In debt and fed up

smallandcute

Hi all,

I hope I am posting in the right place, if not then please move to the correct section.

So for the past three years since graduating I have buried my head in the sand with my debt and I am now finding it scary to even come home and find what post has been sent to me. I can't bring myself to open any post, it all just gets scooped up and shoved in a cupboard out of site. I was always taught to open every letter and face the reality.

I work full time and earn a pittance for what I do. I rent my property by cannot afford to furnish it so only have the real basics of a bed and sofa and fridge freezer as well as a washing machine and oven.

I have just this week won a battle with the council which I had been fighting since October 2014 for my single persons council tax discount but I still owe them money. I do not drive as I cannot afford lessons let alone a car or petrol so I either walk or get public transport. I am also a veggie to keep the food bills down and only by the food that I need, never getting a treat.

I cannot afford new clothes and if I need new shoes as my others have worn out then it can set me paying my bills back. I only own two pairs of shoes.

I can no longer live at home so live on my own, I also have three cats (these will not be given up for adoption so that is not up for debate!) I keep their costs down by going to good local vet and buy their food in bulk which lasts a good 6 months so works out around 10 a month to feed all three of them and litter is about the same too.

I rent in the cheapest place possible in my area, in a little two up two down. Due to being 27 I won't qualify for any housing support either. Most days I have just salad for lunch as its healthy and filling but won't have any breakfast or dinner due to trying to keep the food bill down.

I know I have around ten to fifteen grands worth of debt but I really don't want to look for sure. I owe on five cards plus my current account overdraft, the water company, the council tax, a communications provider and an energy company.

I have tried to get a second job at evenings and weekends but so far nothing has resulted from the mass send out of cv's all tailored to different companies so I'm on the process of starting my online business which I can work evenings and weekends and from home. All I need for this is my internet, website and website domain and laptop so that's not an issue. I want to be set up as a limited company though as its more secure then being a sole trader. I know I need a business bank account but I won't need an overdraft for it.

I have been trying to call the debt charities such as step change and national debt line but step hangs is closed by the time I get in from work and national debt line left me waiting for over an hour then hung up before being answered.

I know I need to sit down and figure out exactly how much I owe but I want to know what my options are first with getting this debt cleared. I don't like the thought of being on a database but I know I probably don't have even a spare ten quid each month to pay the companies I owe.

Please don't tell me I need to being living somewhere else or get another job as I have tried these things and cannot afford to move. My felines are also staying firmly put. Any thoughts on my debt reducing options would be great but it must allow me to run a limited company as I know setting myself up as a business is the only way my wages are going to increase.

Thanks for reading and in advance for any replies.

zenshi

The first step is always the hardest and we, on here, have all been where you are right now

First things first.....get your letters opened and find out exactly how much you owe. Then try and do an SOA which is where you list your income and exoebditure

DCFC79

What time do you finish work as some of the charities close at 8 in the week.


I echo the advice posted above.

in_need_of_direction

I'd query the need for a ltd co. I don't mean to be hurtful but what are you trying to protect?

sourcrates

Hi,


In your circumstances a DRO (Debt relief order) would work well for you.
You have to pay a £90 upfront fee, your debts must be less then 20k, you must have £50 or less, left after all bills are paid at month end, you can own a car worth up to 1k, and you cant be a homeowner.


From what you've said, that could be the best solution for you, as you are not required to make any payments for 12 months, your creditors are forbidden from contacting you, then your debts are written off, and you are free to start afresh.


Look on the stepchange website under "DRO".

theoretica

Would you be OK in the medium to long term if you didn't have the debt or would you still be struggling month to month? You really do need a good, complete, budget that matches reality to answer this.

If you are starving yourself to pay off debts, stop it! Keeping yourself healthy is much more important.

midnight_express

Could you get a lodger ?

[Deleted User]

If you really are trying to say you work all hours, NDL and SC are both open Saturday mornings, alongside their week long operations - you'll have to learn to free time to make calls to help yourself or look at their contact us page and see if they will accept contact by another way.

