Scared

Burv_2

I don't know whether I'm posting this in the right place, or not, but it's here now.

I don't know what I should do. I've got about £15k of debt that I cannot afford to pay. This time last year I took out a £10k bank loan despite being unemployed and having no other way to pay it back. Along with an overdraft with that same bank (NatWest), I owe approximately £15k.
I have been getting letters for months threatening this, that and the other, but so far nothing has been done. In April this year I had to move out of my flat and back home because I simply could not afford to pay the bills anymore. Now I'm scared that baliffs will be granted and items not belonging to me will be taken.

I have about £150 in the bank and my only income is my Incapacity benefit, which is just over £300 per four weeks. I'm twenty-three on Saturday and am obviously unemployed.

I did seek help from the Citizens' Advice Bureau before I left my flat and actually saw two different full-time debt advisors. The first told me that bankruptcy was my only option and that I should pay for it with whatever money I can get (meaning credit cards), whilst the second told me that I could not pay for bankruptcy like that and anyway, I don't need to worry about bankruptcy while I'm on benefits.

Now I don't know what to do, so I'm hoping someone here might.

Thanks.

Nomad25

Hello and welcome Burv

You're in the right place, but can you complete an soa and post it on here, this will help the DFW experts give you some ideas. Here is the link:

http://www.makesenseofcards.com/soacalc.html

Deep_In_Debt

Hi
I would also suggest that you call CCCS and National Debtline, who are both free and will advise in your interests only.

Ames

It's hard being on benefits, I got three completely different sets of advice from different places!

Are you getting all the benefits you're entitled to, have you applied for DLA? Have you filled out the forms for free prescriptions?

Burv_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 328.45
Other income............................ 0
Total monthly income.................... 328.45

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 290

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
NatWest Loan...................12389.....12389.....0
NatWest Credit Card............1554......37........0
NatWest Overdraft..............2500......2500......0
MBNA Credit Card...............832.......25........0
RBS Credit Card................936.......21........0
M&S Credit Card................200.......0.........18.9
Aqua Credit Card...............278.......0.........29.95
Total unsecured debts..........18689.....14972.....-

Monthly Budget Summary
Total monthly income.................... 328.45
Expenses (including secured debts)....... 290
Available for debt repayments........... 38.45
Monthly UNsecured debt repayments....... 14,972
Surplus(deficit if negative)............ -14,933.55

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -18,689
Net Assets.............................. -18,689

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

I live at home with my dad and brother, neither of whom are dependent on me, or responsible for my debt.

NatWest (or rather their debt collectors) are aasking for nothing short of the full amount on my personal loan and overdraft.
I cannot find the APR for my NatWest credit card, RBS credit card or MBNA credit card.
I do not know the minimum payment for my Aqua or M&S cards because I have just paid a large chunk off of both.
I have interest free periods, (purchases until Januray, balance transfers until March) on my MBNA credit card. Should I use them?

Burv_2

Ames wrote: »

It's hard being on benefits, I got three completely different sets of advice from different places!

Are you getting all the benefits you're entitled to, have you applied for DLA? Have you filled out the forms for free prescriptions?

What's DLA? I've got no idea if I'm entitled to other benefits, but I am hoping that I could get a consessionary bus pass, as that would save me a lot. Is that possible?

Ames

Do you really need a mobile phone? Could you get pay as you go and put a tenner on it to last ages just in case of emergencies?

What's the travel for?

As I said before have you applied for DLA etc?

As you're on benefits you could always just make token payments of £1 a month, that's what I have to do.

Burv_2

I have got a pay as you go. I've never had a contract. I usually try to last a month with £10 but it can fluctuate.

The travel is for bus and train fares.

At this stage, would NatWest even accept a token payment? There's no sign of me being able to get out of this anytime soon.

Ames

DLA is disability living allowance. There are two components, care and mobility. As a very basic overview:

CARE
lower rate £17.75 pw if you can't cook a meal from scratch.
middle rate £44.85 pw if you have substantial care needs during the day or night.
higher rate £67 pw if you have substantial care needs during the day and night.

MOBILITY
Lower rate £17.75 if you need supervision when out and about.
Higher rate £46.75 if you are unable, or virtually unable, to walk without pain and discomfort, the limit's about 40 yards.

The forms are a real pig though, so it's always best to get help. If you have a DIAL near you, or other disability advice service they can help. You've got nothing to lose by applying.

I'm not sure about the rules for getting a bus pass, I get mine because I get DLA but there may be other routes to getting them. You could also apply for a blue parking badge, this is automatic if you get higher rate mobility DLA but there's a route with medical support.

If you want to know any more just ask, I'm a bit of an old hand at the benefits lark.

Ames

I've been on benefits for 11 years, there's no sign that my combination of illnesses are going to get better. To be honest, you've no assets and you're only income is benefits, what option do they have but to accept your offer? They can't go to court for a charging order as you have no house, they can't get attachment of earnings because you have no earnings. All they can do is keep asking you for money, but if you don't have it they can't get it. At the end of the day your health is the most important thing, not debts or money.

Burv_2

Well I doubt I would get any of that DLA based on that then. That's not the sort of thing I have trouble with, really.
I can't drive and I don't travel with anyone who does, so a parking badge wouldn't do me any favours.