Help for a Suicidal Friend!!

Gareth83

Guys I would appreciate your help in this matter.

A good friend of mine has been in a relationship for the last 5yrs and 2yrs ago they bought a house together. She lost her job in January and was out of work for a few months and now earns a hell of a lot less than she used to, her partner (now her ex) lost his job in May and again has found a new job which pays a lot less.

They had put up the house for sale in January as they were struggling and things have got finacially worse with arrears and payments left right and centre. Not only that, the house has failed to sell so they are tied together in the same house which is really getting to her. She has even talked about suicide which I am extremely concerned about.

I have offered to help out so she can get back on her feet, I posted a few days back about council tax arrears and a few other things.

We have since spoken to the CCCS and bailiffadviceonline (thanks to both).

Initially I thought it can't be too bad, perhaps a few grand but as we have delved deeper and unravelled things she hasn't been completely honest with me. here is her budget as per the CCCS:

Your Financial Summary
n Monthly income = £2038
n Total outgoings = £2192
n Monthly contractual payments = £336
n You have 5 creditors
n Your total credit debt = £4615
n You are spending £154 more than you have coming in each
month, and therefore currently have no money available to
offer as payment to your creditors.

Your Budget
The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.
Your Income Amount
Your take home pay £954
Your partner's take home pay
Rent/board received
Pension received
Any other income received £1,084
Income Support
Jobseekers Allowance
Your Income Amount
Incapacity Benefit
Disability Living Allowance
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support
Total income £2,038
Housing Amount Comment
Rent
Mortgage £575 Includes £50 towards arrears of £600
Secured loans/2nd mortgage £115
Mortgage endowment premium
Service charge/ground rent
Water £47 Includes £12 towards arrears of £408
Council tax £298 Includes £298 towards arrears of £894
Gas £157 Includes £31 towards arrears of £400
Electricity £157 Includes £31 towards arrears of £600
Other household fuel
Household services
Building and contents insurance
Telephone, mobile & internet £65
TV licence £22 Includes £11 towards arrears of £144
Satellite
Repairs and maintenance
Household appliance rental
Child maintenance
Childcare
Fines, CCJs, Decrees
Life insurance/pensions
Medical/accident insurance
Hire purchase
Transport
Vehicle spares and servicing £10
Road tax £11
Motor insurance £40
Vehicle breakdown cover
Fuel & parking £130
Public Transport
Food & housekeeping
Food, toiletries, cleaning £253
School meals/meals at work £35
Pets, pet food/insurance £21
Tobacco £71 Orignally amount £75
Misc. goods & services
School trips/activities
Medicines/prescriptions £7
Dentist/opticians £10
Hairdressing £18
Union/professional fees
Laundry/dry cleaning
Education fees
Personal & leisure
Clothing & footwear £33
Newspapers/magazines
Sports, hobbies, entertainment £15
Children's pocket money
Church/charity donations
Sundries/emergencies/other costs
Sundries/emergencies £15
Loan from family/friend £87 Total Owed £14000
Other
Total expenses £2,192
Additional information Comment
No of adults 2
Dependants 0
Totals Amount
Total income £2,038
Total expenses £2,192
Surplus (Deficit) (£154)

1 Argos Store Card £640 £20 Me
2 Barclaycard Credit Card £600 £40 Me
3 Greenwood Personal Loan £1,100 £104 My Partner
4 Provident Personal Loan £475 £100 Me
5 Provident Personal Loan £1,800 £72 MyPartner

Total £4615, Total £336

As you can see things are getting worse each month with added interest, charges etc.

The priorities at the moment for her are the council tax as it has been passed to the bailiffs, we have just sent a letter for a payment plan that would be £281.50 x 3mths and a goodwill gesture of £50 in hope they will accept.

her mortgage is in arrears and as a result are charging her £40 a month as an administration fee. They have arranged that she pays £50 a month off the arrears so is currently paying £575 a month (only £10 of this is clearing the arrears!!). Is it possible to get the admin fee dropped? She has asked previously but they wont do it! It will take her 5yrs to clear at this rate. If the house were to sell it would cost her £6k in early termination fees.

She seems to want to pay off her debts such as phone bills, provident loans, greenwood etc. before her priority debts which I have advised her not to.

