what a mess - desparate - HELP please!

thecornflake

A quick reply - it seems everyone else has covered most of the important points.

You definitely need to -

Call all the relevant companies and make you you always call them when you miss a payment. Otherwise they asssume you're avoiding them and have no intention of paying.

Claim back any charges from your credit cards, as these aren't affected by the OFtTtest case. Start getting information for your bank charge claim(s) so you're ready to do it depending on the outcome of the test case.

Make sure you pay secured debt and things that you can get fined/imprisoned for first - Council tax, TV license and rent/mortgage should always be first, then utilities.

The main reason I replied was because your situation rings bells from ours back in the end of 2006. Very similar. One month nothing got paid at all, and I had to book two weeks of holiday off work because I had no money for petrol to get there.

Our overdraft was more than my monthly salary, and we got to the point with the bank manager cutting up our cash cards in front of us.

But with a lot of hard work, invaluable help from these forums and admittedly a couple of bits of luck (you'll always get that if you're already working hard at it), we're on the way back up, paying off the debt and breaking even every month.

saffronflowers

I have tried to stay away from posting because I dont want to bee too negative but I do feel that your situation is dire. Sorry not trying to be horrid, but at the moment you cant afford the house or the car and if anything goes wrong with either, their is not a cats chance that you can sort it. Already the must pays are being let go ie Council Tax, TV licence and mortgage payments.

Is selling a possiblilty

SFx

zoidberg

I hadn't considered moving into the smaller room myself.
re selling property - well that would be an option if it was free to do (dont know what would be involved e.g surveys, home buyers packs,fees to GE on mortgage settlement etc) and obviously cant afford to payout anything at the moment.

RAS

Hi

You need to know if there is any early redemption charge if you sell the flat?

In the very short term,

1. Contact all the priority creditors and let them know there is a problem and you will be gtting proper advice from CCCS, CAb or the national debt line.

2. Have you anything that can go on e-bay, to a car boot sale? Flog it.

3. Sign up for you local group of www.freecycle.org. You might need to get a new mattress, but you can get a bed and some other furniture from them for nothing except the cost of collection. if you travel around, you can sign up for groups in posher areas where the pickings can be better.

4. get your own room up for rent ASAP. Get a motnhs rent in advance and a month to go. Then get them to set up a DD for the rent each month

5. Do a store cupboard challenge - list what you have in the cupboard and freezer and ask the Old Style mob for advice on how to make that last as long as possible.

6. Go round and turn off everything that is not actually being used - the mobile charger, the TV etc at the socket.


7. Can you get any part-time work to supplement your full-time one? Even a coule of evening or a day at the a weekend might keep you afloat till you resolve the situation.

embarrassed_about_my_debt

Would it be feasible for your partner to move in with you and cancel her rented place?

She would already have furniture for the second bedroom for her child and then between you could split the mortgage/bills, this would free up some income for you to tackle your debts.

zoidberg

ok - appologies for the late reply - have been assisting in my partners Indian head massage course assessment (which she passed - yay)

anyway, once again thanks all for the replies.

I will look into early redemption fees on mortgage tomorrow.

With regards to her moving in. Well she is herself moving at the weekend to somewhere cheaper to help get her finances sorted out (plus the fact she is on fixed term contact at the mo so hasnt got as much coming in) but anyway, there are issues that would make that tricky at the mo and I dont think either of us would be keen to jump in like that just at the mo - maybe in another year or two.

Ok - ebay - yes. I have a fly fishing rod I got about 18 months ago that was about £175 that I dont need as I have another so that can go. Ive also got a dell laptop thats poss 3 years old - so not cutting edge but would do for someone, so that can go. Ive got a lot of old vinyl and have looked into that but it seems you cant even give it away these days. Ive got various other bits of pc's and components lying around (as I work in IT) so may not fetch a lot but all adds up.

gonna change all light bulbs that arent already to energy savers this week (just need to find the best deal on them I can). TV always switched off -never use standby. Same with all lights (generally just a 60w lamp on in lounge). Have switched microwave off at plug - dont need it on just so I can see what time the clock on it says it is. Phone charger off at plug aready if not charging (but gonna try and charge it at work during the day so I dont need to at night). Have adjusted power settings on phone and computer to switch off displays etc and save power. Gonna ask for outgoing calls to be barred on my land line and use my work mobile for calls (not that I make that many) as it is all paid for. If I am cold - put a jumper on - dont put the heating on. If I am hot - open a connecting door to use the heat rather than open a window. Get a draft excluder thing for the drafty front door.

food wise - get off my !!! and make cheap healthy stuff that lasts a few days/can be frozen and also taken to work for lunch (e.g soup, economy mice curries/stews etc, salads). stop buying junk food, snack bars (unless work are paying) and use what I have in the larder. No sugar in drinks already (bad and costs money), drinking fruit tea now- healthier and just add water (speaking of which only filling kettle with what I need to boil will help) and can get two cups from a bag if I reuse it. As for Aldi -yes - luckily there is one 10 mins walk from me - so if I go little and often (instead of less fequent bigger shops,then I can walk and not drive - thus saving fuel).

