it can allow breathing space and reduce the daily stress. If this arrangement goes ahead your creditors will review your financial position every 6 mths or so.