What would be the best starting point?

LeahDyl

Hello, I just wondered if anyone has any ideas. I owe around £9000 in total I think. An overdraft, credit card and personal loan with my bank and some money I'm repaying to HMRC (tax credits mix up as usual!). I don't owe enough to get an IVA and the bank would offer what they call a managed loan and lump all the money together but charge a rediculus amount of interest (about %27 I think) which would mean paying interest and not much else so I'd still continue to owe the same amount of money and the whole thing would go on for longer. It doesn't seem to make any sense to me. What are my other options? If I have any at all that is! I have more going out than I have coming in and thats even before I buy any food for my family so I need help ASAP. Thanks in advance.

fermi

Hi.

If you post an SOA (Statement of Affairs) then people can have a look at your situation and make suggestions.

There are instructions on doing an SOA here. Link: Help for First Time Posters

LeahDyl

Below I've done the best I can off the top of my head. If any details need updating or adding I can look into them and correct them if needed.

I hope someone has some words of wisdom!

Monthly Incomings:

Benefits - £550
Maintainence - £150 (sometimes)

Total - £550 to £700

Monthly Outgoings:

Gas - £23
Electric - £20.00
Water - £50
TV License - £6
Phone & Broadband - £35
Food - £200
Home Insurence - £22
Childcare - £100
Course Fees - £115
Personal Loan - £149 (8.9% APR) Was taken over 60 month 18 month ago.
Credit Card - £70 Balance Aprox £1500 (Around 13.9% APR)
Tax credit repayment of previous overpayment - £30

Total: £820

JayneC

If you get benefits can't you get help with yor course fees and childcare? Your college may have a 'hardship' fund that you could access. Speak to student services.
You could perhaps reduce your food bill, take a look at the grocery challenge on OS board.
Have you checked your phone and insurance are the cheapest, if you switch go through quidco to earn cashback.
You need to earn extra cash if you can't reduce our outgoings. Have you anything to e-bay or carboot?? Start mystery shopping? Get a part time job?

JayneC

If all else fails you could try to come to an arrangement with your creditors directly and offer a small payment with option to review in say 6 months. If you are having probs with maintenance could you get it taken from wages directly? I know CSA can do this.

LeahDyl

The course Im doing isn't at a college it's just one woman who is my tutor and also the principal etc. She runs the course in it's entirity. She did mension a Career development loan but with such a bad credit ratig it's not an option plus I don't want to add to my debts even for a good cause.
Unfortunately tax credit only help people who work with their childcare costs so they wont help.
I am desperately seeking work. It need to be suitable house to fit with my family and as I'm registed blind there are some jobs I'm unable to do. As well as this I'd ahve to start paying some rent and council tax and perhaps more childcare costs depending on the job I find and the house I have to work. It's proving challanging to find something to say the least! I'm not about to give up on that though, my eyes are always open.
With regards the food bill I don't actualy spend that much thats just what idealy I need to spend. Im unable to spend that much as the money is just not there. I got £15 as a birthday present to me and had to spend it on food.
I have 2 children and a dog to feed too. I have to keep the dog as a burglar deterant so selling her wouldn't work either!
I'll definately have a scout about for any items I can sell though.
Thanks for your input,

earthmother

Your TV license (unless it is a black & white only licence) will be nearer the £10-£11 mark per month. How do you pay for this currently? Unless you're already on the DD scheme, the best way for someone on benefit income is either savings stamps (if you have the discipline to go and buy them - was easier when benefits were paid at the PO) or the Cash Easy Entry scheme, where you get a PayPoint card and pay about £5 a fortnight on it.

Don't set up a new DD if there's not one operating - you have to pay for your first licence over 4-6 months, so it's a big chunk to find on a limited budget.


Your water seems high - is it metered or is it arrears? We're a household of 5 on a meter and use less than £25 a month. If it's all current usage, then possibly look into the vulnerable household scheme run by your water board - each one has different criteria, but you never know, it might help.

You have no council tax or housing costs listed - are they covered entirely by benefit? Also travel costs and a clothing budget appear to be missing.

earthmother

Ignore the bit about the TV licence - am I right in thinking the reduced cost is based on your being registered blind? The payment options should still be open to you should you need them.

Do you qualify for any disability benefits due to your sight issues? Even if it's just the disability elements on tax credits etc.

LeahDyl

As I'm registed blind the TV License is half price. It is alrady paid by DD.
Yes I agree that the water rates are hight. It is an ordonary meeter. I've asked other people who live on my street and pay the same water rates as I do. I will call them though and see if there are any other options. Good plan thanks.
Yes I am currently receiving Housing and Council tax benefit so I don't have these costs at the moment.
With regard to maintainence My husband has a lot of debts and is physically unable to give me any money once he has paid these bills. Though you would think his children should come before his financial mistakes but Im not sure hat I can do about it. I do my best to keep things amicable and not involve the CSA but it's getting to that point at the moment.
Clothing etc - usually there isn;t any money for these things and if it isn't there I can't but anyhting so thats why I haven't included anything in the list. My mum often buys things for the kids as a "present" but I don't actually but anything and haven't for several months.

Thanks for making me think about all the options though. It's good just to talk about it, I find it helps.

LeahDyl

Yes I receive all Im entitled to with tax credits and disability living allowence.

JayneC

Are you getting all the benefits to which you're entitled? May be worth checking with CAB, they may also know if there's any grants available that you could access. If you are disabled there may be bursaries that you could access to help with education costs, the CVS may also know about funding bodies that may help.