debt problem

this could be the wrong place but I’m after some advice on a debt problem
I lost my job a few years ago. During my time off I had some health problems with stress and anxiety. I was out of work for almost 2 years and during that time ran up and overdraft and a credit card bill with natwest. The interest payments gradually grew until I had the credit card taken off me and had to close the current account. (between 5 and 10k total)

I went to see the Citizens Advice Bureau just over a year ago and set up a minimal payment and had the interest frozen as I was still not working.
This year I managed to get work and I recently got more letters from the bank saying they are resuming proceedings
I went to see the CAB again today to do a financial statement. They were very mean on what my outgoings were, for example, I probably spend £60 a week on food, they put down £40 etc and worked out I had just under £200 a month left after outgoings
They are basically saying all this money has to go to the bank as payments which frankly isn’t possible due to, well, life
For example, last month the TV broke, so that was £300, month before I needed work on my car £300, I still need tyres for my car which I haven’t been able to afford which will be £200 as a minimum
Would I be better off seeing a Solicitor?
I will pay the banks back, but I need some money for myself for emergencies, and maybe a day out now and again. I don’t go out for meals or drinking, so my outgoings are low, but I just don’t have the cash they are wanting

CAB shouldn’t be “mean” or insist on anything. they should facilitate you taking the steps to sort things out. anything beyond that and they’re going beyond their remit.

Did you see a specialist debt advisor at the CAB – I’d go back and speak to them again – I take it you have made one of the agreements with your creditors?

Can I point out tho that

last month the TV broke, so that was £300, month before I needed work on my car £300,

seems a little unrealistic. sconhand telly for £50, do you actually have to have a car?

The TV broke? Pick up a free one on Freecycle or dirt-cheap on eBay. That’s £300 less debt.

£40 per week on food? Easily done, if it’s just yourself.

My wife and I spent around £150 per month on food, between us!

have a look at this, by they way. it’s basically a load of information that the CAB should be giving you, but without being filtered through that particular bureau.

Advice Guide Debt Guidance

this could be the wrong place

I think you might be right on that.

I have to agree with the two posters above, though – £300 to repair/replace a TV is not an essential expenditure if you’re in that sort of situation, sadly.

Would I be better off seeing a Solicitor?

I wouldn’t think so, they’d surely want paying a fairly hefty fee at some point.

have you looked at this?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm

PS: I’d beat a hasty retreat before you get flamed to death, it’s started already!

moneysavingexpert has a forum on debt advice. It does seem like you could save more money though. as TJ suggests £50 will get you a tv (£300 is what, a 42″ tv?). £100 will easily get you 4 part worn tyres, fitted, as well.

This is a tricky one. Whenever you’re hard up, the creditors come after you hardest.

Sadly, spending £300 on TV repairs, for example, won’t wash with the bank. Nor will putting a bit aside for a day out. They really are that hard.

Go and see a specialist debt advisor and read up the stuff linked to by theflatboy.

It’s tough, but keep plugging away and you will get rid of it. Good luck.

Go Back and also call the banks and talk to them
Trouble is Banks are hitting the small fry to pay off its debts etc.

But talk to the bank and show them your income and out goings
has long as your willing to pay back which is owned they can’t do much
as they would get nowhere in court.

There is a big difference from what you want to what you need. I would like to spend £100 per week in Waitrose for my shopping (for 2 people). I can’t so I spend £40 in Aldi. I would like a car that works and has less than £130k on the clock, I can’t so I just get on with it.

Sorry to be brutal but when you build up the debt at some point it will come and bite your backside.

Shop at aldi or tesco or even morrisons, late at night to get all the cheapie reduced stuff, no need for a new tv,as above do you need a car or will a bus /train ticket do.

Switch off stuff like lights and things on standby, tyuurn the heating down, work overtime, spend less, pay back more.

Been there and done it, and nat west will sell your debt to a private comapny who will make you pay, they will phone and call round to get the money and its legal as well, or face the bailiffs.

ok maybe the tv was expensive, but things like car tyres, and garage bills can’t be helped

If you want good solid advice about debt without being judged and preached at (like a lot of the responses you’ll get on here!) – then ask on the monesavingexpert forum…

http://forums.moneysavingexpert.com/forumdisplay.php?s=6f3ec6b343aed599d904fc160df53c85&f=136

…there are loads of very helpful people on there.

The Bankruptcy section is the best place for debt advice (don’t worry about the bankruptcy title).

Try contacting CCCS or National Debtline also – links at the top of this thread…

http://forums.moneysavingexpert.com/showthread.php?t=1056083

you must need a big telly my 32inch was £220 and other posters are right get an old one for FA

So far i would say nobody’s judged or preached at OP. Hopefully nobody will. 🙂

For example, last month the TV broke, so that was £300

Sorry to sound unsympathetic, but perhaps you need to reassess your priorities. My TV was free from a generous member on STW, and numerous older CRTs can be picked up for next to nothing second hand.

How many people are you feeding for £60/week? Can you get by without a car for a year? eBay binge to get some more cash? Bit late for temp work but many people hold down two jobs. Have you checked to make sure you’re claiming the single-person’s discount on council tax if living alone? Are you on the right tax code at work so you get as much of your income as possible?

jools182 – Member
ok maybe the tv was expensive, but things like car tyres, and garage bills can’t be helped

Do you really need a car? I don’t have one for the specific reason that I don’t want to be saddled with the costs of it. Seems to me you could reduce your earnings further. At the end up you got yourself into the mess, so really you need to sacrifice some luxuries to get yourself out of it. The more your sacrifice now the quicker you’ll get out of your hole.

