To think I’ve really fucked up - not sure what to do

[frostedstrawberries]

After a long period of temporary work and sometimes not getting any work for periods of time, I finally got something permanent in January.

I’ve got a big backlog of debt, though, of things that I hadn’t paid for a while because I couldn’t when I wasn’t working.

So now my take home pay is £2050 after tax NI etc.

But my outgoings are:

Mortgage - £800
Electricity - £200 (it’s so high because I’m repaying a backlog)
Council tax - £100 (I owe money on that too)
Car insurance - £70
Mobile phone - £40
Internet - £40
Petrol costs are sky high due to long commute - £300

So in theory I have about £600 left to play with. But it just vanishes. I have pets eating me out of house and home and I have wondered about possibly finding alternatives for them but I just couldn’t. Every day I have phone calls about debts I didn’t even know I had springing up seemingly out of nowhere. I am well aware I am a complete disorganised mess with it all.

I really, really don’t want to go down the route of a DMP - what are the alternatives? I naively thought all would be OK once I started working, but it’s not.

I've seen Step Change recommended on here.

You need to do a DMP or contact each Debt and set up an individual payment plan with each one.

Who is your electricity provider? Sometimes they have charitable trusts who will give you a non repayable grant to cover priority arrears like elec, council tax. Try turn2us grant search, or charis grants

Do a proper budget. A list of all your income and outgoings. Then add up all of your debt and divide the remainder of your income. Offer this to each creditor. Also ask for interest to be stopped, they don't have to do this but most will. A creditor can't take what you don't have, don't panic

Payplan or stepchange offer DMPS but again you could contact each Debt and set up a payment plan direct, id advise to take action quick thought the longer you ignore it the worse it gets, you don't want to end up with a CCJ or charge against your property so I'd ring all you debts and ask them to hold the accounts for 30 days so you can have a think/decide on a best course of action.

National Debt line also have some useful template letters! Agree with with sugarhunnyicedtea

Contact everyone you owe money to and arrange a repayment plan.

No everyones cup of tea but if you are generally good with money and can prioritise, would you consider an interest free credit card, clear the debt, and then you have it considated in one place OR add it to your mortgage, then when able, start over paying your mortgage?

wow, your commute must be 2000+ miles a week based on those costs, either that or you have problems with fuel economy. Can you reduce the commute or share? that's a huge chunk. Good luck with the rest, I agree that talking to the creditors is a must, and don't delay.

Do visit money saving experts debt free forum. Lots of understanding and practical help regarding the debt. But as to where money goes- no idea- it's terrifying!

You'll get back on your feet, but you need to face the debts. Call everyone that you owe and agree a payment plan that you can afford. Do a full budget-wrote down every single thing that needs to be paid every week/month/quarter. Include pet food.

You will have to adjust what you spend the rest of your money on-so food shopping and fun money, but you'll manage because you are earning now. It's short term pain for long term gain.

Can you cancel anything? Sky/now Tv/magazine subscriptions type things?

Good luck

Try stepchange

Is there any way you can car share or similar? Even for, say, half your commute? That’s a huge amount on petrol.

How many pets do you have?

What size is your house? Is there a spare room for a lodger?

Unfortunately Holly my credit had taken a giant whack I did try that, but got rejected. I do have credit card debt, but it’s relatively small and am managing to keep on top of that at the moment.

Wibbles,the problem is I’m not totally sure what I owe and to who. I know I owe money for council tax, for example, but there are other debts I just don’t know about springing up seemingly out of nowhere which is why I don’t want to do a DMP, it would be pointless.

Plus, I don’t actually think the debts are big enough in themselves. It’s just organisation and huge commuting costs.

Get one of those cash back cards - it'll add up with those petrol costs.

Look at phone apps to help with spending - money shouldn't disappear - it may well be just a coffee or fancied a new tip but you have to be disaplined

There's a few threads in here for 'No Spend Feb' helps keep you focused on well not spending

It will be sortable when now you are working, but it will take some effort?

Are you getting things like unauthorised overdraft charges etc? Could be worth looking into this?

my mistake, £300 = 2k a month, so 100 mile round trip each day. That's still a lot and must be exhausting on top of the worry.

What kind of thing are these “other debts” that “spring up out of nowhere”?

What are cash back cards, please?

I am overdrawn by £650 which is authorised. The bank are holding off on charges for now, but I think they are going to start again soon imminently.

Thank you for being nice.

Never I’ll be totally honest and say I don’t know. I have had a company ringing me and texting me for two weeks now and I haven’t dared pick up the phone. I know from Google it’s a debt company. It could be anything. I just don’t know. I’m not on top of it at all, and I’m not proud of it.

Play the long game and get on the price comparison sites when it comes to renewing essential utilities.

Make sure you're on a good deal for your mortgage.

Get a cheaper plan for your mobile when your contract runs out.

Consider re-homing some of the pets?

Move closer to work, or look for a job closer to home?

Contact everyone you owe money to and try to sort out a repayment plan. Prioritise paying off the most expensive debts first.

You really need to figure out where the 600 is going

Initial thoughts are, you need pet insurance if you keep your pets. As you are now, I assume even one unexpected vets bill could cause complete financial chaos.
Try to clear electric arrears and then look at alternative suppliers ( sell anything you can, eat as cheaply as possible, ask parents for low interest loan).
Look at mortgage deal.
Go on to PAYG (giffgaff are good) if not locked into phone contract.
Pull out all bank statements, cc statement and bills and as hard as it is, face them and work out what you're spending on.

Go on to MoneySavingExpert, Reddit etc for ideas.

It may be and feel bad, but it is solvable, it just won't be easy.

I definitely can’t afford pet insurance at the moment. I can’t even afford home insurance.

My brother did loan me money when I was out of work. He’s been incredibly patient and hasn’t pressured me to pay it back but I feel awful.

Lots of people get in debt at some point. You need to make peace with the mess and then tackle it. Answer the debt phone call so you know what it’s about (but be very aware it could just be a scam call of some sort, don’t pay any money over unless you are sure what it relates to)

You’ve got to face the dead. Go on clear score and see your credit report and exactly who you owe money to.
If you can only afford £10 p/m to them all till you get back on your feet then that’s what you need to offer

You can negotiate with the electric to get those payments down. You just need to tell them you can’t afford it.

Are you trapped in the internet and mobile contracts? If not then you could cut that in half by getting gift gaff and I had a virgin internet package for 25 p/m basic but if you’re on your own it’s all you need

It sounds like it’s small bits and bobs so you need to work it all out and small payment plans to them and then you’ll feel 10000 times better
The stress of it all is worse than the facts of it all

Please answer the debt company call. Get the details before they get to bailiff point. It is horrible, but head on is the best way to get control.