I have a few questions if I may:

1. What template letters are there to send towards creditors to freeze interest and charges for the time being?

2. She actually works for Provident herself, if she failed to pay these can they sack her? She has said they would take it out of her wage if she didn't pay herself. Is that allowable?? That is £172pm which could help pay off the mortgage or council tax!!

3. I'm trying to get her to turn their mobile contracts to PAYG but they both need them for work and are racking up bills of £100 a month.

4. They owe her family £14k and she is afraid that if he leaves the house it will get reposessed and wont pay her family back. Where does she stand?

She is starting to get the message on how important facing up to the problems are but I'm concerned more for her health than the money.

Any further advice greatly appreciated.

Many thanks all

RAS

Gareth

Can you hit the edit button on your post and remove the quotes, as the fact that the information is in boxes means that it does not display when we try to respond with the "quote" button.

Gareth83

RAS wrote: »

Gareth

Can you hit the edit button on your post and remove the quotes, as the fact that the information is in boxes means that it does not display when we try to respond with the "quote" button.

done, hope you can help.

regards

cat4772

Guys I would appreciate your help in this matter.

A good friend of mine has been in a relationship for the last 5yrs and 2yrs ago they bought a house together. She lost her job in January and was out of work for a few months and now earns a hell of a lot less than she used to, her partner (now her ex) lost his job in May and again has found a new job which pays a lot less.

They had put up the house for sale in January as they were struggling and things have got finacially worse with arrears and payments left right and centre. Not only that, the house has failed to sell so they are tied together in the same house which is really getting to her. She has even talked about suicide which I am extremely concerned about.

I have offered to help out so she can get back on her feet, I posted a few days back about council tax arrears and a few other things.

We have since spoken to the CCCS and bailiffadviceonline (thanks to both).

Initially I thought it can't be too bad, perhaps a few grand but as we have delved deeper and unravelled things she hasn't been completely honest with me. here is her budget as per the CCCS:

Quote:
Your Financial Summary
n Monthly income = £2038
n Total outgoings = £2192
n Monthly contractual payments = £336
n You have 5 creditors
n Your total credit debt = £4615
n You are spending £154 more than you have coming in each
month, and therefore currently have no money available to
offer as payment to your creditors.
Quote:
Your Budget
The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.
Your Income Amount
Your take home pay £954
Your partner's take home pay
Rent/board received
Pension received
Any other income received £1,084
Income Support
Jobseekers Allowance
Your Income Amount
Incapacity Benefit
Disability Living Allowance
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support
Total income £2,038
Housing Amount Comment
Rent
Mortgage £575 Includes £50 towards arrears of £600
Secured loans/2nd mortgage £115
Mortgage endowment premium
Service charge/ground rent
Water £47 Includes £12 towards arrears of £408
Council tax £298 Includes £298 towards arrears of £894
Gas £157 Includes £31 towards arrears of £400
Electricity £157 Includes £31 towards arrears of £600
Other household fuel
Household services
Building and contents insurance
Telephone, mobile & internet £65 is this really necessary - she should get rid of it or reduce the contract until she is debt free
TV licence £22 Includes £11 towards arrears of £144
Satellite
Repairs and maintenance
Household appliance rental
Child maintenance
Childcare
Fines, CCJs, Decrees
Life insurance/pensions
Medical/accident insurance
Hire purchase
Transport
Vehicle spares and servicing £10
Road tax £11
Motor insurance £40
Vehicle breakdown cover
Fuel & parking £130
Public Transport
Food & housekeeping
Food, toiletries, cleaning £253 How many is she feeding for this? Tell her to pay a visit to the old-style boards to reduce this. Could easily reduce this £120 - £150 month.
School meals/meals at work £35 stop - take packed lunches, cost included in the above budget
Pets, pet food/insurance £21
Tobacco £71 Orignally amount £75 - she can't afford to smoke so should seriously cut down and try to give up.
Misc. goods & services
School trips/activities
Medicines/prescriptions £7
Dentist/opticians £10
Hairdressing £18 - Have less haircuts
Union/professional fees
Laundry/dry cleaning
Education fees
Personal & leisure
Clothing & footwear £33 stop buying clothes until debts are gone.
Newspapers/magazines
Sports, hobbies, entertainment £15 - get free hobbies until her debts are gone.
Children's pocket money
Church/charity donations
Sundries/emergencies/other costs
Sundries/emergencies £15
Loan from family/friend £87 Total Owed £14000
Other
Total expenses £2,192
Additional information Comment
No of adults 2
Dependants 0
Totals Amount
Total income £2,038
Total expenses £2,192
Surplus (Deficit) (£154)
Quote:
1 Argos Store Card £640 £20 Me
2 Barclaycard Credit Card £600 £40 Me
3 Greenwood
Personal
Loan
£1,100 £104
My
Partner
4 Provident
Personal
Loan
£475 £100 Me
5 Provident
Personal
Loan
£1,800 £72
My
Partner

Total £4615, Total £336
As you can see things are getting worse each month with added interest, charges etc.

