Debt Advice - Fresh Start

Loui22

Morning, 

I have recently gone through a seperation and am now on my own with my children. 
I have a couple of debts and my outgoings are more than my income due to these and I am finding it rather difficult to manage. Sleepless nights, thinking about it daily etc.
Then feeling guilty as i cant provide  for my children as i would like to,  where my ex can.
 
They get ice cream, days out, holidays etc but i am not in a position to do that. 
I'm worrying about upcoming birthdays and generally just day to day things as i know they will need uniforms soon too. 

I do receive some UC to help towards rent and work full time.  
The issue i have is that next year (hopefully maybe the year after) I would like to look at getting a house and so doing things like Step Change and going into a Debt Management Plan, I am worried this will affect my chances of this .. not that the chance is great at the moment but ideally I would like to try and get them paid off and gone. 

My debts consist of 2 credit cards, one at £700 the other £5000 (the £5000 credit card was used to help me pay rent when i first moved.) 
A Hire Purchase for my vehicle which has £9000 remaining 
and finally a loan of £5000.

I just dont know where to turn as everything points to the debt management plans but then i feel i will hinder my chances of a mortgage in the future and therefore, being stuck paying rent for a house that isnt big enough or have enough bedrooms for us. (we manage as my children are young at the moment so dont mind sharing but i feel in another 2 years that will change)

I am unsure how the mortgage will go but i would just like to be paying off a house that is mine rather than rent to a house that will never be ours. 

I just feel stuck and like there is no light at the end of the tunnel. 

Is there any other advice out there apart from Debt Management? 

Thanks 

Andyjflet

Morning, things probably seem overwhelming at the moment, my suggestion fwiw is to take a breath and try to relax a bit. Forget about the house move for a while, you are trying to juggle too much. 

Things to consider, concentrate on getting that small balance credit card paid off, is it 0%?

Car loan, a big drain on your spending, can you get rid of the car and buy a runaround for now?

When I split with my wife I still paid half or sometimes all the money towards the uniforms for my girls, the kids wont think any different of you, you are their mum so stop worrying you arent good enough.

Finally, post up your SOA, link in the top threads, then we can start to help breakdown a way to relieve the burden. 

Loui22

I haven't put anything for clothes or birthdays as its just as and when. My mobile phone will be paid off in january 25, this is something i took out prior to the seperation and was in a better position. 

Loui22

The £110 are for classes the children attend after school. Thanks

Loui22

Andyjflet said:

Morning, things probably seem overwhelming at the moment, my suggestion fwiw is to take a breath and try to relax a bit. Forget about the house move for a while, you are trying to juggle too much. 

Things to consider, concentrate on getting that small balance credit card paid off, is it 0%?

Car loan, a big drain on your spending, can you get rid of the car and buy a runaround for now?

When I split with my wife I still paid half or sometimes all the money towards the uniforms for my girls, the kids wont think any different of you, you are their mum so stop worrying you arent good enough.

Finally, post up your SOA, link in the top threads, then we can start to help breakdown a way to relieve the burden. 

I could sell the car however, what i will get for it will just pay what i owe and therefore, i would have to find money for a run around too? I have looked at this. 

stymied

Are you entitled to any child support from your ex?

I would speak to a mortgage broker about how realistic your home ownership dream is in the short - medium term. If, sadly, that’s not an option then it will make the decision simpler.

Andyjflet

Loui22 said:

Andyjflet said:

Morning, things probably seem overwhelming at the moment, my suggestion fwiw is to take a breath and try to relax a bit. Forget about the house move for a while, you are trying to juggle too much. 

Things to consider, concentrate on getting that small balance credit card paid off, is it 0%?

Car loan, a big drain on your spending, can you get rid of the car and buy a runaround for now?

When I split with my wife I still paid half or sometimes all the money towards the uniforms for my girls, the kids wont think any different of you, you are their mum so stop worrying you arent good enough.

Finally, post up your SOA, link in the top threads, then we can start to help breakdown a way to relieve the burden. 

I could sell the car however, what i will get for it will just pay what i owe and therefore, i would have to find money for a run around too? I have looked at this. 

Understand, then this must be a goa, £3k buys you a run around short term. Imagine no monthly payment.

I have looked at your SOA and cant see any insurance payments for your house contents? No haircuts? No clothing or internet?
If you can take a look, study your last 3 months statements and redo this SOA more accurately then I have a suggestion for you. Meanwhile can you get any overtime or salary increase? I understand its not easy with 3 kids. 

RAS

Can you check your gas and electric? Is the latest reading correct? And find some ways to reduce those? They and the groceries aren't unreasonably high but all three could be lower with a bit of work. Look at the Old Style Money Saving forum.

zedonk

Are you getting child maintenance from your ex? 

kimwp

Loui22 said:

I haven't put anything for clothes or birthdays as its just as and when. My mobile phone will be paid off in january 25, this is something i took out prior to the seperation and was in a better position. 

All outgoings need to be in your SOA, even if you pay them as and when because these are still paid out of your income. You need to go back through your statements and work out what this is.

You also need to think about whether you can afford a mortgage, particularly the route you want to follow of not doing a dmp. You would need to save up a deposit (10%?) and costs of solicitors and moving (£5kish) in addition to servicing your debt. You wouldn't have any benefits help towards your housing costs as you do now, so your income would be less - could you afford the mortgage payments? I don't say this to dash your dreams, but if it's not realistic, then a dmp won't affect the chances.

sourcrates

Go onto a debt management plan with the unsecured debts and free up £300 per month (approx).

Talk to stepchange or PayPlan about setting up a DMP, or you can do it yourself.

Debts will default, and your credit file will be impacted for a few years, but the debt can be dealt with easily.