Cant stick our heads in the sand any longer

Crushie

Hi Guys;

This is going to be a long one and I apologise in advance We have got ourselves in a right old mess. I am currently a final year student, and I suppose although we knew we were getting further in trouble, we always thought..ahh well I will be graduated soon and it will all be okay. However, now we are pregnant with our second child (our dd is at primary school) and the baby is due exactly as I graduate, so we cannot continue as we have been doing, we need to address this now! Also, as part of my course, my last semester entails me going and working full time on placement, which means I have to leave my little job and really have no option of working at nights or weekend as that is when a) I will be mum b) I will get rest as I will be heavily pregnant c) I will have to complete my substantial academic work.

I am going to print our statement of affairs , but please bear in mind it is totally unrealistic, the other income identified is what I receive in bursaries and student loan throughout the entire year, and this inevitably is used to cover the cost of big things- such as christmas- when it is paid. We never have any money, ever! We don't live in a grand way at all- but I suppose I do suffer from a keeping up with the jones' condition when it comes to buying presents for the many, many children we know. And we do not spoil our daughter throughout the year, aside from at christmas- which will not be happening next year as there will be someone else to take account of and I will no longer have a student loan.
I am sick with worry over this, as is my dh. We know we have been very very foolish (we got married last year and it has snowballed from there really), and lots of our debts have been passed onto various debt collection agents you can see named on the SOA.I do not answer my phone, I hate to see the postman, I lock the door when I am home, I have lost all confidence and do not talk to anyone aside from my fantastic husband.
Can someone help us?
Please see the SOA - and note that additional income will end as of April this year, and I will as the end of this month no longer be earning 297 from part time work, however I estimate that our benefits (child tax credit and child benefit) will increase to 320 a month, and as of June we will no longer have child care costs as I will be on maternity leave.


SOA


Household Information

Number of adults in household2
Number of children in household1
Number of cars owned1
Monthly Income & Expense Summary

Monthly Budget SummaryAmount(£)
Total monthly income2,505
Monthly expenses (incl. HP & secured loans)1,799.5
Available for unsecured debt repayments705.5

Monthly Income & Expense Details

Income Amount(£)
Monthly income after tax297
Partners monthly income1450
Benefits153
Other income605
Total monthly income2505
Expenses Amount(£)Mortgage0
Secured/HP loan payments0
Rent400
Management charge (leasehold property)0
Council tax0
Electricity40
Gas0
Oil50
Water Rates0
Telephone (land line)11.5
Mobile phone30
TV Licence12
Satellite/Cable
TV22.5
Internet services7.5
Groceries etc.350
Clothing90
Car expenses (fuel, tax, insurance etc.)158
Other travel50
Childcare/nursery310
Other child related expenses47
Medical (prescriptions, dentists, opticians etc.)10
Pet Insurance/Vet bills0
Buildings & Contents Insurance0
Life Assurance0
Other Insurance0
Emergency Fund0
Total monthly expenses1799.5
Debt Details & Offer to Creditors

Secured & HP Debt DescriptionDebt(£)
Mortgage0 (0)
Secured & HP Debt totals0 -
Unsecured Debt DescriptionDebt(£)
credit union4500
ccs129
Apex584
dad5500
Buchanan Clark and wells 1496
gbp solicitors818
belfast colection ser1269
capquest318
cabot financial867
srj75
merit force1106
coleman cotts240
icm22
ders812
iqor1881
isme318
Iqor38
moorcroft4078
robinson way2737
mc kenzie hall1624
Unsecured Debt totals28412

ellesbellesxxx

Hi There is a snowball calculator which if you know the interest rates, you can use to work out how long it will take you to pay off debts. Another route is a Debt Management Plan where you pay manageable chunks to a company (Payplan for example) who will distribute money between creditors - many of whom will have frozen interest. Good luck to you!

FinKite

Gosh, that's tricky timing with the new baby!

Can you arrange to defer your placement? It may be unrealistic doing it heavily pregnant towards the end of it, especially if baby comes early!
I don't know what field you're in, but doing your placement immediately before looking for job might be a better thing - most recent experience. Rather than trying to find something straight from maternity leave.
It also means you can keep your paid job for longer. Would leaving that job affect your SMP/MA?

Do not get into more debt for Xmas. Only buy for your own child - anyone who is worth being friends with will understand. You're pregnant and not working. And really limit what you spend in your child.
So many people make their debts worse for Xmas. Just remember - it is ONE day. It's not worth it.

Talk to a debt charity about how you manage your creditors. Good luck!

Crushie

Thank you so much for your replies.
Ellesbelles I tried the snowball calculator, it said we weren't eligible.We have looked into a DMP with CCCS and they are asking for 350 pm which is totally unrealistic!

Finkite, you are clarifying what I am already thinking. However,my job wont pay me SMP as I am on an 8 hr contract only. We qualify for nothing if I leave. I can get extra hours above my contract if I am not at uni, but I don't know how my boss would feel about this given that I am all set to leave, for all I know she has already replaced me! Also, if I defer placement I will be eligible to pay fees for this year and the placement block, and it really isn't the done thing on my course. I don't want to say what sector I am in for fear I will be identified (my family know nothing about this), but it is a professional qualification with very good job prospects at the end.Should I not just get it over with and apply for jobs as soon as I qualify (given that the Local authority take ages to employ you anyway with interview process and CRB checks etc). And there is the dilemma! As for christmas, I have my own child sorted thank goodness, and you are right- it is one day, thank you I will be taking this advice on board. Me and hubby have to go to citizen's advice!

I really thank you for your replies, it has lifted my spirits quite considerably xxx