The priorities at the moment for her are the council tax as it has been passed to the bailiffs, we have just sent a letter for a payment plan that would be £281.50 x 3mths and a goodwill gesture of £50 in hope they will accept.

her mortgage is in arrears and as a result are charging her £40 a month as an administration fee. They have arranged that she pays £50 a month off the arrears so is currently paying £575 a month (only £10 of this is clearing the arrears!!). Is it possible to get the admin fee dropped? She has asked previously but they wont do it! It will take her 5yrs to clear at this rate. If the house were to sell it would cost her £6k in early termination fees.

She seems to want to pay off her debts such as phone bills, provident loans, greenwood etc. before her priority debts which I have advised her not to.

I have a few questions if I may:

1. What template letters are there to send towards creditors to freeze interest and charges for the time being?

2. She actually works for Provident herself, if she failed to pay these can they sack her? She has said they would take it out of her wage if she didn't pay herself. Is that allowable?? That is £172pm which could help pay off the mortgage or council tax!!

3. I'm trying to get her to turn their mobile contracts to PAYG but they both need them for work and are racking up bills of £100 a month.

4. They owe her family £14k and she is afraid that if he leaves the house it will get reposessed and wont pay her family back. Where does she stand?

She is starting to get the message on how important facing up to the problems are but I'm concerned more for her health than the money.

Any further advice greatly appreciated.

Many thanks all



Good luck but I can't help but think your friend still doesn't believe there's a problem here. She's the only one who can make a committment to reducing her outgoings and getting rid of the debt.

Get her to look at what'sthecost.com to see how long it would take her to pay off her debts.

I suggest she revisits her budget and cuts back everything that isn't necessary and then throws every spare penny to reducing her debt.

Gareth83

cat4772 wrote: »

Telephone, mobile & internet £65 is this really necessary - she should get rid of it or reduce the contract until she is debt free
Food, toiletries, cleaning £253 How many is she feeding for this? Tell her to pay a visit to the old-style boards to reduce this. Could easily reduce this £120 - £150 month.
School meals/meals at work £35 stop - take packed lunches, cost included in the above budget
Tobacco £71 Orignally amount £75 - she can't afford to smoke so should seriously cut down and try to give up.
Hairdressing £18 - Have less haircuts
Clothing & footwear £33 stop buying clothes until debts are gone.
Sports, hobbies, entertainment £15 - get free hobbies until her debts are gone.

Telephone, mobile and internet is actually more than this but it wont allow her to enter any more than £65. They both have a contract each at £45 a month and broadband at £15 a month. They are all 18mth contracts. They both regularly go above this and the providers wont end early or drop down as they are in their first 6mths.

the other figures were set by CCCS as a default entry, she seems to think they're about right. As her mobile bills are above the £65 quoted some of this is proportined into this.

Smoking is part of 'him'. He seems to think smoking drugs is acceptable!!

Good luck but I can't help but think your friend still doesn't believe there's a problem here. She's the only one who can make a committment to reducing her outgoings and getting rid of the debt.

Get her to look at what'sthecost.com to see how long it would take her to pay off her debts.

I suggest she revisits her budget and cuts back everything that isn't necessary and then throws every spare penny to reducing her debt.

Exactly what I've been telling her. I'll get her to look at this thread.

many thanks

Any idea on template letters??

RAS

Your Financial Summary
Monthly income = £2038
Total outgoings = £2292
Monthly contractual payments = £336
You have 5 creditors
Your total credit debt = £4615
You are spending £254 more than you have coming in each month, and therefore currently have no money available to offer as payment to your creditors.

