End of my tether

bertiewhite

Londonshortbread wrote: »

Thanks for all the advice, on the plus side I am now feeling a sense of relief in a way (if that sounds strange?) that I can now see it in front of me and gradually start to come on top of it

It doesn't sound strange at all mate - in fact where I hardly used to know what was in my bank account from one day to another I am now becoming, if anything obsessive about it because I can predict outgoings & incomings. Because I can see everything in front of me I can use any savings to pay extra elsewhere and I'm in control.

Londonshortbread wrote: »

there would be a large shortfall as the HPI on it is worth nearly double what the car itself is worth-Not only that but if I had a cheap runaround I am worried I could then get a lot of expensive problems with it whereas at the moment (touch wood) the car I've got is only 7 years old and is reliable

My ex-wife had bought a new car a few months before we split up and she found she couldn't afford it so she had a word with the dealer and they took the car back & put her into a cheaper (lower spec & a year older) model to bring the payments down. It was a main dealer though so depends where you got yours.

Londonshortbread wrote: »

Yes my partner does know the situation and we're in it together

and that, to me was the most important thing because all the time I was trying to sort the debt - she was spending because she was unaware and it was like swimming against the tide.

sourcrates

Hi,
As regards your council tax, we have the option of paying on four dates throughout the month, don't know if its the same where you are, but you could put your CT payment back to the end of the month, if its helpful, also you get 2 warnings and a final demand, each a month apart before any further action is taken, that should give you some breathing space maybe ???

bilko89

Hi, I'm currently in the middle of getting back on the road to being debt free with a 3 year old daughter and another on the way, I know how you feel! I'm no expert by any means but a quick question about your benefits. I see you receive £80 per month (I assume this child benefit?) Do you or your partner receive Working and child tax credits?

pmlindyloo

On the salary that you have quoted you should be eligible for tax credits and maybe some HB and CT support.

Put your details into the benefit calculator here:

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

to see what you are entitled to. Then apply for the help.

Your self employment income should be taken on last year's tax accounts (ie the net figure after deductions). If you have only just started self employment then you will need to make an estimate.

Then you need to do as already suggested. Open a basic bank account with another bank- google about this. It is not an ordinary account - you need to ask specifically for a basic account. Then your overdraft can be treated as a non priority debt.

Then gather together all your paperwork and contact a free debt advice agency. Stepchange has very good reviews. (google for their website) Get in touch and they will advise you on your options. Do it quickly because the council tax debt needs dealing with asap. It is a priority debt.

bertiewhite

Sorry, I meant to ask - have you considered having a review of your bank account with the branch manager? I know lindyloo has suggested opening another account but your manager may be able to help with the overdraft side of things either by giving you a cheaper rate bank loan to pay it off (cheaper than overdraft fees) or freeze fees for a couple of months etc. In my experience todays bank managers are nowhere near as scarey as they're perceived to be, especially in today's financial climate.

19lottie82

Hi OP, you should be getting more than £80 in child benefit alone for 2 kids. (£80 is the going rate for 1 I think) Also, check you're not entitled to any working tax credits.

Looking from your SOA, the simple fact is, you need to either

1) decrease your outgoings
or
2) increase your households income.



I don't think 1) is possible, as you say you can't get a cheaper property or give up the car. Also, as someone has pointed out, you seem to have underestimated your SOA as it is (food, present, hair cuts etc).

So it would seem that 2) is your best option. You say that you are self employed. Doing what? Would it be an option to look for FT work with an employer, if it meant you earnt more money? £1500 a month (23k ish?) isn't a very good wage, in London terms.

Or if you can work from home, could your wife return to work FT in six months or so, and you can keep at the self employment to increase the household income?

You need to do something here.

pmlindyloo

bertiewhite wrote: »

Sorry, I meant to ask - have you considered having a review of your bank account with the branch manager? I know lindyloo has suggested opening another account but your manager may be able to help with the overdraft side of things either by giving you a cheaper rate bank loan to pay it off (cheaper than overdraft fees) or freeze fees for a couple of months etc. In my experience todays bank managers are nowhere near as scarey as they're perceived to be, especially in today's financial climate.

Sorry but I think this is a very bad idea. The OP does not want a bank loan in his present financial circumstances. The overdraft(s) need to be treated as a debt and have the interest frozen this way.

davholla

This could be a very bad idea but have you thought of getting a zero rated credit card to get you some free interest? Of course it would only give you time but it might help in the short term. You could get one for 18 months and plan to start paying it on in a year so that you don't pay high interest. If in a year then your partner can work then maybe this would help tide you over.

wildwestfan

Have you applied for LHA to help with your rent and perhaps some council tax support?

The rent is a huge amount from your monthly income.

Do you claim child tax credits?

Londonshortbread

Hi all,

Haven't had a chance to get on lately as have been trying to sort it all out, however it's not got any better and I really have had enough

Council tax have now been threatening to send me some kind of order, they finally agreed to let me pay last years money in two months of £240 each month, however I only managed to pay £140 of the first payment and haven't been able to pay any of the second payment yet

The bank have bounced every single one of my direct debits, the rent aS bounced because of being £4 short which was hard enough just finding that! They've now bounced all of my normal direct debits so now am going to be chasing my behind more then ever before, on top of that I've had demands from electric for £300 and water bills

I really don't know what to do, please tell me it gets better! I feel like I'm working myself to the bone and getting nowhere, on top of that I feel like I'm letting my partner and babies down

Thanks