Young Couple with no income and small debt

rchddap1

I can understand you being defensive, but people here aren't attacking. We are all here to try to give people an honest opinion. With debts there is no point trying to make things look pretty and to ignore something that needs to be tackled. If there is a problem, and it isn't pointed out then any plans to get out of debt can be completely destroyed. People are being honest, saying what they see as problems and then leaving it to you, your son and his family to then take the actions you feel necessary.

Petrol: Can understand this one....particularly living in a village myself. But where possible try to 'combine trips'. Eg, if they need to go shopping, and he has an interview do both in the same area in the one trip.

Work: Some people would say that something is better than nothing (my partner is one of them...only ever been unemployed for 1 week since he left school). And once your son is working they will then qualify for working tax credit, which will bring in a bit of extra cash that they won't get at the moment. As for food...that's easy...take a pack up. That's what both my partner and I do. Just because you are working it doesn't mean you have to be down the nearest cafe buying burgers, chips, coffee and chocolate bars. My partner takes a flask of coffee if he's so inclined (or a big bottle of squash), some sandwiches, a yoghurt, some fruit, and usually some of my homemade cakes. However, I assume that as your son's eating lunch at the moment that's not going to make a change to the incomings and outgoings.

Work clothes sometimes are provided, and with other sorts of jobs old jeans or cheap t-shirts / jumpers are best. These things can be picked up very cheaply.

If he's convinced himself that he's not going to find anything to make it worth his while then he'll never end up working and they'll end up being a family on benefits forever. Just getting rid of the debts isn't going to solve this problem. It isn't just about getting rid of the baliffs...its about getting sorted for the future.

For a tax credits calculator (and other beneifts) see www.entitledto.co.uk Just put in a variety of numbers and at the end of it you'll see what they'll get if he works.

Baliffs: Simple reply is to say to them not to even open the door if they don't know the person standing there. However, they will have to face up to the debts at some point, as they won't go away. Contacting CCCS or Payplan may be best as they'll give free advice on whether bankruptcy is the way to go, or if another plan can be worked out.

Food / Groceries: The numbers people have given do include all sorts of toiletries and extras. I don't just spend £100 per month on food. It includes cleaning products, loo roll, kitchen roll, toothpaste, bubble bath, shower gel, etc....(all the extras for the house) We all keep track of what we spend very carefully. With a baby by breast feeding if possible, and then making your own baby food, using some homemade wipes (or cotton wool with water) additional costs here are kept to a minimum. My sister decided to put the child benefit to one side and that was what she spent on her baby...clothes, nappies, food, toys etc...

Bankruptcy: They need to think about this carefully. It doesn't mean that all your problems are sorted in 2 seconds. For some it is the perfect and only solution, but not for everyone. Talking to Payplan / CCCS here would be best as they can go through your son's situation and will say honestly if it is the best thing for them to do.

There will not be a completely clean slate....as the bankruptcy will follow them around like a bad smell. They'll have to get a basic bank account....which probably means no cash card / switch / credit cards of any sort. There will be meetings with a receiver to whom they'll have to disclose the full total of their expenditure, property and debts. No credit whilst still bankrupt... even an overdraft. If they are found to have done something they shouldn't there are serious legal consequences here. They won't be able to get any credit of any sort for quite some time after they've been discharged from bankruptcy (and this includes credit cards, mortgage, and anything else that requires a credit check to be done). Put simply their credit record is completely trashed for many years.

linniestorm

Hi Ixworth, I think a lot of us tend to cross-post (i.e. post at very nearly the same time, or start our own reply and miss a post that's posted while we're constructing one) which does lead to the same points being addressed by different people, so it isn't meant to criticise, but when we don't know all the circumstances it can sometimes appear that way, but it isn't meant!

I do tend to agree with what rchddap1 said above. Obviously the reason you came to the forum in the first place was for some particular advice on the bankruptcy side of things, but I think what a few of us have been trying to say (me included) is just to keep an open mind on other things as well. Bankruptcy might wipe the existing debt but might affect their ability in future to get a mortgage/credit card, even a current account with a debit card (though I'm not sure on the ins and outs of it, mike st helens is going through the process at the minute he might be able to offer more help there). Also, if the debts go and their position doesn't improve, will it be built up again? Bankruptcy is a last ditch resort usually, why people tend to go for IVA/DMP's first. If they get into trouble again in future and they've already been bankrupt, what then? if you see what I mean.

You mentioned that your son is looking for work at present, so if he does find something that puts them in a slightly better position (as mentioned the CCCS and Payplan can sort out an IVA or DMP and can negotiate with creditors to freeze interest) they might be able to pay it off themselves without damaging their credit history too much for the next six years.

As far as the bailiffs go, yep, everything you said there probably has happened, but I believe a lot of the time they send a card saying approximately when they will be calling, so all they can do is avoid opening the door to them then. I don't think the police are obliged to remove them if they are causing a nuisance, unfortunately!

