Help please I don't know what to do.

Kirstevans80

Hi All,
I really need you help. Since covid as many others we have been struggling financially. Will try to cut long story short if possible.

18 months ago I became disabled and my partner had to quit work to become my carer. I have been able to still work full time which I'm so grateful for. However losing my partners wage has meant we are really struggling financially.

Have spoken to step change who have been great. After living costs (basic costs) we are -£113/month before debt payments.

I owe £23,000 approx. £11500 of which is 3 guarantor loans. My partner is one guarantor and my landlord is the other. 
My partner owes around £5500. No secure loans or guarantor loans.

We entered into breathing space to give us time to find best solution for us. This comes to an end on 9th June. We are receiving texts from creditors already.

Options step change have suggested are payment suspension for me and DRO for my partner.

I have previously asked my creditors for payment suspension in the past and all said they can do it for a max of 60 days. So not sure how much help that is going to be to me. It says DRO not the recommended for me. We were hoping it would be.

Our situation is not going to improve as unfortunately I am going to need a major operation asap ( could be 2 yrs wait on nhs) so other half is unable to return to work until after this. we were hoping the op would be much sooner. 

So couple of questions. 
- I dont know what to do. DRO seems the only solution that will truly help us. But I know because of the guarantor loans this would cause issue with landlord and would mean we could become homeless. And with my health at the moment this would be devastating. Only hope I have is I have raised a dispute with F.S.O after reading and following the MSE guide on mis-sold guarantor loans and hope the guarantors will be released.  If that is not upheld I truly don't know what to do.

My partner is much more straight forward. He is happy to do a DRO.But how does he stand in regard to being guarantor on my loan??? Does he add this to his debts even though he technically is not liable until they make him liable following my difficulty to make payments.

I'm so worried an anxious for the 9th to come along it is making me physically and mentally il. So any advice you can give I would really appreciate it.

Thank you x

fatbelly

Stepchange don't do DROs so take their no-DRO recommendation with a pinch of salt. Is there any reason for you not to have one apart from needing to live on credit?

Which brings me to the more important point. Your budget shows negative £113. It needs to at least balance

If you post a statement of affairs on debt free wannabe, we will try to help

https://www.lemonfool.co.uk/financecalculators/soa.php

Ps. The whole point of Breathing Space is to make debt appear more scary than it really is.

If you need a DRO, you go to Money Wellness


Stepchange need to take a good look at themselves

sourcrates

The real issue is going to be the Landlord, as they will chase him/her for the debt they acted as guarantor for in your name.

Who is guarantor for loan number 3?

They can`t take what you/your partner doesn't have, so can you find somewhere else to live?

That would solve the problem, you don`t need a debt solution, just new living arrangements.

Kirstevans80

Ty @fatbelly  will do that asap. 

@sourcrates I do not have a 3rd guarantor loan. The 2 I had were student finance loans through future finance ltd who have now gone bust. Yes I am completely aware if I do a DRO the landlord could/ would be chased. That is my issue. But I honestly do not see any better option. 

Not as easy to get somewhere else to live. Rent prices are so expensive at the moment we would be in more financial difficulty. Plus most rental agency's would do credit checks and i have a poor rating at the moment, plus I do not have the upfront costs so finding somewhere else to live again not an option. Feel completely stuck at the moment.

Not sure this comment was helpful "That would solve the problem, you don`t need a debt solution, just new living arrangements."

Looking for some advice not judgement a
Or unhelpful comments.

Kirstevans80

@fatbelly here we go. 

FYI I have a mobility car. Hence no assets.

Plus haven't got a clue on the current Apr.

Hopefully you may be able to help. Or as I thought when filling this in....... oh s@*t !

