Run out of money for token payments...

Swanseajack

Hi, any suggestions please, dear fellow forum-ites? Have had one of those mornings, just heard that our rent is being increased by nearly £40 per month. We have already had our HB decreased this month by nearly £25 so this is a double blow.

Currently, we have been paying a number of creditors token payments of around £20 total per month (for two years now). This really now does mean that we can't keep these payments up, there is simply no money. Already we have not enough money for food and have just been referred to a food bank by CAB. I can't quite believe all this, total nightmare.

Question. If we literally have nothing, zero assets, savings, property, anything, and we can't afford to keep up token repayments what will happen? What will the likely action be by the creditors? I am in my 60's and have been unemployed for over 2 years, my wife has been unable to secure a job either. I am due to transfer to Pension Credits in Nov after being on IB JSA. I just dunno what to do.

Obviously I need to write and explain to our creditors, but what are they likely to do? I have had one creditor that has recently agreed to write off the outstanding amount as they said they agreed there was little chance of me securing a job! Do you think I have any leverage from their response to approach other creditors and ask for write-off also? Anybody have any thoughts on this predicament please? Thank you. Jack

antonia1

Have you contacted any of the debt charities (CCCS or Payplan)? They will probably be best place to advise you. If you have literally no money there isn't much the creditors can do - nobody can make you pay money you don't have.

Have you checked you are getting all the benefits you are entitled to? Try this site to help:

http://www.turn2us.org.uk/benefits_search.aspx

Swanseajack

Thank you for your reply, Yes, we are in touch with National Debtline, in fact, I am waiting for a callback. I just wondered if anybody had any direct experience and was currently in a similar situation.

Yes, we are definitely getting all our eligible benefits, it's just that some of them have been reduced lately, ie HB, and our rent and utilities are all increasing. Robbing Peter to pay Paul each month has now been finally exhausted - we are literally running on empty and don't quite know what to do. The levels of stress are fearsome....thanks again.

antonia1

Have you filled in a statement of affairs to get a proper understanding of your spending? If you're feeling brave you can post it up here and get some tips.

The stress of debt is really unbelievable sometimes, I tend to make a cup of tea and take some time to breathe.

Cyril

My initial thought is I am interested to know how a couple in their 60's have absolutely nothing ?

As far as the creditors are concerned they can't have what you haven't got and as you have no assets either they will have to write off your debts.

My understanding of the CCCS is they can't help unless there is a disposable sum to work with.

Swanseajack

National Debtline helped us produce our CASHflow doc which has been accepted by all 19 creditors to date. There literally is just under £20 left for debts which continues to be shared out monthly and has been the case for two years. However, this is only achieved by giving ourselves a housekeeping budget of £29 per week, pretty challenging.

So, after our household expenses (which don't include any fancy TV packages or mobiles) all we have left is £29 which goes on food. The rest we have to beg steal or borrow, to coin a phrase. Literally, apart from rent, electric, water, contents insurance, landline/broadband we have no other spending opportunities we could cut back on.

Thanks for your support, a cuppa sounds like a good idea at the moment, if I had any biscuits, I'd treat myself to one with it!!!

SouthCoast

Check out the Bankruptcy and DRO Boards.

RAS

Is there any chance of reducing your housing costs by moving, as it sounds like your current accomodation costs more than the LHA allowance? Even if you cleared the debt, you would build it back up again if your rent is more than the LHA.

Otherwise, how much is your debt?

besswales

i notice another post where you are having your mail redirected. Really not trying to offend but how much does this cost and could this be used to help with groceries or bills. Hope you find a way through this as I know its not easy. Good luck from one Jack to another.