Some advice needed

Raspberry_Swirl

My partner has been off work for some time now with disc problems in his back.

I knew he had been spending on his credit card, but he recently informed me that he's hit the limit of around £12,200. He's on Incapacity Benefit, but has been using nearly all of that to make his minimum payments, and i've (maybe foolishly) been paying the rest of the bills/mortgage as my income covers this.

I've enquired with the bank about a home-owner loan, but due to shared ownership the housing association won't let this happen. I know you guys on here don't agree with consolidation into a loan, but it was an option.

I've just been looking on the Payplan website, but you need to owe to more than 1 creditor to qualify. Is CCCS the same, as i couldn't see anything on there website?

Does anyone have any other suggestions? There's no way i can contribute to help his payments, and he can't afford to pay more than the minimum as his benefit is £350 per month and the minimum on his card is about £260 a month and rising.

Any suggestions? (sorry for the long message)

Storm

Not sure about the CCCS people, but as it's only one creditor it might be worth speaking to them directly. A few years ago a now ex-bf got himself in a financial mess & I talked him into calling the bank. They took away the CC, but they also reduced interest for him & agreed a payment plan that was within his means (with extra payments allowed when he got a bit of overtime etc).

Otherwise - can you sell any stuff on Ebay, Amazon, car boots etc to raise a lump sum to throw at the CC?

Admitting the problem is the hardest bit though, so both he & you deserve a well one to doing so :T

Mirtos

hi Rasberry :wave: Could I suggest you post your full SOA (see southern scousers ' notes for first time posters' sticky-thread at the top of the forum) so that we can see if there are any savings to be made in your daily spending. Once we can see that, people will be able to give more accurate and specific advice.

One more thing:

There's no way i can contribute to help his payments, and he can't afford to pay more than the minimum as his benefit is £350 per month and the minimum on his card is about £260 a month and rising.

If your OH has stopped spending on the card, and is making the minimum payments, the minimum shouldn't rise unless the bank are changing the terms and conditions in some way. If it really IS rising, could you double check that you have the full picture?
Hope that helps hon! xxx

Raspberry_Swirl

thanks for the reply.

i think realistically the first port of call will now need to be the cc company.

i have been selling stuff on ebay but really, it's just not going to make a difference.

i've also called up companies and done some dodgy dealing with regards to our internet and sky connections (i know these aren't necessities though) and got these reduced. i always get the cheapest quotes for my insurances and other stuff.

Raspberry_Swirl

SOA (all monthly figures)

incoming:
OH benefit: £350
my income: £1400

outgoing:
mortgage: £515
mortgage/income protection: £67
council tax: £105
water: £20
electric: £21
gas: £21
tv: £11
phone (landline): £15
mobiles: £40 (tied in for another few months)
sky: £27 (not necessary, i know)
broadband: £5
building & contents insurance: £22
my existing loan: £168 (3 years left) (originally £8500 at about6.5% i think)
my credit card minimum payment: £60 (£3200 at about 9.9%)
his credit card minimum payment: £250 (£12200 at about 9.9%)
petrol/car insurance/tax: £90 (car journeys to and from work and shopping at weekend, visting parents)
food: £110-120

i think that's everything.

Raspberry_Swirl

sorry, another question.

because he's been making the minimum payment every month, will they be interested in freezing interest/reducing payments?
or do they only deal with things once payments aren't made?

Storm

Um, as you're paying for income protection for your mortgage can't you claim something under this as your OH is off work sick? Also, depending on benefit he's on at the moment coudl yo get a reduction on your council tax?

Mirtos

Hi Raspberry, thanks for posting that. Could you tell us what the debt amounts are for each card/loan, and the interest rates as well as the minimum payments - that way we can try and save you money.XXX

Raspberry_Swirl

Storm wrote:

Um, as you're paying for income protection for your mortgage can't you claim something under this as your OH is off work sick? Also, depending on benefit he's on at the moment coudl yo get a reduction on your council tax?

we have already. that's been and gone unfortunately.
and because i was not aware of this wonderful site when we were claiming i didn't save anything even though our mortgage was being helped with.

Raspberry_Swirl

Mirtos wrote:

Hi Raspberry, thanks for posting that. Could you tell us what the debt amounts are for each card/loan, and the interest rates as well as the minimum payments - that way we can try and save you money.XXX

SOA amended. thanks!

Mirtos

How about applying for a lower rate card? M&S have a 3.9% life of balance transfer one at the moment - that could save a fair bit monthly. Look at Martin's advice on the subject. Also, i know you know this, but cancel your sky - Why not have a look at the snowball calculator to see what throwing the same amount at debts each month could save you. http://www.whatsthecost.com/