Had to give up work. Combine debts?

Johan_Kellar

Hi all. After 3 years of coping with my MS, love had to give up work due to the condition worsening & me no longer being able to cope with the work.

I have an RBS loan, overdraft & credit card.

I have 3 payments left of my 5 year loan (£291.87 per month), £798 balance on my credit card (£1000 limit) and a £1500 overdraft (currently living off that, £326 into it)

I'm awaiting to hear the outcome of a PIP & ESA application but that can take another few weeks. In the meantime, I'm due my next loan payment & credit card payment on 1st September but can't afford it.

I've applied for a debt consolidation loan but was rejected.

Is there any way RBS could combine my loan, overdraft & credit card debt into one amount and agree with me on an amount to pay each month which I could afford?

What will happen if I don't pay this loan repayment (and possibly the next, dependent when my award is processed)?

[Deleted User]

In a word no, but the good news is that your esa and pip may not take as long as you think, next step is to speak to your bank and keep them unto date

Pixie5740

Consolidating your debts isn't going to help. You could however write to RBS explaining your situation and offer them a token payment of £1 until your benefits have been sorted out and then agree a repayment plan with them.

Alternatively since your debts are less than £20k and you're on a low income a Debt Reielf Order might be the way to go. If you contact one of the debt charities (CAP UK, National Debtline and Step Change) they can discuss your options with you.

To be honest the consequences of not repaying unsecured debt are probably nowhere near as bad as you might be imagining. They can't get blood out a stone and your health needs to be your main focus now.

Johan_Kellar

RBS were no help at all. Half a hour doing an expenditure list only for them to say they can't help as I won't be returning to work.

Need to wait until tomorrow to try one of the other organisations. Are the ones listed above all available in Scotland?

Pixie5740

Step Change and National Debtline can give you debt advice if you live in Scotland.

enthusiasticsaver

Your debt is relatively low so I would tell RBS and your credit card company you cannot make your payments until you have sorted out your income situation. It is unsecured debt so there is little they can do initially and the stress will make your MS worse. Make sure they know your health situation. Speak to the MS Society and see if they have suggestions. Make sure you keep any money you do have for food and rent and utilities. The only problem you may have is if the loan is with RBS and your bank account is also with them they may take the loan payment anyway so increasing your overdraft. If they are with separate organisations there should not be a problem. Tell them you will either be making a token payment by phone or letter and reiterate your circumstances.

Pixie5740

Opening up a new current account outside the RBS Group and having any salary, benefits and other income paid in there instead would be a good shout if you're about to start defaulting.