I need help please - financial crisis

BeingMe

Hi everyone. This is my first post on the boards after being directed here by someone else. I'm hoping someone might be able to help me.

I left my husband 5 months ago and moved into a rental property with my 3 children. I work part time earning around £10,000 pa.

I was in a bit of debt before but I've had to totally furnish the new house and some of this has gone on credit.

Initially the council wrote to me to tell me I would receive full housing benefit and 100% council tax reduction. However, they have written to me to say that they miscalculated and that actually I will now have to pay £200 towards my rent and £350 ish towards my council tax for the remainder of the tax year. I have also been over paid and they will be collecting this back from me at £31 pw from my housing benefit.

By coincidence, tax credits also wrote to me the same day to tell me that they have also over paid me. I rung them to discuss this and after going through my finances, they are looking into it as my outgoings far exceed my income.

I was just about managing before but having to find an additional £300 a month just for rent and council tax has left me panicking. Council tax won't allow me to pay by instalments either and want the full payment now. I don't have it.

I realise now that I urgently need to clear my debts but with nothing extra each month, I don't know how I can do this.

Can anyone advise me as to my next steps in dealing with this please? Many thanks in advance.

Tixy

Hi and welcome to the forum.

Sounds like you are going through a lot of changes at the moment?
How much do you owe on consumer credit debts in total? up until now have you been able to make at least the minimum repayments on these?

As rent and council tax are priority debts it may be that if you cannot afford everything that you will need to reduce your repayments to your consumner credit debts or default on payments.

It might be useful if you start by working out an income & expenditure to see what you have to pay out on essentials etc before making debt repayments. On here this is called a statement of affairs and this is a good calculator we recommend - http://www.stoozing.com/calculator/soa.php

Once you can see that you should then see how much of a shortfall you have each month and if you can post the statement of affairs on here people will be better placed to suggest what options you have and the best way to tackle things.

BeingMe

Thank you for the warm welcome. I'm afraid I don't know how to use the emoticons.

I'm extremely embarrassed to admit this but my debt is roughly £6,800 spread over various creditors.

I shall complete the statement of affairs now.

BeingMe

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\f0\fs22 \cf2 \cb3 \expnd0\expndtw0\kerning0
\outl0\strokewidth0 \strokec2 Statement of Affairs and Personal Balance Sheet\
\
Household Information\
Number of adults in household........... 1\
Number of children in household......... 3\
Number of cars owned.................... 1\
\
Monthly Income Details\
Monthly income after tax................ 747\
Partners monthly income after tax....... 0\
Benefits................................ 570\
Other income............................ 0\
Total monthly income.................... 1317\
\
Monthly Expense Details\
Mortgage................................ 0\
Secured/HP loan repayments.............. 0\
Rent.................................... 500\
Management charge (leasehold property).. 0\
Council tax............................. 104\
Electricity............................. 35\
Gas..................................... 0\
Oil..................................... 0\
Water rates............................. 20\
Telephone (land line)................... 35\
Mobile phone............................ 0\
TV Licence.............................. 12.12\
Satellite/Cable TV...................... 0\
Internet Services....................... 0\
Groceries etc. ......................... 400\
Clothing................................ 100\
Petrol/diesel........................... 120\
Road tax................................ 0\
Car Insurance........................... 35\
Car maintenance (including MOT)......... 8\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 10\
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)...... 1000\
Haircuts................................ 120\
Entertainment........................... 50\
Holiday................................. 0\
Emergency fund.......................... 0\
Total monthly expenses.................. 2549.12\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 0\
Shares and bonds........................ 0\
Car(s).................................. 1500\
Other assets............................ 0\
Total Assets............................ 1500\
\
No Secured nor Hire Purchase Debts\
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Store account..................1500......130.......25\
Credit card....................2000......100.......30\
Credit card....................800.......17........30\
Store cards....................700.......25........30\
Catalogue .....................1100......110.......0\
Store card.....................1800......35........30\
Total unsecured debts..........7900......417.......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 1,317\
Expenses (including HP & secured debts). 2,549.12\
Available for debt repayments........... -1,232.12\
Monthly UNsecured debt repayments....... 417\
Amount short for making debt repayments. -1,649.12\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 1,500\
Total HP & Secured debt................. -0\
Total Unsecured debt.................... -7,900\
Net Assets.............................. -6,400\
\

BeingMe

I hope that I have done it correctly. I have rounded some figures so I could be quick in completing the information.

BeingMe

I have realised the figure for birthdays etc is incorrect. It is £1000 a year so about £80 a month.

BeingMe

Just to add, as I missed the question above, I have never been late in repayments and have not defaulted up to this point.

Poppops

Hi.

Your £1000 for presents is hopefully per year and not per month? And the same for haircuts?

You'll need road tax, and is your electricity really only £35 per month when you don't have gas? We can't get gas where I live. Is this is correct, please tell me how so I can do it too. :j

Sorry to be personal but do you not get any maintenance payments from your husband?

Poppops

BeingMe wrote: »

I have realised the figure for birthdays etc is incorrect. It is £1000 a year so about £80 a month.

Our posts crossed!

jules888

Clothing and groceries are high!Is husband you left paying anything towards the kids?

BeingMe

Thank you for the further replies. I can see I've made many errors.

I have my hair cut twice a year and the children are the same except my son needs more regular haircuts.

I found it difficult to estimate for clothing but I very rarely buy clothes for myself.

My direct debit for gas and electricity is currently £35 a month but may change after the next meter reading.

My husband has agreed to pay maintenance but has not done so as yet. He says he cannot afford to do this.