I don't know where to start

droopinlily

I really need advice.
Since having to stop work some 3 years ago due to physical disability, I have been very stupid and allowed myself to get into debt.
Some of it was really necessary - a personal loan due to having to move house (we rent privately and got evicted due to landlord selling up), that is now down to £800 (£72.22 a month,up to date). Plus some items on credit cards that I needed to make life easier for my new abilities (or lack of them).
others have just been plain stupidity and my being over generous with other people (giving a friend money to buy coal, treating another down-in-the-dumps mate to a meal out.. arghhh how could I have been so stupid!).
Anyway, regardless of blame, I now have an overdraft of nearly £1500, the remainder of the loan mentioned - £800, a post office credit card with £1300 owing, a Natwest credit card with £400 owing and an Argos card with £400 owing.
Both my husband and I are disabled and not in work anymore (he is retired and on a small pension (trade union) plus income support, I am on disability benefits. We also get housing benefit but still need to find £200 a month top up rent. We cannot find a suitable cheaper home, although we are told we are now near the top of the waiting list for a council bungalow adapted for disabled. (Fingers crossed).
How do I begin to sort out this horrible mess? I have looked at the free CCCS debt remedy and got a PDF booklet which says they can clear debts in 4 years by my paying £90 a month (no fees ) but I don't really want my credit rating to get any worse and I don't want to lose my overdraft in case anything arises in the future.
Am I being unrealistic about this?
Can anyone tell me where to begin before I climb into bed never to surface again (only kidding but I am sure you know the feeling).
To date, everything is up to date in payments, no late payments etc but I am scared this wont continue and I'd like to get rid of the overdraft and credit cards (which I have physically done the latter by cutting them up).
be as tough as you want - no-one can be as nasty to me as I've been to myself already.
50 years old in May and first time I have had money problems like this.:o
Thanks.

Cleosmum

Could you fill out an accurate SOA? Nice easy one: http://www.makesenseofcards.com/soacalc.html and we can see if there are any areas that you can save on. I think if you aim to be debt free then you need to get rid of things like the overdraft, otherwise it is so easy to fall back into using it.

Have you made sure you are getting everything you are entitled to as a disabled person? £200 a month top up on rent is obscene, I dont pay that on a 3 bed semi, are you in a bungalow now? Maybe the council need to double check your HB enititlement? Have a look at https://www.entitledto.com.

droopinlily

Thanks, I'll do that now.
Have spent most of the afternoon mopping floors and cooking food because our freezer went on strike! Now we have a load of cooked meat to refreeze - just hope we don't get ill from it!

I'm off to do the soa thing... isn't this a busy site? i couldn't find my message for a bit.

Cleosmum

Yep, lots happening here

Am off out, will be back in a bit, look forward to your SOA.

RAS

Hiya

Also have a look here http://www.moneysavingexpert.com/protect/make-money

Mystery shopping could affect your benefits but clicks and surveys do not.

And if you need a new freezer, join the local group of www.freecycle.org, which is like e-bay but you get the stuff free.

droopinlily

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1051.48
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1051.48

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 535
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 15
Oil..................................... 0
Water rates............................. 22.5
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 2.5
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 80
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 891

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
natwest loan...................649.8.....72.22.....0
creditcard nw..................370.51....10........0
po cc..........................1300......32........16.82
overdraft natwest..............1500......0.........29.6
catalogue......................188.96....15........0
argos card.....................344.28....12........29.7
Total unsecured debts..........4353.55...141.22....-

Monthly Budget Summary
Total monthly income.................... 1,051.48
Expenses (including secure debts)....... 891
Available for debt repayments........... 160.48
Monthly UNsecured debt repayments....... 141.22
Surplus(deficit if negative)............ 19.26

Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total Secured debt...................... -0
Total Unsecured debt.................... -4,353.55
Personal net worth...................... -4,053.55

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

Ok, haven't included hubby's bit of income as he pays the phone, internet, housing contents insurance and puts as much as he can aside for MOT time.

All the above is my spend and income - including our joint housing benefit - as I deal with the other household bills from my account.
The present money I don't think I really spend that much as I try and make gifts for the family myself (I paint and make jam from our garden quince bush).
Shopping money for groceries is a rough guess I'm afraid, since discovering Iceland supermarket we've cut down on that but do have a German Shepherd and two cats to feed (cheap food for them, theyre not fussy, plus dog has any leftovers incoorporated into her meal).
It's the dreaded overdraft, I don't seem to be able to get it to diminish!

RAS

Hi

That car insurance is incredibly high, nearly as much as a teeenager. Does he have points? Can you check the insurance tab on the front page and see how much you could reduce this, then go to www.quidco.com or one of the other cash-back sites and get money for swapping

droopinlily

Its mine - hubby doesnt drive. It includes breakdown cover and also my 25 yr old son. have to do it this way because with my health, son needs to be able to drive my car in emergencies.

hoping to get that down at next renewal (may) as son turned 25 in january and maybe I can get insurance cheaper now?

chez000

could you break your income down? is it entirely disability benefit? or do you get some incapacity benefit or income support?

Have you any CCJs ? if you had you could look at applying to court for an admin order and then a composition order?

with the admin order you basically apply to the court for it adn then make 1 monthly payment to the court who then divide it amongst your creditors, the plus sid of this is that it stops creditors taking any action unless you miss apyment and then they still have to gt the courts permission.

If you have an admin order you can apply for a composition order which, in brief, means that if you get it you only pay back apercentage of what you owe.

Composition orders not regurly granted first time by court but are a possibility if your ircumstances are persuasive enough

droopinlily

Sorry, the income is

my severe disability benefit - £66.25 a week
Council rent benefit - £174.24 every 2 weeks
Disability Living Allowance - £438 every 4 weeks

We count ourselves very lucky that we don't have to pay council tax.
Actually I am very ashamed right now because a) many of you others are hard working and I seem to be the only one on bl*%$dy benefits (used to work hard, both of us - honestly) and b) I really shouldn't be in this position, I should have learnt how to handle less money when I had to give up work. So am feeling very down in the mouth right now.

No, I have no CCJ's (what are they?) and to date all is up to date with payments. I'm just scared stiff it won't continue ....
I had the CAB sort out my benefits 3 years ago, hence the DLA which I wasn't aware I could get at the time.
Do you know - I didn't even know I paid interest on the overdraft until I did the SOA!!! Never had an overdraft before at all and thought it was free... how dumb am I?
Oh gawd, am so ashamed:embarasse

MissEyre

A CCJ is a county court judgement-where you have missed payments to your creditors and they have applied to the court to get you to pay them back (that's the best way I can describe it) and so if you haven't missed any payments, you won't have one of those

And as for feeling ashamed-we've all been there, and honestly, if you are determined to sort your debts out, what is there to be ashamed of? It doesn't matter how big your debts are, you are trying to get your finances in order and ahould be proud of yourself x