Drowning in debt

princess18

Hello,
This is my first post so please be gentle.
I've been reading lots on here lately as I've been struggling with debt. It started off by me just being stupid and naive (I really don't need any lectures, I feel worthless as it is) but I was managing to keep above water. But due to several twists of fate, I'm now drowning. I've calculated I owe roughly £7500. I'm struggling with how to deal with it. I've been to CAB but need to find my payslips which I'm not having much luck locating at the moment. I'm currently on maternity leave from work (baby is due in 3 weeks) and my wages will soon drop to SMP level. My tax credits has just been cut as I did too much overtime last year and my partner is very controlling with his money so I just get a set amount from him (which he's reluctant to part with any). I'm finding that everyone wants their money NOW and hence I have no breathing space. I'm currently struggling with essential bills and I do have some debts with utilities etc however I have set up arrangements with all of the priority debts, although I'm still struggling. I've got lots of stuff to sell (nothing of much worth but lots of 'junk' but I'm not having a huge amount of luck with selling anything. I just feel so overwhelmed. I'd like to manage the debts myself and am considering doing my own DMP but I don't know where to start or if the creditors will even listen to me, as not many of them have so far. Any advice is certainly appreciated. I've had points where I've felt suicidal over this

HappyMJ

Don't stress about it £7,500 isn't really that much in the big scheme of things. How much do they all want every month? How much do you have coming in? If your partner is refusing to give you money to buy essential family things then don't buy anything...let him pay for everything. With another baby on the way the tax credits and child benefit you will get between you will increase so you could divert some of that income towards some debt repayment.

princess18

Thank you very much for replying.
My income is currently £700 a month but will go down to £500 in 4 weeks. My partner gives me £500 a month of his wages. All tax credits and child benefit is paid to me, £100 per week tax credits (it was £160 up til a few weeks ago but we are now no longer entitled to WTC but do get some towards childcare still) and £20 per week child benefit. I have 11 creditors who are non priority, although I'm not overlimit on all of them. A few of them are stupid payday loans that have been rolling over since before things got bad. Most creditors are wanting about £100 a month and are VERY reluctant to go any lower than £50. My household bills including arrears payments are £1532 a month.

kj*daisy

You need to do a full SOA, setting out all your income and expenditure. But its a problem if you are paying for everything and your partner only gives you500 and that's not a fair reflection of half the actual cost of things. Does he pay anything directly himself? Once you've posted it up then people will be able to advise you more.

ms_london

Hi Princess

Yes please do a SOA so we can give a bit more detailed advice.. Your partner needs to take responsibility for his family and not cause you this extra stress and worry at a time when you really don't need it! Xx

princess18

I'm now working on a SOA and will post when I'm done. I agree my partner needs to take more responsibility, he is learning disabled and has little concept of money. He is well enough to work and now he has some independence he will not hand over responsibility of his finances. He is deemed to have capacity but does not understand paying bills and consequences if you don't, hence why I pay them all. His main problem is understanding that we don't get the same state help as when he wasn't working, as far as he's concerned what he earns is extra. Yes I've tried a million times explaining to him, getting others and professionals to explain but it just doesn't seem to go in.
I will get working on this SOA so you can see where I'm at, it's worth noting neither of us are on set pay and it does vary depending on what hours are going

mildredalien

Heya, no-one here will judge you for how you got into debt, the good thing is you are trying to do something about it

You could either do an SOA based on your average income, or on the minimum you are likely to get. Or perhaps both and see how you would manage in each situation? It sounds like a tough situation with your partner, is he earning a lot more that would help towards your debts? What is he doing with the money he gets that doesn't go straight to you? Does he understand the costs associated with having a baby and what he'll need to help with then?

Good luck, I'm sure you'll get some more advice when you have an SOA too

princess18

Statement of Affairs

Income
my wages: currently £700, to be reduced to £500 10/09/12
Partners wages: £500 that he will give me towards bills, usually earns approx £700. I know he buys his own lunches for work (from supermarket) but I don't know where the rest goes and apparently neither does he
Child benefit: £20 per week (paid weekly) to go up to £33 a week once baby is born
Tax credits : £100 per week (paid weekly) to go up to approx £150 per week once baby is born
Disability Living Allowance: £80 a month, this is my partners but he does give that to me most months

Outgoings
Rent: £275 per month + £25 per month towards arrears until Jan 2013
Council Tax: £99 per month + one more payment of £54 until arrears are cleared
Tv license: £12 a month. No arrears
Water: £20 per month +£20.38 per month towards arrears until Jan 2013
Sewage: £29 per month +£10 per month towards arrears until Jan 2013
Electricity: approx £60 per month. No arrears (metered)
Gas: having a meter installed 24/08/12. £4 to be deducted weekly towards arrears until Jan 2015. Approx spend £40-£50 per month

Other spending
Childcare: £370 per month
Sky tv, broadband and home phone: £52 per month
My mobile: £45 per month + £15 per month in arrears until October 2012
Partners mobile: currently £50 per month towards arrears until October 2013. No monthly bill as line rental currently suspended until arrears paid off.
Clothing and footwear: £20 per month
Emergencies: £20 per month
Food/ toiletry/cleaning etc shop: £50- £70 per week

Debts
Housing benefit Overpayment: £1891.47 (arrangement of £10.65 per week until Dec 2015)
Littlewoods Catalogue: £569 (arrears of £169 they want paid by 18/8/12 then normal minimum payments are approx £75 per month)
Very catalogue:£112 (monthly minimum payment £8)
Provident Loans: £1683 (normal payment of £33 per week)
Bank overdraft: £250 (paid off every month by wages but am constantly at limit once bills are paid)
Aqua credit card: £290 (credit limit is £250, they want £40 ASAP ( it's the charges that set me over limit))
Vanquis credit card: £170 (credit limit is £150. Monthly minimum payment comes out via DD, charges keep being added and sending overlimit)
Rise credit card: £270 (credit limit is £300. Minimum monthly repayment is £55 per month by DD)
Pounds to pocket: £654 (want £119 ASAP then monthly payments pf £107 until Dec 2012)
Pounds2day: £315 (want payments of £45 per month until Jan 2013)
Wonga: £880 (alot of interest been added since defaulting) ( currently awaiting confirmation of repayment plan, interest currently frozen until 15/09/12)
Payday express: £350 due 20/08/12
Paydayuk: £180 due 20/08/12

Time_to_face_the_music

princess18 wrote: »

Water: £20 per month +£20.38 per month towards arrears until Jan 2013
Sewage: £29 per month +£10 per month towards arrears until Jan 2013

Hi princess :hello:

I know it's only one small part of it but have a look at this for help with your water and sewage arrears:

http://www.anglianwater.co.uk/household/your-account/problems-paying/assistance/

ikkle87

Your partners mobile needs putting as a debt Hun. Get him a pay as you go sim. Giff gaff are good.

Your income is approx 1800 and after essentials you have around 400 left. It would be worth contacting Cccs or payplan and setting up a debt management plan. Some of the companies you have debts with we do too and they stopped interest on our account and took lower payments but only because we are with Cccs and they can see we are not living extravagantly.

princess18

Can you please show me how you got to those figures as I can't work it out?
Would I be best going through an agency or is it possible to set up a DMP myself? Would the creditors listen to me?