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Just wanted to wish you all the very best LMS. Some incredible advice from PP.
I remember getting a call from the bank last week because there wasn't enough in my account to pay my car loan by $10 even though they could SEE that I get paid on a fortnightly basis and my next pay was going in the very next day!! They then charged me a $30 dishonor fee for not having the correct amount of money in there. I was livid. They are RUTHLESS.
:hug:
Its looking like they cant help me. 45% of our income goes on rent and they can usually only help those less than 40% but im having a further consultation in an hour but working out our budget myself we only have $140 a month spare which over 4 weeks is nothing. Thats what we would spend on buying more milk, bread etc.
Bah humbug.
I would consider that before going bankrupt.. It will buy you some time to sell some things to make things a little easier.. Go to the charity places for food vouchers. I myself am not much of a cook, but learnt how to make stuff from 'nothing'.. If there is a will, there is a way:
I mean this in a nice way (from someone who has been very close to the position you are now), you made the mistake, and you now must try and fix it. Is going bankrupt really worth it without even attempting to live off the smell of any oily rag? Can DP get extra hrs, even in a different division?
Are you sure you're claiming all you entitled to from Centrelink? I agree $140 spare per month is nothing.
Lms, I am sorry you are going through this.
I agree with others who have mentioned looking into accessing your superannuation. You can sometimes do it in cases of extreme hardship.
Many youth and family service agencies have free financial counselling help, so do StAte and Territory consumer affairs depts. Get as much info as you can before agreeing to anything. Do it quickly though.
Most importantly though, remember...this is only money. Ultimately, it is not important. What is important is your health, and the health of your little ones. Try not to stress because this too shall pass.
I hope it works out for you.
Good on you LMS, you've got the ball rolling. Taking the first step is the hardest thing to do and you've done it. You're very brave and should feel good about taking control of this situation.
From here on it's just one step after another. Only focus on the one ahead of you, don't let this overwhelm you. Also, I would expect that My Budget should be able to give you advice on things like maximising your Family Assistance payments, accessing your super etc. If they can't, or they don't, It is really worth contacting the Salvo's (or whoever) to get some financial counselling. They should be able to tell you exactly what you can and can't do in these area's and help you along way.
Once again, you've done a huge thing today. Don't be too hard on yourself or let overwhelm you. You can and will get through this.
Just wanted to cheer you on!
:grouphug: you're stronger than you think. Tap into it and beat this!
No advice - just hugs. Sucky situation. But your putting on your big girl panties and dealing with it now - that's a positive. Spend the next couple of days calling every agency/bank/financial people you can. There is something that was mentioned before a form 8? or something like that - instead of going bankrupt could be something you could do.
don't take just one lot of advice - look at all financial service specialists in the area - being the ACT, there should be a lot more than there are in some more regional areas - and do it sooner rather than later. try to call FAO now and see if you're on the maximum amount of FTB you can get. work out your other halfs income as close as possible if you're not getting maximum rate so you can maximise the incoming money. check with them for financial service referrals in your area. Salvos offer help, so do some other charities - if they can't help you, they can tell you who can
ultimately,if you have to declare bankruptcy, you'll learn to live with that decision. it sucks, and you are screwed for financial stuff for however long, but honestly, if it's your only option, it's your only option. having someone chasing you for 17k and the stress of that - it's not worth it. your kids are better off having mum and dad struggle to get a home loan til they're in primary school than to have mum and dad so stressed by money things that they don't stay together or they end up sick from stress... Being a bankrupt doesn't make it all go away forever. you'll have an insolvency representative, you'll have to report to them on all your assets, any income etc. and you will have to pay towards the bankrupt estate if you earn over a certain amount. if you have ANY sort of tax return at all, they will make you pay that against the estate as well
this isn't me saying to skip out on your responsibilities - i would honestly suggest doing EVERYTHING you can first - but with a window of a couple of days, your options are limited. you need to take the steps you can now - if you have to enter a debt arrangement with a company like fox symes (not them if you're not comfy with them) then you have to.
change everything you can to be minimal expense. ditch post paid mobiles if they're not on contract - you'd be surprised how good the value on prepaid can be! go prepaid net and then only top up if you can actually afford it. if you have to go without the net for a bit, so be it. it's not an essential kwim?
if the debt is solely in your name, don't let anyone suggest your DP gets himself caught up in any debt agreements. yes, he was in a debt agreement a while back himself, and it's messed with his credit rating, but you don't want to continue having his credit rating screwed up while yours is paid out too. we went through something very similar, and although DH had to get caught up in the debt arrangements, i managed to keep my credit rating clear. we're on an extremely tight budget at the moment, which i hate - but it's either this, or end up ruining my credit rating too - i figure having money tight for a few years will see us clear of this mess. DD will be in primary school, we'll have a few years under our belt living on the sniff of an oily rag, so we'll be able to save and do whatever we want later on. it's not how we dreamed life would be - not even close. but it's going to get us out of this bind. if you have to do similar for a few years to get you through this, you've just got to look at the big picture. you're taking responsibility for your actions - albeit a bit late (yes, i did that too - we hit crisis point in a big way!) - you'll learn from this - and if it takes five years to clean your record, what does it matter - your kids will still be in primary school, they'll barely know that you don't have money to splurge on them.
but like has been mentioned by others, i suggest you get on the phone to whoever you can think of (FAO/C'link can give you lots of local contacts) to see what your options are and what help they can offer
and don't let pride prevent you asking for help in terms of food vouchers if you're struggling - and don't let fear make you pretend it's not happening. i know all too well the desire to have the floor swallow you whole - but it doesn't help. sort it out - and when it's all sorted, you can fall apart then (with a sigh of relief that you have something in place!)
