I have reached breaking point and cannot see a way out

Rose252

I am a 25 year old single mother of one child.
I have a maxed out £1800 overdraft, a credit card with £3,100 on and another with I think £800 on. I also owe family a lot of money. With the interest I am paying on the overdraft and large credit card I am never getting anywhere with paying anything off.
I am currently working part time and in receipt of working/ child tax credits, housing benefit and child benefit.
My depression is at its worst in years and I am struggling to sleep. We have very few luxuries and I only buy my daughter the things she needs.
I tried to go to the CAB a year ago and it wasn't very helpful as they just worked out I have enough to sort it out.
I clearly need to change what I am doing. I hope someone can help show me how to fix this as I can't live like this anymore.

sourcrates

Hi,
There is a very simple way to deal with your problem.

Its a bit difficult to advise without knowing all your income/expenditure etc, but as a quick first step, open a new basic bank account, with a bank you have no debt with (theses are available to everyone as no credit check is required) get all your money paid into this new account.
Cancel any direct debt or standing order payments you have to your unsecured creditors.

Write to each of your creditors, saying you are in financial difficulty, and that for the time being, you will be paying £1 a month to each account, as a token payment, you treat the old bank account overdraught as just another debt.

Then I suggest you call either National Debtline or Stepchange, and get some advise off them, as to your next move.
I would think some sort of debt management plan would be suitable for you.

Creditors are obliged to give 30 days grace to people in financial difficulty, while they seek advice from one of the debt charities.


https://www.nationaldebtline.org/


http://www.stepchange.org/


Not yet seen a debt problem that was not solvable.

kickuptheasstime

Hi Rose252
I didn't want to read & disappear, but you will find lot of support, advice & motivation on this site! Follow Sourcrates advice - it's a great start.
Maybe you need to see your doctor re your depression & lack of sleep - I've experience with both, and everything will seem so much worse while you're trying to deal with these issues.
Remember you CAN sort this out!! It might be a long journey, but it is possible - have a read through the Debt Free Roll of Honour to give you some inspiration.
Look after yourself first, get some good advice from National Debtline or Step Change, and you'll get there.
**hugs**
KUTAT x

Chrisblue1962

Just a thought, are you able to get any child maintence from your child's father? I'm sure any amount, however small, would be of help?

andyfromotley

Hi Rose,

we can't offer any useful advice on the best way to proceed until we see an SOA

http://www.stoozing.com/calculator/soa.php

Post it up and we can have a look.

Is it possible to go full time at work or to find another job which makes up to full time?

andy.