speaking of which....I may not be able to do much with the car in terms of downsizing etc but I can change the way I drive it. ie.I have a reasonably quick car (deisel) but realised that doesnt mean I have to drive it like it is stolen all the time! so today changed gears a lot earlier, gentle acceleration, better anticipation of traffic ahead etc, engine breaking rather than breaks etc etc and watched the real time fuel economy whilst driving to watch effects etc. well...work and back - 100 miles mostly on the M1 - think I went from usual heavy footed loutish economy of 41mpg to 53! and "round town" well - to college where was earlier, from 31 up to 45mpg! so I reckon if I keep doing that I can easily save £60 month (gonna take all the junk of out the boot tomorrow as well as that is effectivly costing me money each day by adding weight and affecting fuel economy). Also makes it a bit less likely to get points for speeding (and thus higher insurance/fines) and accidents, tyres will last longer..etc etc. Another incident prone year and I will have 2yrs NCB come renewal in June so hopefully that will come down to. Also not filling up at the local petrol station as its really rather expensive (noticed its 109.9 for a litre of deisel there tonight) and finding somewhere cheaper, and filling up at night when it is cooler so you get more for your money (as the fuel is denser)

I managed to have a very brief chat with work just as had to leave - they have agreed a quartely bonus scheme of min £300- max £500 (so max £350 after tax). so thats all good. They are also going to let me recruit another engineer who can go out on the road a lot instead of me which will help keep my mileage/depreciation/service costs down. Going to sit down with FD tomorrow and see what we can sort re outstanding monies/advanced etc.

Freind needs his website (runs his own one man business) updating in next few months so can make poss a few hundred out of that. Also someone I know through an ex work college has problems with their internet - so even if I say I have to charge them say £25 its still £20 say with fuel out, to the good. Gonna stick a card in local shops saying I can do pc upgrades, support, internet connections etc and even if only get a couple of things to do each month it as again all to the good.

Bookmarked freecycle as its late now so will sort that tomorrow time allowing.

So busy day tomorrow so sleep soon. If I have missed anyone questions I am sorry and will have another read tomorrow morning.

I guess I have realised today that things are bad but they can be dealt with and it will take time but crucially it is going to need a change in thinking and doing and making it habit and not a fad and even that even with all the advice in the world from you fine people only I can make this happen.

Will update on things tomorrow after final round of phone calls and those letters to citi/welcome sent out.

Once again, thanks all

Karmacat

zoidberg wrote: »

Early redemption possibilities.... ebay.........light bulbs....electricity switchoffs.... power settings.... changing phone useage.... changing heating useage..... cooking from scratch.... using Aldi little and often....using fuelsaving driving techniques....watching which garage you use for refilling....work negotiations re bonuses and recruitment (they sound like they really want you, by the way!)....working on a website for pay.... advertising IT services locally.... possibility of freecycle....

FANTASTIC!!! Look at that list! Thats brilliant.

Going to sit down with FD tomorrow and see what we can sort re outstanding monies/advanced etc.

FD? Not sure who that is....

I guess I have realised today that things are bad but they can be dealt with and it will take time but crucially it is going to need a change in thinking and doing and making it habit and not a fad and even that even with all the advice in the world from you fine people only I can make this happen.

There you go, its the attitude change, that makes all the difference in the world. If you can just keep going like that, you probably won't *need* to use the information you collect on redemption of the mortgage, you'll be able to get clear of this situation.

Keep going - you're doing really well, taking charge of your life. :A (thats the smiley for "you are wonderful", by the way!).

robpw2

fd id finacial director .

good too see your making the changes,


one small step for man one giant leap for mankind ..

this is very much what you are doing making the small changes and you will be able to affect the bigger picture ..


:j i hope all goes well and don't worry things will get better

saffronflowers

Zoidberg - your post filled me with hope that you will sort out this situation, I truly think that you have really had your lightbulb moment and will do your damnedest to sort this out.

Whatever happens in the future you will know in your heart of hearts that you have started a journey that will only enhance your life and your future.

Just think when you go out with your mates and they get out their credit card to pay for a round how much you will smile inside as you silently snowball it and realise how much their beers is!!!!!

Well done you and keep coming back when you feel your are slipping and also to tell us of all your achievements.

SFx

neverdespairgirl

zoidberg wrote: »

Electric - £65 - that seems very high, have you checked to see if you can get it cheaper?

Sky £29.00 - can you cancel this? £30 a month is nearly £400 a year!

Phone - £35.00 - can you lower this?

Car Insurance - £90.00 - that's very high indeed, over £1,000 a year?!

Car Finance - £330 - that's an awful lot. Can you not sell the car, and get a much cheaper one?

If you could cancel the Sky, knock £10 a month off the phone, and half your car insurance, that would give you an extra £85 a month.