Possible debt advice

Gavin78

My wife is on the verge of possibly losing her job (gross misconduct) if found guilty

If she loses her job it will put us about 25k in debt

£207 on a catalogue

£5200 across 3 credit cards

and an unsecured loan from Zopa for about 13.5k (with interest 19k) over 5 years and only just clearing the first year now.

My wage is around £1250/£1300 a month after tax and there is no way can I pay all the debts off this and still maintain (rent, tax and water rates) as well as utility bills plus.

Looking for some advice as to where I would start in this situation should it arise in the next month or so.

Been living a bit beyond our means hence the debt which was ok to pay while the wife was working as could make the payments and we lived off her wage

thanks

sourcrates

Hi,

If, or when it happens, she'll just have to make token payments until she finds work again.
If she writes explaining the situation, that will help.

The creditor will just have to lump it, or sell on the debt.

It will depend how long it is till she finds a new job.

They can't have what you haven't got.

Pixie5740

Probably the best place to start is a statement of affairs. Get your last 12 months bank statements and work out where your money is going. Just seeing it in black & white will give you a good indication of what you can cut down on.

http://www.stoozing.com/calculator/soa.php

Whilst your wife is still working is there any chance of shifting some of that debt to 0% credit card? That would help take the sting out of the debts.

If the worst does happen and your wife does lose her job and you just can't make ends meet then get in contact with one of the debt charities; National Debtline, Step Change or CAP UK.

andyfromotley

As soon as she loses her job you need to contact Stepchange, National Debtline or Christians against poverty who will be able to advise you of the best way forward. (they are free, NEVER pay for debt advice)
She needs to start looking for another job now.
You need to reign in your spending as clearly your levels of debt are high and as you say you have been living beyond your means.

Gavin78

Thanks for the Advice guys, I've already got 2 of the cards on 0% finance. so I could probably make the min payment on 2 of them maybe even push to 3 of them.

My biggest concern is the loan as this is £330 a month while I haven't sat down and and worked out our incoming and out goings I will do this once wife has had her HR meeting on the 18th April these will decide if it goes to a hearing

poppasmurf_bewdley

Gavin78 wrote: »

Thanks for the Advice guys, I've already got 2 of the cards on 0% finance. so I could probably make the min payment on 2 of them maybe even push to 3 of them.

My biggest concern is the loan as this is £330 a month while I haven't sat down and and worked out our incoming and out goings I will do this once wife has had her HR meeting on the 18th April these will decide if it goes to a hearing

Given the state of your finances, don't you think you should be doing this now?

Even if she isn't given the push in April, something else could happen to put you in the same position some time in the future.

You have no plan in place for dealing with any emergency, should it arise (in common with 50% of the British population}.

HappyMJ

Gavin78 wrote: »

My wife is on the verge of possibly losing her job (gross misconduct) if found guilty

If she loses her job it will put us about 25k in debt

£207 on a catalogue

£5200 across 3 credit cards

and an unsecured loan from Zopa for about 13.5k (with interest 19k) over 5 years and only just clearing the first year now.

My wage is around £1250/£1300 a month after tax and there is no way can I pay all the debts off this and still maintain (rent, tax and water rates) as well as utility bills plus.

Looking for some advice as to where I would start in this situation should it arise in the next month or so.

Been living a bit beyond our means hence the debt which was ok to pay while the wife was working as could make the payments and we lived off her wage

thanks

Would she be entitled to contributions based JSA?

Although there is a gross misconduct issue sanctions are not always applied depending on the reason.

Whose name is the debt in? You would be responsible for debts in your name and joint debts. You don't have to pay debts in her sole name.

Gavin78

poppasmurf_bewdley wrote: »

Given the state of your finances, don't you think you should be doing this now?

Even if she isn't given the push in April, something else could happen to put you in the same position some time in the future.

You have no plan in place for dealing with any emergency, should it arise (in common with 50% of the British population}.

I had already put some things in place hence the 0% finance cards so I can get a break from them just paying the min 2 of the cards have 0% for 2-3 years

My daughter attends nursery which is the costly thing we have at around £600 a month give or take £100 difference some months.

providing my wife was still in work when my daughter reaches 3 end of this year I would have been about £500 a month better off but this was only if both of us were working so if wife goes daughter will have to come out of nursery which wont make a difference as we wont have the wifes income

Gavin78

HappyMJ wrote: »

Would she be entitled to contributions based JSA?

Although there is a gross misconduct issue sanctions are not always applied depending on the reason.

Whose name is the debt in? You would be responsible for debts in your name and joint debts. You don't have to pay debts in her sole name.

Unfortunately they are all in my name everyone of them.

I'm not sure about JSA I guess they would look into it but with me working I think she can only claim for 3 months anyway after that she gets nothing and I earn too much for tax credits so will just be my wage.

I'm going to sit down with the wife next week and start make preparations on the off chance she goes.

I've been advised against bankruptcy in this situation? saying it wouldn't be good for me as I lose control of my bank account etc

National_Debtline

Hi Gavin


Impossible to say whether bankruptcy would be appropriate at this stage, we simply don't know enough. I wouldn't let the effect on your bank account be the determining factor though - that is relatively minor and temporary. What's more crucial is whether bankruptcy would put any assets you own at risk, and whether your own job could be compromised in any way. Do you own your home or rent it? Anything else of significant value i.e. vehicles, savings etc.? Do you have any reason to believe your job would be affected by insolvency? These are the sort of questions you would need to be able to answer. Above all else, there is no case for rushing down any particular route.


In the meantime, though, your more immediate priority should be putting together that list of income and outgoings so you can measure the potential impact of your wife's dismissal, and taking steps to reduce or outright stop any non-essential payments if that becomes unavoidable.


On the subject of Jobseekers Allowance payments based on your wife's National Insurance contributions, these can be paid for up to six months before your income is taken into account.


Dennis
@natdebtline

Gavin78

Thanks for getting in touch Dennis,

I work for the NHS has a nursing assistant, house is council, I don't have any savings and the only things in the house are general things like tv, laptop, usual stuff nothing of any value really and only something bailiffs would take did it ever get that far down the route.

We do have a car though 07 about the only thing of value really and it wouldn't touch the debt if sold. in saying that OH uses it a lot for sick parents, special needs child and our 2 year old. but I guess they wouldn't even take that into account anyway.