Topic: So worried upset and going crazy HELP!!

[headspin]

 
Hi all,
I have got myself in to a bit of a mess to say the least and need advice before well Im not sure! I recently split from my partner 4 months ago leaving with me with additional debt as I had to leave our home (jointly owned) with our 2 young children. I have had to reduce hours set up home and its all come to a huge head!!
 
I have debts of around 17 grand and I have been using a credit card a lot in past 2/3 months. I didnt expect it to turn out like this although I should have known.
I have a loan 2 credit cards and a catalougue bill, Im on mat leave and recently made 2 cash withdrawls 450, a balance transfer and bought a home phone on my card.
Today I found out that next month I wont get full mat pay so this is 290 plus pay for 2 days work which leaves me with no where near enough to cover my debts, rent or much else!
I spoke to CCCS who said that it could be seen as fraud if I continue to use credit?  So what do I do?? I have 2 very small children to support. Im so scared and in tears as I write this.
 
I want to start a DMP but they say I cant until I can show my earnings which wont be until August! I have had to cut my hours because of being on my own and having 2 small children to look after.
 
My name is on the mortgage with my ex he doesnt know the extent of the situation nor do I want him to know he is very difficult and will make trouble for me and the children I pay nothing to it and I have no access to the details of it.
 
Can anyone reassure me I wont be going to prison?! That may sound stupid but im in a real panic. I have been trying to deal with this convincing myself  could cope and afford to pay it all but now im worried sick.
 
I was never purposefully fraudulant and I was just trying to make a home and support my children.
 
Perhaps I should move myself and 2 children back into my parents house but they are getting older have 3 dogs one cat and its crowded and then would my ex have a good case to fight for residency?! But I would be able to make the repayments that they want and are agreed!
 
Can anyone help with nay advice? Many thanks.
 
A worried stressed end of my tether me.
 

[Sovereign]

Hi headspin,


That is a sad story but let me reassure you of one thing. You will not under any circumstances be arrested or be off to prison. Almost 100% of the bankruptcy cases that I deal with each year are in a similar position to you and all of them have used their credit cards, loans and overdrafts to survive these past few years. Lets put your things in order of priority.


1.  Your children have to come first. If you need to use cards to buy food and essentials then so be it. You do of course intend fully to repay your debts.


2.  Usually, CCCS are very sympathetic in their attitude towards people in financial trouble, after all thats why they are there in the first place. However, ignoring the 'fraud' statement, they are right in that you cannot do a DMP if you do not have sufficient income to support it.


3.  CCCS are suppported by Banks and Credit companies. It is from these organisations that they receive their income. Normally in a case such as your they would have suggested that you make payments to each creditor of just £1 per month. Did they not do this for you?


4.  If they did not suggest this course of action, may I suggest that you write to each creditor explaining your situation, prepare and send them an income/expenditure statement showing that you have no disposable income and offer to pay them £1 per month starting from the next time that you receive a statement. That applies to every creditor. Ask each creditor to suspend interest and charges. Some will, some wont. Cancel all or any direct debit payments with your bank.


5.  Then stick to your guns and go the bank when you get each statement and pay them £1. Ignore their letters and phone calls. If you are using a mobile, call your operator and have the number changed. This is a free of charge service in cases of harrassment.


Having done all of that, you wont be able to use credit cards any more. If you have to move back with your parents then do so but I am sure that you can get housing and council tax benefit and even a crisis loan from the DWP if necessary.


If and when you return to work, continue with the £1 per month routine until you feel that you can increase your payments. Put yourself first here and ensure that you have sufficient for yourself and your children before giving money to banks and credit cards companies.


Hope this helps you. Post again if you have any questions.


Best wishes,


Steve

[Steven Jackson]

Hello Headspin
 
As Steve has said, you absolutely will not go to prison because of your debt. Debts are dealt with through civil law and therefore you can not be sent to prison for non payment. Also you have not committed fraud.
 
You should try and stop using further credit if at all possible. However, as you say, the only way to do this is to stop making the normal payments to your creditors. Given that you are still officially a joint owner of the house you had with your ex, a debt management plan is the right thing for you at this time as the other types of debt solutions would need to involve the property.
 
I am not surprised that the CCCS has not been very helpful. I have heard other people say the same thing about them. However, the fact is that you can certainly start a dmp even if you can not prove your earnings.
 
If you feel you can afford to pay say £100 a month towards your debts, there are a number of companies which will help you do this and we can point you towards these if you wish.
 
 

[muncher]

Hi Headspin.

Nobody had been in prison for a debt that can be arrange upon between two parties.

I understand how things can make us confuse to how to handle (happened to been there and really pushing my panic button for a while.

 Give it more time and enough research and You will find the right one that can meet your answer.  A matter of agreement for both parties and the right arrangement.

mucher

http://badcreditloansonline.org/

[AshleyPark]

Good points from Steve and Steven.
 
Also, Some Companies will be ok with a minimum payment of £75.00
 
Lee

[headspin]

Hi all
Thanks for the replies. I am still having panic attacks over it all but feel somewhat reassured. Thing is I didnt realise that this month I will only be paid around 300 this is the end of my mat pay and I though it would be as normal but no! Therefore leaves me in a difficult position as I can cover rent essential bills and food so do I use credit to cover until I can start my DMP or is this fradulant and could I be prosecuted?? I dont see as I have any choice becuase I have no tenancy agreement to get housing benefit and I cant rock the boat here as I need to live here. I have used the card for cash to pay a bill and a balance transfer this month already so if I make my token payment can this be seen as fraud? Im very confused and I have to put my childrens needs first!
What do I do? All i do know is this next month is dire I have no money and bills to pay!
Please can you advise me further I know I shouldnt use the credit but I cant do much else even without the debt for one month possibly 2 I can not even afford day to day bills! If i could have the list of DMP companies that would be brilliant thank you.
I just dont want to get in to more trouble end up without a home and even more trouble. Many thanks.xx

[Steven Jackson]

Hello Headspin
 
Of course the best advice is to stop using your credit cards straight away. However, if you absolutely need to use them to help you get through the next 6 weeks or so then there is really no alternative.
 
You must not worry about acting fraudulently. The CCCS person you spoke to has worried you for no good reason. There are many thousands of people with debt problems who rob Peter to pay Paul to keep their heads above water. You will not be the first or the last. The fact remains that you are planning on doing a debt management plan and pay back everything that you have borrowed. As such, you are still planning to pay your creditors and you are not committing fraud.
 
Once your income stabalises and you can afford to start a debt management plan, your creditors will put a stop to you using your cards any more but there will not be a question of fraud. They will just want to be repaid and expect you to this as soon as you can.