The other point is that, if you’re still not working or are on low income, the CAB should have at least raised benefits entitlement with you and/or made an appointment on that point for you. Did they do that?

Im sure many more in the same situation or worse, the hardest thing is actually having the balls to contact the banks and cccs or national debtline and admitting there is a problem before it gets totally out of control. There are plenty of forums for advice if you google for it.

OK, but the TV has already been bought
My point is they are leaving me no contingency for things like washing machine breaking, etc

I think being in debt and climbing out of it is a state of mind. i’ve been there btw, it’s miserable, so i don’t envy you.

You have to decide that you really do not want to be in debt anymore, and stop kidding yourself. A bit like giving up smoking.

300 quid seems like a lot on a TV, even if you are not in debt. Well to me anyway. My last one was 75 quid from someone at work.

The more you pay off, the quicker you get out of it though.

Decalring your self bankrupt is another option, but be aware of all the pitfalls associated with this – your creditworthiness will be affected etc.

However, as all the posters above, you need to look at what you need vs what you want. You want a day out now and again – you don’t need it. You want to spend £60/week on food – this is quite a lot – you could cut this by shopping cleverly. Use your bike instead of the car (or don’t get in the car for a journey of less than 5/8/10 miles). Set some hard rules and then live by them. The pounds will drop off, but it will be hard going.

Can you get a lodger/rent a room out, sell your body or take on a bar job in the evenings? It all could help, and aside from the ability to pay, will demonstrate to the bank/legal lot that you are taking the debt seriously so they may go easier on you.

Do you need a car?

OK, but the TV has already been bought
My point is they are leaving me no contingency for things like washing machine breaking, etc

it doesn’t, but if that happens, maybe you’ll have to sell the tv? or your car, and ride to work? or do a day’s labour cash in hand? a second hand washing machine is only £50..

you won’t get great advice on here, as most* folk probably haven’t had to really scrimp and save. get on MSE and see what they say

*not all, but I bet the majority of folk haven’t tried living for long on minimum wage

I think £300 on a decent large TV, if it is the main source of evening entertainment/pastime is fine. Not going out for “meals or drinking” more than justifies a nice TV imo. Also it is more likely to encourage someone to stay in than a crap 50 quid job.

The OP has already referred to “health problems with stress and anxiety” which isn’t likely to be conducive to successfully holding down a regular job. I can’t see how adding to the problem by expecting him to lead an austere existence devoid of any simple pleasures is the way forward. Some people need to allow a bit of humanity into their lives.

I do need a car due to where I live and lack of public transport

Why? How far is it to work? Where do you live? a car is a very expensive thing – a couple of thousand a year minimum

Jools, did you note this:

The other point is that, if you’re still not working or are on low income, the CAB should have at least raised benefits entitlement with you and/or made an appointment on that point for you. Did they do that?

Adult education course in the evenings? – do car maintainence so you can slash you car running costs and as you are out in the evening you won’t have to use electricity for TV/Light etc, or heat the house so much.
Get an evening job for the same reasons, plus its social and you get some extra quids.
Also, the more you are out & about & busy, the better your head space gets and it leaves less time for worrying.
Most important though – speak to an expert!

TandemJeremy – Member

Why?

He’s just told you. Have a read again:

“I do need a car due to where I live and lack of public transport “

Why don’t you pay attention ?

Or are you demanding that he gives you a better reason ?

ernie_lynch – Member
TandemJeremy – Member
Why?

He’s just told you. Have a read again:

“I do need a car due to where I live and lack of public transport “

Why don’t you pay attention ?

Or are you demanding that he gives you a better reason ?It’s a rubbish reason without context, we demand to know more! 😀

I’ve not lived on minimum wage but I have had to drag myself out of a fair share of debt.

My suggestions are:
Write down everything you spend, every simgle penny. You’ll soon spot a few things you can out easily enough.
Cycle everywhere, to the shops, to work, to the GF’s, everywhere. If you have to use the car for work don’t let it leave the drive at weekends.
Give up beer and smokes.
Shop in budget stores, Aldi, Lidl, etc.
Plan everything in advance. Doing things spur of the moment has a nasty habit of costing money, if you plan and have to think about whether to spend the money you may choose not to do it.

It can be a very sad and depressing existance but for me it was worth it to sort my problems out.

A better reason would be good ernie – many people claim they need a car when infact its very much a luxury – but maybe he does need one. Or maybe he could cycle to work.

http://www.cccs.co.uk/Services/Debtadvice.aspx

These people are really good

A car is also needed for my job as I need to go out on site

You’re starting to sound like a Tory TJ….. “many people claim they need a car when infact its very much a luxury, blah, blah, blah”

So you don’t want a car and it’s your choice. Jools wants a car.

I know people who choose not to own bikes, and they think that spending money on them is a pointless waste of money. Would you suggest therefore that jools sells his bikes ?

Sounds like a IVA , or individual voluntary agreement .
You declare your income , and a CAB advisor helps to come an agreement with the loan co re a payment term if they freeze the interest.

Try and find out if you paid PPI on any loans or credit cards , if you did you might be able to claim something back .
If not , the loan co or 3rd party might write off a proportion of the debt if you can settle with a lump sum. I know you have no dispsible income , but it might be possible to get a familly member to loan you an amount to save you alot of cash .nb .- do not take the piss with a £300 tele if you owe your mum £5k.

Budget your food spending better , See if there is any part time work around ( i know theres not much about) , you earn instead of saving and dont have to heat the house if you doing bar work , might even meet a young lady to boot .

Look at your energy bills and try U switch to see there are any better tarifs thar suit you more . Are you on a water meter at home? saved me £120 a year by switching .