14 Tablets a day dramatically changed my circumstances! Advice needed please.

mattscarlett

My background: I'm on minimum wage, finished uni 3 years a go and have debts of around £13k including a recent 3k business loan, debt from divorce, private jet trips to Monte Carlo have all but stopped ... you know the score.

Due to serious asthma issues (i'm on around 14 tablets per day) the tablets are creating serious side effects to which my specialist denies are related to the tablets.

On SSP £85 pw?
£1,100 rent arrears
Paying £80 per month to Bournes ... (Bournes Legal) debt consolidation

Applied for

DLA - working DLA
Housing benefit

CAB advised me to stop all payments to debt agencies ... don't contact them just stop the payments to the consolidation company ... and pay my rent. In a few months time give token payments £1 per month ... then see where it goes from there.

My business loan people are/were very sympathetic, and but have stated that my case will go to a debt agency in 180 days.


My Mother died from an asthma attack when i was 16 ... i did my best to revive her (as one does), but this has turned my life upside down, and i have to admit (but not to my family) that I'm scared of opening my mail ... i know that's burying my head in the sand.

I was never financially in a very comfortable position in life, hence starting my own little enterprise. However I can't even do that now, and i've ended up with another 3k debt. It could have been worse .. i could have borrow 30k!

Spoken with:

CAB
Turn2us
Tax office

Any advice please?

Willing2Learn

Hi mattscarlett,

I'm not sure what you asking in your post. You never stated what specific advice you are seeking...

If you are seeking advice with regard to SSP, benefit entitlement and tax credits it might be good to post specific questions on the employment and/or benefits forums on MSE.

Regarding your debt situation. To get decent advice on this DFW forum, it would be helpful if you prepared a Statement of Affairs (SOA), format it for MSE (by clicking on the format button) and then post the results up here. Members will then be able to advise based on the presented facts contained within.

mattscarlett

Just wanted to know if i've taken all and every oportunity availble regarding my debt in particular. I'm a bit concerned at the CAB advice that i shouildn't contact the banks or my debt company .. where my step father (an accountant) told me to stay in contact with them at every step of the way.

There seems to be a lot of conflicting views from institution to institution to personal contacts that i do have within the finance world, the contacts i have within the mayors office, CAB, contacts i have in the Tax office. each etc, etc. My head is exploding as to the right course of action re my debts ... which is my main worry. As an ex Art student not a finance person, the thought of bailiffs banging at my door, going to court etc doesn't sound inviting

Am I going to have large chaps knocking at my door taking my TV and car?

Willing2Learn

I not able to comment on the CAB advice as they will be aware of your all your circumstances whereas you have not given much detail here.

Generally it is okay to do the £1 token payments as their is nothing that MOST creditors can generally do about it.

If you want more specific advice then you must publish the SOA. Without the SOA, advice given will only be general and may prove incorrect.

Please also expand on the nature of your agreement with Bourne Legal. What services are they providing for £80/month or is it just a loan?

Jinx

Apologies if you know this but debts come in priorities:

so rent and council tax top the list - they keep a roof over your head. If you are struggling, pay these first, then utilities gas & elec and then food. Secured loans come next, ie against a house so if you rent prob dont have this.

If after all that you have money left then you can pay what you are able to your unsecured debts, credit cards, catalogues etc They cannot have what you cannot afford, do not be bullied by them.

Dont pay to use a debt consolidation company - if they are only a 3rd party to distribute your debt payments, bin em and contact one of the free charities who are highly recommended here (sticky at the top of the forum)

You can then pay your creditors a token pound a month until you can afford to pay more. You can expect to get defaulted and trash your credit record for at least the next 6 years - if thats the case you will be in good company!!

Good luck

beanielou

I take it you are not in Britain?
We dont have mayor's offices here.
My advice would be to seek help from one agency only & not confuse things by involving other ones.
Keep paying your rent.

Deep_In_Debt

As others have said above, your rent, council tax etc are your priority payments - make sure those are paid above the debts.

Keep in touch with your creditors in writing, explain the situation, enclose an Income and Expenditure and then offer them what you can afford. If you haven't got it, they can't have it. Simples. If they can see that they are getting all you can afford then they are most likely to accept. Yes, they will throw a strop for a bit but let them...they can't get blood out of a stone.

National Debtline website has some good template letters you can use to write to your creditors.

Also, don't pay for a debt management plan - StepChange are a charity who do non fee charging dmps as they are a charity, Payplan do fee free dmps also as well as CAB.

Good luck.

mattscarlett

Thank you for the replies.

Is it better to 'write' to my various creditors, rather than to simply phone them?

fairyclicks

mattscarlett wrote: »

Thank you for the replies.

Is it better to 'write' to my various creditors, rather than to simply phone them?

Personally i would do both - ie ring to discuss and follow up with a letter. I have found speaking to people has allowed me to provide further explanations or get information i wouldn't have by sending in a letter only. However it is always a good idea to have written evidence of contact (and take a copy of each letter for your own records should you need to refer back to them at any point.

Also just to let you know i would also agree with the CAB advice about making payment to your rent (priority debt as mentioned above). The no contact thing is probably because the companies will try to pressure you into making a higher payment to them - some are very sympathetic however and staying in contact has been very helpful for me - just stay strong and have your income and expenditure calculations done before you ring them because they will ask.

Scary as it is don't avoid opening your post because it just gets worse. The best thing i did was arrange a debt management plan via step change (cccs) and the letters stopped immediately.

Good luck with sorting things out - its difficult to get things started but it really does get easier once you do!

whitewing

Have you got an annual prepayment prescription to cut your medical costs

http://www.nhs.uk/NHSEngland/Healthcosts/Pages/Prescriptioncosts.aspx

(I assume you don't qualify for medical exemption?)

999CA

I have been with Bournes for a while but now i am unable to contact them as for 2 weeks now I just get an answer phone message saying they are in staff training and unable to leave a message. Anyone else having problems?