I am financially screwed. I really need advice

[tiredandunoriginal]

I have never been bad with money. I’m not well off at all but I moved out at 18 after saving hard for a deposit. I’ve lived in various places and I have never been late on rent or bills. For a few years I constantly had above £5,000 in savings.

I was in a relationship during this time but in the last couple of years my ex lost his job and just didn’t bother looking for a new one. I had to pay everything alone and used up all my savings to support ourselves and him. He then cheated on me, and left. I couldn’t afford the rent any longer so moved to a cheaper place. I ended up having to take a loan out to support myself. Since then I’ve constantly been in debt. I’ve always been self-employed but for a long time was PAYE, I have a chronic illness and so when I had to go of sick/have operations I didn’t get any sick pay. I then ended up taking out a large overdraft and am constantly stuck in it. I feel like such a failure now and I hate how I’ve borrowed so much money.

After getting pregnant I decided to move closer to my family with my partner because my mental health was suffering and I needed support. I couldn’t move in with them because they don’t have the space. For a while I was doing okay, I even managed to get out of my overdraft and save £4,000 for rent stability after having my baby.

When I had my baby I went on maternity for a few weeks and my partner wasn’t working for a few weeks to support me because I had quite bad mental health. I didn’t qualify for a self-employment grant due to having been PAYE. I couldn’t afford to stay on maternity so decided to start working again. I’m a writer and do many good money when I get commissioned and have a few long-term relationships with editors so get frequent work. However I’m constantly having to wait for invoices to be paid so I’m always in my overdraft until I get paid and then it goes on bills.

My partner is working part time so that we don’t have to pay for childcare. I am the higher earner so he has DS when I work and vice versa.

I am working as much as I physically can while dealing with my mental health and having a new baby (he’s 17 weeks now).

But I just can’t get out of this debt, and my anxiety is horrendous right now because I’m constantly worrying about rent. I can’t move to a cheaper place because I can’t afford another deposit!

I’m just wondering if anyone has any advice on this? I’m going to include a breakdown of my bills in case that helps.

Rent: £950
Council tax: £180
Car insurance: £140
Loan repayment: £150
Car finance (I took this out when I was financially stable and could afford it): £130
Electric/gas: £62
TV licence: £11
Water: Not sure as they got our water bill wrong
Internet: £22
Phone bill: £50

I got declined CBT on the NHS so I’m having to pay £70 a week for that too, and £30 a week therapy. These are absolutely vital to me as I am struggling so much that I honestly don’t think I’d be able to work without it.

I’ve stopped paying for things like Netflix and amazon. Phone/finance was taken out when I could afford it.

Bar these things I rarely spend money on myself and any money I do have leftover goes on things for my baby.

If anyone has any advice I would be so grateful, anything I can check prices on, debt advice, things I could cancel, anything like that?

Thank you

Your car insurance is astronomical! Have you shopped around?

Also is the phone a contract including purchase? How much longer does that have left? Make sure when it is paid up you switch to a sim only deal.

@TeenPlusTwenties I’m 25 and only been driving four years, in which time I had an accident. Not serious or anything but it was my fault as I missed a turning and another car went into the side of me, so it went up, it was the cheapest I could get after shopping around.

Phone has another half a year to go, so I will be switching to SIM only after that absolutely.

You mentioned a medical condition. Do you claim PIP ?

@MrsMoastyToasty I have inflammatory bowel disease, and because it was so severe I had to have my large bowel removed. Because I work I’m not sure if I’m eligible for it? A lot of people on my IBD group have tried to claim and been denied because they don’t have mobility problems.

To try to help it would be useful if you told us your average income? I can't believe that your insurance is that much- shop around!

Your car insurance is astronomical! Have you shopped around?

Standard in London without any NCB.

@zoomzoghedgehog My income is all over the place, sometimes it’s really high and sometimes nothing. I’d probably say my income average is currently about £500 a week.

I’m sorry op but I think the therapy has to go, that’s £100 a week and is an awful lot.

For your car insurance, add your parents as additional drivers if they've got a clean record. It might lower your insurance cost a bit. Keep it as you as the main driver obviously.

Maybe cancel TV licence?

Do you actually NEED the car? Like absolutely can’t do without it?
Using public transport, online shopping and even an occasional taxi would be a far,far cheaper way of getting around

@Ahorsecalledseptember It is a lot but it is so important and currently vital to me. I got declined on the NHS.

@Whoknowswhocares No I don’t need the car, my partner drives. But wouldn’t I have to pay off the rest of the finance still?

@KeepingPlain my parents wouldn’t do that but my partner would and has a clean record - would that help still?

@tiredandunoriginal can you get a 0% balance transfer credit and pay off your loan with that? This might save a small amount on interest.

Get rid of the car.

Do you absolutely need a car? Could you sell it and pay off the finance and cancel the insurance?

@Kiki275 I will have a look into that, thank you.

Www.Cap.uk.org

@Margo34 Can I sell it when I don’t technically own it? Sorry I didn’t know you could do that!

I understand that op but it’s a bit chicken and egg isn’t it? You are anxious in part due to finances but then over £400 a month would be a stretch for most people. You won’t feel less anxious in this amount of debt.

Go on the ‘debt free wannabe’ forum on Money Saving Expert website. Put all your incomings and outgoings on there and there are a lot of very experienced debt busters on there that could help you.

I think under the circumstances, you are doing well. Being in debt isn't great but it sounds manageable. I think it needs to be addressed in your therapy as it is impacting your mental health but I don't think there is much you need to do here.

@Ahorsecalledseptember It’s not for anxiety it’s for OCD, which has been so badly severe since having a baby that I could function properly. CBT is helping so much and it’s not a long-term thing, I’m a few weeks in already and it’s helping so much.

That might help yeah, but better option might be to transfer it all into his name, finance etc. Still help to pay for it but it would reduce your bill to about 70 rather than 270.

Yes but if you sell the car you pay off the finance with that and then cancel the insurance, £270 a month up.

I hear you about the therapy. Can you perhaps have a CBT appointment fortnightly and your therapy weekly and save another £140 a month?