Some Advice Please - Help With Debts

monganr

Hi there,

After reading through some of these threads my debt doesn't sound bad at all, but it is bad enough for me. I have recently split from hubby and have been left with all the bills etc. I am currently a young single mum with 2 kids recieving Income Support, I am studying in Accounts and trying to make a better life for my family but feel like I can't get anywhere. The main debt I am concerned about is with Kays Lifestyle Catalogue, they need a minimum payment if £150 a month which is now totalling over £700. I just don't know what to do

After I have paid all my utilities weekly I barely have enough money to scape together food for my family. I really don't want to mess up my credit record as I hope to get a morgage within 5 years. Kays can set up an arragement adding on about another £500 to my debt (£1500 already) and reducing the payments to £75 a month. I can't even afford that and really feel that I am at the end of my tether. Does anybody have any advice at all cos I am getting really scared.

If this is passed to debt collectors will I ever be able to get a morgage, and if it is passed to debt collectors will they accept small payments??

Sorry if I sound silly!!

Tustastic

Hi monganr, you don't sound silly at all, joining this site will be the best thing you have ever done for your finances. I'm no expert but plenty of those will be along in a minute. Standard advice is for you to post a statement of affairs (SOA) which lists, in detail, all your incoming and outgoings on a monthly basis. Look at the sticky on this board for examples of how to do it. Other MSEers will then see how to help you save (and get) money. Well done.:)

vivaladiva

Do you have a low rate crdit card you could transfer the Kays balance to?
If you post an SOA (see Sticky at top of thread) everyone will pick it to bits to see if they can find you some extra cash per month. Adding 33% extra onto your debt seems extortionate!

webitha

hiya and welcome to this site (its highly addictive lol)

i cant add much just a big fat hello and to let you know your with like minded who wont judge
as above post your SOA and let us pick thro to find where you can save and also to tell you visit OS board there you will find loads of cheaps meals etc to cut down the monthly shop

big hugs

ixwood

Sorry to hear about your situation. Keep battling, sure you'll come good.

I think I'd probably try the Citizens advice or one of the (free!) debt charities. I'm not an expert, but guess they might be able to help you negotiate with the lender. You clearly can't afford to pay. Interest frozen and a payment plan would be good. Not sure whether this would later affect your mortgage hopes though, or even if it's possible, but you've nothing to lose.

A 0/low % credit card balance transfer could maybe work as already mentioned?

As mentioned by others, it'd help if you posted a full SOA detailing all income and outgoings and I'm sure there'll be stuff to work on. Everyone's usually great at spotting savings.

Also, I'd say get buried in these threads. It's a bit overwhelming to start with, but there's LOADS of good advice about just about everything.