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 know that a lot of people tend to look down on these solutions (I've personally never been in debt) but it can often help to consolidate your financial issues into one loan - if your debt to mortgage ratio is good enough I'd look into a remortgage, or if it's not, try consolidating all your other loans.

Look for the type of organisation that will be more suitable to your needs, look at whether you're more likely to miss a payment (since you're a new employee) or be unable to pay larger payments.

Remember that banks a companies run by shareholders, many are funds that pour money back into social services, whose main goal is to make a profit. If you need help then contact a charity or support.

If you have £600 to play with deduct food shopping and maybe £50 for emergencies or put away for desperate tones and split the rest between your debts. The more you can pay off the least amount of time you are in dept and the quicker you get to enjoy the £600. Live as frugally as you can until you get straight. Good luck op we’ve all been there at some point

Do you have a charity shop that does furniture etc. Our local one had a brand new cooker for £50 then you only need to worry about the shower before getting a lodger.

We've been with stepchange before they were stepchange and they're really good. We owe a lot and it will only be paid off when our parents did or we'll sell the house when our mortgage ends and downsize. We regularly get overs to clear our debts for a tiny proportion of what we actually owe, 15% is about normal. You are lucky in that you are working.and hopefully your income will rise

Hmm.There is a huge thread on here at the moment with all sorts of people complaining because pensioners get £600 a month. This is apparently far too much and not fair on hard working folk who are envious little shits imo, but anyway. This is £600 BEFORE all bills.

OP, you CAN manage. You really really can.

First you have to say 'I have a problem'. You have done that. Next, you have to say what exactly your problem is. This is the step you haven't taken yet and you are reluctant to do so and are making all sorts of (reasonable to you, not to anyone here) objections. However this is the vital next step to freedom .

You can do this, OP.

OP, you need the stop ignoring the phone calls! Answer them and find out what debt you are responsible for! And frankly £600 a month 'just going on life' is very indulgent. £200 is more than enough if you have already paid your rent and have debts to pay. I know this is unpopular but rehome the animals, you can't afford them! Repay the council tax plus mortgage and then you have a running shot at getting back on track

Ignore the phone calls - if it's important they can put it in writing. And if it's a debt that has been sold to a debt collector, let them stew for the moment.

I think your missing a few things off your outgoings which is where your £600 is going, water? Phone/internet? Car tax? and then you have food for you and animals?

You can cut back on food? I have changed food for my pets, up until now they have been on expensive food, they now eat Lidl’s own brand and I have seen no change in them, have found meal planning and shopping later on a Sunday for reduced items (put stuff in the freezer) saves money.

You need to work out who you owe money and stop hiding from debt collectors as they will eventually catch up with you.

What car are you driving? It appears to be costing you an awful lot in insurance and petrol - can you sell it and buy a more economical car?

How many cats have you got!!!???

What's wrong with your shower? Have you googled trying to fix it yourself?

Do you have the sort of job where you could work from home one day a week? That would save you some commuting costs.

Is there anything you can sell?

Second job? I had four jobs when I first became a single parent. I only have two now, but sadly it's the way things are if you need the money

Good luck OP, I'm sure it seems overwhelming but, hopefully, once you start getting all the information together you will feel better.

You can go on clear score and see what you owe. It's free. You are ignoring this as someone has said this to you already. I'm sorry you are going through this as I've been there but nothing will change unless you get your head out the sand. You'll wake up one day to baliffs

Really glad to see all the recommendations for CAP. This is nothing that they won't have dealt with before. They are used to people who have just thrown out all the paperwork or have no idea what and to whom they owe money. Nothing fazes them. And, as others have mentioned, they will take on all the letters and the phone calls and act as the middleman, and are really well respected by companies and financial services.

capuk.org/i-want-help/our-services/cap-debt-help/introduction

You need to write a budget. Try keeping a spending diary so you can see where its going and therefore where you can cut back. Also, start a list of creditors along with amount owed so you can start keeping track (I love a list). Once you know what your 'spare' money is you can start paying things off.
Make minimum payments on everything, then anything surplus put into the smallest debt. Once you've paid that off put all excess into next smallest and so on until you've paid everything. Easy to say, not so easy to do, but you can get there.

Cancel your phone contact. Get a cheap thing. Giff gaff sim can be as cheap as £7 a month

If I were in your position I’d call up each and every one of those i knowingly owe me money to, and negotiate the smallest monthly amount they’ll accept before they’d take any legal action (or cut off supply). I’d either rehome my pets or get them fostered by friends and family (isn’t there a charity that does this...?) and then I’d contact any debt collecting agencies that I’ve been trying to ignore but who won’t stop ringing ! They could well have been triggered into action by old debts that I’ve already started paying off? In which case they need to know so they can get off my back! I’d car-share and make packed lunches, and I’d use MoneySavingExpert to help me get into some frugal habits - and with the money saved I’d then over-pay each creditor off one by one until there’s no-one left on the list...best of luck with it all !

Answer the calls ask for a 30 day hold on the accounts and tell them you are seeking debt advice, write down everything!
Then either go direct and set up plans or go through step change or a DMP. Good luck

I am on Giff Gaff and need only spend £5 a month

OP, go onto www.moneysavingexpert.co.uk, click on 'forums', set up a user name and password and go to the Debt Free Wannabe section, read the stickies at the beginning, read other people's dilemmas, their lightbulb moments, then take a deep breath and start your own thread. You can download a SOA (statement of affairs), fill it in honestly and accurately and I promise you there will be more advice and support than you would believe, it WILL help. It's one baby step, it's scary seeing the figures filled in, but it's the step you have to take to get back in control. Don't consider a DMP at this stage, get onto MSE first.

Is getting a lodger an option? Even if it’s just for 6 months it may help to pay back some of the debt

Pease don't get rid of your pets, they rely on you and love you. I have been in serious debt where I was frightened to open the mail or answer the phone. I started asking for help from the council who I rent my home from first and they helped me with all my other bills by giving their official opinion to my other debt collectors who listen to people or agencies in authority. Through it all the love and welfare of my pets kept me going. I wanted a secure home for them too.

Have you considered changing phone to Gifgaf. You just buy what you need starting from £7.50 for package. No start/cancellation fees. You will find it difficult to change energy supplier until you clear the debt you have with your current on. Good luck hope you find a solution.

You have a finite number of debts. It feels like loads because you don't know what they are, but there is obviously a limit to what you owe. Step 1 is actually understanding who you owe money to, so make that your first objective. Then you can plan how to repay. You'll probably find you feel a lot better just knowing what you're up against, as you'll be in control of the process.

I have to add that when Step Change are working out what you can afford they make allowances for clothing, car repairs, hair appointments etc. I was better off paying my debts through them than I was struggling, and I could sleep at night and was so much happier. x

A lodger we solve a lot of yr problems. Think of it as a short term solution u have to do now to survive. Well done on keeping the mortgage going! Put what u need to fix to get a lodger on yr credit card. also use it for any absolute essentials u need asap. Then transfer the balance. Once have someone in yr spare room you will have as few more £s to go round and plan carefully. Do not think of it as u having more money! Maybe u have also overspent in the past? We all do it. Good luck!! Use spareroom.co.uk

Just to add, I think that what has probably happened is that when you were not working most of your creditors did not hassle you too much. Now you are back in work they have all piled in wanting their money. I agree that you need a professional agency assisting you , it does stop the stupid letters demanding silly amounts and allows you to get on with earning the money to pay them.