Debt Advice would be very much appreciated.

bernieuk

I would appreciate any advice on my debt problem. I will try and summarise as best I can.

The total debt is around £19,000.00.

£5800 of that is a Halifax loan with 34 payments to go of £192.34.

The rest £13200.00 are credit cards:

Marks and Spencers £3000.00
MBNA £258.00
Halifax £700.00
Norwich and Peterborough £4600.00
Post Office £4400.00

All the credit cards are on zero percent for the next 3 months. The minimum repayments total around £350.00 per month.

My outgoings are as follows:

• Loan £193.00
• Credit Cards: £350.00
• Rent: £480.00
• Council Tax: £44.00
• Electric: £32.00
• TV Licence: £11.00
• Telephone: £15.00
• Mobile £8.00
• Fares to work: £110.00
• Meals at work: Zero (Bring my own homemade museli - bloody awful but it is a filler)
• Internet: £18.00
• Sky TV: £30.00 (Will be going January 2007)
• Pet Insurance: £13.00
• Salary Protection £29.00 (To cover loan and credit card repayments)

This totals £1333.00. My take home pay is around £1440.00. My Son contributes around £200.00 but is now moving out in January into his own place. His contribution was keeping my head above water. My Wife is terminally ill and so cannot work and she knows nothing of the this particular financial problem.

I have to admit to not knowing what the best course of action is now. Perhaps it is more obvious than I realise. So far all payments and everything else is up to date and I am not being chased for anything. How long that will now be for I have no idea.

If anyone could offer any advice it would be appreciated.

steve700

First of all, you're in the right place.

You say that your son contributes £200 per month.


Can you estimate how much he 'costs' you while he is living with you as it won't be a loss of £200, due to savings on Food, heating,etc

I imagine that people will also advise that you lose the Pet Insurance and Salary Protection policy. Surely that money would be better off going towards the debts at this stage.

Steve

bernieuk

Good point - thank you!

My estimate of his cost would be around £80.00

melaniec_2

Hi

Sorry to hear of your wifes illness, have you claimed all the benefits you are entiltled to? I'm thinking DLA your wife need not know that you have applied as there are special rules for terminal illness. Speak to your local councils welfare team or ask at the job center about DLA and for some one to help you fill in the form.

I hope this is some help.

Melanie

sophiesmum_2

hi bernie
welcome to the board, you are sure to get lots of good advice and support when the regulars get on the boards.
two things jump out at me immediately :
1- the salary protection payment £29 - these things are notoriously poor for actually paying out when you need them - may be worth looking into it properly and ditching it if it is not what it should be.

2- Sorry to hear about your wifes illness, but hopethat she is claiming benefits she is entitled to. Under the special rules people with a terminal illness automatically qualify for Disability Living Allowance - make sure you are getting what you should be.

I'm sure the others will be of more help.
Good Luck

sophiesmum:D

mjdh1957

Hi bernieuk,

Yes, you're in a good place here and there's lots of advice.

You've not included any food shopping in your list of outgoings. At first glance, I'd look at your loan protection insurances, these are not usually worth having as they have all sorts of exclusions. Good for you getting rid of Sky - use the money saved to add on to your credit card payments.

Have a look at the Payplan and CCCS schemes and see if they can help. They could freeze your interest and create a permanent debt management plan for you.

And go easy on yourself, don't stress out.

Good luck!

bernieuk

My Wife's life expectancy is around 3 years. At present she has reasonable mobility and can basically look after her self - feeding/washing etc! That has nulled her getting DLA. I am looking into other forms of benefit for her.

angchris

hiya bernie welcome to dfw:D i take it with your son moving out you will have a spare room? any chance of utilising that for the short term and getting a lodger just to help you get by financially for the immediate future, i know this probably is a bad time for you and your good lady but sometimes needs must. also as other people have suggested maybe you could do without the pet insurance and salary protection for now till you get back on your feet a bit (these strike me as money for old rope) i`d put say a fiver a month away into a separate account for your pet at least you will be earning interest off it and not them! check out your halifax loan because you could well be paying payment protection on that too and see if you can cancel it. any chance of car sharing to get to and from work? or chucking your bike in the back of your car and parking as close as you can thats free n cycle the rest or is that £110 a month for train/bus fares if it is see if you can get a monthly pass as these work out cheaper.
you have not listed anything for grocery shopping this must tip you over your monthly income??
its time to really start to shake these figures up, phone these loan/credit companies up and see what they can do for you if they cant offer anything decent try and get your credit cards transfered to a low apr life of balance card. also i`d have a rummage around your house and get anything that isnt used/nailed down on ebay to try to generate a bit of cashflow and pursue getting any benefits your wife may be entitled to. i wish you the best of luck my friend, you can do it!