Can't sleep- not sure what to do next

Losttheplot123

So here goes, currently I'm wide awake panicking how we are going to pay all our bills, put food on the table and generally live atm, my husband is self employed but his work took a nose dive and currently he subs out to another firm and they pay him a day rate- which is a lot less than he use to be earning- anyway to cut a long story short we are now unable to meet all of our debt repayments as well as pay the general household bills. I've cut back as far as I can and I've tried to see about cancelling our BT package and phones but we are tied in and can't afford to buy ourselves out. I'm not sure whether to contact our creditors now and see if we can sort some kind of repayment plans....this is the first month we would default.....otherwise they are all up together up until now. On a positive note I have managed to get myself an evening job working once the hubby gets home am really pleased but I won't be paid anything until next month so won't help the situation now!
Any suggestions what to do, I've done a SOA and gone through our bank statements but we just are not going to be able to pay the household bills and the min repayments on our debts this month next month will better but not sure once hit with charges from all our accounts if this will put us behind even more and it will become a slippery slope.....so
I suppose my question is do we just pay what we can and try and catch up next month? Or ring or creditors and see if they will help us in anyway till we get back on our feet


Just to add we have £13,000 spread across 11 credit cards and store accounts!!!!!!! Horrific
I know! We are desperate to clear this but until now have just been paying the min and drifting along - I suppose you could say we as currently living our LBM where our lives can no longer continue as they were!!! Thank
You in advance for any advice

faithcecilia

Morning Losttheplot. I can't offer a lot of advice but know there won't be very many people around and didn't want you to feel no-one was reading your post.

First things first is try not to panic. I know it is hard, but panic doesn't help and the last thing you need just now is to get ill. The best advice I can offer at this point is to get up and get yourself a nice warm drink, then sit and read through the threads on this board while you drink it. You will see how many people are in the same position you are, and also that many people are well on the road to being debt free after making a few changes to help tackle their debts. You may well get ideas just from reading of some of the things you could do to ease your own situation.

In a few hours time there will be a lot of far more knowledgeable people than me around who will be able to offer you great, practical advice. Until then just be assured that I am thinking of you and willing you on.

tealady

Hi
If you know you are going to struggle for a month then pay your priority debts 1st (like Council tax) and tell your other creditors that you are struggling and offer them a nominal amount that month.
Have a look at the store cupboard challenge thread as well, you will be amazed how far people make food stretch.
Any chance you could ask your new employer for a small advance after you have been ther for a week.
Anything you can car boot?
Also if you post your SOA then the lovely peeps on here will help get you back on track.
Good luck

Bobarella

Hello lost the plot
My first thought was how short are you? If it works out you can't pay one or two debtors for a month I'd be tempted to contact them ASAP and explain why. But get back to it the following month.
I think you need to do some projections of what impact your increased salary will have on your income for next month and go from there.
There are lots of ways you can go which more qualified people than me can advise on, debt management plans, IVAs, but they are long term.

Bob

headachesrus

I hope you managed to get some sleep. Once you've had your light bulb moment and face your debts those sleepless nights get much less frequent. Have a look at your figures and post up a statement of affairs, people on here love to help.

National_Debtline

Hi there,


Welcome to MSE.

I think Bobarella is right; you need to look how short you are of making the minimum payments – after you have allowed for your comfortable living expenses (Bills, food, travel, clothes, phone etc). If the situation is very temporary you may be able to get some/all of your creditors to put things on hold for one month with a Breathing Space letter (this can limit what interest and charges the creditors add and gives you 30days to catch yourself up). If you call a free, independent organisation they can send you this if they feel it is appropriate.

As you OH is self-employed you would be better to do a Business Budget from our sister companies website www.businessdebtline.org when working out your SOA. If it turns out that the shortfall on paying the debts will be more long term, don’t worry. This is when you can start to consider reduced repayment options (either negotiating yourself or with a free debt management company) or possibly insolvency options – depending on your other circumstances. There is always a way to deal with the debts – it is about picking the best option for you and your family.

Laura
@natdebtline

sourcrates

Hi,
Just to echo what Laura@national Debtline has said, creditors are obliged to treat you fairly, but you must communicate with them, they won't know you are struggling unless you tell them.

You must make sure you account for priority debts first, mortgage or rent, council tax and utilities, food etc, unsecured credit comes last on the list, you pay what you can to these debts, when you can, do not feel stressed for not been able to pay everything, just work with what youve got.

The key is to keep your creditors in the loop, they will be fine about it once you have explained your situation.

its_maths_not_magic

I don't know if you have done this yet, but I would advise speaking with the National Debt Helpline, its a free call - their number is on the first sticky of this forum, or there is always google. They will be able to help you. They are staffed with absolutely lovely staff who will try to help with no judgement. With them, or even by yourself you may be able to work out a plan to get you through the next few months.

Losttheplot123

Hi,

Thanks for all your replies, currently I am going to fill out a SOA currently I've worked we are £137 short a month however that's not including any budget for food or fuel......my husband has a vehicle on HP however without this vehicle he would be unable to be self employed....does anyone know where we stand with this would this be a priority debt as he needs the vehicle to work due to the nature of his business?

I will post a SOA up ASAP however after spending the day collecting all our debt info we are further in than I thought to the total of £14k I literally have struggled not to cry in front of my children. I have failed them beyond belief - I'll post the SOA up as soon as I can
Let hanks again for your replies

ShakeItOff

Hello,

I have just joined, but I didn't want to read and run. You haven't failed at all, this is just temporary. Give National Debt helpline a call, have a turf out and sell off what you don't need or use, and look at some of your options.

It is daunting when you look at it all, and the only thing I can suggest it taking it one day at a time.

Losttheplot123

Right I have done our SOA but as I'm on an iPad I can't seem to copy and paste it - by some miracle my husband came home and his parents are gifting us £5k!!!!:eek::eek::eek: they have no idea of how much of a dent this will make to our debt and feel like some of the strain will be lifted- however I am thinking of paying off the highest balances as feel the smaller £1k cards will be easier to clear quicker and stay motivated where as my husband is in about getting rid of the small stuff - any suggestions, we both have AQUA cards and I just want to be rid of them and the interest is horrific!!!
Thank you for all your words of encouragement, I actually feel although this month has/will continue to be awful once I have a wage coming in the debt can slowly start coming down!! Yesterday was a good day as my car passed its MOT too :T:T:T:T