I would suggest you ring the Early Release of superannuation Benefits Program- 1300 131 060.
They're a govt department and while they can't release super for you, they can let you know if you are eligible and give you advise and help on how to go about it.
I really don't want to access my super, i know i SHOULD but its nice to know that i have a bit of money there.
I'm just in a sucky position right now, working 5 hours a week ive pushed for more hours but i cant get any. DP is working the maximum hours which are his business hours 8-5. He could get another job but thats unfair on him when hes out of the house 12 hours a day. I have no family to turn to, i was asked if i could get a loan off someone and i laughed, my mum is driving a beat up commodore as her car died and she lives in a govvy house so no she has no money. I don't know my dad, have no aunts or uncles that i know well enough to ask.
We are getting everything we can out of centrelink DP earns too much to qualify for anything more.
I feel its useless speaking to somebody (financial counsellor) when we are already living so tight. What i budgeted for our weekly shopping bill is half of what we would normally spend. We are scrimping week to week as is. Its this moment in time we are worse off, after this baby is born ill get more money from c/l and the baby bonus plus i can return to work not long after, if need be, but i fear they wont hold out 6 months for us once we are all sorted. Its right NOW i need to do something.
Gah, if i wasn't made redundant we would be fine who knew it would snowball into this whole mess (i know im naive to think it wouldnt but you get what i mean)
Just want to give a big thanks to those who have taken the time to help me, i feel better now than i did earlier but still worried about whats to come. This will be one of many lessons learnt and a big wake up call to not run away from problems. I'm sure in the end ill work it out the best way i can for my family, so as long we have a roof over our heads im happy.
ETA - Gosh BG you are an amazing person! :hug: Thank you so much! I will try everything, im nervous as hell about going bankrupt so i would like to exhaust all my options before doing it. Owning our own home isnt a priority, we cant even decide where we want to settle down so right now that doesnt worry me. Its making sure my kids are ok that worries me. I know they will always have what they need. DD has never gone without but i also want to be able to give them everything they want, a further education and options. I never want them knowing we are in trouble, IF we are in trouble. I will work my arse off when i can to get us ahead. But yes its the next few days im most worried about so i know i need to do SOMETHING.
fwiw - the most super that will be released, under any claim, is 10000 in a financial year (provided you have enough accumulated) - and they are obliged to tax you 22%. no matter what your income. so the most you'll get is about 7800 if you're deemed eligible. if that amount of money isn't going to help you get this sorted (which, if they're after 17500, it probably won't) i'd look at the long term implications of taking that out of your super. if taking it means you're still going to have to enter a debt arrangement PLUS you've lost 10k from your super, really weigh up whether it's worth it.
if you were buying a house and that money was the difference between keeping and losing your house, it would be something of a no-brainer. but if it doesn't get your past the point of having that mark of a debt arrangement over your head anyway, really think it through (we had to do early super to keep the house - and in the end, we had to sell anyway - 10k less in my super now is rather depressing seeing we don't have the house either...)
LMS - make sure you read all the fees and ALL the fine print if you use a company like Credit Repair, Dr Capital, Fox Symes or My Budget. I work in debt collection for a big telco and I have seen many a customer use their services and end up worse off. However there are many success stories too. What you need to remember is that these companies are business's making a profit, they charge fees for their services and will ensure they get their portion of your repayments before your creditors do so ensure that any pmt arrangements you are asked to make are EXTREMELY realistic, as if you default on them the credit agency you are using will ensure they get their money and leave you high and dry if you aren't keeping up to date. Ask what their fee is also, you want to minimize the fee that you have to pay someone to manage your affairs.
I would recommend looking at the non profit organisations that offer financial counselors first - eg Salvo's, St Vinnies, even most local councils can refer you. These Financial Counselors have no financial interest in you, only helping you from a compassionate perspective, and can often help with other things - food vouchers and the like so that you can redirect funds you have for groceries to debt instead, I would plan to spend a morning on the phone and see what assistance you can gain this way.
Future Creditors will look far more favourably on customers that have settled debts, rather than defaulted on them, so this is important to consider too, it doesn't matter how long it takes, work to get it paid off over time, this situation is not going to go away overnight, and I agree with the others, while Bankruptcy is an option, it really should be at the very bottom of your list of options.
I'd also seriously consider ways to increase your income - can DP take on more, can you? While it may not be ideal with a little one and another on the way, you are securing your children's future so its a worthy sacrifice
Good Luck
Hoping I can help. I've worked for a hardship team for a bank and in their bankruptcy department. I'll have to wait till I get home but I do know you can avoid bankruptcy and fox stymes. Let me get you some information in an hour or so when I'm at my computer.
Sent from my evil brain
Here's a good free resource. http://www.moneyhelp.org.au/wp-conte...114cc97-31.pdf
Just cut and paste into your net browser. I really think contacting them is your best option.
Sent from my evil brain
LMS: I wish I could help, but just letting you know that I'm thinking of you, honey.
xoxo
:hug:
How are you feeling today about this LMS? Hope you are feeling a little better.
Have you guys come up with a plan?
Big hugs, hope you get it sorted soon.
Sent from my iPad using Tapatalk
My budget couldnt help us. After doing their second consultation we have no money to work with... we fall into the minuses so they cant write us up a budget. Even if we were to cut off our phone/internet we still have other expenses which are already as tight as we can make them. She mentioned bankruptcy as being the only option i have without dragging DP down with me and saving us from legal proceedings.. my credit rating can't get any worse so a clean slate would work for us.
I'll be calling ITSA later to go through the paperwork.
We're still screwed as it doesnt help us now so in no way am i benefiting but its one less thing to worry about. And in 6 months when we have more money we can try catch up on other things.