I need help with debt

tds

Hi everyone

I have just spent the last few hours scouring this site for info on debt. I have found lots of useful info. I have read some harrowing threads with people alot worse than me. I don't want to sound terrible but it did make me feel a bit better. I thought I was the only one with problems.

This may be a bit long-winded hope its ok.

My husband was medically retired from his job of 22 years 4 years ago due to stress and depression. He then claimed Incapacity Benefit and Income Support. As we don't own our home we also got Housing Benefit and a reduced Council Tax. I do not work, as this would have affected my husbands’ benefits. During this time we took out lots of credit cards to help with our monthly expenditure. All the while thinking that it would not be forever. We would both get jobs and everything would be ok.

Nearly two years ago my husband decided that he would like to train to become a driving instructor, which he did a couple of hours a week. Unfortunately he failed the teaching test 3 times. Since then I have struggled to pay everyone their bit robbing peter to pay paul. With the view that we would be ok when we were both able to work.

Now comes the bombshell:eek: My husband had to go for a medical review a few weeks ago and we got a letter yesterday telling us that he no longer qualifies for Incapacity Benefit, Income Support, Housing Benefit or Council Tax Benefit. We called up and the DSS told us he would have to make a new claim for Job Seekers Allowance, which could take weeks.:eek:

I now cannot rob peter to pay paul as there is no peter to rob. We are able to pay our utility bills and our car etc but the Credit Cards are killing us. Help:eek:

What do we do now. We are both actively looking for jobs but with no luck yet.

I have read in the press about "taking advantage of little known Government legislation to write of up to 70% of your debts" how does this work. We only need help to deal with the Credit Cards. I don't want the loan for our car included as we live in a rural part of Scotland and we need our car as a necessity. Can this be done if we go to the CAB to set up either an IVA or a Trust Deed? (Read about these on Internet sites)

Any advice would be greatly received:o

james32_uk

Hi, and welcome to the boards. There's loads of people in a similar boat to you. Easily the best advice anyone on here can give you is to contact either CCCS or Payplan. Both these are non-profit making organisations who will give you advice that is best suited to your individual circumstances. They're easy to talk to and I guarantee you will feel better when you've spoken to them.

If you have no surplus income before debts than an IVA or DMP is not really an option.

jessicamb

Hi TDS

Welcome to MSE. Have you had a chance to have a look at the sticky for first time posters? Why not post and SOA and let us see if we can help you to eek out your small income a bit further.

Is it possible for your OH to go back to work now?

I would suggest if you cant afford to pay bills right now then make sure that you prioritise those you can afford - housing, food etc and make token payments to the other creditors. If you cant pay then you cant pay.

Then call Payplan/CCCS as soon as you can as they will be able to give you the best personalised help and assistance to get out of the situation.

tds

Hi James

Thanks for your info. How did you manage to half your debt within 12 days. I would be very interested in how you did this. Has it got something to do with the "Governement legistlation of writing off up to 75% of your debt"?

This is a snipet from your reply

(Debt as at 11th July 2006 - £61,345
Debt as at 23rd July 2006 - £32,143. Thanks to IVA with Payplan!)

Thanks again James

southernscouser

tds wrote:

Hi James

Thanks for your info. How did you manage to half your debt within 12 days. I would be very interested in how you did this. Has it got something to do with the "Governement legistlation of writing off up to 75% of your debt"?

This is a snipet from your reply

(Debt as at 11th July 2006 - £61,345
Debt as at 23rd July 2006 - £32,143. Thanks to IVA with Payplan!)

Thanks again James

An IVA is what you were talking about when your read in the press abouit wiping upto 70% off of your debts.

Have a read up about it here as I'm not 100% clued up on them!

tds

Hi Jessicamb

My OH is looking for work. We both are. I have had a few interviews but no luck yet. Hopefully something will turn up soon. We don't know how much money we are entitled to so we cant get in touch with people to arrange a smaller payment etc as we don't know how much to say we can afford if anything. Oh! it is all such a huge mess.

southernscouser

Don't pay what you can't afford. If neccessary only send them £1 as token payments. They can't have what you don't have!

Your council tax, gas/leccy, food are your prioritys. The rest can play second fiddle!

tds

southernscouser wrote:

An IVA is what you were talking about when your read in the press abouit wiping upto 70% off of your debts.

Have a read up about it here as I'm not 100% clued up on them!

Thanks for the info. I have had a look but it only applies to England and Wales. Not for Scotland How come you did not wipe of half of your debt? I take it that it doesn't work for everyone.

Emmzi

I would have a look at the factsheets on this website. They're pretty good at answering your questions and putting it all into simple language.

http://www.nationaldebtline.co.uk/scotland/index.php

For comparison,

IVA roughly = protected trust deed
Bankruptcy roughly = sequestration

(English to Scots terminology)

I would also use 'back to work' interviews with jobcentre to see what they can come up with for retrurning to work after a long break.. sometimes they have specialist employer relationships which can help.

In some parts of Scotland there are also local employment inititiatives, and it can be worthwehile tracking them down. It's not *exciting* work, mind, but it is work!

editied to say.. it's late and i can't spell after midnight!!!

southernscouser

tds wrote:

Thanks for the info. I have had a look but it only applies to England and Wales. Not for Scotland How come you did not wipe of half of your debt? I take it that it doesn't work for everyone.

There are some threads about the Scottish system. I'll try and find them for you.

Why didn't I wipe out half my debt? Well firstly no-one is guaranteed to be accepted for an IVA. I think 75% of your creditors have to agree to it.

Secondly when I started my debt free journey I didn't even know about it!

And thirdly although it would be easier for me it would mean my credit rating would be wrecked for 6 years and I want to get a mortgage as soon as possible so it's quicker to slug it out and pay off my debts in full! :rolleyes:

tds

southernscouser wrote:

There are some threads about the Scottish system. I'll try and find them for you.

Why didn't I wipe out half my debt? Well firstly no-one is guaranteed to be accepted for an IVA. I think 75% of your creditors have to agree to it.

Secondly when I started my debt free journey I didn't even know about it!

And thirdly although it would be easier for me it would mean my credit rating would be wrecked for 6 years and I want to get a mortgage as soon as possible so it's quicker to slug it out and pay off my debts in full! :rolleyes:

Thanks for that

Won't your credit rating be wrecked anyway if you don't pay the full amount your creditors require. It will go down on the Credit register as a default of the original agreement.