Am in deep financial shit...what do i need to do or know b4 i go to CAB 2mo?

[MerlinsBeard]

We are up financial shit creek without a paddle. So many bills to pay and no means to do it, going to CAB 2mo, what do we need to do before we see them? what do i need to take with me?

Take copies of all the bills, bank statements, wage slips or other proof of earnings.
They are really there to help you and will bend over backwards for you to try and negotiate reduced payments and debt counselling

Yes, take as much stuff as you can find. It all helps them.
Be honest too. You must tell them everything. I tried to hide some stuff as I was ashamed I had let things get out of control, but don't be.
They will also want to know what benefits if any you get. I had to tell them about my tax credits and child benefit.
They may also want to meet with your partner at some stage.
Don't worry though. You will feel much, much better like a huge weight has been lifted once you come out.
They do all the dirty work, like contacting creditors to tell them you can't keep up anymore.
They really are very good.

Thank you

We are both going, I couldn't go alone!(not least because there is no physical way i could get there being a none driver!) managed to find a time we can arrange a sitter and both be free to go and have petrol in the car

Its being ashamed that has led us into this mess and now we are behind in rent as well. I can't answer my home phone anymore - which is a miracle its still on tbh - because of all the people ringing and asking for one of us to pay some ludicrous amount!

Will dig out bank statements for both of us and the most recent statements from all the companies we owe too - it could take a while

Do you know what will happen to our car? Its payed(paid?) for on finance at the mo - £155 a month.

I don't know about cars tbh.
Our car was paid for over 2 years ago with an overdraft. The car before it blew up so we needed to but one however possible.
Dh is a mechanic so managed to get it as it was a trade in for about 2k.
We were both working then, this was before we had the kids. I just called the bank, as I worked there, and told them to put my o/draft up.
I know if it comes to the extreme and they advise bankruptcy, they can make you sell your car and will give you £500 or something to buy a car with.
I am not sure what would happen with the car though.
A wild stab in the dark would be they would reposess the car if CAB try to decrease the payments. Though, it maybe viewed that you own some of the car as some of it is paid for?
I really don't know. Those are just my ideas.

we have looked into bankruptcy but can't afford it ironically!
Thank you though - have added it to the list of things to ask

are you with a private landlord or council?

If the finance is secured on the car then the company can take it to get back some of whats owed but I really think thats a last resort for them as they will never get back the full amount from selling the car.

We are in a similar position although I haven't really admitted to dh yet how bad things are

I am sorting paperwork out this weekend and going to Cab next week.

double checked the opening hours and they are closed at weekends now and am sure i have been on a sat before.

www.nationaldebtline.co.uk
www.nationaldebtline.co.uk/england_wales/budget_sheet.php?country=england_wales

www.adviceguide.org.uk/index/life/debt.htm

we privately rent and DP has spoken to landlord and luckily he is being ok aboutit, as long as he gets his rent he is ok but we are now 3 months behind

www.adviceguide.org.uk/index/life/debt/help_with_debt.htm

sorry x posts custardo, will look at the links now, thank you

www.birmingham.gov.uk/GenerateContent?CONTENT_ITEM_ID=120&CONTENT_ITEM_TYPE=0&MENU_ID=10811&EXPAND=1 0805

got this from birmingham council - but the advice is compact and might give you a clue

www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/PlanYourWayOutOfDebt/DG_10013266

government advice

Good luck with that, I'd write down all your outgoings, rent, heat, light, phone, food, clothes, ciggies, baby toiletries etc so they can see how much you need to live on and where the money goes and how much.

The CAB are really good and won't charge you! If you want info about saving money on a day to day basis, check out www.moneysavingexpert.com/ which has loads of free info on all kinds of stuff. There's a link to overhauling your finances too which might help.

Good luck, at least you're getting help and not sticking your head in the sand.

custy, thanks for those links, am going to go through with DP later on and do the expenditure form (we don't have excel but it can't be that hard to do one by hand) will use some of those letters to creditors but tbh we have already tried that before. And we will somehow muddle thru - hopefully.

The rejuggling finances on martins money is no use to us, we have nothing to juggle with, we don't even own the car. Both of our credit reports are crap so no chance of swapping to diff credit card for eg. Its all our own fault for over spending but we can't pull in our belts anymore than we are currently doing. Neither of us drinks but we do go out once a week. it costs us £3/£4 thats IT. And when (unplanned) baby number 3 arrives in march that money will then go on nappies/wipes or whatever instead.

Thank you for your help

i am sorry you are going thru this.

I don't actually know anything about bankruptcy, but i nkow my ex dh has done tis recently, so are you very sure you can't go for this too.

maybe you need soem good advice, and help liek you say. my ex wouldn't have even thought of bankruptcy, but tbh I think more and more people are doing it.

Good luck with that. I hope they're able to help you. At least if you have details of what comes in and what goes out you have a starting point.

When we went to the CAB, they contacted the people we owe money to and negotiated a lower payment or a freeze on interest on the basis a guaranteed lower payment was better than none and cheaper than enforcement. It does bugger your credit, but who needs another shovel to make your hole bigger iyswim?

our credit is already buggered, can't get much more buggered infact!

Have you been and how did it go?

Do you and/or dh/dp work? Could one or both of you take on a second part time job? Could you do anything from home to bring in some extra cash?

We went to the cab a few months back they recommended a company that we eventually got a financial management plan through and they negotiate and handle the creditors for you which has made things a lot better. An IVA is another option but CAB will help and steer you in the right direction.

Would recommend that when baby number 3 arrives you go down the cloth nappy / washable baby wipe route. if you go on www.usednappies.co.uk you should be able to kit yourself out for very little and save a lot of money, also freecycle in your local area are good for baby bits and bobs.

All the ones we can get to are closed on a saturday () so not been, am doing the letter to creditors thats on one of the links from custardo and that way when they ring (they will ring) i can say there is a letter in the post. We struggle to get there in the week at the hours they are open and when DP and I are both available to go.

DP works, he works at a few different places and gigs at night. I can't get a night job as he needs nights free to be able to record bands or gig or engineer someones music for them, and its not financially viable for me to work in teh day because of childcare and the fact that i am pregnant limits the jobs that i could apply for anyway. Cloth nappies...we have looked into it but too much to outlay in one go and would not be any cheaper in the long run because of the extra washes and washing powder i would be doing.

So....doing an expenditure form and asking for a 3 month freeze on my account, including payments while i seek proper advice.

Hi MOM,

Head over to www.moneysavingexpert.com forums and go to the debt free wannabe board. Post what you have posted here and you will get loads of info.

You don't have to go to CAB. There are other FREE debt help charities out there who can help and generally by phone.

This is a brilliant link and summary:

www.moneysavingexpert.com/loans/debt-help-plan

Try not to panic, everything sorts itself out in the end, BUT you must act now. At the end of 2003 I was £70k in debt and am now debt free with savings. I really feel for you. I can and will get sorted. xxx