Last ditch attempt to save my skin

chilli_em

Hi, I'm really hoping someone here can help me because I'm really confused!!!

I'm a student, and a single parent. I ought to add I do get a wage (a student bursary) which means I look like I've got a reasonable income of about £14 000. I've slowly been running up debts, I think I've just lived over my means a little bit. However, I was just about - JUST - meeting the minimum payments. I've done the incomings and outgoings, and they worked about the same, so not much spare, but I KNOW that I can cut back on non-essentials,so I can find extra.

Basically - I owe -
£1500 student interest free overdraft (so not a problem - yet)
£500 on an interest free card - not a problem
£5000 on a card, with the black horse company who unfortunatley I have my main bank account with also - this is the problem. Last week they decided to raise my interest rate up to 2.21% per month (without telling me) which means that I am now paying £106 per month interest, which is more than I was paying as the minimum payment. I've been into the branch, begged, called, and they won't change it. Nor will they give me a loan, as my credit score seems to be shot to ribbons now (funny since I took out the last interest free card for a balance transfer about a month ago).

I rang CCCS, and they advised bankruptcy. I'm really scared about this as I don't want it to follow me for the rest of my life, and it seems so drastic for so small a debt.

I've been scouting round the site, and I found one thing that might help - the Barclaycard loophole as I have an open and empty card with them (paid off the last £20 tonight), so I could transfer £500 across - saves £10 interest/month.

Apart from cutting back - drastically - on my outgoings, does anyone have any other ideas, or am I being unrealistic and should go for the bankruptcy???

Thanks for listening everyone, sorry its long. I hope someone can help.

Emma

chilli_em

I ought to add as well, I am aware of what the black horse bank company can do with my funds which go into my bank account - ie transfer them over to my debt - so I have opened a basic bank account with barclays and am transferring funds over day by day, starting with tomorrow!

boredofbeingathome

Sounds like a good move to me. I also agree that bankruptcy would be extreme at this stage. Are they suggesting this because there is not enough disposable income left for a dmp? Is there any way you can boost your income to allow for this? You need to post a full SOA then folk on the morning shift can have a look and see what can be done. There is a sticky at the top of the board which advises about this.
some thing to add- Is there a hardship grant available? Are you claiming everything you are entitled to- childcare vouchers, council tax discount, heating grants etc.
Also look on the old style board for ways to cut back. I'm not sure about costs of prescriptions and things or whether you can claim any other form of benefit as a student. Good luck and keep posting. It will get easier and well done on making a better life for you and your child. Its not easy studying and parenting.

bizwiz

I would suggest that you cut off all non essentials. You'd be surprised how much we spend on doodads a month.

chilli_em

boredofbeingathome wrote: »

Sounds like a good move to me. I also agree that bankruptcy would be extreme at this stage. Are they suggesting this because there is not enough disposable income left for a dmp? Is there any way you can boost your income to allow for this? You need to post a full SOA then folk on the morning shift can have a look and see what can be done. There is a sticky at the top of the board which advises about this.
some thing to add- Is there a hardship grant available? Are you claiming everything you are entitled to- childcare vouchers, council tax discount, heating grants etc.
Also look on the old style board for ways to cut back. I'm not sure about costs of prescriptions and things or whether you can claim any other form of benefit as a student. Good luck and keep posting. It will get easier and well done on making a better life for you and your child. Its not easy studying and parenting.

Ah, yes - see that now - sorry!! Will do this as soon as I get home laters. Thanks.
Emma

RAS

Definately see if there is a student financial advisor who can help you access hardship funds. If not, find your student Union Welfare Secretary.

facingthefuture

I think you are right to be way about bankruptcy, it will go against you big time. Try and get round it. Good luck.

rayday2

You could arrange your own DMP, take a look on the National Debt Helpline website, it will effect your history a little but not to the extent that bankrupcy would and I am sure with your motivation you would get them all paid off as soon as possible so lessening the impact.

Eshka_2

Heya

Just wanted to offer you my support - I know how you feel. I'd definitely do anything to avoid the bankruptcy, it does seem a bit extreme considering your debts aren't all that bad. The main thing is you're facing up to it now, and there will be a way out - there always is! I'm in the process of totally overhauling my finances (I'm also a parent so I know how tough it can be) and I'm living on benefits, so I'll be applying for absolutely EVERYTHING I can get. You should do the same as studying parents are often entitled to as much as benefits parents - I've been looking into studying again and was informed there'd be plenty of help available for me if I pursued this route.

Good luck!

chilli_em

Thansk everyone and Eshka for your support! Its good to know that there are others in the same boat as me.

I'm printing out the application for out University learning fund as we speak, and I'll put up my in and out goings tonight to see if we can tweak them any more!!

Emma

Bismarck

Hi,

Just a quick note to say bankruptcy is a no-no...it would cost you or "them" way too much to do in the scheme of things....your debt is not big enough....

That's without the other issues...good luck