Need some urgent advice for my aunty please

immoral_angeluk

Aww the poor thing. It's so sad... £4000 doesn't sound like a lot but it's all relative and makes you realise just how bad things can get if you're out of work.
I would advise her to write down a list of all her debts, what they are and who she owes money to. The contact them 1 by one explaining the situation and offer £1 a month until things improve. The citizens advice bureau can help her if she can't get online and they will help with will all the letters etc.
But first things first she needs to see a doctor about the suicidal thoughts. Health comes first.. the creditors will just have to wait until she feels strong enough to deal with it. I'm really glad she's told her husband though as now they can sort it out together.

scw1

Right, I have spoken to my sister who is currently with my aunty trying to sift through the unopened mail etc.

My aunty spoke to some of her creditors last week to see if they could come to some sort of arrangment but instead of offering what she can afford she let them decide how much she has to pay. She gets quite flustered on the phone and forgets what she wants to say.

So I am back home tonight so I intend to write letters to all of her creditors offering nominal payments. How long would you expect to wait to get a reply?

She owes £600 to Studio Cards and the account has been handed over to the Debt Management Company and they have insisted the minimum payment they will accept each month is £73. However the only income they have in the household is her £400 widows pension per month. The dont get any benefits as they are not entitled to them. As I said they are appealing this but obviously this is going to take some time so nothing that can happen in the short time. Can I ask Studio to take a nominal payment as she simply cannot afford the £73 per month.

Should she make these nominal payments whilst waiting for a reply rather than miss a payment.

Also she is over her overdraft (not by much I think about £40) but is this one of the first things that needs to be sorted? When her Pension goes in it will clear the overdraft but she uses it again to pay for everything else.

I have told them to do a budget sheet with income/expenditure - is this the right thing to do?

We are waiting for the CAB to ring her back to arrange to see someone but there is a waiting list so probably not until after xmas she has been told.

I have just given her Payplan and CCCS telephone numbers and she will try and ring them sometime today.

Sorry my questions are a bit muddled I am posting as my sister is ringing me!

Thanks again

fermi

It's normally best to keep making payments if you can, but they shouldn't be pressured into paying more than they can afford.

If that means token/nominal payments then so be it. Creditors who don't like that will have to 'lump' it in the short term, since they can't have money they don't have. But keeping nominal/token payments going if they can shows that you are making an effort and are not just ignoring them.

Providing a budget sheet with any offer/letter also helps creditors see that their circumstances are genuinely difficult, and can make them more likely to willingly accept the reduced payments.
An example budget planner is available on the NDL site if they don't have one to fill in already.

Downloadable by following links here: http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#5

CCCS and Payplan will give them some good advice, and should repeat much of what you have read here. Most importantly they are very familiar with helping people who have got themselves into these situations, and will reassure them that these problems can be sorted out.:)

PasturesNew

scw1 wrote: »

she is ashamed to be honest.

I am guessing that an aunty is older than you by a generation. And for all previous generations was DEEP SHAME!!

It's only become "normal" for people to have debt in the last 10-15 years. And it's only been the last 5 years or so that people have had massive amounts of debt and openly be in debt/using credit.

So it's a generational thing, the shame.

Can you get her to a PC to show her all the help and lovely people here? So she can SEE loads of people with MASSIVE debts - and see them coming out the other side.

£4000 is b**ger all in the bigger scheme of things.

Yes, the GP is a good idea too as she might be actually proper depressed. Especially if she's sat alone all day thinking about it.

I hope she gets sorted out.... getting to that stage must be a really black, dark and lonely place.

If you are posting her SOA, people can really get cracking on sorting her out so next year's something worth living for!

Good luck!

MissEyre

I agree that GP should be top of the list - this must be so overwhelming for your aunt, she is lucky to have you and your sister (and all of these guys!) to help out, and I'm sure you will get some great advice when you post her SOA, hugs to you all x

sammiboo

As Pasturesnew has said, £4,000 isnt a lot but if you are just on a pension/not earning then any amount of debt is a lot when you cant afford to pay it back.

