Not a huge debt but need help

Sansababy · 21 May 2018 at 7:18PM

Situation is this:

I'm a single mother to a nearly 3 year old. Receive CTC, CB and IS.

Have debts of around £650. Which doesn't sound like a huge amount but I have literally 90p left at the end of the month without paying these.

Have spoken to stepchange but they were quite unhelpful as they said my debt is too small to be considered them able to advise me,

Debts are a Credit Card, Rent Arrears, Council Tax Arrears and Nursery Arrears, all from before I separated from my husband in March 2018. Husband will not take any responsibility for any of them even though he's the one working and they're all coming after me as I am the one contacting them and speaking to them about it, my husband has ignored all letters and told me basically it's my responsibility (yes he's not a nice man)

I am very tempted to try and get a loan to cover the Nursery Fees and then just make an arrangement with the council, HA and CC company, but I can't find any loans for £250 or so that aren't pay day loans.

So then I feel my other option is to get a larger loan to cover all the debts, pay them all off and just pay the loan off, my concern is then that it's an unsecured loan and if something were to happen that meant I lose my benefits I'd not be able to pay.

The Nursery fees to me are the priority to get paid off as they are A) the highest amount (£220) and

the ones who are least likely to make any kind of agreement with me.

Are there other options?

I am not currently working.

Debt amounts if it helps:
Nursery £220
Credit Card £190
Rent Arrears £170
Council Tax Arrears £45

zenshi · 21 May 2018 at 7:37PM

Please don’t borrow to pay debt, it won’t work.

Write to the credit card telling them you’re in financial problems. Someone will most likely link you a letter to use. This should give you some breathing space to sort the others

I’ve never had rent or council tax arrears but I understand they are important to sort. Ring the council and try and organise a payment plan even if it’s only a pound or so, it shows willing on your part

I get you want to pay the nursery but your housing takes priority

It will get better and it is sortable, I promise

Fireflyaway · 21 May 2018 at 7:49PM

I definitely wouldn't borrow. I tried that and got into a cycle of borrowing and debt.
Your debt is not large. The best thing to do is to let all your creditors know what's happened. Most people are pretty understanding and even if you pay a tiny amount will respect that and work with you.
Rent and council tax are the most important. There are pretty bad consequences if you call behind where as missing card payments might screw up your credit file but won't leave you homeless.
Write a budget to see if you can save even a little each month to pay towards debt.

EssexHebridean · 22 May 2018 at 10:45AM

First things first - post up your SOA so we can take a look - it may be that there are savings you can make that you've not found - you never know.

Don't panic - you're in the right place and you want to sort the situation, that's the main thing here. As others have said there is a priority order when it comes to making payments - and the Credit Card is right at the bottom of that order, but do make sure you're not spending anything more on that card now.

DON'T get a loan - that's not the right way to move forwards here. While to many your debt isn't large I understand that to you it feels huge, simply as your income is low at the moment - so for peace of mind you definitely need to get it sorted.

Get that SOA posted (link in my signature or in the sticky post at the top of the board) and let's see what can be done.

Gladioli · 22 May 2018 at 1:58PM

Are all of the debts in your name? Is your child still in nursery?

Sansababy · 22 May 2018 at 5:41PM

The council tax arrears and rent arrears are in joint names with my husband but we're seperated and he's told everyone it's my problem so they're after me. The other debts are in my name. Child is still inn Nursery but is now only using the funded 2 year hours and I'm paying for her meals on top which is a hell of a lot cheaper.

What's a SOA? I can't find a link anywhere to one

National_Debtline · 22 May 2018 at 5:49PM

Hi Sansababy

Link to Statement of Affairs (SOA) - aka a household budget:

http://www.stoozing.com/calculator/soa.php

You can then paste it in to this thread once you've completed it.

Re: the nursery debt, unless they're threatening to prevent your child from attending, then that needn't necessarily be a priority to clear right now. Given that it's a relatively small balance and that the current hours are funded, I would like to think this won't be the case.

Dennis
@natdebtline

Sansababy · 22 May 2018 at 6:24PM

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 631.26
Other income............................ 0
Total monthly income.................... 631.26

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 18
Rent.................................... 0
Management charge (leasehold property).. 20
Council tax............................. 0
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 12.37
Satellite/Cable TV...................... 45.07
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 4.5
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 30
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 629.94

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0<
Council Tax Arrears............45.......(0)........0<
Rent Arrears...................171......(18).......0
Total secured & HP debts...... 216.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................188.......7.........30.34
Nursery Arrears................221.42....0.........0
Total unsecured debts..........409.42....7.........-

Monthly Budget Summary
Total monthly income.................... 631.26
Expenses (including HP & secured debts). 629.94
Available for debt repayments........... 1.32
Monthly UNsecured debt repayments....... 7
Amount short for making debt repayments. -5.68

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -216
Total Unsecured debt.................... -409.42
Net Assets.............................. -625.42

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

NeverendingDMP · 22 May 2018 at 9:14PM

Is your internet/TV in a contract, or could you get it cheaper? We get now tv. (No frills version of sky ) its not perfect but to give an example I have a medium broadband internet package with a phone line that is PAYG for calls ( can get phone calls Included but I opted out so it was cheaper.). I've got Kids cartoon package and entertainment package and it's 31 a month. Extras eg kids entertainment or films can be cancelled with 30 day notice, reinstated again when you feel like it ( summer hols) and quite often if you say you can't afford to continue with something it will offer it half price for a couple of months.

I know this won't help massively but it is an idea. Good luck x

Karonher · 22 May 2018 at 9:25PM

There does not seem to be anything included as payment for your daughter from her father. Have you come to some arrangement that allows him not to do this - paying the rent/mortgage for example?

NeverendingDMP · 22 May 2018 at 9:45PM

Is the childcare cost a top up/ food charge. Would nursery let you send a packed lunch or alter your times as an interim measure to free up some money. Some do but some are strict on the extra charges which is a pain

Not a huge debt but need help

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