Drowning in debt - please help

Grumpelstiltskin

The only way forward appears to be you making the decision to stop paying all your non secured debts.

Nothing terrible is going to happen if you do this, you will need to open a basic bank account with a bank that has no connection to any banking groups you owe money to.

You will need to change all direct debits for vital payments, utilities, council tax etc yourself, don't use the account switch service.

Then you will have time to see how your finances work with your partner and also to save what you can in to an emergency fund so you won't need to use credit when something goes wrong.

3 or 4 months down the line you should be in a better position to sort something out.

Whatever you do don't contact your creditors, don't answer phone calls etc.

sourcrates

happyhopes said:

I've done an SOA for myself as I need to sort these out before he comes, assuming he still wants to when he finds out the financial mess I am in. 

My total monthly income: £2101.33
Expenses: £2270.80
Available for debt repayments: -£169.47
Unsecured debt repayments: £969.10
Surplus (shortfall if negative: -£1138.57

Clearly this is going to need a radical approach with such a significant deficit, you are basically insolvent, you have nothing with which to pay any of your non essential debts.

Are you a homeowner or do you rent?

happyhopes

Grumpelstiltskin said:

Once  your partner moves in it will all depend on how you sort your finances out, he must pay his full share of the costs and if he has much bigger wages than you he should pay more, otherwise you only choice may be to increase your income as there probably won't be much room to juggle with what you have got.

I still think you both should be completely honest with each other about you finances.

We had a chat this morning and we were both honest about what debts we have. We're going to have a good chat when he's off and go over numbers etc.

happyhopes

Grumpelstiltskin said:

The only way forward appears to be you making the decision to stop paying all your non secured debts.

Nothing terrible is going to happen if you do this, you will need to open a basic bank account with a bank that has no connection to any banking groups you owe money to.

You will need to change all direct debits for vital payments, utilities, council tax etc yourself, don't use the account switch service.

Then you will have time to see how your finances work with your partner and also to save what you can in to an emergency fund so you won't need to use credit when something goes wrong.

3 or 4 months down the line you should be in a better position to sort something out.

Whatever you do don't contact your creditors, don't answer phone calls etc.

Thank you, when you say stop paying.. Do you mean stop paying for 3-4 months? Won't they sell my debt on after that amount of time? I opened a bank account yesterday, just need to wait for them to send me the information in the post. card, pins, etc and then I will do what you said, changing direct debits etc. Will also change bank details with work. When my partner moves in, I do plan on working more hours anyway and I'll be able to because of the Christmas rush and then after Christmas, I can start looking properly for a better paying job. I know it will all work out in the end, but it's just these next few months, with Christmas, etc its stressing me out. 

happyhopes

sourcrates said:

happyhopes said:

I've done an SOA for myself as I need to sort these out before he comes, assuming he still wants to when he finds out the financial mess I am in. 

My total monthly income: £2101.33
Expenses: £2270.80
Available for debt repayments: -£169.47
Unsecured debt repayments: £969.10
Surplus (shortfall if negative: -£1138.57

Clearly this is going to need a radical approach with such a significant deficit, you are basically insolvent, you have nothing with which to pay any of your non essential debts.

Are you a homeowner or do you rent?

I rent from the council. Social housing. Rent is £482 a month. They cancelled my housing benefit due to an error on their part. For some reason, they think I've been getting £700 a week - I wish! I'll have to wait weeks until they sort it out. 

Grumpelstiltskin

Good for you, you can't afford to pay your debts so cancel the payments now, don't try to struggle as you just can't afford it.

See how things are in a few weeks and then you will be able to sort a solution out.

Make sure you have a basic bank account with a different bank and don't have a joint account with your partner.