I have been burying my head in the sand and now I need to get my finances sorted. Please help.

[Nothavingfunrightnow]

My H and I separated a year ago (thankfully). We had money problems before hand and now for me, they are getting worse.

I feel that I don't know where to start. I am usually competent and self sufficient but when it comes to this, I am useless. My paperwork is all over the place (a bit better now, but still in a state) and I don't know where to start.

I am not managing to meet my outgoings on my income and have maxed out my credit. Help. Where do I start? I rent privately and have one child. I get a small amount of HB, tax credits will stop as my son no longer requires childcare and I work full time.

The first place to start is by working out exactly how much money you have coming in, then work out what you have going out by adding up all direct debits/bills etc. This will help you work out exactly how much short you are each month.

Depending on the shortfall, you may be able to make it up by swapping to better deals for your utilities or cutting/cancelling SKY/module phones etc. If this isn't enough then depending on how much your debts are, it may be worth contacting one of the debt charities, such as Stepchange.

Speak to the debtors directly and explain the financial situation you're in. Ask if they'll be willing to stop the interest for six months to help you get back on your feet. Also ask to reduce any loan payments/any hp/credit payments to the minimum-just for the time being.

I did this for my mum last year as she was in dire straits with payday loan companies.

As long as you're polite and honest you'll find most creditors will allow for a little movement.

Get selling anything you don't need on eBay.

Write down a list of all outgoing a/incomings and live off a budget.

Download ynab on the free trial. Browse the website, watch any of the videos that seem to be on relevant topics, and use the software to budget. I have the app on my phone and so it takes me three seconds to record a transaction or check how much money I have left in a certain category. It has made a huge difference for me. I sit down once a day (usually first thing in the morning with a cup of tea before the kids are up) and check my bank account, and record any direct debits etc into ynab. It takes about three minutes a day and I make sure everything balances. I always know exactly where I am, now.
Good luck x

Also, credit cards etc are not passed as priority debts. So rent, council tax, utilities and food are essential bills. If you can't keep up the repayments on creditors they have to work with you. Be positive. If you don't ask, you won't get.

So if for example you're current credit card bill is £100 a month but you only have £20 spare after paying rent and essential bills, then creditors can't ask for £100 a month.

Late payments, defaults and making payment arrangements will effect your credit history but you have to start somewhere.

There are a couple of good threads on here once you have worked out your outgoings - frugaleers, and some debt threads too.

Any credit card / store card type debts that are rumbling along, if you are able, switch the payments from direct debit to standing order
then they will vanish while you sort out more important stuff

Thanks, everyone. I really appreciate this. I will look into your suggestions as soon as I have my latest assignment for a course I am doing out the way. Deadline is looming and if I pass it means an increase in salary.

sort the finances first

tie up your camel, THEN trust in Allah

says the atheist

I like that saying, TalkinPeace :) and I understand what you are getting at, but I already have an extension for this assignment. I would have received my increase this month had I completed it earlier. Plus the new deadline is looming. I have to do it first (after checking Mumsnet!)