£1 payments when on benefits??????

magoogy

im wondering if there is anymore information online about just paying £1 when youre on benefits.....my niece has just become unemployed and is struggling and i mentioned this to her but cant find much information online about it...........is there a letter she can send to her creditors, etc.


thanks..

NorthernLas

Have a look at https://www.nationaldebtline.co.uk, they have a sample letters section and a self help pack to help you work out a budget.

JamesY_2

There's no £1 payment system I know of.
I was forced to repay as normal on JSA.

Tough times

TizerCat

I can personnally confirm that if you do an income and expenditure form and you have nothing left to pay your debts, creditor will except £1 a month.

I wrote to all mine explaining why my circumstances changed (in my case long term illness would prevent me from working F/T again). Nearly all excepted the £1 offer, except for student loans arrears (not the actual loan, that was deferred) and a debt that was secured against my property - they took me to court and there is now a charge against my flat. i was very in debt though and hadn't paid anything for a while.

It has given me breathing space to get better, as the illness was caused by stress.

I too went to National Debt line and used their template letter, but this was 5 years ago so don't know if it is still there.

sofababe

Yes, you can pay £1 a month, the template letter is here http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6
its "ask your creditors to accept a token payment"

They can't have what you haven't got so they can have £1 or £0:D

JamesY, who gave you that advice?

HappyMJ

sofababe wrote: »

JamesY, who gave you that advice?

It was probably the debt collector or the bank advising James that if he made no or reduced payments he would be in default of the credit agreement and it would be noted on his credit file and further action would be taken to collect the money due. The only way someone can be "forced" to pay a debt is through the courts and they tend to understand that someone on benefits wouldn't have any money left so wouldn't order a high repayment if any at all.

magoogy

thanks so much for your help which i have now passed on ..........but, heres the good news - she starts a new job today......so things are certainly looking up and seems she wont need the advice...thanks so much....x