Complete mess! Don't know how to solve it! :(

[cookie_muffin]

We are in a complete mess financially, absolutely desperate, and really need some help/advice on how to try get ourselves back on track!

 

I work full time and earn around £1200 each month after tax. My partner currently does not work due to illness, he's just out of hospital and won't be able to start working again for at least another 6 months. His income is £0. Our total monthly income is £1200. We are not entitled to any benefits of any kind - we've tried that already.

 

Our outgoings for the month are as follows:

 

Rent - £750

Council Tax - £150

Gas & Electricity - £125

TV/Phone/Broadband - £30

Grocery shopping - £200

Travel (to work) - £60

 

Total - £1315. Overspend of approx £115 per month.

 

We've had a terrible last year, we've ended up with lots of debt on credit cards, now maxed out, a few loans, and now, about 5 payday loans! In total we probably owe about £20,000.

 

It's pretty rubbish that we're in this situation - we don't currently earn enough each month to even break even! There is no help from the government available, so we don't know what to do. We really want to get our debt under control so we can start to relax and enjoy life (we're only 23 after all!), but we can't see any way out. Once my partner is working again, our income will basically double, and we'll know what to do from there on in...but just now we're totally stuck. We have sent letter to all the debt companies telling them of our situation etc, including payday loan companies. However, this month, just after pay was in bank, one company has taken £600 out of our account! Another has taken £300. This is £900! It's left us in a bit of a mess - unable to pay rent. We really don't know what to do...we've tried explaining to our landlord, but he's not bothered at all - he just wants his rent paid, which is fair enough, but we have no money to pay it this month!!! We can't ask family for any other cash as they have been great helping us out recently...

 

I don't actually know what i'm asking...just if anyone has been in a similar situation, and any advice? How did you guys get out of it? It just seems that we have no way to get out of this mess! We would love to be able to get a big loan to consolidate everything and tide us over until my partner could return to work, but our credit rating is now shocking, so no chance!

[GhostDebt]

Where you say they have taken funds from your account, was this by direct debit? or do they have your card details on file and have they taken payment with the card instead? Did they have your permission to process a card payment?

Your priority debts, e.g rent, gas, phone etc must be paid before any secondary debts e.g credit cards, loans.

Have you written to your creditors in the first instance explaining your current situation and offering token payments of £1 per month?

What responses have you had to date?

Always ensure you send letters to creditors by recorded delivery so you have proof of postage and delivery and never hand sign the letters.

 

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There are other steps which can be taken, but first please comment on the above.

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Hopefully you will get some further comments as well.

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The main thing is not to panic and not to discuss matters with them on the phone, only in writing, but this can be addressed later.

 

Regards

[dx100uk]

if these leeches that are taking money out of your a/c are NOT rent/ctax/utility co's

go online to your bank and cancel the DD.

 

take control of your finance NOT let others do it for you.

 

as for these payday loan sharks, i'd do some reading in the relevent forums, there are heaps of info on how to deal with them.

 

you are young enough to get these mistakes ironed out now before they effect the rest of you life.

 

chin up

we are all here to help.

 

dx

 

 

as advise pay them WHAT you can RESONABLY afford.

do it online & keep doing it regadless to what they say/write or do.

 

no judge if and a BIG if it ever got to court will ever make you pay more than what you can afford, in fact, most will laugh them out the door .

[cookie_muffin]

Thanks for your reply guys.

 

They have taken the payment by direct debit - I cancelled my card last month and got a new one to stop them taking money - another company tried this last month, although not so much.

 

I had already cancelled all the direct debits/standing orders. I came back from work abuot 6pm, checked online statement and 3 direct debits had come out (all from the same company - uncle buck). I checked in the direct debit and, it had suddenly appeared as a direct debit in my direct debit section. I don't know whether they (uncle buck) had just registered it with the bank before they took the money? I signed the original direct debit mandate ages ago when I took the loan out (way back in Octo 08). I've paid the loan back 3x over with their interest only payment each month !

 

When I called the bank they said that there was nothing they could do to cancel the direct debit - it was past 3pm which is the cut off point. They have said they will put a dispute on it and will try reclaim the money back from uncle buck within 10 days.

 

I've emailed uncle buck telling them to refund it immediately. I wrote to them last month telling them of my situation and that I could not afford to repay it, i'd have to make small monthly payments of £30, yet now they seem unhappy with this! I'll await and see their reply!

 

As for the other issue with the debt, i've called payplan and they are going to help me sort it out. I just hope I get this money refunded from uncle buck so I don't get behind with my rent.

 

Thanks for all your help guys

[dx100uk]

if you had cancelled the DD and your bank then let money out

they should refund it immediately

thats what the DD guarantee is for.

it was their fault

you should not be penalised.

 

dx

[cookie_muffin]

I tried that yesterday, but as Uncle Buck never showed as a direct debit on my account, I didn't cancel it with the bank...only Uncle Buck.

 

Does that mean they are entitled to take it and i've no chance of reclaiming it?

[cookie_muffin]

I tried that yesterday, but as Uncle Buck never showed as a direct debit on my account, I didn't cancel it with the bank...only Uncle Buck.

 

Does that mean they are entitled to take it and i've no chance of reclaiming it?

 

 

Result! The money has appeared back in my account as an "interbranch payment".

 

Thanks for your help guys!

[GhostDebt]

Its worth considering opening a basic account with another bank and moving your monthly wages and essential DDs to it. That way they cannot take your money in this manner again.

Have a read (as I am sure you are doing) about the relevant companies you are dealing with and start threads for each as necessary.

Any questions just ask and someone will help.

Regards