I'm sorry you feel blue but the only person who can help you is you.

I found supermarket (the orange brand colour) easy to pick up an interview for really early morning work starting at likes of 5am till 9am (could be an ideal 2nd job to fit in with full time *if allowed*) only took them 24 hours to process my application and offer me an interview very recently. At the time of applying I considered it the equivalent to JSA money if I were successful as I'm gladly not eligible for benefits but now with the right boss, fortiting a break even if needbe if presuming someone was strictly 9-5 I can see how it might just work as a second job if someone was needy enough.
A 2nd job may work in the favour as you'd hope boss 1 would ask why you needed a second job if you were a good long timer and this may be a good ice breaker so I'd put the word out at work! There was one time I attended work with a one of those rice potion pouches you get for microwave, just eaten that on it's tod (it didn't stop the little company boss saying are we paying you enough?!) so was certainly a conversation starter whether I was poor or not

4isnotenough

Step change are open 8am to 8pm mon to Friday and 8am - 4pm on Saturday. They are free and they will sort you out. They get all your debts and contact them & make an offer of paymet which is equal to what you can afford. If you have £10 left at the end of the month that's all you pay. Don't use your working hours as an excuse not to call them, also if you really do work 12 hours plus a day then perhaps you could just book a morning off to sort this out. Being too busy to change things is not acceptable when the mail is piling up.
Step Chamge will change everything for you. When we were in difficulties a few years ago they helped us sort things out. Our business failed and the bank decided to take back 20k and we didn't have it for them, on top of that we had spent all our savings to live on and myself no hubby had to work round the clock to keep the wolves away. It was getting unmanageable. The best thing I ever did was make that call - it changed our lives and now everything is good for us.

3wisemonks

Hello smallandcute,

First up step change sounds really good. I haven't used them myself but they have helped lots of people, so keep trying. I contacted and negotiated with creditors myself as I wasn't aware of this site at the time.

In the meantime open your letters work out who you owe what to. Do an SOA, work out what you've got coming in and out and any cut backs may be more visible when written down.

Someone suggested a lodger, this could really help you. I have a friend that's had the same lodger for 2 years now, she works Mon-Fri goes home Friday night and returns Sunday evening.

No reason to give your cats up, they don't seem to be costing you a great deal and I bet they are very good for your emotional wellbeing. I wouldn't tell someone to give their children up so why fur babies ��

I still remember vivdly being petrified of the postman's visit and avoiding letters like the plague! But you can deal with this you just need a place to start. Council Tax and rent a your most important then go from there.

In regards to food you cannot live and function on 1 meal a day, even if you buy the cheapest beans and bread, eggs on toast. Even pasta with a tin of chopped tom's (about 30p total) something to have for an evening meal. Asda do 4 jacket spuds for £1 one of these with beans and a salad would cost you now more than 60p a meal. Please if you can't eat well eat something.

Good luck 3wm

sarahb7538

Smallandcute, you story hits very close to home for me. I was in your situation back in 2008/2009. Living on my own, with my two cats. Working full time and doing 60 hours + overtime a month just to keep on top of my debts, rent, council tax and household bills. It was a pretty miserable existence as you know.

I know exactly how you feel right now. I was also burying my head in the sand about my debts and i was being hounded by my creditors. The best thing i did was too open those letters, it was terrifying and I was physically sick when the enormity of the situation I was in hit me BUT there is help available. I contacted Step Change for help, they guided me thorough it all and helped me to set up a DMP. The relief was instant, as soon as the DMP was established the creditors stopped hassling me, i had some breathing space in my finances and I no longer had to make myself ill doing all the overtime I was previously.

Fast forward to 2016, I still have my cats but my debts are now less than £3k, my DMP is coming to an end and there is a definite light at the end of the tunnel. You will get some valuable advise on this forum.

You just need to take the first step, take stock of your finances, debts complete a SOA and get in touch with Step Change they will help you to decide the best option for your situation. If you want to PM me for some support please feel free. Wishing you all the best xx