Starting Again - rebuilding my life and basically non existing credit score!

Harleyquinn

Jeez, I've not been on this site for what feels like a lifetime. It's been almost two years since I last posted about a similar situation, but my situation is worse now. My life has taken a bit of a horrific turn (for me anyway, others might think i'm being over dramatic) so I thought i'd document my journey on here.

In a nutshell I lost my job very unexpectedly and am currently in the process of taking this to the tribunal due to the circumstances. So I've lost my income. My guaranteed £1000 per month, which isn't a lot, but I was comfortable. I do have a student loan which is absolutely my saving grace right now, but it's not enough. I'm really struggling to find another job and I really need an income, everything I see I apply for but to no avail.

My total debt it £7240
CC - £4709
Loan - £1325
Very - £256
Overdraft - £950

My total incomings right now is £763 instead of the £1783 it should be. When I was earning I'd put money into savings, and the day before payday I'd pay whatever I had left towards my debt. It worked well for me.

Very embarrasingly the CC has now gone to a debt collector. I'm so embarrassed and ashamed of myself. I've been living outwith my means, I've buried my head in the sand and I can't do it anymore. This is no way for anyone to live.

But I don't know how to get out of it, not without a job and I'm getting no where with that.

After everything is paid (bills, food, etc) I have nothing left, in fact I'm -£20. I cancelled any subscriptions I had, so Netflix and Spotify. I don't go out to eat or get takeaways, I don't go on nights out, to the cinema, bowling, etc. There isn't any way to cut my expenses further, not that I can see.

SO I guess my best avenue is to boost my income in order for me to become debt free. I don't know where to start, Matched betting is a no go because I don't have any money spare to enable me to do that.

Things I can do are selling my things online and babysit my friends two children. Babysitting will only bring in £40-£80 a month, but that will still be a great help.

My aim is to put almost everything into my debts and get things paid off asap and a little into savings. Hopefully, that will help rebuild my credit score too as it's practically non-existent right now.

Apologies that this intro is so long, but I will update as much as I can. I'm in the middle of doing some free training courses which will hopefully help me find a job and I'm crossing my fingers I find myself back in the land of employment in the very near future!!

Ultimate goal: Be 100% debt free in 18 months. Can I do it? Time will tell!

DebtFreeDuo

Welcome back! There are some survey websites that you can join to help give you a boost, they aren't huge earners but they are better than nothing. I would suggest going over to the challenges section and having a read of the 'Make upto £10 per day' challenge, they have some fantastic ideas over there. You could also post an SOA and get someone here to have a look at it and make any recommendations that you haven't thought of.

Harleyquinn

Thank you! I used to dabble in surveys but it took me months to reach the payout and felt like i was wasting my time a little. I'm going to have a look at the challenges section I've got a notebook and pen at the ready to note down ideas. And I'm going to spend most of my afternoon listing things on ebay/gumtree/etc and hope that things sell

beanielou

Shiny new diary

HairyHandofDartmoor

Don't be ashamed. My two credit cards and my overdraft all defaulted and one went to debt collectors, and my DH's four credit cards and overcraft defaulted and many of those were passed to debt collectors. It's not your fault you lost your job.

You should consider contacting the debt charity Step Change and get some advice. They can arrange for your debt payments to be frozen or lowered until you find a new job.

That will impact upon you credit reputation, but that has already happened hasn't it?

In the meantime babysitting and surveys is an excellent way to bring in more cash. Good luck

Harleyquinn

Little update: I've been applying for jobs like a crazy person. Everything I see I apply for so fingers crossed I get something soon, I'm beyond bored at home. But I'm thinking of starting a small children's clothing business to help generate some sort of income in the meantime, and then to put towards debts once I've got a job. Sewing is something I'm pretty good at and I have loads of fabric that I'm needing to use up anyway so it may be a good idea. I'm already registered as self-employed with HMRC too so yes, everything will be above board! A town near me is hosting a few events this month and next month that I will be able to go and sell at, so I'm considering going to one of them, but they're £10 a table and I'm worried I won't sell anything and be £10 down. However, on the other hand, I could pay the fee and then make a little money which would make it worth it too.

I've noticed there are five credit cards showing on my Clear Score account but I only have two so that's being looked in to just now. I wish I could get a 0% balance transfer credit card or loan because that would make things better, but it's never going to happen. One payment, zero interest, it would make paying everything easier, and save me money in the process.

I'm desperately wanting to make an extra payment a month to everything, but as of just now I can't afford that. As long as minimum payments are being paid, then I'm good with that for just now.

Netflix has been eliminated from my life, as has Spotify. My grocery bill has also been cut thanks to hitting the jackpot (lol) and finding meat reduced so much that I've got enough for a month for £7. I spent a few days batch cooking so the freezer is pretty much full of yummy meals for the month but hardly cost me anything. I'm considering wombling again too because there's nothing quite like the buzz of getting money off/free food!

It's now November and I have the highest of hopes for this month. By the end of this month I could be back in employment and have some financial stability again and that is such an amazing thought!