Borrow more to finance short-term cashflow problems?

Reddebt

Trying to do the right thing, as I'm struggling with the min payment on one of my credit cards, I wrote to the bank, explained what and when I would be making the min payment for this month. I asked if it was possible for them to allow me to pay just the interest, which I can afford, for a period of 3 months. By which time my finances should have evened out again.

They tell me they can't do that, they can only close all my banking with them and then consolidate the debt into something like an overdraft, leaving me to find a new bank, to bank with.

They suggested, that instead, I go to my business bank and ask them for finance to cover the 3 months.

Bit of background. I'm self-employed, have been for over 17 years. Last year was horrible. I had continual computer problems which left me in a mess work-wise, as the machine often wouldn't hold together long enough to get much done. I kept getting ill, because I was worried about money. My daughter has also been out of work for over a year, though she was offered a job last week and we're waiting to find out what it will pay.

The pressure on my finances has been intense, and I've often had to resort to living on my credit cards to see us through. And we don't live the high-life at all, very much the watch-every-penny lifestyle.

A relative generously bought me a new computer, which has sorted that out, and lots of marketing towards the end of last year, brought some light at the end of the tunnel workwise. Though I only have 2 clients now who I can rely on for guaranteed work each month and that isn't enough to cover the bills.

The credit card bank want me to call them back when I've decided what to do - pay them the monthly repayment I can't afford to pay them, or close my banking with them. I doubt any bank would touch me with an extended barge pole the way my finances are now.

Fingers crossed, I've landed another, decent paying, regular client this week, but this conversation with the credit card bank, has scared me witless. Scared me so much I was sick and then couldn't work for a couple of hours as it then set off a migraine.

I don't feel more borrowing is the answer, look where I am now after all? Getting a job would cause problems, my daughter can't drive and needs to get to her new job, she can get a bus home but there isn't one earlier enough in the morning (we live in a rural area). I also suspect I would also lose my tax credit, maybe only temporarily, but I need every penny I can get at the moment. I work on-site for one of my regular clients, and would lose that regular money if I took a job. Add into that, the job market round here is terrible.

Stupidly, I thought that getting in touch with the bank, telling them when I would make payments and asking for some leeway would work. They said it was unusual for a customer to write what I did, and stick to it, which I have done. But they still aren't going to help me.

I've had financial downs before, it's part and parcel of self-employment. And experience tells me that this will turn itself around in the next 3-6 months, the signs are already there that it is.

But I don't mind admitting that this is scaring me to death.

I don't feel that borrowing more is the answer, but I'm stuck as to what is the answer. Which is why I've written this, long, post. I'm hoping your collective wisdom does have an answer or even just a bit of understanding.

always_amazed

Hey!!

What I would advise is to post a FULL 'SOA' (state of affairs); and some of the clever regulars might be able to help out when the see it down in full. Look at the sticky on the top of this board (just a post which always stays on the top of the board) for a step by step guide.

Once that's all clear it will be easier to see where your options lie; and there are usually so many more than you'd think

xxx

mummytofour

In the short term you need money, how do you know that by next month or the month after you will have more clients? I think that looking at https://www.entitledto.co.uk is a good start and I really do thing that registering with some employment agencies maybe a good idea, the food needs to be on the table now. I am so sorry if this sounds so very harsh, but I am in such a mess myself and sometimes when somebody else says something it all becomes so much more clear.