new to this....

katek7

Hi there


I'm new to the forum!! Lightbulb moment last night when a bailiff came to my door for an unpaid court fine and I had to pay £1195 on my doorstep. He threatened a locksmith if I couldn't pay in full.


I was paid 30.11.17 and now have £100.07 in my account until 22.12.17. No xmas presents yet bought and not all DDs cone out so some of these will bounce back now.


Feel so ashamed of myself, I have a good income and have just ignored letters from debt companies. Sometimes don't even open them now if I recognise the envelope.


My credit rating is now terrible, all in all I owe around 4k made up of bits and bobs of debts. I cannot get a loan nor credit card, my only option now is to speak to my mother about lending money. I am so so ashamed.


Last night I cried myself to sleep and cannot stop beating myself for allowing myself to get in this situation. I am not even sure my mother has any money to help me!!


Please tell me it gets better form here!!!

arc2014

It gets better from here!


You have already done the hard part - admitting you're in a pickle!


Up until August this year (we're talking around 5 years in total) I was exactly the same as you. I wouldn't open my post, and I ignored the problem thinking it would go away. Obviously it doesn't. After giving myself a kick up the backside and taking some amazing advice from this forum I've paid off nearly 20% of my debt in just 3 months!


The first thing you need to do is get an SOA together and post it here so you know EXACTLY where all your money is going each month. There is a link in the sticky thread at the top of this forum. PLEASE be completely honest, a lot of people on this forum can give brilliant advise as long as you are open.


Then you need to get all your debts together, work out what you owe to who. After you've filled in your SOA you will be able to make affordable offers of payment to all your creditors. Even if this is just £5 a month. I know you said you want to ask your mum for the money, but if not then there are other options like this. With some strict budgeting you might surprise yourself with how quickly it can be paid off.


The first step is the hardest, you can do it!!

enjoyyourshoes

Hi.

Put all your debts in APR order with their values, so as you can see the scale of the problem and have a strategy when & which to pay off.

Know what your medium term commitments are and produce a cash flow that will allow you to accrue a monthly amount to pay off these when they materialise.

Know your bank account balance and keep this refreshed daily with any costs charged against account, taking into account all of your monthly commitments. Reduce these by discussion, negotiation with appropriate senior member of the organisation, not merely the fist person who answers the phone.

Live within your means and don't overspend the main bank account. keep daily track of all your spending and throw as much at the debt as you can every month.

Look at the other parts of the forum on how to reduce your spending, becoming thrifty and more astute with he money you have.

National_Debtline

Hi katek7


Welcome to the forum and well done for starting to deal with the debts. The most immediate issue is to make sure you can eat this month. You may have friends and family near by who could help you out with meals, or you could search for your closest food bank here https://www.trusselltrust.org/get-help/find-a-foodbank/. You usually need a voucher from someone like your local Citizens Advice Bureau (CAB) or GP before you can attend.


Once you're ok with that you can start to think about your debts. There may be some essential bills you fall behind on this month if you can't get help from your mother. It's best to cancel the direct debits if you know they are going to bounce as this should avoid additional bank charges. Contact companies like your fuel supplier and landlord/mortgage lender to let them know you're having some difficulties this month.


You'll need to complete a SOA to work out what you can start offering from next month to catch up on your arrears and to start dealing with your other debts. It's a good idea to post your SOA on the forum if you would like some helpful tips on ways to save money and increase your income. You can also get in touch with one of the free debt advice agencies for detailed advice on your debt options. Good luck with it all.


Susie
@natdebtline

System

No xmas presents yet bought

Do not buy any presents this Xmas (well maybe do for your own kids if you have any), don't get in more debt for it. I would be mortified to find out someone sent me a present when they could barely afford to pay the bills. I'd rather they didn't have to worry about keeping the lights on than receiving a Rudolf knitted jumper. Instead send cards out to everyone and have a big family meal on the day.

enthusiasticsaver

It will get better but you have to deal with the debts rather than ignore them. Do you know why you are getting into debt? Obviously overspending but is this on basic utilities and expenses or are you wasting money on something else? I would suggest an soa.