No Way Out

BleuDeChanel

Hey,

we're in such crisis and I don't know what to do or where to turn. Our entire debt is less than 10k, though we cannot keep up with payments to bring any of it down. For Example we owe:

Vanquis £700
Very: £2000
Halifax: overdrawn by £212
Natwest: overdrawn by £112
Capital One: £500
Father-in-Law: £2000
My parents: £2500

These are going further and further in to debt as we cannot afford to pay them all (a part from the parents of course, as this is just guilt) and the ones we do pay just cover interest so it's never coming down.

Then there's the rent, council tax, bills, school clothes for the kids and these random school trips. There's just no end to it. Our entire household income comes to about £16000 per annum after tax, which in comparison to the debts, seems doable, but it's the extra stuff listed above which prevents us paying more to the debts. The worst part is I've recently lost my job so that's going to be considerably lower.

Both my wife and I have the lowest of the low credit score so we're unable to get any consolidation loans or cheaper deal credit cards or anything like that.

I know answers are going to be along the lines of cutting costs etc, but we've already done that, we've cut everything down to the bare minimum; I feel we're only weeks away from the food bank.

I really don't know what to do or where to turn to as I now feel like I'm at rock bottom, depressed and misurable and there feels like there's no way out.

Please help

Thanks

maria3104

Take a deep breath. You have done the first step in acknowledging the problem and posting here.

Lots of people here will be able to give you great advice, I am not one of the really useful people/posters. I have no special knowledge.

I would go to the food bank now, take every piece of assistance you can get. You may find the school have a scheme for low income families, school uniform grants, free school trips etc. Hopefully very soon you will have another job and you will be in anstronger position to tackle your debts. The trick is now to not get in any deeper.

Very best wishes for your debt free journey.

Maria

BleuDeChanel

Thank you for such a lovely response. I know the idea is to not accumilate more debt, but I feel like I'm drowning because the debts are growing greater because of missing payments or barely touching the interest. They come to you with these nice deals on the phone "If you pay £150 now, we'll pay £150", if I had £150 to give, I would!

bexster1975

Hi

Well done for posting when it's clear you are not feeling like tackling this at all.

You need to complete and ideally post, a statement of affairs (SOA) link below.


http://www.stoozing.com/calculator/soa.php
Try to breathe. The first thing I would do is speak to parents about the issue. Get some breathing space if possible from them.

If you post a SOA people here will kindly advise as to ways forward. You don't have to post one I should point out, but it's easier for people here to help if they know some detail.

Consolidation loans are almost never the answer so be glad your credit won't let you get one.
bexster

owlet

Welcome & well done for posting. You are not alone by a long way!

As Bexter says, complete the SOA - the wonderful people on here will be able to help.

Speak to your parents & inlaws, see if they will allow you a payment break for say 6 months. That will give you some time to get sorted. Be honest with them & tell them that you are in difficulties but are working it out. It's nothing to be ashamed of.

When your SOA is done, we can have a look and offer advice. Keep your chin up!

Bobarella

Hi there

What I'd the situation with finding work? Is this a short term likely to take a few weeks to fix job situation or is it hard to find work in your field or area? I'm not sure where you are.

I'm sure you must already be thinking the same things but is there a chance of working 2 jobs instead to help you through this rough patch? Have you anything of value to sell?

Really wish you all the best getting it all resolved ASAP.

Bob

andyfromotley

Hi Bleu,

You don't have a debt emergency you have an income emergency. You need tho do absolutely everything you can to increase your income.

Firstly you need a job, URGENTLY.
You both need to max out out overtime. Seek promotion, ask for a raise, look for better paid jobs.
Then you and your other half need second jobs. Or even third jobs.
Sell everything you have of value that you don't use.

Your debts are relatively small, (although i'm not minimising them them, they are obviously causing you worries.) Increased income will shift them, pretty quickly too.

You can definitely solve this crisis,

sourcrates

Hi,
Ok, if your out of work, you can't afford to be paying credit bills, stop paying the unsecured credit, now, simple as that.
Write to each creditor, explaining your financial situation, say for the time being, you can only pay £1 a month to each debt, as a token gesture, tell them you are seeking advice from one of the debt charities, then ring Stepchange for free advice.

http://www.stepchange.org

It would also be beneficial to open a new basic bank account for your money to go in, open one with a bank which which you have no debt, basic accounts are available to everyone as no credit check is required, and there is no overdraught facility.
Treat the old bank accounts as just debts to repay.

This should buy you some time to save a little money, while you decide on a plan of action.
Creditors are required to treat you fairly, and allow you 30 days grace whilst you seek advice, before any recovery action is taken, which will only be phone calls are letters anyway, which, for the time being, can be ignored.

thegreenone

I agree with the others. Particularly with talking to your parents about taking a payment break and writing to your creditors.


Talk to, or of you feel you can't, email the school/s and explain you have lost your job and school trips will be a problem. We are almost at the end of term but still worth doing. Also ask if there is any lost property at the end of term could you make a donation for any good bits not claimed. The school I used to work in, used to sell bits for 20p each. It was amazing - brand new, unnamed PE kit for 80p! Also put a note on freecycle for uniform. Don't be embarrassed collecting it "..... kids grow so quickly don't they?"


Are you claiming all benefits you are entitled to?

DawnW

If you have just lost your job, you should be entitled to some benefits. Have you made a claim?