Someone please help

arodnap

Hi folks,

I'm looking for some advice, help or any pointers to help get me out of the hole I'm in. I'm at my wits end and cannot see a way out.

I currently have an overdraft of £4000 for which I'm being charged around £103.59 per month (Payments comprise of: an account fee - £17, overdraft interest - £80.59* and overdraft charge - £6.). These charges will rise in October to around £200 per month under HBoS new charge system of 1p per £7 owed per day.

With the same bank, I have maxed credit card of £2000 for which I pay around £60 month and most of this goes to interest, leaving around two or three pounds being deducted from the balance each month.

I also have council tax debts of around £6500 following a long an convoluted issue involving the property as I did not live in it for several years. I'm paying this back to debt company at £80 per month any attempt to negotiate this down has resulted in threats.

I was self-employed until April of last year but I could no longer keep the company going and pay myself a wage let alone make a profit. I paid off all due taxes and costs and had the company struck off. Since then I've had great difficulty in finding any work of any type, from cleaning to caring I can't even get anyone to give me an interview. I live in a fairly rural location in Scotland, with few transport options and having already sold the car to make ends meet, I don't know where to turn. I have no family to ask for help.

My partner has been subsidising all of the above charges for the past year but was unfortunately made redundant in July. However, two weeks ago started a new job but has to wait six weeks for the first pay.

I own my house on a mortgage but have no way to re-mortgage as I have no income to get access to the equity. I couldn't even afford to sell it if I wanted to. I have tried to discuss my situation with the bank but was basically told they would aim to repossess my home to cover my outstanding debts. The house is all we have left. Our mortgage is interest only and around £100 per month.

I applied for benefits but was told I was not entitled to anything as I had missed some payments in my National Insurance contributions during the dwindling of my business and because my partner worked and I owned the property. Apparently, these things are contribution based in recent timeframe.

I don't know what to do. Can anyone offer me any advice on where to start? I feel like I'm a mud filled hole and sinking deeper every day. I've worked solidly for 21 years and fell like it's all been for nothing. I know this is all my own fault and I should have made better decisions but retrospect doesn't help now.

Can anyone advise me on anything I can do?

bexster1975

Hello.

I'm sorry to read of your troubles. I know nothing of the benefits situation, but someone will arrive soon to help with that. Seems quite harsh if you've had probs in the last 24 months or so to say no help if you've worked for 21 years :eek: however this would not be the most shocking thing I've heard about the benefits system so will assume for now it's correct.

I'd start with a Statement of Affairs SOA. It just clarifies what's coming in and what's going out. It's probably jumping the gun a bit but could you do anything from home work wise? Or do you have stuff you are able to sell in the first instance?

There will be lots of people able to help on here. It's important not to panic. I know that's very easy to say when it's not me in your situation, but panic will improve nothing. As is said often here, it's always possible to fix any debt problem one way or another.

http://www.stoozing.com/calculator/soa.php Statement of affairs link
Bexster

sourcrates

Hi,

Lots of things you can do, cut back on your spending, try and increase your income, investigate your options as to whether a debt solution may be necessary, or just controlling your budget better.

You can write to your creditors asking them to stop interest, freeze the account, and allow you to pay off the balance.

As i said, lots of options, but we need to know a little more about you first, so pop up an SOA (statement of affairs) available from the stickies, and we can get started.

arodnap

bexster1975 wrote: »

Hello.

I'm sorry to read of your troubles. I know nothing of the benefits situation, but someone will arrive soon to help with that. Seems quite harsh if you've had probs in the last 24 months or so to say no help if you've worked for 21 years :eek: however this would not be the most shocking thing I've heard about the benefits system so will assume for now it's correct.

I'd start with a Statement of Affairs SOA. It just clarifies what's coming in and what's going out. It's probably jumping the gun a bit but could you do anything from home work wise? Or do you have stuff you are able to sell in the first instance?

There will be lots of people able to help on here. It's important not to panic. I know that's very easy to say when it's not me in your situation, but panic will improve nothing. As is said often here, it's always possible to fix any debt problem one way or another.

Hi Bexster,

Thank you for your reply, I'm glad that there is someone out there.

I've pretty much sold everything/anything of value on ebay over the last year. Unfortunately, what's left wont sell for what the postage costs. Don't get me wrong, we still have a couch, a TV and the basics but, that's about it.

I think I did this right...

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 101
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 26
Mobile phone............................ 50
TV Licence.............................. 12.25
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 260
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 759.25


Assets
Cash.................................... 0
House value (Gross)..................... 55000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 55000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 45000....(101)......4.5
Total secured & HP debts...... 45000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft - HBOS 1.............3500......0.........0
Overdraft - HBOS 2.............500.......0.........0
Council Tax Arrears............6365.04...80........0
Credit Card - HBOS.............2000......60........29.2
Total unsecured debts..........12365.04..140.......-


Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 759.25
Available for debt repayments........... 240.75
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 100.75

Personal Balance Sheet Summary
Total assets (things you own)........... 55,000
Total HP & Secured debt................. -45,000
Total Unsecured debt.................... -12,365.04
Net Assets.............................. -2,365.04

[/tt]

bexster1975

Hello

Well done on posting. A cursory look at it says you did do it right

Ok, so with £1000 it's not going to be an extensive SOA.

