Im in such a mess

Mixedfeelings

I owe just over £5000 in total to barclays bank (a loan) and barclaycard. I am not unable to pay yet but I think I can last another 6 weeks before I no longer have the funds as I am dipping further into overdraft each month. I owe £1200 to my partners mother too that I borrowed in bits just so that I could pay bills.
I receive incapacity benefit and DLA and there is no chance of me being able to work in the future and I just dont know what to do anymore. The debts span back years and I have been making minimum payments for a long time but have to use to credit card regularly just to pay the electricty bill and for extra bedding that I need.

Is it worth me asking barclaycard to help me? I am terrified they are going to close my bank account. Almost all of my bills are paid by direct debit as I wanted to make sure that they were never forgotten,my landlord insists my rent is paid by standing order.If they close my bank account I will be in so much trouble and possibly evicted.

I just feel sick with worry all of the time, my outgoings are minimal as it is as Im ill but Im spending £200 out of my benefits monthly on debt alone. I cant even afford to eat properly. Please if anyone can tell me what I should do please help, Im just so scared. I dont have anything I can sell,I dont even own basics like a fridge so Im really out of options.

edited for spelling

tealady

Hi
Don't worry just take a deep breath and fill in a statement of affairs (see the sticky at the top)
Then the clever peeps on here will be able to advise you what to do that is best for you.
It's only money after all and the banks can't have what you haven't got.

katsu

I'm sure you can pay standing orders from a basic bank account. The co-op comes recommended for a basic account.

Sort that out within the next six weeks and then you can transfer your benefits and your rent payment. After that then sort out what to do about the debt.

All the best.

fatbelly

Mixedfeelings wrote: »

I
Is it worth me asking barclaycard to help me? I am terrified they are going to close my bank account. Almost all of my bills are paid by direct debit as I wanted to make sure that they were never forgotten,my landlord insists my rent is paid by standing order.If they close my bank account I will be in so much trouble and possibly evicted.

This paragraph shows that you know what is going on.

So open a new account with someone other than Barclays. Get all your income transferred into it and use it for your essential direct debits and standing orders. That means your rent, fuel, tv licence and car insurance if you have one.

For a few months Barclays will happily continue to take money for their loan and card from the overdrawn account. That gives you time to find an Approved Intermediary and do a debt relief order (provided you do not own a car worth over £1k).

Factsheet Debt relief orders

Official guide here

You'll need £90 for the fee.

stig.of.the.dump_2

Hi immediately do yourself a statement of affairs this will help you know for certain what you have coming in and going out.As the previous advice open a new basic account,preferably one with no charges.
I have been in a similar situation to you in the last year and have managed to get myself back on track with the help of this site and the citizen advice people.
All the best but you will get through this.

Mixedfeelings

Thank you so very much. Yes,Ive been reading the forum and people have said Baarclays close their accounts if they cant pay which would be a nightmare as Literally every bill is on direct debit. I foolishly set that up so I couldnt get into debt, look at me now. I will open a new account, is it worth talking to Barclays at all or will they refuse to cooperate?


Here is my soa. I know it has some odd things on it but theyre health related. I also know my virgin bill is high but I do nothing but stare at the tv and go online all day so I really would like to keep that as I dont go out at all. Thanks for any help, I really dont know what to do. My outgoings are way over my incomings.


My salary - 0
Benefits - £810
Total - £810

Monthly Outgoings: £963

Mortgage/Rent - £50 (the rest is paid for me)
Council Tax - (is paid for me)
Gas - 0 (dont have it)
Electric - £80 (I have a condition that makes me cold so i need heating on even in summer)
TV License - £12
Virgin £43.00( I need this as Im housebound so this is my sole entertainment and I save on going out,etc)
Phone - £33
Food - £300 (I have to purchase some specialist foods plus I do not have a fridge or freezer to store anything)
Car Insurance - £65.00 (I use my moblity dla for this to pay towards my partners car insurance so he can get to me to care for me and take me to hospital appointments)
Petrol - 0
Life Insurance-£0
socialising- 0
Clothes- £3
Emergency- £10
water rates- £36
hair cut-0
cleaning help- £80 (I use my DLA for this as I cannot clean my own flat, its essential as I cannot stand for more than 5 minutes)
Laundry- £20 ( i suffer with incontinence so this again is necessary)

debts-

overdraft-£300 (£6.50 a month fee)
Barclaycard- £3900 (paying £102.00 a month minimum payment)
Egg card(soon to be barclaycard) £650 (paying £32 a month minimum payment)
Barclays loan £1300 (paying £82.00 a month)
Debt to partners mother - £1200 (she needs this paying back in small installments but I havent paid her yet-feel terrible)

SOT2011

Hi Mixedfeelings

Well done on completing the SOA, I am sure someone loads more knowledgeable will come along and give you some good advice on it soon.

