really need some help/advice!

only_me_8

Hi,

I have recently given birth to our first child, which in itself is the most wonderful thing in the whole world, the only problem is we are now really struggling to cope with all our existing credit due to the fact that I am now on maternity pay of £100 a week.

We have a lot of credit in a lot of different places, and as my partner only earns £800 a month it is just going to be impossible for us to keep all the repayments, it is only the 3rd May and i have checked my account this morning and we only have £60 in there before I am at my overdraft limit and we still have a lot of bills left to pay, let alone feeding and clothing bubs!

My partner is currently looking for a new job, but unfortunately in this area none of the jobs he is qualified for pay much more than he is on now.

Here is a list of our current outgoings...

Mortgage (GMAC) - £460 - 28 1/2 years remaining, ERC for another 18 months

Council Tax - £96

Gas/Elec (powergen) - £80 approx (but currently owe them £600 from previous bills!)

Tel/Internet (NTL) - £50

Life Insurance (Norwich Union) - £30

B&C Insurance (Hamiltons) - £30

Personal Loan (Cetelem) - £60 - 6 months remaining

Personal Loan (Barclays) - £58 - 18 months remaining

Personal Loan (Tesco) - £170 - 9 years remaining (loan is in my Mum's name)

Personal Loan (Cahoot) - £70 - 6 years remaining (loan im Mum's name, she is currently paying this loan for me)

Personal Loan (Littlewoods) - £80 - 9 years remaining

Car Loan - £70 - 5 years remaining

Virgin Credit Card - £40

Barclaycard - £11

Next Store Account £50

Littlewoods Store Accont £50

Mobile Phone Bills - £60

So as you can see from this we are currently paying out about £1500 per month, which wasn't a problem when we were both in full time employment, but now I am on maternity pay we will be luck to bring in £1200 and in August i won't get any pay at alll which will mean unless my other half finds a better job we will be having to survive on £800 a month!

We have already decided that we will need to move back in with my parents for the short-term and will be renting our property out, by doing this we should save about £700 a month, but we will still be left with all our loans and credit cards to pay.

I just feel so frustrated, as all these loans were taken out to build our indepenant life (e.g. furnishing house, deposit for mortgage etc..) and now we are having to move back to where we started but this time we will be bringing a whole heap of debt back with us.

I just wanted to know if anyone had any advice for us, we have managed to avoid missing any payments on our debts to far, and would really like to continue to do so, but i fear that this will be impossible.

I am just so scared of all my money being swallowed up by the debts and that I will be left with no money at all to provide for my little bubs.

Any advice would be GREATLY appreciated.

thanks in advance x

misspoppy

Have you claimed working tax credits? what about your family allowance?

If you are on such low money don't you get milk tokens, feeding the baby can't be that expensive if its eating "proper food" my sister froze regular meals in ice cube trays after sticking them through the blender, her boys ate lasagne and meat and veg and all sorts which is just your meals. Also veg is so cheap to feed a baby and is much healthier than a jar of processed crud.

Are you paying PPI (payment protection) on any of your loans or credit cards or even insurance, cancel it if you are they hardly ever pay out.

have you checked you have a competitive life insurance yours seems a bit high.

Can you sell some of your babies clothes that are too small on ebay and buy new clothes in batches the same way.

Theres no need to panic, there is plenty that you can do to help make things easier.

RAS

Hi

Go to https://www.entitledto.com and check what extra benefits you are entitled to now that you are parents; working tax credit/child tax credit, council tax benefit etc.

Others will be along to suggest ways of trimming your expencses and other options.

Have you paid any bank charges in the last 6 years?

only_me_8

hiya, thanks for the replies, we have applied for WFTC but are still waiting to hear back about our claim.

We cannot feed our baby "proper" food as she is only just over a month old, so she needs formula. We cannot claim milk tokens either as you have to be earning less than £12,000 and my partner earn £12,500!

Our life insurance is the best we could get due to my partner having cancer as a child, I used to work for a finance broker so have done my research on that!

we do not have any protection plans on any of our loans either.

So as you can see we have tried to explore all the avenues of getting extra money or reducing the money we are already paying out.

We do have a few bits of baby stuff to sell on ebay, but as she is still fitting into most of her newborn clothes we would be luckily if this would raise enough to feed her for week!

Do you think I am going to have start looking at more drastic solutions, e.g. IVA's & Bankruptcy?!?

misspoppy

You don't need to look at IVA or BR yet, this is a temporary situation until the tax credits come through.

In the mean time, get your mobiles down to the lowest tariff you can and stop using them. Better still go onto Pay as you go if you can. Phone NTL and tell them you can't afford them and they will probably reduce it some how.

I don't know how long ago you applied for your tax credits but its worth phoning and chasing it.

saffronflowers

Go to https://www.entitledto - I am pretty sure you are entitled to milk tokesn, keep chasing WTC and I could be wrong but I think that you are entilted to a higher hb allowance for a child under 1 -

SFx

RAS

Hi

Did you check re council tax benefit?

And any way of chasing the WFTC people up.

Couple of other thoughts.

You have a landline and 2 mobiles. Do you need them all?

Can you trade down to the basic contract, if you can't cancel and then go for pay as you go?

Also short term,to tide you over until the WFTC kicks in, rather than baby stuff, what do you have that is not fixed down and could go on e-bay? Anything you left at your parents in the loft?

.

lynsayjane

hiya only me, don't have a huge amount of advice for you but just wanted to send big hugs to you.

I notice there is a lot of things missing from your soa, food bills, tv license, sky, home insurance etc. perhaps if you look at your bank statement you'll get a better idea of the direct debits coming out of your account?

You could also try writing to your creditors and explaining the situation to them and asking if they would be willing to freeze your interest or accept lower payments until you get yourself more sorted. I kow it sounds really mean but have you thought about going back to work pt when your maternity stops paying? I know it's horrible leaving your baby, I have two friends who have just started back to work leaving 5 month old babies, but sometimes needs must.

very very best of luck sweetie and please stick around xx

moonlightpjs

Hi there and congratulations on the birth of your baby

Just a couple of thoughts which might not be relavant to you but here goes:

Have you thought about contacting the CCCS, Payplan or CAb regarding your debts, if not, then give them a call - they all offer free advice and will advise you on the best way forward. They may suggest implementing a Debt Management Plan in the short term until your OH gets a new job and then you could always go back to paying your debts at the agreed repayments when you are in a better situation. They are all really helpful and a call to them may ease your mind somewhat - I can imagine what you are going through, its hard enough but must be harder with a newborn baby. But at least you have taken the first step by posting on here so well done!!! and we all will o what we can to help.

Could you possibly list the total debt you are in , ie the balances outstanding and the the good people on here will be able to offer more help.

Just remember - you are not alone - most of us on here are in or have been in the same situation and we will support you all the way xx

moonlightpjs

Will somebody please report the above post as I dont know how to do it.

The OP is scared and worried and this is all she needs!!!!!

Poppycat

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