I was in debt by over 15k to me that was loads and was more than i was earning in a year, others probably thought it was nothing.

It just shows how easy it is to get into debt these days. People throwing money at you and paying insane APR charges make it difficult to get yourself out of it.

SCW1 - I am sure your Anuty will be fine, its far better that she cries for help now before the debt got totally out of control.

Please let us know how things go

scw1

Thanks again, she is older and we all come from a family of keeping our problems to ourselves and I know only too well what mess that gets you into!

My sister has suggested going to the GP but whether she will go or if she will be honest is another thing. Might suggest one of us makes the appointment and goes with her so she can admit everything.

I will take my laptop down to her house tonight to show her all you guys and what you are saying. I think CCCS/Payplan may be the best way because they are on the end of the phone which she will always have access to should she need to speak to them about the debts if she has any more threatening phonecalls/letters.

I am off down there this evening so can sort out the letters etc. I think if we show her we are doing something and there is light at the end of the tunnel. I know £4,000 is hardly nothing but to her its an awful lot especially as she is not working so cannot meet alot of the minimum payments yet they still offer her more credit! Have told her I was £15,000 in debt but unlike her my husband had inheritance which I was very lucky to be able to use to pay off most of my debts with a few cutbacks so I feel like a bit of a cop out.

My sister is doing a SOA with her this afternoon so will post when I can and hopefully you can offer some further assistance. Thanks all!

churchrat

hi-- you are certainly doing all the right things and I wondered if your aunt could apply for Disabled Living Allowance? how bad was the stroke she had last year and do her"internal" problems affect her life? this is a benefit that is not affected by any other benefit or by how much you earn/save/owe. the cab will know about this and the gp will know if she is eligible
goodluck!

scw1

Hi all,

Well the debts are a lot worse than we first anticipated. Its around £17,000!

This is who she owes to

Capital one - £900.55
Citi Credit - £3201.49
Oxendale Debt company £6420.77
Simply be £916.10
Lombard Direct - £1888.20
MBNA £3662.42
Studio Cards £436.20

She also has had loans from Provident which she pays back £50 per week

Their only income between them is my uncles Job Seekers Allowance £194.40 per month and her pension £340.00 per month.

I dont know where to start!

Out of their monthly income of £534.00

They have

Gas _ £40 per month
Electric £40 per month
Phone £20 per month
Water Rates £35 per month
Food - whatever is left after paying something off the debts, hardly anything usually.

Re DLA, she went to the Benefits Agency a few weeks ago and they completed forms out for her but she isnt sure what she applied for but everything was refused. She has lodged an appeal.

Would writing to Providence asking for a nominal payment as they are currenlty taking £200 per month off her.

Is Bankruptcy an option?

Any help grateful.

She has an appointment with CAB in jan but I dont think it can wait. Am trying to get her to phone payplan or cccs but she doesnt like speaking on the phone. Can I do it for her?

jude47

Hi SCW1

I've been reading your thread and waiting (hoping) you'd put up an SOA for your aunty. As the debts are in the £17,000 region, she should certainly consider Bankruptcy. You've said she rents from the Council, has no assets, no car and is unlikely, realistically, to be able to return to work in the future. Add all that up and Bankruptcy looks like the solution, BUT she should definitely get advice from CCCS or Payplan. Speaking from personal experience, neither will judge her, all their staff are really well trained and are used to dealing with clients like your aunty who feel ashamed and low about their situation. They'll guide her through the entire thing, including helping to complete the forms if that turns out to be the best way forward.
CCCS definitely and Payplan I'm sure, will conduct a telephone appointment with a nominated person, so yes, you could definitely do it on your aunty's behalf. Ring them now!!

Wishing you & your aunty the very best - it could all be behind her very soon, all the stress and worry gone. And keep telling her, there's thousands of us out here, and there's no shame in having debts that get beyond you.

Chin up


Jude xx