Before you start to talk to Baarclays, I would definitely recommend getting a new basic bank account set up and all your DDs and SOs and benefits payments transferred to it.

Banks have set off rights - they can hold your credit to pay their debts first which can make things tricky. Lots of people on here seem to recommend the Coop account, I've not used it myself though.

I would also recommend speaking to one of the debt charities before you do anything else, see the sticky post at the top of the DFW forum for advice about which ones to choose from eg CCCS etc. They have loads of experience with this sort of situation and will be able to give you very specific information about how to proceed next. The problem with speaking to your banks etc yourself is they are experts on twisting things round and finding ways to get you to agree to pay more, and can use all sorts of pressure techniques.

Good luck x

de1amo

i dont understand where the 2304 total icome comes from?

Mixedfeelings

Oops sorry it doesnt come from anywhere, I copied the SOA example from the sticky and it was on that and I forgot to delete it. So sorry,Im in such a state I cant think straight.

Thanks everyone for the advise,I wont talk to Barclays before open a Co-op account. I just feel really guilty because if I could pay my debts I would, I feel very ashamed right now.

Memory_Girl

Hope you have had a cup of tea and are feeling better hon. Trust us when we say this can be managed and from this point on the burden will begin to lift - we have all been in situations like yours and we have come through it one step at a time.

1. So, when the banks open - get online and set up a BASIC bank account. A basic bank account probably not give you a cheque book, but will give you a cashcard and the ability to work online to set up Standing Orders and to transfer your direct debits. I am still using my basic account as I now refuse to pay £12 per month for the "extras". When you are set up make sure all your benefits are paid into your new account and all your important bills are paid from there.

Do this before you even think about talking to your bank, because they can and will take your benefit money to service their debt and leave you with nothing. ALthough you can fight to get the money back you will be left without in the meantime so best to not get in the situation in the first place.

2. Whilst you are in the process of setting up your new account, grab the sticky at the top of this page and create a "Statement of Affairs" using the template - this will give you a very accurate idea of how your finances currently stand. By tweaking this we will help you get to a stage of equilibrium where you do not need to rely on debt for living expenses.

Pop onto here: http://www.turn2us.org.uk/benefits_search.aspx and check that you are getting all the benefits you are entitled to.

3. Call one of the free Debt Charities - there is another link at the top of the page. They will look at your SOA and give you some seriously useful advice about your next step - And here is the important thing to hear today:

You are on benefits and the people you owe money to are entitled to their money back at a rate at which you can afford. If that means they get £1 per month then that is it. Your priority bills are just that, a priority - and you should NOT be going without food to service them.

Your bank overdraft gets treated as just another debt BTW - after all the worst they can do is shut the account and you will have already moved your banking elsewhere.

When you feel you have a spare moment - get onto Freecycle and see if you can get hold of a Fridge freezer for FREE - yes you can, I have and it is a blessing as our food bills have tumbled ( three of us for less than £100 per month).

When all this is done - get your Boyfriend to buy you something bubbly (booze or bubble bath LOL) and celebrate, because you will be in control and you can start to play with some of the wonderful threads on here for support and fun (Yes Moneysaving can be fun too).

Check out the Debt Diaries for motivation or the OS threads for housekeeping on fresh air. There are a wealth of resources here to help .................... you just have to take it one baby step at a time.

Oh Boy!!! this has turned into an essay - but here is the good news. Two years ago I was penniless with a repossession order - I have now cleared £10k of debt and am overpaying my mortgage and I am on less than £1000 per month income. So don't lose heart it can be done.

MG

paulmapp8306

1. open that account and transfere benefit payments and DDs for utilities/rent etc.

2. Speak to CCCS

3. From your SOA, the only comments I can make are:

a. Phone at £33 is high. BTs "free 24hrs/day" service is about £21 - well thats what I pay.

b. That Virgin package at £43 - again for tV and internet thats a little high.

HOWEVER, I understand TV/Internet is your only escapre. DCAs or debt help agencies MAY not see it like that id also say you can do better. You spending a total of £76 on phone/TV/Internet. You can - for instance - get skys complete package including TV/Phone/Internet for half that. Id seriously look around for a better priced all in one package for those three items as Im sure you could save a little there.

3. The bedt to your partners parents needs to be left if at all possible. Its not an "enforceable" debt, and not one your creditors will take into account. Thats unfortunate but Id suggest not counting that at pressent - and only make payments if you have money left at teh end of a month. It will get sorted down the line when the other debts are clear.

4. Iv also got to say, £300 food for one person if high - even taking into account your specialist foods and lack of fridge/freezer. Id suggest two things here. Firstly keep a food diary and see if you can cut back a little. Secondly Id try and get a fridge/freezer cheap or free from some of the places that offer them. Yes it will cost to run iot - but will give you more freedom in what you buy, when and how much. This could save quite a bit on the food bill over time.