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Anyone else out there in Debt? I could do with sharing the stress overload!

21 replies

RoRoMummy · 24/04/2008 14:32

It's true to say that I've never really been great with money. Too many cards and catalogues, can't resist a bargain, useless filing system, always seem to forget to pay stuff off on time, live with constant overdraft, no savings, never earned much money (max earnings were £20,000 a year when working full time). And I have never asked anyone to bail me out EVER.

When I was working before kiddies it was OK: just myself to worry about so could live on baked beans if need be and generally always managed to pay off minimum balances (though sometimes by the skin of my teeth!).

But since kiddies things have got a bit scary. Back in 2005 things reached a head when finally all my minimum balances added up to more than my part time income of £320 a month.

I managed for a while by subbing it with housekeeping money, but this didn't help for long. So I contacted all of the bigger creditors and negotiated payment plans, froze the interest and subsequently received defaults from them all on my credit file (more about that later!).

Since then life in financial terms has been dire to say the least. I have no money for treats, presents, impulses or anything surplus to day to day needs. I can't even by my kiddies a comic each when they ask. I do not have a credit card: which presents problems sometimes with people thinking it is odd not to have one. My main bank account doesn't have a cheque guarantee card and is only Electron debit which isn't accepted everywhere.

I feel like a second class citizen. I am constantly wracked with guilt over the whole thing. When things were at their worst back in 2005 I 'borrowed' £400 from my daughter's bank account. Which I have not managed to put back. Feel TERRIBLE about this (it is that action which finally forced me to own up to the creditors).

My husband has been unaware of the exact scale of the problem (all of the debts are in my name only). He's a real worrier and I feel he could not cope with the details and I regard it as my problem for me to sort out myself. But when I was pregnant with my second child our mortgage came up for renewal and he started to get quotes.

Of course what happened was we found we could not take advantage of any new deals with other banks: due to my poor credit history (the defaults from 2005) and our joint association. This led to a huge amount of stress, worry, arguing and heartache. I sort of owned up, but played down the debt figures somewhat (it was £22,000 total and I said it was £5000).

So late last year we decided to try to sell our house and buy something in a slightly cheaper area: to free up some money and reduce the mortgage amount so he can apply for it in his name only. But this has failed miserably because the market is so appaling. Nobody wants to buy our house... and I don't really want to move anyway.

I am now trying to find a way of making more money (hard with two under 5 and no childcare available). Am considering childminding and direct selling.

Anyway... that's the end of my tale. Anyone else in the same boat?

OP posts:
dolally · 24/04/2008 19:40

well done roro for all the efforts you are making to clear the debts. You'll get there.
What's your repayment plan - I mean how long is it going to take you to get clear?

How long til the dc's start school?, how about teaching assistant, secretary, dinner lady etc...at the school so you'll have the same holidays as them.

Re the house it may not be worth downsizing unless you do it in a big way. What will the freed up money be used for? Property is still the best investment you can make (as long as you can pay the mortgage of course)

If dh takes the mortgage in his own name will the house remain in joint names...? It must in my opinion.

Just some ideas, not really an expert though.

noddyholder · 24/04/2008 20:42

I think you should downsize and get rid of the stress.Property is not meant to be solely an investmenyt and if you see it as such then you can come a cropper in a downturn as you are finding out.I would realistically price the house sell up and put it all behind you and start again.

RoRoMummy · 25/04/2008 12:02

Thanks for your replies.

The house sale was a good idea in practice, but in the current market it has become another problem and stress-causer in itself. Nobody is looking! We had over 30 viewings, dropped the price by £50,000 and still no offers. And perhaps worse: there aren't many houses coming on to the market to buy. I have a 5 year old at school and 18 month old at home, so moving areas is not really an option. So have now taken house off market for a while.

I've contacted various people for help: everything from unsecured loan companies, Payplan and Debtline.

I'm currently mulling over what to do next.

I really struggle to find the time to dig out all the paperwork and get a good look at the whole picture. Every time I make a start my youngest usually does something like empty the contents of my handbag down the loo or scribble all over my bank statements!

OP posts:
mumblechum · 25/04/2008 12:06

I'd keep the house on the market, take advice from the agents as to whether you should drop the price again, & clear all debts with the proceeds & move into rented.

Owning a house is not the be all and end all if all it does is put a massive burden on you.

Friendlypizzaeater · 25/04/2008 12:06

Have you had a look at the Martin Lewis web site debt free wannabee section people on their are always helpful and gives loads of advice ....

noddyholder · 25/04/2008 12:12

Ask the agents what price would result in a definite sale and then see if it is do able.I think it is very hard to claw back big debts if you can't work and you have two young children so not really possible.We had to sell up once because of ill health and move to a cheaper house and area and it was a huge relief tbh and we loved the flat and were only there 2 yrs when our circumstances changed and we could move again.HTH

notmorebillssurely · 25/04/2008 12:21

this may make you feel a tad better......
our mortgage is £2,400 per month!!!

My friends, when they are worrying about money always give me a call so i can remind them of how much we have to find each month, then tottle off much happier!!

