Don't think I'll ever be debt free

JemmaM91

Hi,

Im new to this board, but I just thought I finally need to speak about my debts. They don't seem so bad compared to other peoples but I just can't seem to find any way out.
I have a 14 month old son and its so bad he didn't get any chistmas or birthday presents from me or my partner (family got him loads and told us not to worry as he won't remember) and I also couldn't afford to get him an easter egg. I just feel so guilty that he's missing out and that there is nothing I can do.
I admit all the debts are my fault and that I need to pay them, when my son was born I just stuck my head in the sand and ignored everything, I believe now that I had post-natal depression and I'm finally getting better since I admitted it to myself (strange really).
But in the 14 months the debts have really piled up, I owe over 2000 in rent arrears, 1000 electric arrears, 300 water arrears, 100 council tax, around 1200 on credit cards, 400 on unpaid phone bills and I have a 170 overdraft.
My partner and I are on a low income at the moment and the debts (especially the credit cards as they are overlimit) seem to get higher as I am paying them.

ANY help would be appreciated.

Thank you.

JemmaM91

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 540
Benefits................................ 250
Other income............................ 0
Total monthly income.................... 790

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 50
Management charge (leasehold property).. 0
Council tax............................. 6
Electricity............................. 100
Gas..................................... 12
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 15
Mobile phone............................ 0
TV Licence.............................. 24
Satellite/Cable TV...................... 40
Internet Services....................... 15
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20.83
Car Insurance........................... 132
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)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 801.83


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................1200......60........36.9
Water..........................300.......10........0
Electric.......................1000......20........0
Phone Bills....................400.......40........0
Council tax....................100.......100.......0
Overdraft......................170.......0.........0
Rent Arrears...................2000......5.........0
Total unsecured debts..........5170......235.......-


Monthly Budget Summary
Total monthly income.................... 790
Expenses (including HP & secured debts). 801.83
Available for debt repayments........... -11.83
Monthly UNsecured debt repayments....... 235
Amount short for making debt repayments. -246.83

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,170
Net Assets.............................. -4,370

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

sistafromanothermista

:wave:


So, if i'm reading it right......your partner spends £200 pm on petrol for a job which has a take home pay of just over £500????


The insurance is also very high.


It might be worth one or both of you trying to find an extra job, evenings maybe? to try and bring in a bit more cash.
Is this an option?

determined_new_ms

Hi jemma sorry to hear you are having such a tougth time of it at the moment. Given your outgoings are greater than your income if it were me, this is what I would be focusing on rather than the debts. You can get template letters from CAB and the free debt remedy companies asking your creditors to freeze your accounts and accept no payment while you address your shortfall. You really need to focus on your rent arrears and CT arrears, all other debts can wait for a while

Is there anyway you can increase your income? Are you get the correct benefits you are entitled to?

In terms of your budget. I think you could get rid of sky & save £40pm, is your car ins really £132pm? If it is can you consider getting rid of your car? groceries you could shave a bit off of, head over to the old style boards for advice, you could even get rid of tv licence and watch things online (you just can't watch things while they are playing on the tv channels but you can watch thing after they have aired if that makes ense? So you can't watch tonight's eastenders at 7.30 but you could watch it tomorrow) anyway of reducing your petrol costs? I would also look at the charities attached to your elec provider and see if you can make a grant application to them to pay off some of your arrears.

JemmaM91

Thanks for your replies.

Yes my car insurance is really £132 a month! Was £190 last year so I didn't really think that was too bad, but I think thats because I'm only 21 and my partner is 23 and only had his licence 1 yr. (I blame him lol)

We need the car for him to get to work as its out of the area and also so are our families. He's hoping to get extra hours soon so we would be entitled to WTC but his manager keeps saying yes then no.

I've tried cancelling sky but when I phone they said I'll be charged as I'm still in a contract. I've been with them 3 yrs so far so god knows how long their contracts are. (I was young and stupid when I signed up and didn't read any small prints)

I also rung Npower about an electricity grant as my sister received one from them. But although we get a lot less money than her, as we are not on income support we can not claim.

