Can't work out how to find the money to pay this back

chazsucks

I was in debt from a credit cards and I managed to get myself out, I was working back then so it was do-able. I've never had a credit card or loan ever since as I'm scared of getting back into debt.

However an old current account I had with santander and haven't used for about 1-2 years had some money overdrawn (unarranged overdraft) that has escalated to £800. I can't work out how I'm going to be able to pay it back.

Neither of us work, I'm at university and my OH is a stay at home dad as we couldn't afford childcare while I'm at uni. It's a pretty full on course, not much time for a part time job. I'm at uni 3 days a week all day, plus up to 24 hours shifts in a hospital plus essays, revision, exams etc and being 'on call'

We get a bursary which just about covers our rent.
Child tax credit which covers our travel costs and our household shopping for the month
We get child benefit which pays for nappies, wipes, the children's clothes etc - anything to do with them comes out of this money first before getting any more from child tax credits.

By the end of the month we're usually at £0. I then find stuff around the house to put on classified adds (like baby clothes the boys have outgrown) to get us through until we're next paid. We don't go out anywhere at all other than walk down to the park with the boys as it's free - plus going to uni/placement.

Since starting uni we haven't been out once with our friends, socialised etc we don't drink or smoke. I'm just really struggling to think where we could cut back.

Any help would really be appreciated.

angelbob

hi i do you not get housing benefit and council tax benefit if your both not working? does your uni have a nursery (mine does) so if so could your kids go there? are your kids at school could your partner work sschool hours? or work nights?
if not have you spoken/written to your bank asking to paying in small instalments?

Boris_Allen

Why did you leave the account overdrawn in the first place???

I'd start saving your pennies very fast, because the fees on an overdrawn balance will clock up very fast.

chazsucks

We are renting the house off of my dad, so we are not entitled to housing benefit. My uni has a nursery but it's £800 a month for the first child and at a slightly reduced rate for the second. My children are 11months and 2 so not at school yet. My partner does work sometimes when we need extra money like installing CCTV, PC repairs things like that but there's a lot of competition round here and as he can only work when I'm at home etc he doesn't often get the job

I should have done that, however I have only just become aware of this debt, through my own stupidity. And it was passed on to santanders debt collection team I believe.

I suppose I could arrange to pay very small amounts each month? But then it will be hanging over me for years.

chazsucks

Boris_Allen wrote: »

Why did you leave the account overdrawn in the first place???

I'd start saving your pennies very fast, because the fees on an overdrawn balance will clock up very fast.

I didn't realise it was overdrawn. I didn't use the account much and thought that as I didn't have an overdraft it would not put a transaction through if I didn't have money in the account, however it obviously did, and made me overdrawn slightly and is now nearly £800

techsavvy_2

Hi. Is one option to speak to your dad and explain the situation. Try to get a reduction in rent or a months rent holiday just till you clear the odraft? Owing your dad the money both interest and fee free seems a much better way if his circumstances allow.

Giraffeseeker

£800 is alot of money but if you think of it as 8 x £100 it might seem a bit more managable. So, you just need to make £100 to chuck at it to begin with. And then do it 7 more times

A few things I've done recently and "found" quite a bit of money - might not apply to you but:

- check your utilities if you are on DD - overpayment on my water meter meant I was £500 in credit, and between gas/electric I was £500 in credit so I got most of that sent back

- Make sure you are paying the best price for utilities and cut down on useage if you can. BG do a free electricity monitor which is an eye opener and helps you spend less, they are also doing free insulation for all at the moment. If you save on bills it can go towards the debt.

- If you both gave up jobs mid year to go to Uni/care for children then check you are not owed any tax back - I'm not entirely sure how to do this but I'm about to try and claim some back myself

- I know you are selling used baby things, but eBay EVERYTHING you don't need. 99p listings are free (comission if it sells) and people buy the weirdest things, even empty ipod boxes and empty perfume bottles. There is a thread on here somewhere about it. Just calculate the postage and packing correctly so you don't lose out. I made nearly £70 last week without really trying, on clothes and curtains mainly. If your OH repairs PC's he might have bits he can put on - I sold a non-working pocket PC for £3 - every little helps

- Sell CD's on music magpie

- Sell on any old mobile phones you have lying around in drawers.

Have you spoken to Santander to arrange a repayment plan? If it is largely made up of charges they MIGHT be nice and refund some.

Alternatively, as you rent from family, would they let you put the rent to the debt until it is gone and then increase the monthly rent a little over a period of time to repay the arrears?

Giraffeseeker

Oh, and one more thing, when I was at University as a mature student and had children there was a "hardship fund" and those with children had priority on this, I got around £3K over the year I think to help with childcare costs.

I know you have no childcare costs officially, but your OH is not working so technically you need to "pay" him so he can cover his share of the household finances - check and see if your Uni has such a fund if you haven't already.

Don't mention the debt, just prepare a reasonable budget that shows you are really struggling and ask for some support.

dancingfairy

Are you sure you can't get housing benefit? Are you paying the market rate? Do you have a formal tenancy agreement? Given the fact that you can demsontrate you have been paying the rent for a certain amount of time you may be eligble?
In terms of paying the debt off you have 3 main options:
1) do nothing/ ignore the problem and hide.
2) start paying the debt off - even at 1 pound per month if that's all you can afford. Eventually they will probably get bored and sell the debt on further if you can't afford any more.
3) go to the CAB or phone CCCS or National Debtline and consider something like a DRO.
These seem to be the most obvious choices.
Best of Luck
df

Knonie

Hi

Sorry to hear that this has happened... I'm not one to judge and we all forget things and wish we hadn't ;-)

All the suggestions made so far seem good, one in particular keeps being suggested regarding the rent you pay to your Dad.... perhaps it would make more sense to explain the situation to him and ask him if he'd lend you the money to pay the bank in full in order to prevent any more charges mounting up in the first instance and then you could sort out how you were going to go about paying him back.... Does he have more than one property? as perhaps if your DH is good at DIY he could offer his services to help your Dad out with repairs as payment in kind??

K
x

chazsucks

Thank you very much tintingirl, really helpful suggestions there - and I completely forgot about the hardship fund. Thank you for replying, I really appreciate it xxxx