Drowning single mum who doesn't know where to begin!

mummyindebt2012

Hello :wave:

i am new to this website and wasn't really sure where to post but i think i have just had my light bulb moment and i am sitting here in tears..

I am 22, a single mother to a 1 year old little girl and i am currently not working all though looking and studying for my Law BA at uni.

I have had a rough couple of years, i was 20 with my own private rented flat with 2 jobs and out most weekends with my friends, when i fell pregnant i got very ill, and although i battled through both jobs up to 7 months pregnant i was only an apprentice on one job and sick days added up and my money dramatically dropped.

i could no longer afford my bills and was getting final demands,

now silly me took out a wonga loan to help pay off a rather nasty bayliff i had at my door every day and although i repaid a substantial amount i could not pay it all... from that moment they cleared my bank account every pay day.. i got more and more into debt and eventually my tenant decided not to renew my lease (good reason too!) my job (at a school) decided not to renew my contract (there was a lot of redundancies but lucky for them my contract was up for renewal) and so that was it.

i was there 6 1/2 months pregnant, homeless and in debt. I looked to the council for help and was put in a BnB, followed by a hostel for mothers.

finally this February i was lucky enough to be offered a council house, and i could not be happier!

but now i am getting baliff threats here, there and everywhere,
i would say i was in about £3000 debt all together which is made up from lots of "little" £100-£200 debts and a £600 CCJ from the flat and a £502 bank debt due to the Wonga abuse.

I have never had a credit card, loan (other then Wonga!) or over draft.. nor could i ever get one with my credit rating..

and i just don't know what to do.. i was silly when i got my house, i ordered sky straight away which is taking £40 a month..

i have a car which is forever breaking but i rely on it to see family and give me that little bit of freedom i need..

I probably over spend, i have never been in a place where i have nothing to do every day..all day! i am not always shopping or out at night clubbing but it seems even a quick walk to the little shop with my little one to get a bar of choclate ends up with more purchases!

I am not even sure i have any money spare to pay anything off! i am forever without money i spend a maximum of £20 a week on food/toiletries for me and my daughter and then £30 a month on nappies and wipes for her!
I don't have a contract phone (although i do have a old contract bill!) i have a PAYG sim card and pay £10 a month on it

i just can't believe i have got myself in this position at such a young age, i am ashamed to say most of the post i receive goes into a draw now as i don't even want to open it as i know what it will be...

i just don't even know where to begin or where to turn.. i really want to sort my life and my debts out and i am just not sure what to do what so ever :'(

i am really sorry if i wrote this in the wrong forum/place.. i just needed to write it down somewhere i suppose

[Deleted User]

Start with an Statement of Affairs -detailing everything that you earn and spend money on and list each of the debts, the interest being charged and the minimum payment that is due.

Here's a link to the SOA calculator.

http://www.stoozing.com/msoc/soacalc.php

Well done for posting, it's a hard first step to take, and well done on your light bulb moment.

Things will eventually work out,

D9

a4331085

You say that each visit to the shop for a bar of chocolate for your daughter leads to more purchases, how about you take as little to the shop with you as you need, i.e. if you need wipes + a chocolate bar, only take a couple of £ with you so that you cant be tempted


If you list your your income and expenses + a list of your debts, people will be able to advise you what needs paying. You should also take the bull by the horn and call up Wonga and arrange a payment plan with frozen or reduced interest

Good luck

mildredalien

This is exactly the right forum for help getting debt free You've made an excellent start by posting, filling out the above form in as much detail as poss will help people give some more specific advice to your situation.

Also, I'd suggest giving a free debt charity a ring - like Payplan or CCCS. There are loads of people on here who have had some invaluable help and support from these guys, and they don't charge for the privilege! Good luck

dolly74_2

About 4 years ago, my partner and i were £26,000 in debt. We really wanted a baby but i was so scared i would never be able to afford to. Get your head out of the sand and start sorting it now. Little by little you will make progress. Now we owe about £7,000 and we cant believe just how much cracking on with it has paid off. And we have a lovely baby son. Yes we will probably still be in debt for about 3 years or so whilst we continue to pay it off but i know at first it seems overwhelming but tackle it. What i did was do a spreadsheet in excel of everything i owe then save it under "Sept 2012 debt". Then in afew months time, go into that spreadsheet again, amend it and save it again under "Jan 2013 debt". You will then see the difference and if you keep doing it over time you will start to see the money really going down and it will make you feel better than any bar of chocolate (from a fellow chocaholic!). Don't worry. It is doable. Yes i know i have a partner but my debt was alot more than yours and we both had rubbish jobs. Chin up sweetie.