On the job front, obviously he's pursuing avenues himself with the JobCentre etc. I work in recruitment, has he tried through any local agencies, if you have any? Has he got an up to date CV? Might be worth him having one, he could even send it out on spec to companies he fancies working for, and a professional looking one might help him get his foot in the door. Trick is if he doesn't have many qualifications to beef up his experience. If you like I can PM you a template one that we give out to CV-less people at our agency to give him a bit of a guide, it's a blank template basically that he just has to fill in with all his details. Understand where he's coming from on the arguement of him being in badly paid work without benefits and making the situation worse rather than being in any work at all. It's a tricky one that. People that have solid work histories can tend to have an easier time getting back in, but he doesn't want to be getting them even less money working somewhere where it isn't worth it.

ixworth

Thanks again... I was feeling a little down this morning.

I think deep down you want someone to say "yeah, do that! that'll sort all your problems out" and people try to welcome you to the real world it can be disappointing.

We'll definitely talk more about CCCS and seeing if we can't get repayments sorted out. Although the only problems stated with regard to bankruptcy so far seem to be affecting him anyway and the thought of a clean slate is very tempting.

He's going to look into the Learn Direct scheme; he is quite a capable lad and could use this as a good opportunity to get something going to build on.

The thing I haven't really discussed with my son yet is that, like a lot of others here, he has had problems in the past with gettng back into debt after sorting things out apparently "once and for all". In actual fact the unavailability of credit might be just what he needs.

Thanks again and if anyone has more to add before they go to the CAB tomorrow (Friday morning - 25/8), I'm sure they'll appreciate it.

btw: I might come across all motherly but I'm his dad. I do the shopping because I enjoy it.

Mirtos

ixworth wrote:

btw: I might come across all motherly but I'm his dad. I do the shopping because I enjoy it.

Oops sorry! For some reason I assumed you were his mum don't know why - in my defence, it wasn't because of the shopping - my boyfriend and dad are both in charge of that in my family! Hope the learn direct thing helps. I'm in London and there are so many accessible FE colleges - I hope you manage to find someting locally.

msmicawber

Hi again, Ixworth.

I would advise your son to take all paperwork concerning these debts with him to the CAB meeting, plus some info. about his income and budget. They'll need both to work out his income and outgoings in order to work out the best way forward for the family. It helps them if you bring the letters & statements because it also gives them names and phone numbers as well as an idea of the tone of the creditors.

I would also recommend that your son asks the CAB about the pros and cons of bankruptcy if the CAB person doesn't bring the subject up themselves. If he has queries that can't be answered, then he can always ring CCCS or Payplan and ask them to clarify things for him.

I didn't want to go bankrupt because I was unemployed and looking for work, and I was worried that if may affect my employability and ability to rent a new property if I wanted to move, but that was just me, and several years ago, so I believe things may have changed since.

david_hellier

I would advise any young person(s) in this situation to go bankrupt, especially if they have no assets. The banks have been completely irresponsible here.

mrs_mug_2

Can't really help with the bankruptcy bit but wanted to add a few points.

The defensive reaction is normal, think we all go through it on here. For me it was a case of knowing that I'd done wrong with my money and admitting it was one thing, but someone pointing it out (even though they were helping) was another. I came round in the end and realised that people were just offering the advice I needed. I hope you don't take offence at peoples' suggestions.

Regarding the food - we've got 2 under 2 and myself and husband to feed. We easily manage on £160/month. We don't have nappies to buy though as both children are in cloth nappies and I don't use jarred food because of the cost. It is do-able but you've REALLY got to want to do it.

And regarding the job situation. I'm a stay at home mum and we had similar worries about me taking on a part time job (in that would it cost more to work than not to). Anyway, we eventually realised that it is a foot in the door. Its coming up to Christmas where there will be plenty of over time which should pay for the additional travelling costs. And you never know who you'll be working with - maybe someone to help share travelling costs with perhaps? There will be plenty of jobs about now too so even if it is a short term thing, its worth a try? And I dont think many will argue that working can boost your esteem, even if it isn't a high powered job. And I do think that you need to be in the right frame of mind to be able to get a grip on your financial situation.

Anyway, I hope my comments can be taken in the tone they are meant - to be supportive and empathetic.

Honeybee_2

I'll elaborate on the cloth nappies bit...

I use cloth nappies for my 2 year old at night, although he is potty trained in the day.

I will also be using them for my baby who is due in November.

Ebay is brilliant for low price cloth nappies, I think a lot of people like the idea of them and then get bored after a few weeks, hence a lot of excellent condition nappies are sold on there.

Really worth looking into as I'll be saving around £10 per week once the new baby arrives. :T

Toomuchdebt

I used cloth nappies for my first 2 babies part time and my last 2 full time-I think they're great and much easier than everyone thinks.

cas26

I know in my area that the council can provide crisis loans, althought this adds another loan to the existing debt that will have to be paid off, it could offer some relief. I'm not sure how much it is or if there are certain criteria but it might be worth finding out.

Is there anything your son is particularly good at so that he might be able to find a job working from home. Thinking more long term, if he wanted to go to college to gain extra skills (therefore maybe finding it easier to get a job) he wouldn't have to pay as is on benefits, some courses can also be linked to jobs and most colleges have financial support for transport, equipment etc.

Not sure if this helps, hope it all gets sorted soon.