Huge Debt, unemployed & new mum

N1992

Hi,
I’ve no idea where to start really.

I’m here for help, not sympathy, and I’m an idiot for getting myself this far gone.

Basically for years now I have struggled with Debt. I’m the type to bury my head in the sand and forget about it. Ridiculous I know.

So eventually family members found out and I started to repay debts and get myself sorted. Until I got to a stage where it was manageable, and I wanted to then try gain an extra income by setting up a business of my own on the side. Anyway, that was slow, and I started putting new things for the business to build it on personal credit cards. I ask myself why now and could kick myself.

Then I lost my job. And decided to stick out being self employed and saw it as fate giving me the push I needed. And then I fell pregnant. Unplanned of course.

Now I’m 8 months into motherhood, no job, and unable to claim any benefit as I’m still really classed as self employed, even though I’m not working due to no childcare etc.

And the whole way through my pregnancy, and up until this day today I’ve had letters pouring through the door of unpaid bills. I’ve left them unopened, piled up hidden away. Until I opened one today and saw a place called “The Search Squad” are trying to locate someone- this person being me I assume! I’ve started by opening one letter randomly and this was from a solicitor. I rang and I was ONE day away today from a CCJ, and have set up a payment plan for what little I can reasonably afford.

I’m really in too far over my head now. I’m not sleeping, I’m a wreck whenever the door rings, and I need to get back to work to start repaying this all off immediately. I’ve had a huge breakdown today about it and can honestly say if it was just myself here and not with a child, I’d be severely depressed contemplating what to permanently do next.

I’m too ashamed to tell family as they thought or think that I had turned a corner, and the disappointment I know they will feel will kill me.

Today has really given me a reality check to sort this mess out. So I’m here asking for help as to where to start. I don’t know the exact amount as like I said I ignore it all, but I’m guessing around £4000 and that is probably increasing weekly with the interest rates and late payment fee’s.

All to various credit cards, store finance, unpaid direct debits (gym etc) unpaid fines. Currently I am having help for food & living costs from family but this will stop once I go back to work. I would start repaying immediately but everything is maxed out, over credit limits, and I have 42pence in my current account. My current credit score is 132. Reading this all back I’m so ashamed. I need this sorting as I’m now not the only person in my life. One day I would love to get a mortgage and I’m now doubting that will ever happen.

Any help and advice will help massively

Willing2Learn

Are you sure that you are unable to claim benefits? What is your average weekly income for the self-employed job? What is the job? How many hours a week are you typically working?

Are you able to complete an SOA and post it up here? It will give us a much better picture of your circumstances if we have a current SOA.
http://www.stoozing.com/calculator/soa.php

Baby steps. Paying down your debts is all about baby steps. Posting up your SOA is just a baby step, gradually edging toward potential solutions

N1992

Yes as I wasn’t self employed long enough before falling pregnant for some reason I’ve never been able to claim benefits.

I’m a hairdresser, and weekly income is around £40-£60 as I’m still at home with the little one so fit clients in as and when. This usually goes straight in nappies, milk, food, phone bill etc

Willing2Learn

Please click on the link below and enter your details into the benefit calculator.
https://www.turn2us.org.uk/

Average £50/week income is nowhere near enough to live off, never mind paying debts.

How are you paying your rent?
Did you know you can freeze all your debts, by putting them on hold while you seek and get advice?

Are you okay doing an SOA?

N1992

Yes, it’s tight to say the least. Luckily family are quite helpful in terms of things for baby, new clothes, toys etc. I’m living with a relative who has stopped taking board/rent payments from me for now while I’m on “maternity” until I make an attempt to try get back to work properly. I think I need to bite the bullet and leave the idea of being self employed and get a proper job with a real income.

No I didn’t know that,
I’ll try fill it out now

DCFC79

Do a SOA as advised and check about the benefits.


I'm all for people working for themselves but it really (as you say) might be a good idea to look for a job that is more hours.

theoretica

Have you checked on Maternity Allowance?

Willing2Learn

The benefit calculator. I forgot to post the link in my last post. So here it is:
https://www.turn2us.org.uk/

N1992

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 350
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 350

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 470


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 350
Expenses (including HP & secured debts). 470
Available for debt repayments........... -120
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -120

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0



That’s my rent payment added but as I said at the moment I’m luckily being allowed to live here rent free,

I haven’t added my debts as honestly I need a good sit down and to work out what I actually owe

N1992

Oh and that’s a good month. Some months I don’t even earn that

N1992

I’m entitled to £20.70 child benefit, and that is all. That’s obviously for my child, and I would never use to repay debts.

I do think I’ll start claiming that to help with cost of new clothing, formula etc