Help - Advice Needed Please!

[mrssmith2014]

Hi Guys, I have been looking at these forums for awhile but I find it all so confusing so I though it was probably best to ask you for your kind advice...

I am a newly single mum with a toddler and a 3 month old baby. I have recently had to move by myself as my partner suffered a psychotic breakdown and was taken away (his family is helping him recover now). I have moved into my own rented house and have been sorting out benefits etc for this so we can afford to live (I have a job but am on maternity leave so not much money coming in at present). I stopped paying my cards and loans about 3 months ago now as I don't have enough money now I'm on my own. Now that I have managed to sort out somewhere to live for me and my children and money to buy food I am now ready to try and deal with my debts, but haven't a clue what is the best course of action.

I have 2 loans, (Tesco & Nationwide) and 2 Credit Cards (Barclays & MBNA). Resolvecall & Mercers are already calling and sending letters and asking me to make contact. I am worried about contacting them as I cannot afford to make up the missed payments and am scared that when I tell them this they will just sue me and I will have baliffs at my door taking everything I own.

I know burying my head in the sand is not an option but I need to know the best way to deal with the situation. I barely have enough money to live and I don't mind giving them everything I have spare after paying the rent and feeding the kids but I'm afraid it might not be enough...... I cannot sleep thinking about them just turning up and taking everything.

I know it is best to probably write to them rather then phone them but I have no idea what to say without it ending in court summons.

Please any advice would be greatly appreciated

[Amethyst]

Re: Help - Advice Needed Please!

Hi mrs smith and welcome to LB, You sound like you have had a pretty tough few months but you've managed to get yourself through and you have done the right thing in putting unsecured creditors at the bottom of the pile and making sure you and your children were housed and safe.

So you have 2 loans, (Tesco & Nationwide) and 2 Credit Cards (Barclays & MBNA) - how much approx is the outstanding balances on those ? and what date approx did you open the accounts ?

Do you know if they have been defaulted (have you had default notices?)

I think what you need to do is sit down and work out a good income and expenditure plan and write to each lender with your proposal and request to halt interest and charges on the accounts and accept an affordable monthly payment until such time you can return to work (review in 6 months for example). https://nedcab.cabmoney.org.uk/quickfsintro.asp could be of help to you to get started and we can help you with the letters.

Once we have a little more information about the debts we can look at requesting credit agreements etc to check they are all valid.

Are you up to date with your utilties, council tax, tv licence, rent etc ?

Try not to worry, many people successfuly make offers of £1 a week on debts to help get through tough periods, it might burger up your credit file for a time but best to sort it now rather than waiting for court claims.

Kind regards

Sharon

[Epiphany]

Re: Help - Advice Needed Please!

Hello , I have just read your post, I am truly sorry for your sad circumstances and hope you have family and friends to support you emotionally. National Debtline and Stepchange have helped me masssively too. Dont panic try and talk to people regularly and write down everything you are told. I sometimes recorded conversations as I would be at times too stressed to take it all in. Good luck

[mrssmith2014]

Re: Help - Advice Needed Please!

Hi mrs smith and welcome to LB, You sound like you have had a pretty tough few months but you've managed to get yourself through and you have done the right thing in putting unsecured creditors at the bottom of the pile and making sure you and your children were housed and safe.

So you have 2 loans, (Tesco & Nationwide) and 2 Credit Cards (Barclays & MBNA) - how much approx is the outstanding balances on those ? and what date approx did you open the accounts ?

Do you know if they have been defaulted (have you had default notices?)

I think what you need to do is sit down and work out a good income and expenditure plan and write to each lender with your proposal and request to halt interest and charges on the accounts and accept an affordable monthly payment until such time you can return to work (review in 6 months for example). https://nedcab.cabmoney.org.uk/quickfsintro.asp could be of help to you to get started and we can help you with the letters.

Once we have a little more information about the debts we can look at requesting credit agreements etc to check they are all valid.

Are you up to date with your utilties, council tax, tv licence, rent etc ?

Try not to worry, many people successfuly make offers of £1 a week on debts to help get through tough periods, it might burger up your credit file for a time but best to sort it now rather than waiting for court claims.

Kind regards

Sharon

Thanks for your kind response Sharon.

I do not think they have defaulted, I have just received letters telling me I need to make payment and the cards have been referred to debt collect agencies

The Loan balances are around £8k (about 2 years ago) and £12k (about 3 years ago) and the cards are £8k (card taken out about 2 years ago) and £4k (taken out about 9 years ago - when company was EGG now Barclays)
I am up to date on council tax / rent / utilities payments

I don't really mind too much about my credit file (have accepted this is probably unsalvageable) but I want to avoid bailiffs and being made bankrupt as well as I am a member of the AAT and ACCA and understand that I would no longer be able to practice as an accountant if I am declared bankrupt (ironic that I manage and advise on other peoples finances but have managed to fail so catastrophically at looking after my own....I guess I just never saw this coming)

Hopefully this is not a permanent situation as I hope to get back together with my ex when all is well again but honestly I have no idea how long that will take.

Also I don't know if it will help at all to mention when writing to my creditors but I have been diagnosed with post natal depression and PTSD and have recently been put on high dose anti depressants and am under the care of the local mental health unit receiving weekly sessions. So as you can imagine I am finding it hard to deal with anything at the moment.... I don't know if creditors will find my situation relevant or not?

Again thanks for you response :-)

[mrssmith2014]

Re: Help - Advice Needed Please!

Hello , I have just read your post, I am truly sorry for your sad circumstances and hope you have family and friends to support you emotionally. National Debtline and Stepchange have helped me masssively too. Dont panic try and talk to people regularly and write down everything you are told. I sometimes recorded conversations as I would be at times too stressed to take it all in. Good luck

Thankyou so much for your kind words and advice

I do have my step mum who lives nearby who help me with the children and she is a blessing! I like your idea of recording things as everything gets all jumbled up in my head at the moment and I think it would help me panic less. I just don't know where to begin sometimes and just want to curl up in my bed (not much chance of that with a toddler and baby though lol) - I think that pretending everything is okay for their sake keeps me from going mad!