Please please help

at_my_wittsend

Am in urgent need of advice. Am shaking and in fear.
I live on my own with two kids and have wrecked up a whopping £33.000.00 in debt in a short space of time. Have had to live off credit and now its all ran out.
I had to get my only small amount of savings out today to ensure that it brought my overdraft of £1000 down to pay my rent and a few other bills next week so thats maxed out again.
Once this months has been paid, I have no idea how I can pay next or the month after in my current state.
I have a loan with my bank which I took out last year for £13.500, I also have a CC with them which is maxed out at £5000. These are automatically taken from my account as done through LLoyds - my bank.
I also have another CC which is maxed at £7.500.00 and another maxed at £1.000.00. I have something on HP which is around £850 and £400 on a catalogue. Yes shameful I know. I have been robbing Peter to pay Paul.
Trouble is when my wages go in which are under £1.000.00 what am I going to do. I do have another £815 going in a month from other sources.
I cant afford to buy food.
I cant go br as I rent and its in my contract I will be evicted. Also work and also just dont want to.
Went on CCCS site and it saud that br was first option DMP was second..which said 8 and half years to pay back. Am worried sick. If I pay my bills - CC and loan I can't pay rent or utilities or food. What do I do, do I contact all those concerned and say i cant pay next month or what? I am in a real mess. I can make no cut backs as I only pay out for rent, debts and utilities as it is, I have no luxery outgoings. Help...where do I start. I need to sort this fast. I am renting the cheapest on the market as it is. I do think I may be elighble to a small amount towards my rent so am being sent a form but its not guaranteed I am entitled. I was also told another site I could not do a DMP as had no money left for creditors....please what do I do?

onamission_2

first - don't panic. well done for asking for help!!!!!

second - my initial thoughts are to cancel any direct debits for loans, credit cards as your priorities are rent, council tax and food.
open a basic bank account and get your wages paid into it.

Look at this link http://forums.moneysavingexpert.com/showthread.html?t=107280
then post your SOA and we'll try and see where you can save more money.

the cavalry are coming soon.

kazwookie

Can you post up a SOA?

Are you claiming the right amount of benefit for your children?

Do you have anything you can sell, which has been bought with all this money you have borrowed?

at_my_wittsend

Thanks for quick replies.

Wish I only did have things I can sell! I have been paying one thing off against another and eating! Sad, sad state. Am so ashamed.

Basically monthly..

Rent £650
C/Tax £79.50 correct amount
Landline £19
Mobile £45 this is standard plan charge usually around £57 tied in 10 mths!
Water £33
Elec £30
Gas £36 - but they are asking for more as payments not covering it.
Contents ins £16
TV Licence £11.31
Car ins £30
Loan £250.42
CC 1. £98
CC 2. £44
CC 3. £171
HP £10 a month Low start, will rise to £30 a month next year for 2 years
Catalogue £40
Kids activity club £8 per month

I have a total of £1745 coming in a month.

Think I may have for the last year been over paid on tax credits, wont know until I do annual assessment, which am waiting on end of year earnings to be confirmed.

As I say I might be eligible for a small something towards housing...but it's not a cert!

Missed off food as that's what cards were for but are no longer useable. I survived on madness and now madness has become a nightmare.

:-(

itsnever2lateisit?

I agree with the 2nd post, open a 2nd basic bank account and get your salary paid into that, make sure it is with a bank that you are not already associated with.

Checkout www.entitledto.co.uk and make sure you are claiming all benefits and tax credits available to you.

Please do a SOA even if you cant yet face posting it here. Start a spending diary, and account for every penny from now on, no more mars bars etc:o

Look around your home and see if you can identify the things that you spent £33,000 on, its a great leveller, because if your like me you wont find it, and while your at it put all those 'must have' gadgets that you have never/seldom used to one side and put them on ebay or a boot fair

Finally list all those you owe money to, the APR's and outstanding amounts, prepare to write to them outlining your current position and send token amounts in the meantime

Take a rest, and tomorrow have a look at the snowball calculator at www.whatsthecost.com

Congratulate yourself that you have face the debt dragon head-on and that the only way is now up:T

onamission_2

post up what you usually spend on CC too- food, tranport to work? child care????

bintie22

Deep breath! and well done for making a massive positive step forward in sorting this out, and i'm absolutely sure you will sort it out!

I was in exactly the same boat 2 years ago, i'm in a DMP now with Payplan - and i dread to think how long it'll take to clear my debts, but it's given me massive amounts of breathing space. I can honestly say some weeks i even forget that i've got debts, whereas before i was always doing online banking and trying to swap money from one account to another and no matter how i added it all up - i never had enough! It was a horrible, horrible panic stricken time.

I would definitely recommend speaking to CCCS or Payplan or one of the other charities - none of the other 'rip-off' companies that charge you for the service. Sooner you call them, the sooner you'll be able to sleep better at night!

Good luck, you really will be ok xx

itsnever2lateisit?

at_my_wittsend wrote: »

Thanks for quick replies.

Wish I only did have things I can sell! I have been paying one thing off against another and eating! Sad, sad state. Am so ashamed.

Basically monthly..

Rent £650
C/Tax £79.50 correct amount
Landline £19
Mobile £45 this is standard plan charge usually around £57 tied in 10 mths!
Water £33
Elec £30
Gas £36 - but they are asking for more as payments not covering it.
Contents ins £16
TV Licence £11.31
Car ins £30
Loan £250.42
CC 1. £98
CC 2. £44
CC 3. £171
HP £10 a month Low start, will rise to £30 a month next year for 2 years
Catalogue £40
Kids activity club £8 per month

I have a total of £1745 coming in a month.

Think I may have for the last year been over paid on tax credits, wont know until I do annual assessment, which am waiting on end of year earnings to be confirmed.

As I say I might be eligible for a small something towards housing...but it's not a cert!

Missed off food as that's what cards were for but are no longer useable. I survived on madness and now madness has become a nightmare.

:-(

OK thats £1542.23 excluding food, car tax, car running costs/service, haircuts and birthday/xmas

Tight but not impossible, take a look at the 'old style' boards for money saving tips on your food budget, do batch cooking etc. Your situation is tight but not impossible. Check the mobile out, they should let you drop to a cheaper tariff

at_my_wittsend

Well can't spend on cards now as they are at the limits.

I am bit mad with the shopping and know I spend way, way to much on average £450 a month...hair raising I know. Seen somewhere that the average should be £250.

I have to have my car but not necessarily for work but do need it. Fuel I reckon about £70 a month.

No childcare thank the lord.

klane

Have a hug. Folks on here who know more than me will help you find a way. Keep posting and well done for posting to start with.

Gemmzie

Can you put your SOA on through here http://www.makesenseofcards.com/soacalc.html

It's easier to understand