Unsure where to start!

RumblyTumbly

I am in a big mess financially and have been for some time now. Unsure or unwilling to deal with the situation I have buried my head in the sand for a loooong time, including ignoring payment demands etc. It doesnt help that I was very ill and had some serious surgery and drugs which made me not care about some stuff I really should have been more concerned about!

For some reason I have recently woken up and decided to act like the adult I am supposed to be and try to address the issues. Maybe being on Maternity leave with a baby on the way has given me a fresh perspective.

I looked at my credit report - its horific and includes 2 CCJS. I cant even remember some of the stuff on it. I feel so ashamed and I have no idea where some of the money went. I certainly have no savings.
I am currently living with my partner who covers most of our expenses especially as I am not earning at the moment. My maternity pay goes on food and thats about it.

Quite some time ago I stopped paying off my debts as I simply couldnt afford it. I pretty much ignored everything from then on. Most of my creditors seem to have stopped chasing me or just closed my accounts, with the exception of a few pay day loan companies I used who are still sending letters occasionally.

I really dont know what to do. I want to start cleaning up my credit file but I really have nothing to offer my creditors at the moment.
Should I contact the creditors who have stopped chasing me as they are still showing on my credit file?
Should I contact the ones still chasing me even though there is nothing I can give them?
I have no assets, I dont own my own house or car, I occasionally sell things on ebay to get some extra cash for friends birthdays etc.

I really have no idea how and IF I can ever recover from this mess and get the savings behind me I am going to need for my babies future.

Can anyone advise? Please dont judge me, I beat myself up for my pigheadedness and stupidity every single hour.

Thanks in advance.
RT

ss3n08

Dear rumblytumbly,

Well one for making the first move it is such a massive step to make. You will probably be asked o provide a statement of affairs (soa) so thatpeople can see your incomings and outgoings and help you find ways to cut back.

You should get tonnes of support here xxxx

Little_Miss_Uni-Debt

Hello RumblyTumbly,

Welcome and well done on starting your journey. I can guarantee you will start having successes and triumphs by sticking around here and pushing forward with even small changes.

As you're feeling overwhelmed it may be a good idea to first, check you are getting all the income you are entitled to and get your current accounts in order so you have a good foundation before you start considering repaying your debts.

Ensure you and your bump are healthy first and foremost, food, heating, clothing etc catered for. Knowing what just 'living' costs and what you can afford to repay gives you important stability.

Perhaps to fill out the template called Statement of Affairs http://makesenseofcards.com/soacalc.html copy and paste it up here. It will show what you pay currently and then everyone can help you to make changes and fill gaps.

Best wishes for your journey!

Barbeduk

Hey, what spent money on stuff you can't remember and have no savings? Think you're in good company there!! Congratulations for getting to the stage where you want to do something about it.

Have you considered talking to CCCS? They'll give you loads of advice (and you'll get loads more on here).

Could I just say, don't get sucked in to buying loads of stuff for the baby, for the first few months they need milk, nappies, sleepsuits, car seat, pram, Moses basket. You'll get given loads of stuff, everyone will want to pass on! I used cut up cloth nappy for wipes.

Enjoy what's left of your pregnancy, don't over stress on the financials. Once you start on the debt free road hopefully it'll all fall into place for you.

DS4215

How old are the debts you have been ignoring? - anything without a payment or written acknowledgement of the debt in the last six years will now be statute barred (meaning that they cannot chase you for it). The CCJs are another matter though.

Find out all the information you can about what you owe and then speak to CCCS or one of the other charities and get some free impartial advice before deciding how to proceed. Its great that you have made the decision, and they can wait for an extra 2-3 weeks while you sort everything out.

While you are only on maternity though it is unlikely that you will be able to pay anything much above £1 per month and with no assets then bankruptcy could be a way forward to clear the slate.

RumblyTumbly

Hi thank you all so much for such a lovely welcome.

My income is currently about £520 per month maternity pay. I have recently moved in with my partner and although he knows I have money issues he really doesnt want to know the details? And to be honest I am quite relieved about that.
We are not financially linked in any way and I am keen for it to stay that way. He covers all of our living expenses with the exception of food which I need to cover out of my Mat Pay, which I think is more than fair.
I can post a statement of all my debts on here soon once I get the details in front of me from my credit reports but am unsure if I should start to contact debtors less than 6 years old who are no longer chasing me? Should I let sleeping dogs lie?
I will contact CCCS but am worried they will ask for my partners income etc when I feel that its not really his problem so why should I have to include his details? ALso will they ask me to contact old creditors? I dont want to start getting harassed again?
As for baby stuff, I have not bought anything new so far, its all been gifted or given so I have been very lucky!
Thanks again for all your help.
RT

afly

I'd be wary of contacting your old creditors myself. You did default after all (if I have understood you correctly) so they probably wouldn't agree to remove things from your credit file anyway.

Little_Miss_Uni-Debt

I think you do have to be careful of who you start contacting. Also I have heard in some cases where you request a credit report and suddenly you start to get contact from old debts. There maybe some dodgy dealings passing details on.

Perhaps you should start by opening all of your post over the course of a month and seeing which companies are chasing at your current address. Perhaps call for an automated balance for any cards you have.

Get a notebook, each page is a monthly summary. Debt names, balances (down to the penny) card/account limit, min payment, APR% being charged.

As you're responsible for the food shop there are plenty of ways to reduce costs, make excellent meal plans which would leave you more spare £'s. You can find recipes and meal plans on some of the other boards here.

NeverAgain_2

You say you are now hardly ever chased for payment, so letting sleeping dogs lie is certainly an option, unless you have a strong moral desire to repay your debts.

Is this relationship stable?

As a 'kept woman', you are largely sheltered from any problems your dodgy credit history might bring.

Were you made single tomorrow, you might struggle to get a tenancy, utility accounts and the like.

If you are not made single for many years, your history will have largely faded into the background.

AndyPanned

1) well done on making the first step
2) good luck
3) how much in total do you owe?
4) don't worry (try not to) your health and baby are far more important than money
5) look after your bloke, he sounds a keeper