Best way to use this money

Tixy

I wouldn't decide to make token payments until you have spoken to a debt advisor. It may not be the best option for both you and your partner.

If you intend to switch to token payments whilst you seek some advice then there is a useful template you can send, and yes at the same time you would want to cancel your DDs.

However be cautious if your own bank is one of your creditors, paying token payments could cause any overdraft facility to be recalled. If you have an overdraft then you either need to change to a new bank first that you don't owe any money to, or you need to keep them on full payment until you have spoken to a debt advisor.

Template letter https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

National_Debtline

Hi OP

I would echo those who have recommended setting up a token payment plan for now - whether on your own steam or via an organisation like Stepchange. There are lots of ways that £5K could help you, but simply paying off a small chunk of the debt isn't one of them.

It is true that creditors are unlikely to all fall into line overnight and freeze interest with immediate effect - there is no strict legal requirement on them to do so. In our experience, however, there is a very strong likelihood that they will gradually start doing so as it becomes apparent to them that you have no real choice in the matter.

Kind regards

Dennis
Twiter: @natdebtline

leicestersq

getmeouttahere,

contact one of the not for profit debt charities, I think Stepchange is one of these.

Help them to help you build a plan. It will involve reducing what you owe to your creditors, they will have to accept that you cannot repay all that you owe.

Prepare yourself, it is going to be tough. The plan will hurt you as well as your creditors, that is the bargain. Things that you thought that you needed, well, you will just have to do without many of those things for quite a while.

Good luck on your journey.

Onwardsandupwards

Hi have you looked to see if you are entitled to housing benifit?

getmeouttahere

Onwardsandupwards wrote: »

Hi have you looked to see if you are entitled to housing benifit?

Housing benefit is not available to homeowners.

sleepless_saver

Onwardsandupwards wrote: »

Hi have you looked to see if you are entitled to housing benifit?

Housing benefit is just for renters, so they're not entitled.

getmeouttahere

Just going through all our credit accounts and my Nationwide Credit Card is interest free til August 2015. Would I be able to keep paying this as normal while I make token payments to everyone else?

lizzy23

getmeouttahere wrote: »

Just going through all our credit accounts and my Nationwide Credit Card is interest free til August 2015. Would I be able to keep paying this as normal while I make token payments to everyone else?

You could,,, but why would you want to?? i know you're trying to do the right thing,, but you really are in crisis and you need to start thinking about you, and your family, to the banks you're just a number,

getmeouttahere

lizzy23 wrote: »

You could,,, but why would you want to??

because even when the interest free period ends, it's very low interest compared to any card I'm likely to ever get in the future (15.9%) plus they are the bank I bank with so don't really want to upset them.

getmeouttahere

lizzy23 wrote: »

... i know you're trying to do the right thing,, but you really are in crisis and you need to start thinking about you, and your family, to the banks you're just a number,

Thanks lizzy. I'm just so upset with myself for letting this happen. I got into debt before when I was 18 and I swore I would never let it happen again. This time I have dragged my wife down with me and all so we could do work to the house that we couldn't really afford. I just wish we hadn't bothered.

Maybe I should just give up.