How Do I Go Bankrupt (and should I?)

That's, at 18 a day, 540 a month, at the least.


Get a grip. That is MORE than my social security.


I'd really like it if people don't talk down to some of us who struggle.

Not sure what your on about there osso, - (again).

All good advice so far.

Getting out of debt will require sacrifice/change of life style.

Are you using your credit cards to meet your basic needs, like food? It's useless to say use only cash if the cash just isn't there, and that's why you're using the cards.

Take a hard hard look at how you are living. When going to the market, is there anything you can cut out, or replace with a cheaper substitute? Each time you save a pound, literally put it in an empty coffee can, and add that to you credit card payments. Sometimes the advice I read on getting out of debt assumes there is some kind of cash flow available, and the advice will read "send your debtors an extra $100 a month. $100 is a LOT of money! By putting your pennies aside and using them expressly for that purpose, you may not get to $100 a month, but it will be something.

Is there a possibility you could get a roommate? That would be a big chunk of change. Before you veto that, do you know anyone who is in dire straits like you, and can see the benefit of this?

I suppose, Chai, most of that will be explained/clarified at the Citizen Office.
Additonally, they can give active help.

I've made very little money for years and one thing I learned was simply not to go to stores. In the summer, I do go to the local farmers markets and, of course, I buy groceries, but, going to the mall to amuse yourself does make you spend money. And, if you are absolutely broke, looking at shiny new merchandise makes you feel terrible.

Aknowledged Walter. However, the people down at the Citiizen Office are just that, people. Just like you and me.

In fact, I have toyed with the idea in the past of getting into credit counseling, but here in the States that profession if rife with scam artists looking to make a buck.

I'm a big believer that tiny baby steps add up.

Dorothy, it is hard and stressful to live in debt. Especially when your concerned about your child. Could you perhaps do what Bella said, maybe take a year working full time and just taking one or two classes until you're on firmer ground? I know you want your education, but if you really want it, you'll go back.

If you don't want to, I'll understand, as I'm sure all of us will, but if you like, feel free to share some of your lifestyle.

Sometimes a fresh eye can see something.

Thinking....we all need our down time, entertainment to lift our spirits, but have you considered the free alternatives?

Listening to the radio rather than buying a new CD
A picnic in the park with home made sammys with you child, rather than a fast food dinner
Libraries are free, and provide DVD's, CD's and art work for loan as well as books and magazines.
How are you fixed for clothes? Could you go a year without buying something for yourself? Of course, you have a growing child.
Host a party where everyone BYOB and brings their own snacks. I remember hearing about "rent parties", I assume that's where everyone shows up and contributes a buck or two.
Do you have any special talents, like singing, playing an instrument, telling jokes, cooking a meal, where your friends can come (and bring THEIR friends) and pay a small cover to experience the talents at Chez Dorothy Parker?

I'd go.

I did that job, 15, 20 years ago. And even then I had to do some additional seminars to what I've studied at univeristy. Nowadays, it really takes some time until you are licenced.

It's the Citizen Advice Bureau (or some other charities like here in germany). They don't make a buck at all - it's either free or costs a small charge.

Chai, thanks for your advice and kind words.

To give a few more details on my financial situation ;

I've never had any savings of any kind.

The only cash flow I have is the £270 per month that my ex partner (father of my daughter) gives to me. I try my best to use this to live on for the whole month and not use my credit or debit card. However, this cash usually runs out in the 3rd week of the month and I have to use the credit card to buy essentials (food shopping).

My overdraft limit with the bank is £1,500 and my balance usually hovers between minus £1100 and minus £1400 throughout the month.

I can't remeber the last time I was in credit with my bank account.

I get roughly £440 per month in benefits (income support, child benefit and tax credits) and the only other income is a higher education grant of £600 per year which is payed to me in 4 installments through the academic year.

I wouldn't consider myself frivolous with the cash I have. I hardly ever go out and I rarely buy new clothes. But I put all my Christmas presents on my credit card which didn't help.

I qualify in July as a hairdresser. I wanted to go on and do Level 3 Hairdressing which is another year but it looks like that will have to wait. I do the occasional hair job that I charge for but I have to be careful as I'm only allowed to earn an extra £20 per week by law because of the benefits I am on.

I daren't cut up my credit card because I am almost up to the overdraft limit and have about 50p in my purse until the 1st o' the month when my ex gives me some cash.

x

Oh by the way, the benefits I get are paid straight into my bank account and therefore swallowed up by the overdraft.

I really suppose someone with good knowledge about the English situation (re benefits, laws, local charities etc) can give you further advice.

And I'm sure that there will be some kind of solution.

Dorothy there is no further point in posting here. Go to or phone citizens advice. Do it now, do it today. it may take a week or two to get an appointment so its best to go today.

As my wife says its amazing how quickly a properly informed debt councillor can make your problems go away.

EXACTLY.

(That is: I agree to all of the above :wink: )

Dorothy -- How old is your daughter? Are you studying hair dressing and going to university or are your studies all hair dressing?

A friend of mine used to think of her money in terms of how many dollars (pounds) you have each day, after you've paid the rent/mortgage and the utilities and the insurance. I tried her system and it is helpful. It focuses you on what thinks cost.

Do you have any friends that you can share expenses with? There was a period of time when friends and I would do "potluck"meals with our kids. The moms would each bring part of the meal and the kids would play in the yard and the moms would cook and talk. It saved some money and gave everyone a break. We rotated on who provided the expensive part of the meal -- meat -- and who brought salad or dessert so the system was fair.

Good luck Dorothy.

Also, remember, July is not that far away. Each day the light at the end of the tunnel will be getting bigger.

BTW - I was watching that movie "Beauty Shop" the other night, and was thinking "what a great place to work."

Is there no way you could work under the table? Straight cash for some haircuts done out of your apartment? I know this is not strictly legal, but frankly, it's how a lot of people get along. That's reality sugar.

Hi palindome - my studies are purely hairdressing. My daughter is 8 in April. Unfortunately my friends are all just as skint as me (need to meet some rich ones eh?) but the "potluck" meals sounds like a great idea as most of my mates also have young children.

x

Dorothy -- Pot lucks with the kids are lots of fun. Gives the kids a chance to play and the moms a bit of socializing. I've always loved the pot lucks with other moms.