Oh dear.

pinkslide

Hi everyone

I am currently in a dmp with stepchange (god bless them) or debt around the 40k mark.

There were good reasons for getting into the debt, it wasn't just silly spending, but it was still a stupid thing to do.

Anyway... I lost my job at the end of May and to make ends meet I turned to wonga, I owe them 1200, and peachy 630. Biggest mistake of my life but I needed the money to make ends meet.

The problem arose with our budget, our gas/elec bill was more than double what we used to pay (900 for 3 months !!!!!!?) and although I asked the ombudsman to investigate (we are now paying 84 a month and are in credit!!) I had to pay the 900 to get EDF to leave me alone. They refused a repayment arrangement and sent debt collector letters, then actually sent someone to my door!! I dispute the amount owed and the ombudsman is investigating.

Because I paid the 900 out of hubby's wages, in order to pay mortgage etc. I turned to peachy. Then when peachy wanted their money back it was too big a chunk so when I paid it, I then had to turn to wonga. Then our car broke and needed a hefty repair, so here we are!!

I don't know what to do now. I can't afford to repay the loans. I can't get a new bank account as we're in a dmp so we've chosen the only bank not associated with our creditors.

We're not eligible for any benefits and I can't work at the moment as I have a 4 year old who is recooperating from an operation. When she starts school in september I will immediately seek work but for now it's just not possible.

Here's my SOA

Monthly income:

Hubby's wages: 2000
Child benefit: 81
Total = 2081

Outgoings:

Mortgage 620
Gas/elec 84
Water 35 (all paid up for the year though)
Council tax 108
Phone 25
Mobile 0 (work pay hubby's, I don't top mine up)
Car insurance 54
Home insurance 20
DMP 186
Nursery 174 (this is her food for the 'free' sessions she attends!)
Pet insurance 12
Food 300
Diesel 60
Clothes 0
Haircuts 25 (for all 3 of us)
Tv licence 12
Car tax 20
Life insurance 0
Entertainment 0

This leaves us with about £350 at the end of the month in theory, though we sometimes have to spend more on groceries etc.

This month (july) that £350 is going on my daughter's school uniform as she starts school, and hubby's wisdom tooth removal!

The following month (Aug) that £350 will be going towards travelling to my sister's wedding and car MOT.

So I am so worried as I do not have anything left to pay wonga or peachy!

What can I do?

We don't have sky or any luxuries at all, we never go out, we buy value food, we only have 1 car which works out cheaper than public transport due to where we live and travel. It's a 15 year old golf!

sourcrates

Hi,
You must pay your essential living expenses first, as you already know, they are your priority bills, the payday loans will have to wait, best advise I can give you, and this is from personal experience, you need to write to the lenders, explain why you cant pay, maybe offer them an arrangement you can stick to, £5 each per month maybe, if the wont accept, they will more than likely just sell on to a DCA, this may take some time, gives you a chance to sort your finances out a bit maybe, then you can make a similar arrangement with the DCA, who should accept, don't stress about it, there's is a well rehearsed process they will go through.
One important thing is to cancel constant payment authority to both these lenders with your bank, so they cant just take the money from your account.

ViolaLass

You could cut your food bill (especially as you suggest that you're spending more than £300). Are you cooking from scratch and making the most of every ingredient? OH and I live happily on £150 a month so there must be space there for savings.

sourcrates

ViolaLass wrote: »

OH and I live happily on £150 a month so there must be space there for savings.

Seriously ?, I`m separated, and living on my own, and even I spend more than that, and I`m by no means extravagant !!

hohum

sourcrates wrote: »

Seriously ?, I`m separated, and living on my own, and even I spend more than that, and I`m by no means extravagant !!

We also spend £150 for two people and eat well so it is indeed possible...but

- I've got time to cook
- that's food spends for home consumption only
- I live near an outdoor market that is substantially cheaper than supermarkets (yes, even the value brands). Three cucumbers for a pound, that kind of thing!

Not everyone's circumstance allows although there is usually some room for reducing grocery bill if you need to.

Re OPs question, I'm not really up on DMP bt have you spoken to the provider, does your monthly repayment need to be adjusted due to reduced income?

Mummy+2

Best thing you can do it talk to step change, add the new debt to your plan and review your budget so repayments are manageable.

You need to include an emergency fund in your budget and save that every month for when things pop up such as unexpected car bills

ViolaLass

sourcrates wrote: »

Seriously ?, I`m separated, and living on my own, and even I spend more than that, and I`m by no means extravagant !!

I promise it's true - I keep track of what we spend and could tell you the amount to the penny each month. We both cook from scratch but we only shop at Tesco (for convenience) taking full advantage of their reduced items at weekends. We reckon we could cut this amount by £20-30 a month if we had to though I think we'd get a bit bored.

I suspect reduced items and the relatively small amount of meat in our diets probably help significantly.

Ilona

ViolaLass wrote: »

I promise it's true - I keep track of what we spend and could tell you the amount to the penny each month. We both cook from scratch but we only shop at Tesco (for convenience) taking full advantage of their reduced items at weekends. We reckon we could cut this amount by £20-30 a month if we had to though I think we'd get a bit bored.

I suspect reduced items and the relatively small amount of meat in our diets probably help significantly.

ViloaLass is right. I am a singlie and can live on £15 a week for food. I cook everything from scratch. I organize my meals around what I can get on yellow stickers, or Value items, and eat no meat at all. It can be done.
Ilona

atrixblue.-MFR-.

I don't know why this has turned itnto what you can live on food wise rather than finding ways to cut OP's spend as whole.


OP as said food bill, I find shopping at a convenience to you expesive rather than shopping for whats cheaper it is a vicious circle that can be broken. I have a tesco near me its short distance to get my essentials toilet roll etc but I pay double or triple for that convenience at regular intervals, if I were looking to save money when it was tight,I would be looking to go further afield to get myself that saving.


I bulk buy my meat for the month from my local market butcher or my local butcher I spend £50 a month on a abundance of meats (for a family 3 kids 2 adults) from them as apposed to £70 a month for bagged homebrand asda or Tesco meats.


broadband, find a better deal from who is enabled at your telephone exchange to find out who is available to the exchange visit samknows exchange checker, if your with sky perhaps a little keep me on your books persuation by offering me a great saving deal chat with sales.


pet insurance, shop around different providers for cheaper like for like policies, same with car insurance and home insurance when they come up for renewal.


perhaps a pleading chat to the mortgage co (if you named on it) to let them know your struggling and see if there can be arrangements to pay a reduced amount until your working again.


home phone bill, My BIL actually threw out his phone and just kept the line for Broadband, he had a pay and go cheapy £15 nokia from ebay and £1 pay and go sime whitch he topped up £20 on and only made 2 calls and few texts permonth on to keep the line active 18 months later there still £3.00 on the phone, then told relatives to contact him on that or text it or skyped emailed etc, the line rental was £14 permonth on his home phone as apposed tohis normal £80 bill a month with that extra cash he saved from the phone bill, he put on his council tax.

FBaby

Nursery 174 (this is her food for the 'free' sessions she attends!)

Surely this is wrong?

jules888

No one has mentioned it but is the £174 a month for food at nursery that your child has there?If so thats a lot!
Cant she take own food?My kids went in a morning and came home for lunch.