How can I cope with all this debt?

EmmaJane2105

Hi,

Within the past year my partner and I have gone from being perfectly comfortable to dire straights. I'm on the verge of a breakdown.

We have a 17 month old and I'm due a new baby in may. I am not working due to a dispute at work, this was finestablished as my partner was still earning ebough for us. He was let go in December and he can't for the life of him find another job. We have a loan, car finance, other little bits and bobs to pay out plus food and petrol. Currently getting my housing paid for, income supportax, tax credits and child benefit. He's getting job seekers. This makes our income around 700. Our outgoings are around 600 and that's without eating. I have an mot due next week. We cannot afford this, the following week I have to renew my car insurance, can I do this with no mot? The car obviously won't be driven. Now to make things worse I am in an informal overdraft with my bank which is charging £5 a day. I have no idea what I can do. The bank won't lower my loan repayments and my car finance have said I can have 1 month off but I'll be in arrears and if they aren't paid they will repossess. That's without all the other bills we have to pay too. We have nothing for our new baby in may. I can't cope. I feel like packing up and running away. If anybody has any support or advice I would be so grateful. Thank you.

Whoknowskt89

I'm not the best person for helping on most of this but I'm sure the regulars will be around soon enough.
An Soa will help to see if there is wiggle room with something. There's a link in the sticky thread.
There will be a way through this.

January2015

Hi
Post an SOA and you'll be able to getter better advice. Link to SOA here.

Edit: Don't panic. I know it doesn't feel like it now, but it will be sortable and the members of this forum will help you see a way forward.

National_Debtline

Hi

Welcome to the forum.

There will certainly be options for you to deal with your debts and bring your finances under control one way or the other. Posting a SOA is a good start, as suggested by the others. It would also be useful to know how much you owe on each of your debts and whether you own any valuable assets.

Depending on your circumstances it might be a case of negotiating small repayments with your creditors, or possibly looking at a form of insolvency.

James
@natdebtline

EssexHebridean

OK - your question about the car was a direct one so I'll tackle that while you're sorting the SOA.

To have a car in any situation other than officially declared "off road" it MUST be insured - HOWEVER lack of an up to date and valid MoT Test means your insurance is most likely automatically invalid in any case. Rock/hard place, I know. If you can't in any way afford to get both things done though, your only options realistically are to declare the car SORN if you have somewhere to keep it (a privately owned garage - you aren't generally allowed to use council ones for storing SORN'd vehicles - or a private area. If you have a good relationship with your regular garage you could ask them if they are able to store it for you perhaps?) or to sell it. Sorry to be the bearer of bad news.

Get the SOA done and let us take a look and see if there is any scope for savings that can be made.

Check your company's policy in terms of what they should be paying you in the event of putting you onto "gardening leave" if that is the situation there. And for the time being, your OH needs to get work - any work that will pay more than your current income from benefits, to be honest. Check boards at local supermarkets, postal sorting office etc for any casual vacancies they may be offering. He may even find it easier to get a job back in his usual field once he's working elsewhere.

EmmaJane2105

I've just filled out the SOA and clicked save, how can I post it on here though? Sorry it's probably really simple but I can't work it out .

National_Debtline

EDIT - I'm not 100% sure about posting your figures but I know there's an option near the bottom to format for MSE under 'Format results for discussion boards'. So that might help.


To take control of your bank account you’ll need to open up a basic bank account with a company you don’t have any debts with at all. Get your income paid into that account. You can then make a small repayment offer to repay your existing overdraft as a non priority debt, and ask the bank to freeze interest and charges.

If you can’t afford the contractual payments on your credit debts at the moment you can stop most of them. Send this ‘hold action’ letter to let creditors know you’re seeking advice. You may still need to maintain payments towards your car finance though if it’s a type of finance such as HP or PCP etc, where non payment could ultimately lead to repossession.

www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

Changing your bank account while you owe them money, and missing contractual payments on your debts, will have a negative effect on your credit history. Right now it sounds like you have higher priorities though.

James
@natdebtline

EmmaJane2105

Thank you James, my personal loan is also with the bank which I have the overdraft with, could they make the repayments lower or is it completely fixed..when I spoke to them they were adamant that they couldn't change a thing and I would just go into arrears.

National_Debtline

They can make the payments lower at their discretion, it’s a case of sending them your SOA with an affordable payment offer and demonstrating your financial difficulties. It would technically be in arrears though as you wouldn't be complying with the contract, which is why it will affect your credit history.

The point about changing your bank account is that you risk them taking more than you can afford at some point and leaving you short for essential bills. Also, even if they don’t agree a lower payment plan, if you’re not having your income paid into their bank account anymore you can make your reduced payments anyway.

In terms of short term financial assistance you can check whether you’re eligible for help from any charitable trust funds:

www.turn2us.org.uk/Find-Benefits-Grants

To discuss your options to deal with debts in full I recommend calling us or one of the other free advice charities.

James
@natdebtline

ratrace

EmmaJane2105 wrote: »

Hi,

Within the past year my partner and I have gone from being perfectly comfortable to dire straights. I'm on the verge of a breakdown.

We have a 17 month old and I'm due a new baby in may. I am not working due to a dispute at work, this was finestablished as my partner was still earning ebough for us. He was let go in December and he can't for the life of him find another job.Ok does he drive or does he have access to car if so, he needs to go to as many fast food/takaways tonight to see if they car taking on drivers also pop in to dominos and see if they need drivers( i have done both when i was unemployed and made £35 a night +tips *6 = £210 a week,) also try asking around at car washes for day work again i did this also was brining in around £280 a week from both jobs) We have a loan, car finance, other little bits and bobs to pay out plus food and petrol. Currently getting my housing paid for, income supportax, tax credits and child benefit. He's getting job seekers. This makes our income around 700. Our outgoings are around 600 and that's without eating. I have an mot due next week. We cannot afford this, the following week I have to renew my car insurance, Both of thease have to be put on hold for now as you dont have the money for them at the moment SORN the car if not being used by him or you can I do this with no mot? The car obviously won't be driven. Now to make things worse I am in an informal overdraft with my bank which is charging £5 a day. I have no idea what I can do. The bank won't lower my loan repayments and my car finance have said I can have 1 month off but I'll be in arrears and if they aren't paid they will repossess. That's without all the other bills we have to pay too. We have nothing for our new baby in may.Best places to find clothes for the little one is charity shops he/she wont care what they are wearing all they want is mum and dad to love them and make them feel safe thats it, ask friends or family for clothes as gifts that will be a saving I can't cope. I feel like packing up and running away. If anybody has any support or advice I would be so grateful. Thank you.

Dont stress/worry its not healthy for you or baby in your condition
Im sorry the above jobs are proberly not what your OH is used to im not sure but i have done them my self once i got past my ego but it really made me appreciate things, and i knew it was only for a short while

Please dont worry and the end of the day all that matters is you all are healthy and have each other and everything else is just stuff that we thing is important but really isnt

good luck ill try to post as and when

ViolaLass

Do you still have the clothes from baby one?

If not, try freecycle - I got loads of stuff for my little one from there.

Have you checked that you're getting all the benefits to which you're entitled?