what to do?

beth1611

Hi, i'm new, have reached a point in my debts where i can no longer make the minimum payments.


I went to citizens advice and they said my only option was to go bankrupt but i can't because then we'll lose our home as it's in our tenancy agreement that we will remain solvent.
They also said that it will be difficult for other charities to offer help because of the way my husband and i manage our finances. We have separate bank accounts, he pays half the rent and i the other, he has a car and pays all related costs as well as our food shopping and council tax. I pay everything else. All the debts are mine.
It seems the budget forms everyone uses insists on having all fields filled in such as council tax and because i don't pay it or anything towards groceries then that causes issues.


These are the details if anyone can help please?


Income: 900.95
child benefit: 137.60
tax credits: 526.20


total: 1564.75


Outgoings:


Rent: 365
water: 24.72
tv licence: 12.12
gas: 39
electric: 30
home insurance: 14.04
mobile: 36 (15 for call plan, 21 for actual phone)
landline: 17.99
broadband: 5
sky: 40
nursery: 598
after school club: 108
school dinners: 43
swimming lessons: 24
haircuts: 5
gifts: 10
entertainment: 10
clothing: 10
public transport: 26


total: 1417.87 surplus: 147


Debts:


Barclay unsecured loan £16771 (328 pm)
MBNA credit card £10835 (199 pm)
Barclaycard £660 (15pm)


we are a household of 4, 2 adults, 2 children aged 8 and 2


thanks for any advice you can give

beth1611

also I bank with Barclays, should I be looking at opening a new account so they can't access my funds towards my 2 debts with them? If so, any advice on who is a good bank to move to?

liveyoung

If you have a £147 surplus each month, where have the debts come from? It's important to understand why you go into debt in the first place.

If all the debts are in your name, what about your husband? Is he aware of your debt? Is he able to help you reduce your debts?

With a quick look, Sky is a luxury - get rid of that straight away. What is the after school club for? It is a big chunk of money which could be going to repay your debts. If you're paying £21 a month for a mobile handset, you need to get something cheaper.

Making packed lunches would be cheaper than school dinners,

National_Debtline

beth1611 wrote: »

also I bank with Barclays, should I be looking at opening a new account so they can't access my funds towards my 2 debts with them? If so, any advice on who is a good bank to move to?

Hi Beth and welcome to the forum.


Yes, I strongly recommend that you open a basic account elsewhere to ensure that the funds remain under your sole control. Any bank you have no debt with and that has a conveniently situated branch (if needed) will do. This guide may help:


https://www.nationaldebtline.org/EW/factsheets/Pages/basicbankaccounts/openingabasicbankaccount.aspx


Dennis
@natdebtline

beth1611

liveyoung wrote: »

If you have a £147 surplus each month, where have the debts come from? It's important to understand why you go into debt in the first place.

If all the debts are in your name, what about your husband? Is he aware of your debt? Is he able to help you reduce your debts?

With a quick look, Sky is a luxury - get rid of that straight away. What is the after school club for? It is a big chunk of money which could be going to repay your debts. If you're paying £21 a month for a mobile handset, you need to get something cheaper.

Making packed lunches would be cheaper than school dinners,

The after school club is childcare for my son while we're at work- he has school dinners because there isn't time in the evenings to give him a hot meal after we all get on before he has to go to bed.
I can't switch my handset or cancel sky as I'm under contract with both and it would cost more to get out of that.
My husband knows about the loan. I took that out to consolidate other debts. I was earning more money at the time, we then had our second child, my husband started suffering from anxiety and depression and I couldn't return to my old job because he wasn't well enough to look after the children on his own.
I now earn £1200 a month less than I was.

The credit card debts have arisen from me not having enough coming in to cover the loan repayment without going overdrawn each month so I've been using those to supplement my income.
My husband doesn't know about the credit cards because he's not well enough to handle the situation.

National_Debtline

On the broader subject of your budget, I don't think it's that unusual that you and your partner organise your household finances the way you do.


Obviously, it helps the person at Citizens Advice understand things more clearly if they can see everything that comes in and goes out of the household, as they can then be sure that what you pay towards bills is your fair share and nothing more. Giving details of your partner's income and outgoings would not make him liable for your debts or draw him in in any way; it is just a matter of being able to show creditors that everything is transparent.


I am curious to hear exactly how this "solvency" clause in your tenancy agreement reads, if you can reproduce it here. It is relatively unusual for landlords to insert such clauses, let alone enforce them if they are receiving their rent payments in regular fashion. Is this a private landlord or social housing provider?


Dennis
@natdebtline

beth1611

Hi Dennis- I've just checked and actually bankruptcy is no longer on my rental agreement.
It certainly was on our first tenancy, maybe as an initial condition of rental and I had assumed it was still part of the terms but it isn't.

National_Debtline

beth1611 wrote: »

Hi Dennis- I've just checked and actually bankruptcy is no longer on my rental agreement.
It certainly was on our first tenancy, maybe as an initial condition of rental and I had assumed it was still part of the terms but it isn't.

Thanks for clarifying that Beth. Now that the threat of eviction does not appear to apply, are you aware of any other factors that would make insolvency an unsafe choice for you?


Dennis
@natdebtline

beth1611

I don't think so, I'm a travel agent so shouldn't affect my job. Other than the knock to my credit file I can't think of anything.
I would prefer to pay the money back if possible, it is my responsibility after all.

beth1611

Also, I don't have the money to go bankrupt. I have no savings

sourcrates

beth1611 wrote: »

Also, I don't have the money to go bankrupt. I have no savings

Things are changing in April with regard to Bankrupcy.

Amongst the changes taking place is the option to pay the fees monthly, after which you can submit your application.

Details here :

http://www.stepchange.org/Existingclients/Bankruptcyclients/Bankruptcychanges.aspx