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I've had my head burried in the sand for too many years

(20 Posts)
FacingRealityIn2014 Sat 04-Jan-14 23:23:44

I have started 2014 with DD being returned so will be reciving charges as well as having to pay the bills next week when I get paid. I can not live like this anymore. I have been hiding from my debts for as long as I can remeber.

Tonight I have sat down and opened my mail for the first time since 2007!!!

My monthly income is £1689.37 my monthly bills total 1081.05 leaving me £608.30 but that is just bills and travel no food etc total debts are £5761.00 including one CCJ of £2062.

I have checked my credit rating on the Experian site and the only debts showwing are the CCJ and another for £144 does that mean its been over 6 years since there was activity on my other debts so its come off my credit rating?

I've looked at the budgeting spreadsheet on MSE and its overwhelming all the information the want that I just dont know. It has been too many years since I had any sort of plan when it comes to my money that I now have no idea where to start.

Would anyone be kind enough to help me with step by step ideas on how to start as I am in over my head and I feel like I'm drowning.

Joules68 Sat 04-Jan-14 23:25:53

Can you prioritise your debts?

FacingRealityIn2014 Sat 04-Jan-14 23:31:49

My priority will be a wanga loan (I know!!) then the CCJ after that I will need to find out which debts are getting interest and at what rates, set up min DD for all of them then but pay of the high interest ones first??

Or should I set them all to DD first then pay extra off first the Wanga then CCJ then highest interest?

Joules68 Sat 04-Jan-14 23:33:10

CAB can advise. Why do you see wanna as more important than a ccj? Are they the ones shouting the loudest?

FacingRealityIn2014 Sat 04-Jan-14 23:36:50

No its because the interest rate is 365% and as the CCJ was issued against me in 2009 a couple more months wont make any difference.

And that sentence sums up how I got myself in this stupid mess.

Dilidali Sat 04-Jan-14 23:42:11

Can you go to a CAB?
Don't take any more loans, the interest you'll pay will drown you good and proper.
I don't know what CCJ means, credit card something?

Look, first direct does a very good deal if you switch to their current account. Any savings you make are paid at 6% last time I looked. I am thinking using the free interest grace period from a 0% CC whilst you save a bit, and pay straight in.
Perhaps you could also look into consolidating your debt and transferring the balance to a 0% interest credit card. And then set up a DD towards the CC.

Any chance of supplementing your income in any shape or form? Anywhere you could save, like switching suppliers?

Dilidali Sat 04-Jan-14 23:44:24

So how much debt are you actually in, per total?

joanofarchitrave Sat 04-Jan-14 23:50:45

Does your monthly bill total include payments on your debts?

FacingRealityIn2014 Sat 04-Jan-14 23:52:45

CCJ is a county court judgement. I currently work 2 jobs so would need to take unpaid leave to go to the CAB which I cant really afford but will if I need to.

FacingRealityIn2014 Sat 04-Jan-14 23:55:26

Total debt of £5761.00

No debt repayments are not included in the monthly total as I haven't paid anything for years on any of them.

makemineapinot Sat 04-Jan-14 23:58:19

Is there not a government debt management company MARS or something like that? Heard it on the radio. They help you to prioritise debt and get interest reduced etc. might be worth looking them up.

DisneyAddict88 Sun 05-Jan-14 00:55:49

try speaking to stepchange - they are a debt charity and can help with advice and will talk u through a budget which u can afford. they are very friendly and understanding on the phone. and it's free to call and u wouldn't need to take time off work.

BoffinMum Sun 05-Jan-14 09:52:34

In addition to sorting out a repayment plan, you might want to think about easy work to do to top up income. Babysitting and house sitting can be a good one (although not sure how your DD would fit into that). You could earn your food money just from sitting on other people's sofas.

joanofarchitrave Sun 05-Jan-14 19:14:49

OK, well what's your full budget, not just bills? (obviously you don't have to post it here if you don't want to, but if not here, maybe on moneysavingexpert, I'm sure if you start a thread and say you are new people will help you navigate).

You want to avoid paying only the minimum if you can, but if that's the only option, it's better than nothing.

noodleone Sun 05-Jan-14 19:19:10

There is a something around not being able to pursue debt which is older than 6 years where the debt hasn't been acknowledged. If you haven't had any contact with these companies since 2007 this may apply to you. I would start with step change

minibmw2010 Mon 06-Jan-14 09:45:23

My understanding is a debt can't be pursued if there's been no contact or the debt hasn't been acknowledged after 6 years. This won't apply though if they've been constantly contacting you just because you've been ignoring them. It has to be no contact about the debt from both sides.

You've done the first step of acknowledging something has to change. Please speak to CAB or Step Change. It has to be dealt with, and we've read amazing stories here on Mumsnet of people who have come back strongly from much bigger debt. You can do it x

Charlesroi Mon 06-Jan-14 17:13:22

No, the debt is statute barred (can't be enforced by a new CCJ) if you haven't acknowledged (in writing) or paid towards it for 6 years. Doesn't matter if they've contacted you or not.
So I'd pay what you can to Wonga and the existing CCJ and ignore the rest for now. Most of them are so old they've dropped off your credit fie (happens six years after a default is registered).

littleredsquirrel Mon 13-Jan-14 10:59:36

365%!! Get that sorted immediately. You need to speak to CAB about finding a consolidation loan to get off that ridiculous interest rate.

34DD Wed 15-Jan-14 17:39:19

Message withdrawn at poster's request.

AntoinetteCosway Wed 15-Jan-14 17:50:26

You obviously need professional advice but in addition get Dave Ramsey's 'Total Money Makeover' out of the library. It is a life saver.

Well done for taking your head out of the sand OP!

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