New to MSE, in up to my neck and in need of help!

phoenixfromtheflames

Please please please can people offer me some advice? I am in a horrible financial situation which I need to get out of ASAP.

I am in the process of getting divorced (expensive), I am pregnant (going to get expensive once the baby comes in Feb), I am unemployed (expensive as not eligible for JSA benefit due to working abroad until recently) and apparently unemployable (have applied for over 200 jobs in last week alone with only one interview which I didn't get). Oh, and I am over 20k in debt, split between 12,668.40 on a personal loan, 6,921.53 on a credit card, and HP on a sofa which still has approx 2k left to pay on it. I pay a minimum payment on the credit card (which this month will be 101.92) and 316.71 on the loan, as well as 90.22 a month on the sofa. So 508.85 per month outgoing on debts, and currently no income. Eek. I am able to readjust my loan in November 2011 and intend to consolidate the debts all into one at that point, and hopefully reduce my monthly outgoing on this to a more manageable amount.

I am waiting to hear whether I am eligible for Housing Benefit or Council Tax Benefit, but I live with my boyfriend and because he works (and earns 25K) I am unsure whether I will receive anything, and if so, how much. He is unable to support me completely financially - and, to be fair - my debts are my problem, not his, and I need to take care of them myself.

I just feel like I am banging my head against a brick wall. I have 600 quid in my current account which is enough to cover this months outgoings on debt (and hope against hope that the HB comes through and pays my half of the rent!) and things are looking very black. I am an educated individual, I have a degree and I didn't think it would all turn out such a mess.

Please can someone offer advice to me? I am wondering if a debt consolidation loan is the way forward.... either through my bank or through someone else? I need the outgoings reduced by next month otherwise I am going to have to default on one if not all of my payments.

I await your replies with baited breath.

DebtFree2012

Hi hun

Didn't want to read and run - I think people will suggest you post an SOA to show exactly what you have going and where.

There are wonderful ppl on here who can help. I felt at my wits end when I joined and now I'm in control of repayments so take a deep breath and someone will be along soon with an SOA link and proper advice

freshair_2

Sorry can't help with advise, but will provide support, I am sure a very knowledgable MSE'r will be alond very shortly,

sarah2503

Hi some areas have a free money advice centre. My city does and they have sorted out payments with all my creditors and checked too see what benefits i am intitled too. I know that you might get better advice on here from someone who is more knowlegdeable. Goodluck.

freshair_2

**bump** I think this lady needs some help????

podperson

Hi Phoenix,
I don't want to be the bearer of bad news but with your boyfriend's income it's very unlikely you will get any Housing or Council Tax benefit (when me and OH were on a joint income of £13k we got a 'reduced' payment of £30 a week, and you're on nearly double that). I would suggest trying one of the debt agencies such as CCCS or Payplan to get some advice on your debts, they may suggest a dmp or token payments for the moment until you find work. I wouldn't suggest another loan as at the moment how are you going to make the payments on that either?

DS4215

With no income, not much chance of any income for the next couple of years and lots of outgoings then bankruptcy might be your best option, but speak to the CCCS and see what they advise.

KingElvis

You need to stop paying your debts and come to arrangements to pay that you can afford, this will trash your credit rating but that's life.

CH27

Speak to the CCCS asap.

phoenixfromtheflames

Thanks all for your comments and advice! I have been taking advice from various sources and it seems that the best option for me may be bankruptcy as I have no income with which to even start trying to pay off any debt. Am going to have a look at the bankruptcy forum now. Thanks again.

mizmir

phoenixfromtheflames wrote: »

Thanks all for your comments and advice! I have been taking advice from various sources and it seems that the best option for me may be bankruptcy as I have no income with which to even start trying to pay off any debt. Am going to have a look at the bankruptcy forum now. Thanks again.

Good luck Phoenix. Am sure bankruptcy board will help. Does look like bankruptcy may be the best option as you have no income (and with the baby coming will have a period without income).

Whatever you do - don't consolidate your debt - in the long run it just means you pay more - and in your circumstances you are not going to be able to keep up payments on that.