Outgoings higher than income.... Please help

[pmsc69]

Hi everyone and thank you for taking time to read my thread.

 

I am currently at my witts ends. I have a debt with my wife adding to around 16-17k. Its not a large amount but it is enough to criple me every month.

 

I have had my debts now for around 4-5 years. A little longer originally but have been struggling for that time stated. It wasnt a problem at first but then my employer stopped giving out pay rises since 2006 and all bonuses and benefits have stopped, overtime has been cut to flat rate and i am the only one working. I do get working tax credit but that has now been messed up because I done overtime for 3 months before christmas.

 

I pay every thing including rent, water, gas, electricity, sky and so on. I also pay all our debts. Some are mine and some belong to my wife. The problem is that my income does not cover my outgoings. Every month I go over my overdraft agreement and occur charges which means that I have even less the month after.

 

I had made an agreement with our creditors for over a year now and kept to it as best as possible. However, things have changed again as rates have gone up and my wages are the same.

 

Is there anything I can do? We struggle on food every month, I stopped using my car and use the bus to work. I have cut down on everything to save money so that we can get by (everything except for smoking, I need a little pleasure) but I still cannot keep on top of things.

 

Considering that I have tried to pay up all out debts, is there anything I can do? I tired Chruchwood a couple of years ago but they just made things worse for us, i get calls from other debt solution offices but after our experience with Churchwood we tell them where to go. I dont mind paying up our debt but It has affected our lives including our childrens lives, we eat cheap food and dont go anywhere.

 

Any help/advice would be appreciated...

[citizenB]

How are your debts made up.. credit cards - loans - other ?

 

You could contact National Debtline, they will help you format a proper budget sheet. That way you will know exactly what you have left to offer your creditors. CAG has template letters that you can use to offer reduced sums to unsecured creditors. National Debtline will help you do that as well and even operate a DMP for you free of charge as long as you have approx £100.00 worth of disposable income. If not then you are just as able to run your own DMP with help from CAG.

 

There is absolutely no point in offering more than you can afford and if it less than you have been paying them so be it.

 

You should prioritise your debts

 

Mortgate/rent

utilities

council tax

Secured loans

 

Are you in arears with any of these ?

 

Household expenses

health expenses ie prescriptions

 

Credit cards and unsecured loans come way down the list.

 

Have you any charges for late payment/non payment on credit cards, if so you should start a claim to get them back.

[pmsc69]

There is absolutely no point in offering more than you can afford and if it less than you have been paying them so be it.

 

You should prioritise your debts

 

Mortgate/rent

utilities

council tax

Secured loans

 

Are you in arears with any of these ?

 

Household expenses

health expenses ie prescriptions

 

Credit cards and unsecured loans come way down the list.

 

Have you any charges for late payment/non payment on credit cards, if so you should start a claim to get them back.

 

Thank you for your response. That was really quick. I make sure that our rent is payed for along with out utilities including council tax though the council tax is now a srtuggle too.

 

The main debts we have are credit cards, car loan but last payment is this August, and store cards and bank overdrafts which I take is the same as a loan.

 

Household expenses we are struglling such as the small things such as BB and sky, car insurance school fees and so on.

 

I have offered the creditors a smaller amount, some accepted it but most said that the minimum they would accept was out of my reach (which is why I started working double shifts for 3 months but my employer soon put a spanner in the works) To avoid CCJ's and bailiffs I agreed to them and cut down on evrything else. The problem is that now we are in even worse debt as the bank charges keep escalating and the wages are the same as 4 years or in a sense less. To be able to feed the family I go into my overdraft which then affects any other DD's that are still pending, yet occuring more charges, bigger debts, less money, more defaulted payments, more charges and so on.

 

This is really getting us down and has placed a massive strain on our marriage. I have even suffered depression through it and had thoughts.

 

Many thanks

[pmsc69]

To cut it short, I am juggling my debts but there are too many that I can cope with and I keep dropping them. The only help I get offered costs me hundreds and after the churchwood experience I dont trust them.

[citizenB]

National Debtline is a free helpline so you wont be charged anything at all.

 

Store cards and credit cards are unsecured creditors. You should check that there are no penalty charges such as late payment/non payment fees. These you should be able to reclaim. It should at least reduce the amount owing.

 

Can you give me a rough idea of the years you took out the store card/credit card agreements.

 

Without starting court procedures, there is no way anyone can just send the bailiffs round. You say you are paying rent, so they will not be able to get a charging order on your home.

 

With those companies who are being difficult, why not send a CCA request. This is simply asking for a copy of the agreement you entered into. It doesnt make the debt disappear, but if there is anything seriously wrong with the agreement, then it gives you greater negotiating powers for reduced payments.

 

You will find a template CCA letter in the following link.

 

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

 

At the very least you should obtain a free proof of posting slip when sending it. But to ensure a signature is obtained on receipt, send it recorded delivery, about £1.15 per letter now I believe. You will need to enclose a £1.00 postal order with the request and they have 12 calendar days + 2 for posting to send you a copy of the agreement. If/When you receive a copy/response, let us know and we can advise further.

 

There are other letters in the Debt Collection library that may be of use to you.

 

I suggest you have a read round a few threads.. pick on those for which companies you are with and see how people are resolving these issues.

 

Just yell if you need any further help.

Edited June 21, 2010 by citizenB

[pmsc69]

Thank you, I will give them a call now.