Head out from the sand and terrified

Fizz_Bomb

Hello All,
I am new here, as not been on these forums for a lot of years now.
I am in a right mess and I'm so confused about which way to turn.
I separated from my husband nearly 2 years ago, and moved myself and 2 young children into a rented house. My ex and I had joint debt which we roughly halved when we separated. Because I only work part time, I have been entitled to things like tax credits and a part payment of housing benefit. I managed ok at first, but then things got tight, birthdays and Christmases came around and my debt has crept up. I now owe around 19,200 and I am now unable to cover all of my outgoings without getting further into debt. I have filled in a budget tool and am short by about £250 a month, which I cannot cut from anywhere else.


I am so upset and annoyed with myself for getting into this situation. My total repayments come to £490 at the moment, and this is completely unmanageable on my current income.


Online with stepchange, they have recommended an IVA. Previously they recommended a DMP, but when I tweaked a few figures to what I thought may be more realistic, it changed - so I'm guessing I'm somewhere in between the two. I am awaiting a phone call from them.


I've been doing a lot of reading online and I have to say that either prospect is both terrifying and confusing to me. As a single mother I feel very alone and afraid for the future. I am due to start university next September as a student nurse (fingers crossed) so my income will cease although I will still hopefully be entitled to tax credits etc alongside my NHS bursary. I am also worried about the impending tax credits changes, and understand an IVA would not take this into account if it happened.


I really just would welcome any advice at all about where to turn. I haven't as yet missed a single payment in years and all of my credit card debt bar one is on interest free cards (for at least 1 more year) so making the first step into defaulting etc is daunting.


Thank you and well done if you got this far reading my tale!
Thanks in advance.

twiggy86

Hi Fizz Bomb

I don't have any advice re your situation, but didn't want to read and run. If you have a read around the boards you will see that many people start off feeling how you do now, but I am yet to see anything that cant be solved. Hopefully someone comes along with some helpful advice and also that StepChange are able to give you some more information.

Good luck x

Fizz_Bomb

Thanks very much for your reply Twiggy. I have just completed my SOA if this helps with anyone offering advice. It's sketchy in places as I was unsure what to put for things like clothing and haircuts...also my car is a lease car so not strictly a debt but still an essential outgoing each month

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.................... 0
Monthly Income Details
Monthly income after tax................ 806
Partners monthly income after tax....... 0
Benefits................................ 1162
Other income............................ 0
Total monthly income.................... 1968
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 60
Gas..................................... 70
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 46
Internet Services....................... 0
Groceries etc. ......................... 240
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 189
Childcare/nursery....................... 158
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1690

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
Barclaycard....................2245......50.53.....0
Barclaycard Plat...............3860.39...87........0
Tesco..........................3800......113.......0
Barclay overdraft..............850.......22........0
Barclay loan...................5559......141.......5
Next...........................654.......32........0
Mint...........................2500......50........9.9
Total unsecured debts..........19468.39..495.53....-

Monthly Budget Summary
Total monthly income.................... 1,968
Expenses (including HP & secured debts). 1,690
Available for debt repayments........... 278
Monthly UNsecured debt repayments....... 495.53
Amount short for making debt repayments. -217.53
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,468.39
Net Assets.............................. -19,468.39

HaydenB

As Twiggy says, there isnt a situation which cant be resolved and you will probably find your creditors more helpful than not.

I remember when I was starting out on my DMP it was like the end of the world...which is saying something as I am generally laid back and unfazed by things. But its all worked out well, have never felt under great pressure and can finally see the light at the end of the tunnel.

rockm87

Hi, just a quick one, why are you paying petrol if you dont have a car?

Do you have anything you can sell, or could you work more?

anna_1977

Fizz_Bomb wrote: »

Thanks very much for your reply Twiggy. I have just completed my SOA if this helps with anyone offering advice. It's sketchy in places as I was unsure what to put for things like clothing and haircuts...also my car is a lease car so not strictly a debt but still an essential outgoing each month

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.................... 0
Monthly Income Details
Monthly income after tax................ 806
Partners monthly income after tax....... 0
Benefits................................ 1162
Other income............................ 0
Total monthly income.................... 1968
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500is this provate rent & are you able to get help from the council with the cost?
Management charge (leasehold property).. 0
Council tax............................. 85if paid over 10 months phone and ask to pay over 12
Electricity............................. 60
Gas..................................... 70seems very high combined with the Electricity
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 40can this be reduced or moved to a SIM only contract?
TV Licence.............................. 12
Satellite/Cable TV...................... 46reduce to the minimum package if you're in contract. If out of contract then cancel
Internet Services....................... 0
Groceries etc. ......................... 240I'm sure this can be reduced, there's a forum for budget cooking i think
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0nothing in here but even though you have a car?
Car Insurance........................... 0again nothing?
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 189what is the other travel?
Childcare/nursery....................... 158
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50this may have to be reduced down
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1690

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
Barclaycard....................2245......50.53.....0
Barclaycard Plat...............3860.39...87........0
Tesco..........................3800......113.......0
Barclay overdraft..............850.......22........0
Barclay loan...................5559......141.......5
Next...........................654.......32........0
Mint...........................2500......50........9.9
Total unsecured debts..........19468.39..495.53....-

Monthly Budget Summary
Total monthly income.................... 1,968
Expenses (including HP & secured debts). 1,690
Available for debt repayments........... 278
Monthly UNsecured debt repayments....... 495.53
Amount short for making debt repayments. -217.53
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,468.39
Net Assets.............................. -19,468.39

Hi
Please see my comments above, I'm sure loads of more knowledgeable people will also comment. Are you getting any form of Child Maintenance?

Good luck x

Fizz_Bomb

Hi, Thanks so much for your replies.
My car is a lease car, so I didn't know where to put it! I pay £148 per month for it, but it's not classed as a debt as I lease it through a family member.
I don't get any child maintenance no as my ex has the children 2 nights per week and also after school 2 nights so I have felt guilty going down the CMS route. He does chip in for things like school dinners too.

Fizz_Bomb

Sorry, forgot to add can't work more as I work in public sector where there is an overtime ban at present and I also study on the day off I have.

chelseablue

Fizz_Bomb wrote: »

Hi, Thanks so much for your replies.
My car is a lease car, so I didn't know where to put it! I pay £148 per month for it, but it's not classed as a debt as I lease it through a family member.
I don't get any child maintenance no as my ex has the children 2 nights per week and also after school 2 nights so I have felt guilty going down the CMS route. He does chip in for things like school dinners too.

I would def claim maintenance from him. Bringing up 2 children is expensive (I only have 1 and its expensive lol)

Time_to_face_the_music

Hi Fizz Bomb and welcome :hello:

The criteria for a Debt Relief Order (DRO) is changing tomorrow from the current limit of £15,000 to £20,000. Please check this out before making any commitment to an IVA or DMP.

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/

TTFTM x

Fizz_Bomb

I know, everyone keeps telling me to do that...I think I'm a bit scared of the consequences. He's very bitter about our break up still and isn't afraid to try to paint me in the worst light possible even to our children I am worried he will try and get joint or even full custody if I apply. Also, he is self employed and I've heard that the CMS are notoriously bad at dealing with SE parents...he could also then declare little to nothing in the next financial year in order to get out of paying.