It seems we would be far better off on benefits but we really don't want to set that example to my son. I also couldn't get a 2nd job as I wouldn't be able to afford childcare and my partners hours change all the time.

sistafromanothermista

JemmaM91 wrote: »

It seems we would be far better off on benefits but we really don't want to set that example to my son. I also couldn't get a 2nd job as I wouldn't be able to afford childcare and my partners hours change all the time.

You say you couldn't get a 2nd job but you are only showing your partners wage in your SOA.........
How many hours do you work at the moment?
Could your family help out with childcare?

JemmaM91

I meant I couldnt get a job as I wouldnt have anyone to look after my son. I meant 2nd job as in 2nd job for the household.
Every time I've asked family it seems to cause arguments as 'I chose to have him' and 'hes my responsibility'. I'd love to work and actually be able to socialize but I'm not sure how much I'd need to work/earn to make childcare worthwhile. I'm scared about being worse off and struggling even more.

sistafromanothermista

Could you work in the evenings when OH is home?
It might be a good idea to make sure you claim everything you are entitled to

http://www.moneysavingexpert.com/family/benefits-check

JemmaM91

Well my partners hours are so random that somedays he'll work in the morning, some afternoons and some evenings and nights.

If I was to take an evening job all the ones I hear of require a lot of being on your feet which I'd struggle with as I 'think' my blood pressure drops after standing a while. I'd be fine then all of a sudden a wave of dizziness would come over me with a splitting headache with heart palpitation. I'm not too sure what it is.

So realistically I'd want an office job of any sort. So would be daily work and putting my son into a nursery, which would mean I'd have to wait until he's around 2 1/2 before anywhere would take him as he's still in nappies.

I also have very little qualifications so am unsure which route to take.

cherrydiva

Sky contracts are only for 12 months, did you sign up for a further deal recently? If not then call again and give them a months notice that you wish to cancel or down grade your package.

datlex

JemmaM91 wrote: »

Thanks for your replies.

Yes my car insurance is really £132 a month! Was £190 last year so I didn't really think that was too bad, but I think thats because I'm only 21 and my partner is 23 and only had his licence 1 yr. (I blame him lol)

We need the car for him to get to work as its out of the area and also so are our families. He's hoping to get extra hours soon so we would be entitled to WTC but his manager keeps saying yes then no.

I've tried cancelling sky but when I phone they said I'll be charged as I'm still in a contract. I've been with them 3 yrs so far so god knows how long their contracts are. (I was young and stupid when I signed up and didn't read any small prints)

I also rung Npower about an electricity grant as my sister received one from them. But although we get a lot less money than her, as we are not on income support we can not claim.

It seems we would be far better off on benefits but we really don't want to set that example to my son. I also couldn't get a 2nd job as I wouldn't be able to afford childcare and my partners hours change all the time.

Ring Sky ask to speak to the customer relations manager- you need to find out what the length of your contract is and how long is left on it. Standard contract is 12 months! If you have a few months left put it in your diary to cancel when it ends. You might find they are willing to do a deal for phone tv and broadband at a discounted amount to that you are currently paying too be cheeky it's your money :-) (They do £43.50 for tv broadband and internet which would save you £26.50 a month)

Have you checked ref your elec you are getting the best deal. It is cheeky but a visit to the grandparents means saved elec and heating at yours! Make sure you turn off things at the wall etc. Ask your elec company for energy light bulbs.

As for insurance, you can add an older driver even if they don't live with you such as your mum or dad as an additional driver- this could help bring down the bill. Also if you aren't fully comp check if it is cheaper and vice versa if you are third party.

TV licence is double mine a month. So you should speak to them about getting it over 12 months- this would take it down to £12.12 a month.

Make a list when you go shopping too. And buy value brands when possible- no shame getting the 20p spaghetti!!

With a little bit of planning you'll be able to get your expenses under your income. You can then look at paying your debts.