in debt and on benefits...help!!!

marlborogirl

after splitting up with my ex (the father of my two children) 3 years ago, I've found myself spiralling into debt which I can't seem to get out of... unfortunately it's catching up with me...I've got two credit cards - Capital One £500
Barclaycard £500
(both in arrears)
and three catalogue companies with debts of around £90, £419 and £517.

I really don't know where to start!

Murtle

Conggratulations, you've taken the first step and realised there is a problem!

Now you need to start with budgeting; (do you have one?)
if not work out work out how much money you have got coming in?
and how much you have got going out? be honest with yourself; it's easier to see where you can make savings if we know the whole picture!

if you list all your incomings and all your outgoings, including any debt, the APR rate and the max amount you can have on the card and any minimum payments then the experts here can take a look and see how you can move your money around to start paying back the debts.

any debts in arrears you really want to make contact with them and offer them something to tide them over, they won't be very happy about missed payments - just keep commnicating with them. However, don't do this at the expense of food foy you or the kids!

donsaini

just a quick observation.

wondering if you smoke marlborogirl....that would be a good place to start saving money

fast_track

CAB should help with that - Perhaps ask for a three month hold and frozen interest while you sort yourself out a bit - In the meantime write to the companies and say that due to the breakdown in your relationship you are having problems repaying and that you you are going to the CAB to ask for their assistance, ask them for a freeze on interest and to take no action against you while you are doing this. Then do a budget for yourself and your children, look at the Inland Revenue tax credit site and check you are getting the right amount of child tax credit. You could also ask the father of your children to help you out, perhaps pay off a card for you

good luck