Please help feel like I am drowning in debt

little_gem_3

Hi everyone been a long time lurker on this forum for years.


I've had control over my finances for a good few years but since the turn of the year I seem to be drowning in debt with no way out!




I currently have a vanquis card and was at the limit of £3000 and was repaying £146 back every month but I missed March's payment. I logged on to pay it (late) last month and was mortified to find out I was owe them over £500!!! This month it has escalated to over £800 and there is no way out (that I can see of).


I am also due Aqua £1500 odd and sure I saw a letter with notice of default or threatening to default.


I also have an Amigo Loan - I took this out last summer and a relative is the guarantor - I still have another 2 years left on this.


I also have a couple of catalogue accounts - Next and Studio due about £1300 on one and £800 on the other.


I moved house at the turn of the year and informed all my creditors of my new contact details then it was March when the s**t hit the fan.


I received 3 massive council tax bills - one for current address, previous address then this year. Obviously these need to be paid and I have set up a payment plan to pay my current year over 12 months and the other 2 at £30 each for 10 months then when the first one finishes, the second one doubles up to £60.00 per month for a further 10 months.


I have read about step change and things like that but I know you are not allowed to favour your creditors and as my amigo loan is a guarantor loan, I would under no circumstances wish to let down my guarantor - I have already let myself down with my finances!


It has gotten to the point where I am too scared to answer the phone incase it's a creditor and Vanquis have been calling a relative on their home phone and have been told repeatedly that I do not and have never lived there - I only used the phone once to inform them that I had moved address as my old number had been disconnected and I was waiting on BT installing my new number. I have since informed them of new home number and stated they should only have my house number and mobile number on file.


I can't eat, sleep and feel as though it is dragging me down. Sometimes feel like just disappearing and I am too ashamed to let on to my family/friends what I have got myself into.

Tixy

Hi and welcome to the forum

Sorry to hear how much your debts are stressing you out.

As a starting point I would try to get it all down on paper to see what you have coming in and going out a month, and what debts you have to pay. I suggest completing a statement of affairs using this - http://stoozing.com/calculator/soa.php
If you post the results on here it will help people offer advice and help you work through your options.

You are right that stepchange don't usually let you favour one creditor over another, however there may be alternative options for you, such as a self-managed DMP where you could focus on the priority debts and the guarantor loan, and offer reduced payments to the other unsecured creditors.

Bobarella

Little Gem - So sorry it all sounds so stressful for you. I agree with Tixy above. Write down everything fully that you have coming in, going out. You can deal with this, please dont think of disappearing, your family may feel upset, angry etc when they find out about the debt, but they love you Im sure and wouldnt want you to leave or do anything dangerous to yourself.

little_gem_3

font=courier new]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 782
Partners monthly income after tax....... 0
Benefits................................ 1085
Other income............................ 0
Total monthly income.................... 1867
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 378
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 50
TV Licence.............................. 13
Satellite/Cable TV...................... 48
Internet Services....................... 25
Groceries etc. ......................... 380
Clothing................................ 25
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 433
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 25
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Housing Benefit overpayment............. 30
Council Tax arrears..................... 65
Total monthly expenses.................. 1807

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis........................3300......160.......39.9
Aqua...........................1500......110.......39.9
Amigo..........................5000......246.......49.9
Next...........................1300......110.......27.9
Studio.........................800.......60........27.9
Total unsecured debts..........11900.....686.......-

Monthly Budget Summary
Total monthly income.................... 1,867
Expenses (including HP & secured debts). 1,807
Available for debt repayments........... 60
Monthly UNsecured debt repayments....... 686
Amount short for making debt repayments. -626
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,900
Net Assets.............................. -11,900

Reproduced on Moneysavingexpert with permission, using other browser.[/font]

abbiesmom

Your SOA implies that the debt has been building for much longer than since the turn of the year, with only £60 left of income without any repayments to the debt.

