We can't pay our credit cards this month. What should I do? Please help.

hetherdrinkstea

In regards to benefits - we are a little bit in limbo at the moment. Two months ago husbands wage was twice that in the SOA but due to illness it is massively reduced and in two weeks we think they will let him go. So we can't apply for other benefits until then I think. I have applied for housing benefit today as that is income dependant. We need to wait until he is officially jobless before we can apply for ESA and anything else. I am not sure about the child tax credits. Again I think I can only get it increased after husband is jobless.

hetherdrinkstea

In regards increasing income - I have worked and can work but at the moment my husband is very ill I spend a lot of time caring for him. He has a life limiting condition and has experienced some marked deterioration in his physical abilities over the last six months. His ongoing health situation will not improve much and it is why his work are dismissing him.

FatVonD

You could try posting also on the benefits board here where they may be able to help you more with what you are entitled to.

Geoff1963

As a VERY short term measure, is there enough spare credit on the card to take a cash withdrawal ?

sourcrates

Geoff1963 wrote: »

As a VERY short term measure, is there enough spare credit on the card to take a cash withdrawal ?

If there is, use it for the Bankruptcy fee.

debtisnotme

hetherdrinkstea wrote: »

We need to wait until he is officially jobless before we can apply for ESA and anything else.

You should ring tax credits immediately about the reduction in income. It is not true that you need to be unemployed to receive ESA, can i suggest you post on the Benefits board for further info, I don't know enough to advise specifically.

Puddylove

Regarding Data Protection, you can get your husband to write to the creditors giving your permission to act on his behalf.

fatbelly

There's some very good advice on this thread.

Some random thoughts from me:

The application for HB should also be for Council Tax Support. If you check your council's website for Discretionary Housing Payments, that will top up any shortfall in Housing Benefit for a short period. There may also be something like an Exceptional Relief fund to do the same for Council Tax Support, overcoming any shortfall due to your council's Council Tax Support regime.

Check if/when your husband will be able to apply for PIP. This may be essential if you get hit with the Benefit Cap. The other thing that would overcome that is one of you (which means you) doing enough working hours to get Working Tax Credit.

What are you going to do about a car when you lose the company car?

How do the debts divide between you and him? If you each take full liability for the joint debts, how much do each of you owe?

Your soa needs something for clothes. For 6 of you, that's going to be £100 per month (£4 per person per week).

Sourcrates suggestion has merit - the fee can stay paid on 2 bk applications until the time is right to submit it. If you change your mind it can be refunded to the card. You are not supposed to pay on your own card but the official receiver seems to understand the difficulties of a couple paying £680 x 2 in bankruptcy fees.

hetherdrinkstea

Thanks for all the advice.

I will post on the benefits board. Our housing benefit application also includes council tax relief automatically. According to the council website we will be allocated the full amount of housing benefit which will cover our rent and council tax benefit will leave us five pound per month to pay. We have applied for PIP over two weeks ago.

We have some space on one creidt card which would cover bankruptcy fees for one of us. We could borrow the money from my inlaws if necessary.

In regards to the split of debt - husband has £29000 and I have approx £6000.

I m going to use some of the credit card to buy a few bits of school uniform and food for this month.

I will also contact tax credits on Monday.

Sharon87

A few smaller things no one's mention £95 for electricity a month is A LOT. as well as £600 on groceries.

I would suggest swapping suppliers if possible. If your £95 is because of a debt on the account, then the debt needs to be paid before you can switch providers, but you can switch to their cheaper tariffs.

£600 on groceries - I would suggest watching 'Eat Well For Less' if it's still on iplayer, there's some really good tips about spending less on food. I would get this right down, even if it means buying the basics version of everything!

Also can you get cheaper mobile tariffs? If you're out of contract shop around, GiffGaff is usually good value as well as the Supermarket sims.

Bankruptcy may be the option for the debt, but you need to cut down your everyday costs too or you'll find yourself in the same situation again. The £60 medical costs - what's this for, I know your husband is ill, but can this be reduced by any means? If you do end up claiming income based benefits then you can get prescriptions for free.