Been a Lemon :(

Toadytoad

I've managed to run up £2700 of catalouge bills and am now feeling like a lemon. All was fine was managing to pay the £400 a month bill. Till Hubby lost his job. Now I can only afford just over the minimum payments each month. My only other debts is 1. A doorstep loan which is up to date. 2. HP on white goods, which is also up to date and 3. a £1500 tax credit overpayment, that I have no idea where to start with We are now on benefits and with 4 small children, everything is building up now. I have asked my catalouges to accept a payment plan but they say they won't as my account is not in arrears despite them seeing I am struggling. I debated on a DRO but there are many downsides to this. Tax credits want the overpayment back in 12 months which is near on impossible, and I'm still not sure where it come from, although I suspect a majority is from when our circumstances changed they paid £1000 lump sum. I rung them and queried this twice and they assured it was correct. Has anyone got any tips on dealing with the creditors so it takes the pressure of a bit?

chevalier

http://www.makesenseofcards.com/soacalc.html

If you fill this in you might get a better sense of where all your money is going.

Ref the tax credits, I would suggest you email them and explain that your circumstances have changed and you can't keep to the arrangement. Would you now be entitled to tax credits again because your OH lost his job?
chev

antonic

AFAIK, HMRC dont accept emails due to data security reasons.

I`m afraid you will have to write to them and wait for them to reply.

Toadytoad

Have wrote to tax credits but to no avail. Will be trying again today. I have set myself some targets to save money. Reduce the electric bill (bye bye tumble dryer) Reduce the food shop bill (tesco value is a wonderful range) Christmas is pretty much sorted so don't have that to worry about. Have ordered my Husband to reduce the sky bill. And now have a sealed money box for any spare change. Have asked the catalouges to freeze interest and accept a payment plan, am awaiting a reply. Also set myself the task of learning to sew would save a fortune on school uniforms lol. I am self employed earn hardly nothing but will save what I do get to go towards the bills. Tax credits are also chasing me for an overpayment from 7 years ago but I think I should only pay half due to it being a joint claim with my ex husband but I'm not 100% certain.

[Deleted User]

You seem to have done very well so far! You have put measures in place quickly and know what the next steps are. Well done you!

I always think it's important to understand your position, i.e. are you looking for a fresh start and don't mind what happens to your credit history for the next 6 years, or is this important to you and you want to retain your good payment records...

If I were not bothered about my credit report and history, I'd put all of my debts on payment arrangements and await them to be sold on, as to reduce the repaid amount. Whilst doing this I'd be saving for that better future that we all want to have.

But knowing I want a mortgage next year I have to minimise the damage that I do.

I was told by HMRC that if the joint debtor does not pay, then you will be chased just as if it were yours. That's whats happening to my mum now, but I don't know what you can do about this, I'd suggest you pop across to the benefits board and get the attention of IQ they are a real expert on Tax Credits! :A

Just a thought, I'd expect you to be on high tax credits being self employed??? Under the current system self employed people can gain a lot from tax credits, provided you understand the system and what can be claimed.


Good luck, sure we will see your debt free day here sooner rather than later

Toadytoad

I'm about to attempt to haggle with sky If I can understand them that is

Toadytoad

Just got an £35 p/m reduction on my sky bill, and only lost one channel and a multi - box and got the offer till September 2013. Hmmmm who else can I haggle with

Want2makeitstretchfurther

Crikey your doing well! Keep up the good work!