Terminal Illness - debt about to become a problem

Splott_Boy

A family member has a potentially terminal illness. I have sorted through his financial affairs and because he has been self-employed and unable to work recently it is apparent that the direct debits are going to start bouncing soon. These include ;

unsecured loan (£10k) debt repayments
interest only payments for mortgage (covered by endowment and associated life assurance)
An interest free loan for a furniture purchase.
Council Tax
Utility payments

There is also a mobile phone contract on far too high a tariff, but I will post on this in the phones section.

Any tips on how I should handle the creditors - totally 'up front' or not.

Are the mortgage co likely to freeze repayments given they are nicely secured.

Is the usecured loan provider (AA Financial Services) likely to cut up rough if we cancel the payments and ask them to wait until we sort the finances out generally.

No payment protection has been taken out.

Sue-UU

Hi Splott Boy, I've bumped this up for tomorrow (today), but must get to bed now. Back again later in the day.

Sue

chevalier

I would first off talk to Payplan or CCCS about the way forward. It sounds as though things have not been going well for a while, so they may have a way of wording letters, or know the procedure for handling it. I think that utilities have vulnerable persons tariffs/procedures but I don't really know much about them.

sorry for your tough times.
chev

sophiesmum_2

Make sure the person claims disability living allowance too, this is automatically paid at the higher rate for terminal illnesses and is a weekly amount which is not taxable, if the persons spouse is unwaged they could also claim invalid care allowance for caring for them too. These two benefits could potentially bring in another £100 - £150 a week and they are entitled to them, if they are not claiming them make sure that they do as soon as possible.

RAS

Hi

Check www.entitledto.com in addition to taking the advice from sophiesmum.

I would advise contacting the council and making a claim for council tax benefit as well - back-dated. That may well clear up that issue.

Then contact the debt charities.

With respect to the unsecured debt. A short letter advising of the situation and paying £1 per month will have to suffice in the short-term.

Come back when the situation gets clearer and we may be able to help with other things.

Splott_Boy

Thanks guys - this is a good start.