Yes, had to name change, as sooooo cringeworthy!

noddyholder · 25/04/2008 13:10

That is loads I hope it is fixed for a while

Cammelia · 25/04/2008 22:08

notmorebills, what is it, a palace

Judy1234 · 25/04/2008 22:15

Is there any way you could earn more, take a second job, work nights or early mornings, etc?

RoRoMummy · 26/04/2008 10:12

I need something that fits around family life. So I am currently looking into various direct sales schemes and deciding which ones to go for. But I don't mind walking around the village a lot... I seem to do it every afternoon anyway to get son off to sleep! Not a bad idea to keep fit either.

Anyway, on my list are: AVON (OK deal but they credit check when you apply to do it so might be refused... how ironic is that?), Body Shop (no info received yet), Virgin Vie (£200 outlay! so no way!), MiEssence (£50 commitment to buying stock a month and a credit card required cos they direct debit you - so a super duper no way!),Phoenix Trading (£45 outlay, just about do-able with OH's help... lovely stuff which I could happily sell and you make 30% min which is better than AVON), Barefoot Books (no info received yet). Captain Tortue (can't do it without a car. Thought I'd try a couple and see how it goes.

Might consider doing ironing locally. But if I do my OH will be livid as I NEVER iron anything! Got the ironing board out recently to look for something in cupboard and my daughter said 'what's that thing Mummy?' !!!! Ditto cleaning: would do it if things got REALLY bad... but you should see the state of my own home! Could only really do this when youngest starts Nursery (next Easter).

I do not drive, so it limits my choices somewhat. I partly can't drive because can't afford to learn or own a car. So good old public transport for me! Kids love it though!

Any more ideas on direct sales? Or things to do from home/locally?

OP posts:
noddyholder · 26/04/2008 10:14

If things get really bad?22k is bad so I think you need to start now before it gets worse!Sorry am just being honest you really need to start reducing the debt somehow as the interest is going to keep increasing the overall balance.Ironing is a good idea though

LaComtesse · 26/04/2008 10:22

Are there any shops where you could work part-time in your village? Or try to get a shift or two in your nearest supermarket, either in the evenings or at the weekends - if your OH could drop you off. It might disrupt your family life for a bit but you could put that money towards clearing your debts. If you lived nearer a big city, I'd suggest getting a job as a night secretary for an overseas legal/accountancy firm. That pays big bucks if you are prepared to do the hours .

littlerach · 26/04/2008 10:26

Body Shop used to get you to buy their satart up pack, about £90, and you had to got to a training day.
But that was a few years ago.

Evenings in supermarket/pub/restaurant?
Weekend job?

Doobydoo · 26/04/2008 10:28

Hi There
Have you contacted The Consumer Credit Counselling Service?I think they are very,very good.

Helennn · 26/04/2008 10:29

Have to agree with noddy here. How bad do things have to get?

One thing that stood out in your last post is that you need to find something that fits around family life. I think now is the time for working evenings, weekends or any-time your OH is at home to look after children. As for only doing cleaning if things got REALLY bad, why not?, anybody can do it and it pays reasonably well. A friend of mine stacks shelves at the supermarket 3 nights a week, I cleaned people's houses as much as I possibly could to get us out of a hole for 3 years. You will not get out of this by just doing the direct sales schemes you mention - sorry.

Look at this web-site. You may find it interesting.

roquefort · 26/04/2008 10:46

First step is to get all your paperwork in order. I know it is scarey but until you have an accurate picture of your debts you can't begin to sort them out. I would then contact CAB or National Debt Line for advice on how to deal with them. You need to be sure that whatever you do workwise will actually make an impact on the debts otherwise you are only deferring the day of reckoning. In order to make the right decision anout the house you need to look at the household financial situation with a debt adviser. Please be careful with direct selling - it will demand good organisation and bring its own mountain of paperwork.

Citronella · 28/04/2008 16:28

Try Payplan they are a debt management organisation sponsored by the financial/credit community. They offer a free service but as Roquefort says you need to be clear about what you owe and keeping on top of paperwork.

clairevirginvierep · 27/05/2008 20:44

Hello!

I am a manager for Virgin Vie, and it is not £200 to join, until the end of this month you can join without paying anything up front! - feel free to email me if you want more info.

[email protected]

Claire xx

iva555 · 27/05/2008 21:00

Hi me and my hubby are in the debt up to our ears basically. 44000 with the interest not that that excuses us.we are on the way to register for a bankruptcy but I was thinking to become a solicitor which has now shattered my dream completely. I will never be able to practice having gone bankrupt.

NickiSue · 27/05/2008 21:09

Hi Hun,
Im sorry its been so hard for you but well done for persevering!
Try the CCCS as they are apparently fab and very understanding (and of course confidential).
I do Usborne Book from home which has worked out exceptionally well for me, and as 80% of it is home-based it would work well with your 18month old. For anything you need to pay online ie if you work from home, or if you want to do an online shop to reduce any impulse buying etc, try a pre-pay card such as cashplus. Thse are very good and you can only spend what you have put on. If you'd like more info about Usborne let me know ( [email protected] ).
Its a great opportunity and usually cost s £38 to start but each month is a different offer ie Jan was £19.

I won't lie to you all these home-based businesses take time to build up into a "proper" income, so dont expect huge amounts at first.
I really hope you find the answers youve been looking for x x x

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