The stress of debt is overhwhelming

Nekoda

Hi everyone,

Me and my wife fell into alot of debt a few years ago after moving town and loosing jobs that were meant to be waiting here for us.
We struggled for a few years, we have been in a dmp now for a year and things started to pick back up.

Last April my wife gave birth to our daughter and so had to go onto maternity, she's on government paid maternity (so not alot at all).

We are now worse than we have ever been, our dmp has been reduced to minimum payments and a few creditor's have actually threatened us with court action for doing so (but that's another story altogether). On top of that we are now in debt with water, gas and electricity, npower threatening to put in meters if we don't keep up with re-payments, they have said If one more direct debit fails they will fit them. Having had prepayment meters in the past I know we would end up paying more than we do now.

We have a guarantor loan out in my brothers name, if we didn't I would go bankrupt in a heart beat, it's the only thing stopping me as he couldn't afford the repayments, he would have to sell his house etc.

Last week the car windshield cracked from a stone falling off a passing lorry, I'd just been to have the brakes fixed as they were borderline dangerous. I can't not drive as then I couldn't get to work to pay off the debts. My insurance does not cover windscreen replacement. Autoglass (I know, they overcharge) quoted me £400, I've managed to find a local dealer who will do it for £220, but I like at our budget and I couldn't possibly find a spare £220. Had to save up for months just for two brake discs.

Too add to this, the rent is consistently 2 weeks late now and we can't catch up, we just don't have available funds. Im paid weekly and Evey pay cheque goes on bills, petrol, food and baby. Nothing left spare and my wife's maternity barely helps cover extras, she's suffering from PND, too make matters worse. It just feels like the universe is against me, it's just been one financial earthquake after another. My wife and daughter are the only thing keeping me going right now.

Im sorry if this is all coming through as a jumbled mess. My head is a mess at the moment, I can't even think straight at work, I don't sleep well, I wake up and begin stressing, im constantly going through my budget calender, moving bills around, trying to make sure everything's paid. My. Wife is amazing, she looks after our daughter 24/7, while suffering from pnd and having these money worries too.

Im at breaking point and no longer no where to turn. We are falling deeper and deeper, no matter how much I work there is always something that needs paying. I feel im constantly loosing a battle.

I don't know what im asking really, I just needed somewhere to vent, as I can't go to my wife about this as she has enough to deal with.

Thanks for anyone who reads this.

Neko.

quintwins

HI Neko, your best bet is to do a SOA and post it so we can give you advice on where to cut back. Have you considered a debt management programme? once you know where you stand it could be worth phoning one, just make sure it's a free one like step change.

[Deleted User]

Hi Neko,

Welcome to the boards.

First of all, please take a big deep breath and try not to worry, easier said than done I know

I notice from your post that you are already on a DMP? is that with a fee paying one or someone like Stepchange?

Please post a SOA, there's a link somewhere at the top of the board. Fill it in as best as you can and you should be able to convert it to post on here, this lovely lot can then see if there are ways that you can cut back/reduce your outgoings.

Also but not last, check that you are receiving all the benefits that you are entitled to. Someone I'm sure will know more about this than me.

Finally, grab a cuppa and sit down, all is not lost and there will be a way out of this even if it doesn't seem like it at the moment.

Pmo2
x

Nekoda

Hi Quintwins, we are already in a dmp with Payplan. They are getting reduced payments due to my wife's maternity atm, however we took a massive pay cut due to this which means we struggle to pay everything else on my wage alone, which has thrust us further into debt

enthusiasticsaver

I think sometimes it is more difficult to budget when you are paid weekly but this is the key to sorting out your finances. That plus a spending diary and an soa which you can get from the sticky at the top of this forum.

I would prioritise paying rent, council tax and gas/electric over the DMP. When does your wife return to work? Undoubtedly the PND is exacerbated by your financial situation so if returning to work earlier would ease your finances it may be worth considering that. I think until you are covering essentials then the DMP should be put on hold. If creditors threaten court they would not get any more as a judge would look at your income and outgoings and allow you enough to cover those before making any court order.

Re the car expenses, is there anything you can sell to raise the £220? No public transport?

I would post an soa first to get people's advise on how you can get your outgoings down. Are you claiming any benefits?

quintwins

Nekoda wrote: »

Hi Quintwins, we are already in a dmp with Payplan. They are getting reduced payments due to my wife's maternity atm, however we took a massive pay cut due to this which means we struggle to pay everything else on my wage alone, which has thrust us further into debt

Sorry I did read that I'm just not with it today. Can you adjust it, I know my sister added debt to hers when an old debt she had forgot about landed on her doorstep but as I've never had one I'm not 100% sure how they work.

Are you claiming all benefits you are entitled to?

sourcrates

Hi,

Get up to date with the essential payments, credit debts can wait.

Are you mortgaged or renting ?

How much do you owe in total, but minus the guarantor loan ?

Nekoda

Hi purplemumof2, I can tell you without doing a soa we have no sky packages or luxuries. We pay for the cheapest internet a month at £10 and cancelled our TV license, using only catch up on the TV. We literally have no where we could cut back, everything else is dmp debt, guarantor loans, utility bills, rent and a car on finance. I don't earn enough to cover the surplus of the debt even with my wife's maternity money.

I've enquired about benefits, the council claim as I work 37 - 45 hours a week i earn enough to pay the rent and council tax so are not able to claim. They didnt care about other places my money is going to, all they have done is put my council tax on hold until September to give me some breathing room.

As for other benifits we get child benefit and I've applied for child tax credits but that's not looking good. We get marriage allowance. That's about it.

quintwins

How much do you owe your brother?

It is still worth posting your SOA, as a fresh set of eyes can pick up on things.

If things are really this tight you might need to stop paying your debts for drop down to token payments of £1 a month. your basic living expenses including your council tax need to be a priority.

Is your wife returning to work? could she return early?

Tax credits go on last years income so even if you don't get any now it might be worth reapplying in a few months.

enthusiasticsaver

Is the reason you are struggling because you are paying the guarantor loan and car finance? How much does that amount to? Posting an soa is the best way of getting help as you are telling us you are only paying essentials but normally if you were really struggling to pay for food, utilities, rent and council tax (the main essentials) then advice would be don't pay for anything else. If you are prioritising the guarantor loan and car finance above these then this is not ok. I understand why you would want to prioritise them but ideally you should not.

Suseka97

Hi Nekoda,

I really think you need to knock the DMP on the head for now and, as Sourcrates and a few others have said - prioritise the essential bills (rent, council tax and utilities) as well as food and basic living costs. I have no experience with 'guarantor' type loans -but maybe you need to seek legal (or CAB) advise about where you stand on this in relation to a possible IVA or Insolvency option.

Ignore creditor threats of court action - that's par for the course. They are highly unlikely to take you to court and even if they did (and it would take at least a year to get there, if not longer) than no magistrate is going to prioritise their bills over the essential ones.

So, take a deep breath and start the ball rolling on cancelling the DMP and advise creditors that due to serious financial difficulty you are no longer in a positon to continue and will be paying only token (or no) payments over the next 6 months. That might give you the breathing space you need - or allow your wife to return to work, when your finances should hopefully improve (childcare costs permitting).