Crap with money and really need advice (or kick up the bum)

[Crapatfinance]

I have just done something dreadful... have used a payday type lender to borrow £100. The interest is phenomenal (you really really would not believe the amount). But over six months I am repaying twice that!

I work part time and have a child with special needs who I care for the rest of the time hence not working full time. I am a single parent (past three years) but my exH gives me £200 most months for our child. His work is seasonal so in August last year I got nothing. When we split up it caused problems with debts we had between us. I could not pay alone and he was virtually bankrupt at the time - hence I now have a shit credit rating and nowhere else to go apart from these sub prime lenders.

I get DLA for my child and also extra child tax credit but even so with the rise in petrol/food etc my outgoings have increased a fair bit. It didn't help that the freezer packed up last week and I lost probably about £100 worth of food squirrelled away for lean days. I am insured but this all takes time. In addition the Tax credit people decided they may have overpaid me (or might NOT have done - they are not sure but have decreased my tax credit by £100 this month and next until they can do their final workings out.

So - new fridge/freezer (actually got a second hand one off of ebay), all food to be replaced AND £100 down.

So I have a week to go till payday and no money - mobile phone payment goes out on Monday (£30) and I need this so school can contact me if necessary.

Borrowed £100, lender took off £15 "bank credit fee" and I will repay this over 5 months )although am confident I can clear it in less.

It's crap but at least we can eat. Could'nt ask exH as he lent me money for the fridge/freezer which I have to give back next week when I get paid.

Anyhow - this month has been a bit crap BUT I am confident I have enough coming in to cope with bad months. I think that the issue is if I have money in my pocket it gets spent - loaf of bread here, pint of milk there, petrol - maybe a sandwich. I don't (or rarely) buy or drink alcohol. I don't buy books or CDs except via charity shops or ebay. I even buy all my clothes (barring undies) from ebay.

I suppose what I am asking is how others manage financially for these months. How much do you put away as a percentage?

I DO give to charity shops as well (perhaps I should be ebaying) and apart from that I sponsor a child in the third world but that's just £15 a month and I am prepared to forgo other things to do this.

I am in a HA house so rent is lower than if I had to rent privately. I am not entitled to housing or council tax benefit as my salary +working and child tax credit takes me over the threshold.

To be honest I feel a bit of a failure for using this company to get through the next week but have to ensure everything stays normal.

These companies really do need to be avoided. The problem is if you are short again next month and you have to find the extra 100 to pay this off as well. Unfortunately lots of people end up rolling them over and thats how you get in a mess.
Do go on to moneysavingexpert website. Loads of advice on their forums about how to budget etc Unfortunately also an awful lot of info about these unscrupulous lenders and people who have got into great difficulty with them.
They even have links to organisations that will give you food parcels etc if things are tight.
Good luck

Thanks Lilyloo - will do that.

Ouch - I can see you are struggling (I know I would), but a payday moneylender isn't a sensible option. Couldn't a family member or good friend have helped you out instead. Given that your freezer packed up, it would have been understandable you needed a bit of a sub, nothing to be ashamed of.

The first thing that leaps out at me is your £30 per month mobile bill. Can you cut that back a bit? Most contracts allow you 1 or 2 tariff changes in a year, can you switch to a cheaper one? If you are near the end of your contract, switch to PAYG when it finishes for the time being.

Yes, ebay anything you don't want/need (but don't get rid of stuff you love just for the money, that is miserable). Charity begins at home, and you & your child are in more immediate need than the charity shops. I'm afraid I would say the same about your donation to a child in the third world, but that is between you and your conscience (and your moneylender).

Are you certain you are claiming everything you are entitled to. I think there is a website (entitledto.gov.uk ??, google for it) where you can check.

Have you taken a look at the Moneysavingexpert forums? They are great, and you may pick up other ideas for spending a bit less on there.

You really do need to pay back the £100, and try to avoid going back down that route, it'll bleed you dry.

Could you look into the food parcel and speak to your moibile phone company about reducing tariff and maybe changing payment date ? You could then pay the 100 back now ?

Also have you tried for a crisis loan , type in food banks for info on your area.
I think you may have to forego your charity support for now to.

Thank you folks - have had a good hunt through moneysaving expert - excellent site with loads of info. Am off to google "food banks" now

Many thanks for the excellent advice last night. Just to update......

Did the budget sheet on MSE and worked out that after EVERYTHING is taken into account I should normally have £27 excess - that was even allowing for the loan repayment and a generous household budget. Soooo........ have found a Credit Union and am going to save £25 a month with them so that if in future a month like this occurs I can access either the savings or a low cost loan.

Also have made up a spending sheet with Excel and will be writing down my spending - will make a concerted effort to keep this up to date just to see where my money is going.

Thank you all - feel a bit better about it all this morning.

Great news and good luck

Well done. I know it's really hard to bite the bulet and try to work out where your money goes, but once you do, it makes life a bit easier.

I hope your finances get a bit better soon too.

Good luck