Big Debts - Small Income - Help

sueshells

Hi Everyone,

I have a large amount of debt - approx £15250 - compared with my income - approx £100 per week. I already have CCJs and a payment agreement with MBNA for my credit card. I have been struggling for several years, since I became ill and unable to work, to keep up with payments and have had help from my sister. Unfortunately, due to a reduction in her own circumstances she can no longer help me and, anyway I wouldn't want her to try now that her finances are also reduced. She has enough to deal with.

My debts are as follows:-

LloydsTSB Overdraft - £1850
LloydsTSB Credit Card - £7000
MBNA Credit Card - £3500
MBNA Loan - £1800 - now with Wescot
Evans Store Card - £600 - now with Lewis Group
Giro Bank - £300 - now with Moorcroft
Great Universal - £200 - Can't remember who that's with!

Current repayments on these total - £238 p.m.

My other outgoings are:-

Per Month

Gas - £30
Water - £40 (includes arrears)
Electric - £25
Contents Ins - £7
Car Ins - £12
Internet - £18
TV Licence - £11
RAC Member - £8
BT - £10

Total = £151 per month

Grand Total = £389

My income is :-

Per Month

Income Support - £355
Pension - £86


Total = £441

Leaving me with £52 per month to live on including petrol for the car and food for myself and my two dogs.

Obviously this is unworkable. I sell some bits and pieces on eBay but now have no money to replace them so that the money from anything I sell now goes towards living expenses and I am running out of things to sell and can't replace them.

The credit card is the main problem. Minimum repayment on that is £140 per month. I've tried to keep up with it because it's with LloydsTSB which is where my bank account is and it would be very awkward to lose my bank account.
My questions are:-

1. Is it likely that they would stop me paying out and try to recover the overdraft if I told them I was unable to maintain the required level of payment on my Credit Card?

2.Would I be able to open a Bank Account anywhere else as I already have CCJs. I haven't dared try as I would be embarassed to be rejected! (and my self-esteem is low enough as it is).

3.Would Pay Plan or the CCCS be able to help me or do I need an income from employment before they can come up with a plan?

I haven't worked for four years due to ill health. I had insurance on my cards but received nothing as my problems were "pre-existing conditions". LloydsTSB have increased my Credit Card limit on two occasions depite me obviously having no income to speak of and, because of desperation, I have used the money.

I can't continue to pay these amounts and have reduced and cancelled some of the payments prior to re-negotiating - I will send token amounts to all creditors. I am also not sure of the amounts still outstanding with the DCAs as they never issue statements so I thought I'd let them get in touch with me so that I can find out where I stand.

Any answers, comments and suggestions would be very welcome. I would desperately like to get these matters sorted so that theyare manageable. I've been struggling for 20 years now as my daughter (now 21 and recently left home) has had a lot of problems based around school phobia and social anxiety which meant that she didn't attend school and I had to home educate her so I have only worked part time/not at all. After 20 years of worrying I'm just so tired!!!!

Good luck and best wishes to all of you - this forum has already made me feel much less alone.

Sue

beanielou

Hiya Sue
welcome aboard the DFW train!
my advice to you would be to open a new basic bank account to have your income support paid into.As far as i know you should be able to do this.
Have you thought of bankrupcy? Unless you see your circumstances changing a lot I would think about it, if I was you
Good luck
Keep us posted

wanna-be-mortgage-free_2

Hi Sue

Welcome and big hugs to you. You are in the right place. I think it would be advisable to contact CCCS to see what they say or perhaps 'wondergirl' can advise, she has great advice and works with CCCS (I think).

Good luck

sueshells

Thank you for your comments.

I believe that bankruptcy is less of a long term hassle these days? I would definitely consider this if it would mean clearing my debts and cleansing my life! My only worry is that I have some things which are precious to me - lots of books, lots of wool and embroidery stuff, a collection of seashells - things which wouldn't fetch much but which represent me and my life. I would hate to lose these. I also have a very old car which is essential to me as I suffer from arthritis and panic attacks making it the only means of travel possible. I'm worried that the court would take all these things, given the chance, plus my computer of course (which is secondhand!!)

Thanks for the hug - I really needed that. Don't like to burden my family, so it's a bit of a solitary existence!

Best wishes, Sue

nelly_2

MBNA Loan - £1800 - now with Wescot
Evans Store Card - £600 - now with Lewis Group
Giro Bank - £300 - now with Moorcroft


who are wescot etc?

krisskross

I feel for you. Have you tried speaking to a debt advisor at the CAB?
From reading other posts i feel that in the event of bankruptcy you would keep your treasures. However there is quite a steep fee for applications for bankruptcy, think it is £300+

If you go to the CAB they will also be able to check that you are getting all the benefits you are entitled to.

beanielou

Your local CAB will be able to give you leaflets on bankrupcy.
The only things that you might loose would be high value items ie expensive car, jewels and the like.They are not interested in every day items or computers unless brand new & top of the range.
hth ss
Nelly
Wescot ect are debt collection agencys ie debt has been sold on

sueshells

Hi Krisskross and Beanielou,

I had a look on the Payplan site and they say that in bankruptcy the court would take everything I own - just leaving the essentials like bedlinen and cooking utensils. I don't think I could cope with that. You say that from other posts you've seen that they would only take items of value (I don't think I've got any!). I can believe that as I can't think it would be worth their while to remove stuff that would fetch a few pounds at most. The only reason to do that would be to as "punishment" - it would cost more in admin than would be realised by sales.

Hi nelly - as stated - Moorcroft, Wescot etc are debt collection ageancies to whom my original debts were sold. I didn't realise this until I came on this site - I just thought that they were collecting on behalf of my creditiors. This site is brilliant as it gives you so much info, and as they say, knowledge is power. Anyone with crippling debts can do with a bit of power - debt makes you feel so powerless and without control. At least if you know what you're dealing with it gives you a place to start.

Sue

CLAPTON

i think you are 'over ' interpreting what Payplan are saying and worrying needlessly .. the OR is only interested in raising money for your creditors and not in punishing you. if it cost more to seize your goods than their resale value they would not bother....what sort of things are you worried about?

sueshells

Hi Clapton,

Books mainly - I have hundreds of books which were expensive when new and are now out of print. I imagine they'd fetch around £1 each if resold! Also bin bags full of knitting yarn again - expensive to buy new but resale value is minimal.

Don't have much in the way of electrical items or jewellery etc. I was under the impression that the court cleared your house leaving you with a pan and two pairs of knickers! Perhaps times have changed?

Regards, Sue

lyric_grace

Welcome, I'm quite new here but always find everyone to be so helpful, unjudgemental and friendly. I hope someone can help more than I can, chin up it'll be okay. Your in the right place!!