Candy0107

Hi,

I know it's hard to be in this position, but the best piece of advice I can give is to sit down with a cup of coffee, take a deep breath and fill out your soa.

Realise that you are not alone - I had my light bulb moment about 8 years ago when my debts were about £23k and thankfully they are down to about £3k.

Hope you sleep well tonight

Candy xx

mummyindebt2012

thank you every one for your reply's,

i just don't want to ignore it any longer i am hoping to go back to part time (22 hours) work soon and hoping i will have a little more to be able to pay more off,

can i please ask what payplan and CCCS is? i have never heard of these before but i am willing to listen to any help given!

i will start my SOA tomorrow

and it is so lovely to hear from all of your success stories! hopefully over time i can become one of these too!

Standingtall

Hi mummyindebt2012:). Welcome to the forum.

Payplan and CCCS are organisations who will provide advice on your debt situation without charging for it. They will also provide a free debt management plan for you if them deem it a suitable solution. (IVAs however would always have a fee attached.

Have a look at their websites and also at the one by National Debtline. DO NOT however be tempted by any of the fee charging debt advisors - of which there are many.

mummyindebt2012

have done a rough SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 600
Other income............................ 116
Total monthly income.................... 716

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 40
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 10
TV Licence.............................. 12.65
Satellite/Cable TV...................... 25
Internet Services....................... 0
Groceries etc. ......................... 110
Clothing................................ 30
Petrol/diesel........................... 50
Road tax................................ 70
Car Insurance........................... 65
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 647.65


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 400

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Wonga..........................149.......10........0
Orange.........................207.......10........0
JD Williams....................179.......10........0
Car insurance..................90........0.........0
Electric.......................300.......0.........0
CCJ............................695.......10........0
Santander......................502.......10........0
communications? ...............395.......10........0
Total unsecured debts..........2517......60........-


Monthly Budget Summary
Total monthly income.................... 716
Expenses (including HP & secured debts). 647.65
Available for debt repayments........... 68.35
Monthly UNsecured debt repayments....... 60
Amount left after debt repayments....... 8.35

Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,517
Net Assets.............................. -2,117



any tips? i didn't know the minimum payments so have put £10 until i am brave enough to contact everyone x

miketaff1408

£100 a month on presents???

Explain to everyone you buy presents for your current situation and that you will not be in a position to buy birthday or xmas presents for them. Family and true friends should understand this. Make them homemade gifts from you and your little one.

Pay your debts off by £100 every month. Assuming interest is frozen, you would be able to clear the amount in just over two years.

Do you really need a car? As the car is only worth £400, it must be old enough to need a MOT, so you need to put figures in for mot/maintenance. On your current income levels, I do not think you can afford to run a car.

How long until you can cancel your sky contract? Once you can cancel, then switch to freeview.

unimaginative_user_name

Hi mummyindebt. Thanks for posting your SOA. A couple of things come immediately to mind. How much longer do you have on your Sky contract which is costing you £300 a year or enough to clear a couple of debts? I would get rid as soon as you can and use freeview.

Are you really spending £70 a month on road tax? That seems very high and I would certainly look to cut right back on gifts. If that is your annual figure then you need to divide it by 12 for your SOA.

I think a spending diary would help too especially for all the little spends at the local shops. Work out how much you spend on this in a week and multiply by 52 to get your annual figure.

You also say you are studying at uni. Are there any hardship funds there for students that you could access? Your student union or welfare might be able to help.

Good luck and do make use of the free organisations like cccs or pay plan which have experts on hand to advise and keep coming on here for support and advice.