Is your council tax over ten or twelve months? If ten see if you can get it over twelve ( no idea if can in Scotland - know you can in England). Doesn't cost more, just leaves you with a couple of quid extra a month.

Your mobile costs are high. Contract ends - SIM only

£260 other travel is quite :eek::eek: as this is more than 25% of wages. Is this partner travelling to new job?

Groceries seem more than reasonable to me. Quite impressive honestly.

I suspect you will require some debt solution other than clever juggling and budgeting. I note sourcrates is on the case. You are in very safe hands there if DMP/DRO/Bancruptcy etc needs to be considered.

Do think if you have a skill you might sell online or otherwise. Now more than ever, working online doing anything means however remote you are, work is possible.

I'm sure you didn't expect to see fortunate in my reply, but your mortgage cost is very low which is somewhat of a blessing at least.

Bexster

Max_and_sasha

Hi Arodnap

When we had our od it was with Santander they wrote to us saying they were stopping our od and wanted it all paid back, but a quick phone call to them I came up with a repayment plan until it was reduced to zero. And the best thing was they stopped all charges

Phone or write to them and explain your circumstances and hopefully they can help you cause the charges you are receiving are shocking

Goodluck

Max

enthusiasticsaver

I would also wonder whether a DMP would be your best option given the bank are not being helpful in reducing interest/charges. My view would be open a new bank account with no overdraft and treat the overdraft as a separate debt. Your partner can put her wages in there and continue with the council tax court order as £80 seems affordable and the mortgage and let the overdrafts and credit card default. A DMP will hopefully ensure the bank then stops charging on the debt.

How old are you and is having a spoilt credit record going to impact on you?

kram

It maybe worth looking at the sc debt remedy tool to see what options that gives you, its completely anonymous as well.

Good luck

K

arodnap

bexster1975 wrote: »

Hello

Well done on posting. A cursory look at it says you did do it right

Ok, so with £1000 it's not going to be an extensive SOA.

Is your council tax over ten or twelve months? If ten see if you can get it over twelve ( no idea if can in Scotland - know you can in England). Doesn't cost more, just leaves you with a couple of quid extra a month.

Your mobile costs are high. Contract ends - SIM only

£260 other travel is quite :eek::eek: as this is more than 25% of wages. Is this partner travelling to new job?

Groceries seem more than reasonable to me. Quite impressive honestly.

I suspect you will require some debt solution other than clever juggling and budgeting. I note sourcrates is on the case. You are in very safe hands there if DMP/DRO/Bancruptcy etc needs to be considered.

Do think if you have a skill you might sell online or otherwise. Now more than ever, working online doing anything means however remote you are, work is possible.

I'm sure you didn't expect to see fortunate in my reply, but your mortgage cost is very low which is somewhat of a blessing at least.

Bexster

Hi Bexster,

We're already paying the Council Tax over 12 months, but thank for suggesting this. The so-called 'free months' are a lot of twaddle!

The mobile costs are for both of our phones and when the respective contracts are up we aim to retain handsets and do exactly as you suggest. We justify the phones as a means of escape and are also essential for communication given where we live!

I have tried the online work route a few times but I keep coming up against training costs or set-up fees that I just can't meet. But, I will keep applying and looking for new opportunities. I want to face this head on and plan to apply AGAIN for Jobseekers allowance in the hope we can get something to help us through.

My partner started a new job two weeks ago but this involves two trains and a bus. There's no way in hell we can save here, he's even tried lift-share websites and asking around the workplace but so far to no avail.

I've prepared to letters to go to the bank and credit card companies in the hope they will consider reducing or stopping the interest and accepting £75 and £50 respectively.

Fingers crossed!

ardo

patman99

Have you spoken to one of the debt charities such as Stepchange or Payplan with regards to a DMP yet?.

This would be worth doing. As your partner appears to be on a low wage, get him to claim WTC. As long as he is working 32 hours a week or more, he should qualify.

If you can convince your GP that you are feeling depressed, you could then put in a claim for ESA.

arodnap

enthusiasticsaver wrote: »

I would also wonder whether a DMP would be your best option given the bank are not being helpful in reducing interest/charges. My view would be open a new bank account with no overdraft and treat the overdraft as a separate debt. Your partner can put her wages in there and continue with the council tax court order as £80 seems affordable and the mortgage and let the overdrafts and credit card default. A DMP will hopefully ensure the bank then stops charging on the debt.

How old are you and is having a spoilt credit record going to impact on you?

Thanks for replying. I'm so pleased people are here to listen and offer help.

I recently tried to open a new account with Barclays but they closed it a week after approving it for no disclosed reason. I have written to them asking why but, have had no response!

I was 39 yesterday and have no credit history having spent my life being self-employed, so no worries there!

As stated earlier, I have prepared letter for the bank and credit card and will reassess after/if they respond. I have also lodged another claim for JSA in the hope that I can get something while looking for work.