I Need Help Please - I don't know where to start

MarneyMB

I have just found out that my hours are being cut at work, which will mean a significant drop in income (will be losing £1,500 a month). I have debts amounting to around £26,000 which I now can't pay. OH can cover most of the household bills, but I need to pay a bit towards them. And I have 3 kids to support. How am I going to do that on £300 a month? I've checked the benefit entitlement sites and they all say I'm not entitled to claim anything.

I feel like such an idiot for getting myself into this mess. I can't see a way out. I know some of you lovely people will have been in a similar situation, so any advice would be so gratefully received.

w00519772

Find another job that pays more? What are your skills/qualifications?

MarneyMB

w00519772 wrote: »

Find another job that pays more? What are your skills/qualifications?

Well thanks, but if it were that easy I probably wouldn't have asked for help would I?


My skills are pretty much jack of all trades, master of none, and I have no qualifications beyond high school, which suited what I was doing, but there's not much call for it elsewhere. I was quite well paid for what I did, but from a week of intensive job searching, I haven't been able to find anything yet. I'm prepared to do anything, but I was struggling to keep my head above water on full pay before.

w00519772

MarneyMB wrote: »

Well thanks, but if it were that easy I probably wouldn't have asked for help would I?

Please lose the attitude. I am trying to help. Life is not easy. Everyone has problems.

Why not speak to your creditors? You may be able to negotiate lower monthly payments with an increased term. Your circumstances seem to be outside of your control so they may be understanding.

asparagus1968

would you be able to post up your SOA, link here for you?
it gives people more ideas to help your situation.
could you say what area of work you are in, also may spring up some ideas for you.
http://www.stoozing.com/calculator/soa.php

Lemonsqueezer78

What is your income/outgoings now exactly - can you post a Statement of Accounts so people can give some advice on your outgoings and where you might be able to make cut backs?

Are you able to take a second job, even if it is just bar work or in a supermarket?

Other than that, I agree with the above poster that you could contact your creditors to ask for breathing space or a re-structure of your payments to make things more realistic in the short term.

Alternatively contact one the free debt support originations (details all over the forum) to ask them for some advise and go through your options with you. They are good, non-judgemental and really are worth a call if you are worried about your situation.

Good luck,

sourcrates

MarneyMB wrote: »

My skills are pretty much jack of all trades, master of none, and I have no qualifications beyond high school, which suited what I was doing, but there's not much call for it elsewhere. I was quite well paid for what I did, but from a week of intensive job searching, I haven't been able to find anything yet. I'm prepared to do anything, but I was struggling to keep my head above water on full pay before.

Hi.

The usual course of action would be to write to your creditors, explaining your current circumstances, in your position, you have no room for negotiations, so you tell them you will pay each one a £1 per month until further notice.

Some may be understanding, some may not, regardless of the response you get, that's what you should do.


If there happy with that, fine, if not, they will pass the account to a debt collector, and the same letter and offer, would go to them.
Its common sense really, they cant have what you haven't got, its as simple as that, until things look up on the work front.

MarneyMB

w00519772 wrote: »

Please lose the attitude. I am trying to help. Life is not easy. Everyone has problems.

I apologise, I really didn't mean that to sound so stroppy. I'm just feeling pretty stressed out and "go get a job" was not the kind of sympathetic support I had hoped for. Sorry.

MarneyMB

Thanks for all the advice.

My minimum monthly payments just on the debts are currently £833, with a balance of just under £26k owed. Income is now £300, I'd need to give OH about £150, leaving me with £150 to pay towards debts. We keep our finances separate, in the past he's covered all the household bills, I've given him a contribution towards that each month, then paid for the groceries and stuff for the kids. He can for now cover everything with just a £150 contribution from me.

I went through the StepChange Debt remedy tool earlier, and the solution it came out with was a lump sum IVA, using equity in the house, but the mortgage company won't free up any of that, we've also tried to reduce monthly payments and/or extend the term of the mortgage, but they won't help at all. Debt remedy also suggested selling the house to pay off the debts which scared me a little, if we fall off the housing ladder now, we will NEVER be in a position to get back on, so keeping the house is a priority.

As for work, I have mainly been doing admin/office management type work, but very varied, a bit of everything and not particularly skilled in any one thing. 2 of my kids are not in school and I can't afford childcare, so hours would have to fit round OH being there, which would be anytime from 2am to midday.

sourcrates

You need to put to one side what you have been doing,

You simply can't afford the payments now, end of discussion.

For the short term, they get a £1 a month, along with an explanation letter, then you will need a longer term strategy, for when you are earning again.

Until that happens, you can't do anything else but tread water.

Nargleblast

Have a look at the DMP Mutual Support thread, you might find you can sort out your own Debt Management Plan.