Disabled Sick & in a lot of debt!..wot next?..

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Cosmic-bee
Cosmic-bee Posts: 15 Forumite
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edited 20 September 2016 at 12:17AM in Debt-free wannabe
What would be the best action.....
Help.....
Disabled and sick, not working, have live in carer
Fought to keep head above water since I became ill 20 years ago
Own property with £125k equity, & £50k ex northern rock mortgage....and need to move to property soon (next 10 yrs) to help with disability needs and access

Finally juggling went wrong and and the result is

Four credit cards totalling £25600, consisting of:
£2000 overdraft Barclays
Virgin £12780
Santandair £8210
Barclaycard £1830
Tesco £790

After doing a realistic living budget on phone with stepchange im left with £21 pm to pay off debts
It will take over 70+ years! I will be dead
All essential bills up upto date...thank goodness!
How do I sort this out, with a DMP does the figure get reduced? Do I need to sell my home? Or what would be the best step forward....

Thanking you all inadvance


What is the best action forward?

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  • Sazzie23
    Sazzie23 Posts: 2,634 Forumite
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    Cosmic-bee wrote: »
    What would be the best action.....
    Help.....
    Disabled and sick, not working, have live in carer
    Fought to keep head above water since I became ill 20 years ago
    Own property with £125k equity, & £50k ex northern rock mortgage....and need to move to property soon (next 10 yrs) to help with disability needs and access

    Finally juggling went wrong and and the result is

    Four credit cards totalling £25600, consisting of:
    £2000 overdraft Barclays
    Virgin £12780
    Santandair £8210
    Barclaycard £1830
    Tesco £790

    After doing a realistic living budget on phone with stepchange im left with £21 pm to pay off debts
    It will take over 70+ years! I will be dead
    All essential bills up upto date...thank goodness!
    How do I sort this out, with a DMP does the figure get reduced? Do I need to sell my home? Or what would be the best step forward....

    Thanking you all inadvance


    What is the best action forward?

    Hi Cosmic

    It's a little late tonight so you may not get many replies til tomorrow. Have you tried the stepchange debt remedy, it's free on line and will give you options and recommendations, there is no obligation and you can be anonymous if you wish. Just thinking you could do it tonight if you are awake.
    Saz
    Debt -it's a fight that I'm winning, dealing with debt one day at a time.
    Estimated DFD August 2018 - 2031 - now 2027 :T
    Guide dog Tess, missing Scotland 2 years
    DMP support no438.
  • Muttipops
    Muttipops Posts: 269 Forumite
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    With a DMP, the amount you owe would not be reduced but interest may be frozen and charges stopped, but it depends on the companies you owe money to. If you only have £21 to pay, then like you say it will be ages to pay it all off, so a DMP seems like a non-starter or at the very least, a slow finisher!.
    Are you thinking of downsizing your house to release the equity to pay off your debts? If you did, would this leave you sufficient to buy again and would you then have enough benefits to live on or would you be in danger of getting into debt again?


    More info would help. Could you do a Statement of Affairs so that we can see your whole financial picture?
    link here http://www.stoozing.com/calculator/soa.php


    Thanks in advance for any more info you can give.
  • Cosmic-bee
    Cosmic-bee Posts: 15 Forumite
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    Thankyou for your reply....
    Within my outgoings is £78 leasehold pm, and by moving to freeholld this would be an option I dont have to pay...however where I live there are no properties to suit access needs and would need me to move out of area to afford to buy which would lead to somewhere without social support.

    I will look at housing association part buy part lease butt this still means I pay leasehold and rent...but this is a long way ahead...and I need money to sell property...I.e fees.....

    Right now my priority is to work.out the best way forward with my debts....
    Thanks definatly got thinking cap on...
  • Muttipops
    Muttipops Posts: 269 Forumite
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    Cosmic, you have a live in carer; how much actual care do they do, or is it a matter of the presence of someone in case of need? Could the someone be a friend/ house share mate? Does the carer have rent as part of salary; my apologies, i don't know how it needs to work for you.


    And are you totally up to date with all benefits you are entitled to?
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    If selling is not an option then your only other choice is an IVA (individual voluntery arrangement) your house won't be at risk, and they normally last 5 years, but can be extended to six.

    National Debtline is your best place for impartial advice on this.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Cosmic-bee
    Cosmic-bee Posts: 15 Forumite
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    Yes the carer has rent as part of the negiation as funds arnt available to pay.
    The carer does independant work too of 16+ hours pw therefore carers allowance is not paid
    There are no direct family available to offer any other care.
    Need someone with me due to cognative problems, falling, fatigue, etc and helps around house, drives etc....far more than someone poping in 3x day for 30mins which is classed as full care

    As far as I am aware I am gettig the correct benefits.....I will check.again as things change...thanks
  • Muttipops
    Muttipops Posts: 269 Forumite
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    Please do check things, because rules change.
    From what i can see, carers must earn less than £110 a week (after taxes, care costs while they're at work and 50% of what they pay into their pension) , so i assume your carer 16+ earns more than that.


    Full care at 30 mins X 3 /day is of course a joke. If you haven't had any dealings with DWP for a while, be prepared for the fact that they have become a bit "computer says no" and ceased to be able to think for themselves. I have a disability and last time I spoke to an advisor he said he didn't know anything about the benefit I was claiming and so couldn't help me; you would think they would , but they don't. Also read interview with a man who has thalidomide disabilities and he was interviewed and the woman put down he had a genetic condition! Assume the DWP knows nothing! They are helpful but surprisingly unknowledgable. Do your homework and make sure you know what you are entitled to apply for before you actually contact them.
  • Muttipops
    Muttipops Posts: 269 Forumite
    edited 20 September 2016 at 3:54PM
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    I don't think you could do an IVA as your spare income is only £21, but I am also wondering that if your current payments could go towards the £100 a month minimum you would need, then maybe you could.


    Have a look here


    https://www.nationaldebtline.org/EW/factsheets/Pages/individualvoluntaryarrangements/ivaadvice.aspx


    because this is a good suggestion of sourcrates.
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Muttipops wrote: »
    I don't think you could do an IVA as your spare income is only £21

    Yes your correct, missed that one !!!!
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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