Which of my outgoings should I pay?

Nargleblast

Suggest you look online at Stepchange' s website and input all your details (income, outgoings and debts). They will give you some options on repaying your debts. You can also phone them up, they are very helpful. Other similar organisations are Payplan and National Debtline.

Pixie5740

The car payment isn't worth getting into council tax arrears. Default on the car payments and put some money aside to buy a £500 banger outright if you really need a car.

Surely it would have been cheaper just to buy one of the low cost sat navs than to have bought an expensive mobile contact and an iPad. Cheaper still get an A to Z.

I agree with other posters that contacting a debt charity to explore your options would be a god shout.

Lmh71365

Pixie5740 wrote: »

The car payment isn't worth getting into council tax arrears. Default on the car payments and put some money aside to buy a £500 banger outright if you really need a car.

Surely it would have been cheaper just to buy one of the low cost sat navs than to have bought an expensive mobile contact and an iPad. Cheaper still get an A to Z.

I agree with other posters that contacting a debt charity to explore your options would be a god shout.

I need the phone for work as well, not JUST Nav, but that's why I need a high amount of data. iPad is nothing to do with my and I'm fuming about it. OH's contract was up and he RENEWED IT. He didn't consult me so I didn't get the chance to explain we couldn't afford it, he just went and did it. Phoned EE and asked to cancel and was told they don't have a cooling off period and we can't cancel. ABSOLUTELY FUMING.

I have spoken to Stepchange (referred by Halifax) but been told I don't have enough debt for anybody to help me so should deal with my lenders privately. Then my lenders don't want to help.

OK think we will say goodbye to the car!

Lmh71365

Just found out we CAN cancel the iPad! YES!!!

National_Debtline

I don’t think it should be an issue for the council to let you spread council tax payments over 12 months so give them a call. It’s best to be pro-active.

There are sample letters on our website you can use to negotiate reduced payment plans and freezing interest on credit debts such as your credit cards. Bear in mind that’s likely to have a negative effect on your credit file, although you’ve already defaulted on your car finance anyway.

You should complete a statement of affairs to send to creditors with a small payment offer. You might even need to make token offers of £1 per month at the moment. It’s more about you telling them what you are going to pay and doing it, rather than them just saying they can’t help.

Our sample letters are here:

www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx#

It’s also worth checking whether you’re eligible for any financial assistance from a charity grant by looking on the Turn2us website:

www.turn2us.org.uk

It's best to contact us or another free advice agency to get full advice on your situation.


James
@natdebtline

sourcrates

National_Debtline wrote: »

You should complete a statement of affairs to send to creditors with a small payment offer. You might even need to make token offers of £1 per month at the moment. It’s more about you telling them what you are going to pay and doing it, rather than them just saying they can’t help.

James hits the nail squarely on the head here.

You need to be proactive, you have a finite budget, you MUST pay essentials only, £1 a month to everyone else, as James says, you tell them what your going to pay, don't ask what they are willing, or unwilling, to do for you.

The car may have to be sacrificed here, is there public transport where you live ?

pete-20-11

If you can't get a water meter, and you have more bedrooms than people, you might be paying too much. Ask them if you can have an assessed charge instead of the standard rateable value calculation.

Also, I believe some councils demand the entire year's council tax in one go if you miss a payment (or maybe two payments). So it is best to pay that one and certainly discuss in advance of the due date if you are likely to have issues paying it.

Nargleblast

Have a look on the DMP and Mutual Support Thread on this forum, you'll get loads of help there on setting up your own debt management plan.

Lmh71365

pete-20-11 wrote: »

If you can't get a water meter, and you have more bedrooms than people, you might be paying too much. Ask them if you can have an assessed charge instead of the standard rateable value calculation.

Also, I believe some councils demand the entire year's council tax in one go if you miss a payment (or maybe two payments). So it is best to pay that one and certainly discuss in advance of the due date if you are likely to have issues paying it.

That *is* an assessed charge. That is two people and a baby + £20. It's ridiculous, but there's nothing I can do about it.




Right I had a huge long chat with my mum about our situation and she says she cannot bear for us to not have the car (especially as if it's repossessed we'll be owing £7600 for the privilege of not having it anymore) so she is going to pay our car finance direct to Blackhorse for us. So that's that sorted - phew!

I spoke to Step Change and they confirmed that my payments are reasonable and I'm taking all the right steps. There's nothing they can do for me until I'm in arrears (as I'm not actually in arrears with anything except the car at the moment, and mum will pay that). But they have recommended that I don't pay my utilities, water and council tax and pay my phone bill first! Reason being, I will be charged less (or no) interest on those payments. Since my situation is temporary (ish), they said there's no point letting credit agreements get behind as creditors are less accommodating than the utility providers.

I have not defaulted on my car loan. I am 3 weeks behind, in paying this now it won't even show on a credit check.

I ran out of time before all my lenders offices closed to speak to them so haven't got any verdicts from then (I was on the phone to Stepchange for aaaaages)

Here's what we've done so far:

Paid the rent
Paid the car finance (mum will refund on the 1st and pay next months)
Paid the credit card (only £130 and we can use the credit card for food and fuel again, and just clear it each month, then I'm not paying charges)
Paid Sky (need signal in the house!)
Cancelled the iPad (HOORAY!) and in doing so found out I'm entitled to a discount on my phone bill (still not totally sure why but I think it's a direct debit discount that hadn't been applied) so reduced that by nearly £5 a month.

We have £195 left (will be £450 on the first when Mum gives me the car money "back"), which is *almost* enough to pay everyone.


My OH is off work sick for the next 2 months (engineer in a full leg brace and crutches). We'll be £1100 short of his wages. Ouch! But! Realised that since he can't drive, I won't need a company car when I start my new job in 2 weeks, saving me £4-500 a month in benefit in kind/tax, which is half way there, and then his mum will contribute £400 a month to him, which, whilst still £300 short is a damn sight better than £1100 short!!!

So, whilst we won't be able to cover everything, the degree to which we will slip behind isn't as terrifying as first thought. Hence Stepchange's suggestion to pay the interest-accruing, credit-affecting lenders first.

Depressing, isn't it, being late twenties with a child and relying on parents to pay your bills! But I couldn't be more grateful that we have such lovely folks!!

[Deleted User]

Sorry council tax is your priority...

Can remember quite clearly back in 2010 simply late twice by days the council wouldn't wipe the £60 court summons for the then in full demand, let alone spread payments to suit. I didn't attend court but they happily advised they weren't prepared to wipe it and £60 was definitely added that was it, though I got the monthly back allowed and that was only by paying the fine first.

Sorry to sound the miserer but council tax is not to be under estimated when it's not them in the wrong.
I moved recently and it took both councils more than double the time to process information beyond their stated timeframe, quite ironic really whilst allowed without penalty grrrr!

Me and my folks have had many an argument as they say parenting doesn't end at 18, probably for another thread of family counselling, as they got worse as I got older, still plenty of time later to pay them back x