Your Budget
Your Income Amount
Your take home pay £954
Your partner's take home pay
Any other income received £1,084 - what is this?
Total income £2,038

Outgoings
Mortgage £575 Includes £50 towards arrears of £600 - is this repayment or interest only?
Secured loans/2nd mortgage £115
Water £47 Includes £12 towards arrears of £408
Council tax £298 Includes £298 towards arrears of £894
Gas £157 Includes £31 towards arrears of £400
Electricity £157 Includes £31 towards arrears of £600
Building and contents insurance - they need this
Telephone, mobile & internet £65 - needs to be much reduced - it is possible at £25-30
My mobile £45 a month
OH mobile £45 a month
Broadband mine £15 a month.
Broadband mine £15 a month They are all 18mth contracts. They both regularly go above this and the providers wont end early or drop down as they are in their first 6mths. What are they playing at? And how on earth do they succed in exceeding their limits. They need to stop using both
TV licence £22 Includes £11 towards arrears of £144
Vehicle spares and servicing £10
Road tax £11
Motor insurance £40
Vehicle breakdown cover
Fuel & parking £130
Food & housekeeping
Food, toiletries, cleaning £253 - this is very high - they can reduce this by half (for two)
School meals/meals at work £35 - take pack-ups
Pets, pet food/insurance £21
Tobacco £71 Orignally amount £75 - they need to stop
Medicines/prescriptions £7
Dentist/opticians £10
Hairdressing £18 - get a trim at the local college
Clothing & footwear £33 - knickers and shoes only. Join www.freecycle.org and go to charity shops
Sports, hobbies, entertainment £15 - in the short -term they cannot afford this.
Sundries/emergencies £15

Total Owed £14000
Other
Total expenses £2,192
Additional information Comment
No of adults 2
Dependants 0
Totals Amount
Total income £2,038
Total expenses £2,192
Surplus (Deficit) (£154)

This could be made to work as they are spending £200 per month that is not necessary - revised that in view of the phone and broadban info - they need to get real

DEBT Me
1 Argos Store Card £640 £20
2 Barclaycard Credit Card £600 £40
4 Provident Personal Loan £475 £100

£1715 - £160 per month

DEBT MyPartner

5 Provident Personal Loan £1,800 £72
3 Greenwood Personal Loan £1,100 £104
£2,900 £176 per month

Need the APRs on all of these

6 Loan from family/friend - value? £87 monthly? - who owes this him or her?

Total £4615, Total £336

Hi

She need to sort out her priority debts and to pay her own debts if possible. Ex can sort out his debts.

What will the CT be when they have paid the arrears? Even roughy?

Are they capable of behaving nicely enough to each other to enable them to take in a lodger - tax-free income? Could clear their unsecured debt in a year or so?

RAS

She has said they would take it out of her wage if she didn't pay herself.

She needs to check her agreement and her employment terms. They may be able to take hers out but NOT his.

Gareth83

RAS wrote: »

Hi

She need to sort out her priority debts and to pay her own debts if possible. Ex can sort out his debts.

What will the CT be when they have paid the arrears? Even roughy?

Are they capable of behaving nicely enough to each other to enable them to take in a lodger - tax-free income? Could clear their unsecured debt in a year or so?

Although they may be individual names they have obviously taken each loan out or spending on cards as a 50/50 measure.

What is CT?

They did have a lodger till he moved out a few weeks back. That helped but finding a reliable lodger is hard.

the any other income received of £1084 is his wages.

the mortgage is repayment but at £525 they have said interest only would be £517. This is with GE Money

RAS

Council Tax.

Getting a lodger would make a huge difference.

What have they got lying around the house that they could sell on amazon, e-bay or take to a car boot sale?

\Can either of them get a second job? Even an evening a week?

Do they really really need a car?

Also have a look here http://www.moneysavingexpert.com/protect/make-money

Gareth83

yes she needs the car for her work

there's a few things she will be selling

any templates for stopping creditors interest and charges?

also any tips on cancelling mortgage admin charge?

taxi73

I know the answers to Provident as I used to work for them.They will not allow their staff to be in arrears and as they are credit checked they aren't allowed CCJs as because they are dealing with finance they are seen as being a greater risk to the company ie fraud...running off with money and sadly that does happen.
I can't see why she is offering so much to the council tax per month.Would that not be better put towards the mortgage.I guess the admin fee is part of the T+Cs of the mortgage so don't think that can be cancelled.
There are templates on here...my advice to her is to try and look for another job as well ..as unfortunately working for Provident and getting ccjs etc may lose her her job....if she gets another job not related to finance it could be easier to cut some of the payments and be more manageable.