Is My Situation Completely Hopeless?

cheexy

Hi All,

It has been almost 10 years since I was last on this forum and I am back here looking for a way out. So basically, I have found myself in around £47,000 worth of personal debt all in credit cards. There are 5 credit cards in total. 

I owned a business which which did really well for years and I employed staff members, had an office etc. In the past 2 years, the business has struggled and I tried to rescue it and ended up racking up the amount above in personal debt. I also had a breakdown last year due to stress and lack of sleep.

All my efforts did not yield sufficient fruit and as a result, I had to let go of my staff in January this year after I could find no way out of the company's financial situation. This was very painful to me and I am doing everything I can to not get depressed.

I also had a baby in November last year, so I am now without income which led me to claim Universal Credit which barely covers the mortgage. I am able to just about cover all my priority bills for the month. I have contacted the credit card companies to tell them of my situation and they have put 30-60 days freeze on my accounts but these will soon come to an end. The only company that has not replied is American Express who have not responded to any of my emails and letters but continue to write to me asking me to get in touch despite me doing just that. They have continued to add £350+ interest every month on to the initial debt which was around 14,400 in January and has now ballooned to £15,600+

It is important to state that about £8000 out of the debt is interest free due to them still being in the balance transfrer free interest period.

Is there any way out for me?

Thanks for your helpful contributions.

Grumpelstiltskin

Right first thing is to keep paying vital accounts, mortgage, council tax ( are you a single adult? if so do you claim single discount) food utilities etc.
Then if you can't afford unsecured debts stop paying them.

Start by reading this thread.
In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

Complete a honest SOA format for MSE and copy and paste on here. Then when we see the detailed situation we can advise you on the best way forward.

cheexy

Grumpelstiltskin said:

Right first thing is to keep paying vital accounts, mortgage, council tax ( are you a single adult? if so do you claim single discount) food utilities etc.
Then if you can't afford unsecured debts stop paying them.

Start by reading this thread.
In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

Complete a honest SOA format for MSE and copy and paste on here. Then when we see the detailed situation we can advise you on the best way forward.

Thank you. I am single and I applied for the NHS Healthy Start card which gives around £40 per month towards milk formula, fruit and vegetables. I also got council tax discount due to my situation as well as another £40 to spend on grocery for the council. I completed something similar to the SOA with Step Change but that didn't include interest rates. I will format that and paste shortly. I don't know if there are any other discounts or grants I should be trying to get. My situation is really troubling because I am unable to work due to my little one.

Martico

Check out this link to see if you are entitled to any other benefits: https://www.entitledto.co.uk/

recklessmurmur

I am not in a position to give you any practical advice but I read your story and can hear the struggle you are going through from your words. There is always a way out & the good people of this forum are incredible at helping you find it. You've done the right thing asking for help and everything WILL be okay. Keep posting here & I am sending you lots of luck xxxx

cheexy

recklessmurmur said:

I am not in a position to give you any practical advice but I read your story and can hear the struggle you are going through from your words. There is always a way out & the good people of this forum are incredible at helping you find it. You've done the right thing asking for help and everything WILL be okay. Keep posting here & I am sending you lots of luck xxxx

Thank you so much for your kind words. I truly appreciate it.

Grumpelstiltskin

Benefits does that include Child Benefit?

Any chance of the baby's father paying anything?

Have you checked entitled to?

cheexy

Grumpelstiltskin said:

Benefits does that include Child Benefit?

Any chance of the baby's father paying anything?

Have you checked entitled to?

Yes it includes £96 monthly child benefit. Yes, I have checked entitled to but I can check again and there will be nothing from the baby's father.

TheAble

There's the "Support for Mortgage Interest" scheme which I'm not sure if you may have seen already. Just thought I'd flag it up:

https://www.gov.uk/support-for-mortgage-interest

It's crucial to focus most of all on keeping a roof over your head. It might be an idea to speak to your mortgage lender to discuss your circumstances and see if they can offer any help over your monthly repayment.

Grumpelstiltskin

Only a small thing but it can make a difference to what benefits you may be entitled to Child Benefit is £96 every 4 weeks not monthly.

cheexy

Grumpelstiltskin said:

Only a small thing but it can make a difference to what benefits you may be entitled to Child Benefit is £96 every 4 weeks not monthly.

Yes you are right about this