YoU don't need me to tell you that your mobile tariff is extortionate - are you still in contract? If not go PAYG or rolling SIM only, if you are contact your provider and see if you can drop a tariff.

You can't afford a tv package right now, freeview has a wide variety of channels and is something I urge you to consider.

There's defiantly savings to be made on your groceries too, you spend around the same as we do feeding a family of 6.

How much is now in the emergency pot?

Sadly, even with the savings I can see from your SOA the only way forward is a DMP. can the guarantor help you out at all?

[Deleted User]

While it wasn't around in my day, don't Vanquis now do an up to 2 year freeze, if you've been paying into that repayment option plan, (highly likely) so perhaps, just perhaps someone can avoid going broke
Here we go:
http://www.vanquis.co.uk/credit-cards/vanquis-repayment-option-plan


Otherwise if it just deciding which one or two is more important to focus on and tackling them one at a time, I used to work with an ex debt collector and they really can be more afraid of contacting you then them as much as it's debatable, wish I'd met them sooner, don't be scared and let fear win xx

little_gem_3

I've just been getting by - dipped into savings the past wee while and I was using the age old method of pay onto card then use it scenario. I opted out of the payment plan as at the time didn't think I would need it.
No guarantor can't help. Phone has about 6 months left on contract then i plan to go onto a sim only plan - tv package finishes in june. Not much in the emergency pot now as been dipping into it for bus fares and things. Shopping can vary from week to week - it all depends on what I need.

little_gem_3

How do I stop vanquis harassing my elderly relative? I only ever used the phone to call them once to inform them that i had moved address. I never gave them the telephone number I was calling from it obviously came up in their system. It's a different area code from my home number too. I have written to them about it and my elderly relative has told them numerous times but they still insist on harrassing calls to a number I simply 'borrowed' to make a 5 min call to say "i've moved from, to".

dancingfairy

Have you written a formal complaint to Vanquis? A little googling would help you here as well.
I would mark it formal complaint so it goes to the complaint handling team. It needs to be in writing (hard copy).
You need to read up on the OFT guidelines on harassing debtors and quote the relevant things.
If Vanquis fail to deal with your complaint adequately then you can accelerate it (I'm not sure if it would then got to the OFT or the financial ombudsman but you can find this out later). I believe you have to have exhausted Vanquis internal complaints procedure before you can refer it on though.
Frankly unfortunately the quickest and simplest option is to call your call provider and ask them to bar the number calling you
Do you have an online account with Vanquis as if you do you might be able to log on and update your contact details (ie remove the telephone number).
I'll have a look for you and see if I can find some OFT debt collection guidelines for you to quote.
df
Edit: see this thread here: https://forums.moneysavingexpert.com/discussion/4713757 which will give you lots of information you should be able to use in your letter. Obviously you should edit it to make it relevant to your circumstances.

dancingfairy

How many bedrooms do you have? Do you have any possibility of taking in a lodger or anything like that?
How much longer do you think you will need to pay out for the childcare? Can you claim any free hours for them at all? Do you have any family that could help you out?
You may need to consider not working. Yes I know it's ridiculous but it's worth running a benefit check to see if actually you would be better off not working as obviously you'd save on childcare.
Do you have any savings left at all at the moment?
If you have a look on this thread here: https://forums.moneysavingexpert.com/discussion/4516485 and the others mentioned in it you may be able to cut down your food bill. I'm not saying you can do it for the figures they are saying as the thread is several years old but it should give you some ideas.

little_gem_3

I'll write out to them again. Can't take in a lodger as simply don't have the room. Need to pay childcare until my youngest starts school and thats not for another 2 years. Free childcare kicks in next year ans even then i'll have to still pay a childminder. I'll be worse off on benefits - always worked and would hate to give it up. No savings at all. Kicking myself for not taking voluntary redundancy but if I knew then what I know now i'd have been first in the queue!