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary	Amount(£)
Total monthly income	2,464
Monthly expenses (incl. HP & secured loans)	2,653.19
Available for debt repayments	-189.19
UNsecured debt repayments	928
Amount short for making debt repayments	-1,117.19

Personal Balance Sheet Summary	Amount(£)
Total Assets (things you own)	0
Total Secured & HP Debt	-0
Total Unsecured Debt	-24,554.94
Net Assets	-24,554.94

Household Information

Number of adults in household	2
Number of children in household	0
Number of cars owned	0

Income, Expense, Debt & Asset Details

Income	Amount(£)
Monthly income after tax	1840
Partners monthly income	0
Benefits	624
Other income	0
Total monthly income	2464

Expenses	Amount(£)
Mortgage	0
Secured/HP loan payments	0
Rent	725
Management charge (leasehold property)	0
Council tax	155
Electricity	110
Gas	170
Oil	0
Water Rates	40
Telephone (land line)	24
Mobile phone	110
TV Licence	14.2
Satellite/Cable TV	45
Internet services	32.99
Groceries etc.	330
Clothing	10
Petrol/diesel	250
Road tax	0
Car Insurance	0
Car maintenance (including MOT)	0
Car Parking	40
Other travel	0
Childcare/nursery	0
Other child related expenses	0
Medical (prescriptions, dentists, opticians etc.)	198
Pet Insurance/Vet bills	85
Buildings Insurance	0
Contents Insurance	0
Life Assurance	0
Other Insurance	0
Presents (birthday, christmas etc.)	15
Haircuts	120
Entertainment	0
Holiday	0
Emergency Fund	0
Tobacco 1 pouch per week	155
Gym	24
Total monthly expenses	2653.19

Secured & HP Debt Description	Debt(£)	Monthly(£)	APR(%)
Mortgage	0	(0)	0
Secured & HP Debt totals	0	-	-

Unsecured Debt Description	Debt(£)	Monthly(£)	APR(%)
Guarantor loan 1	6640	90	0
Guarantor loan 2	5080	121	0
Newday CC	1650	78	0
Lowells catalogue 2	2100	100	0
Smart parking limited	110	0	0
Lowells catalogue	1601	81	0
PRA Group	400	12	0
Vodafone	2300	100	0
Lowells 1 credit card	743	23	0
Water arrears	220	22	0
Utility arrears	615.4	100	0
Council tax	660	80	0
Intrum Uk	2435.54	121	0
Unsecured Debt totals	24554.94	928	-

Asset Description	Value (£)
Cash	0
House Value (Gross)	0
Shares and bonds	0
Car(s)	0
Other assets (e.g. endowments, jewellery etc)	0
Total Assets	0

Comments on the results

sourcrates

Kirstevans80 said:

Ty @fatbelly  will do that asap. 

@sourcrates I do not have a 3rd guarantor loan. The 2 I had were student finance loans through future finance ltd who have now gone bust. Yes I am completely aware if I do a DRO the landlord could/ would be chased. That is my issue. But I honestly do not see any better option. 

Not as easy to get somewhere else to live. Rent prices are so expensive at the moment we would be in more financial difficulty. Plus most rental agency's would do credit checks and i have a poor rating at the moment, plus I do not have the upfront costs so finding somewhere else to live again not an option. Feel completely stuck at the moment.

Not sure this comment was helpful "That would solve the problem, you don`t need a debt solution, just new living arrangements."

Looking for some advice not judgement a
Or unhelpful comments.

No, you mis-understand me, I don`t judge, ever, and always "try" to be helpful, I also try to look at things from a different angle, doesn't matter how much you owe, if you haven`t got the money, or assets to realise, then the creditors are just out of luck, there options for collecting the debts are extremely limited.

"I owe £23,000 approx. £11500 of which is 3 guarantor loans". - Your post says 3 loans?

The fact your landlord is guarantor for your loan, was always going to be an issue should you fail to pay it, now if moving is not an option, then the debt the landlord is guarantor for just became an essential debt that you should keep paying above the rest.

I would suggest for now you concentrate on that loan, and the CT arrears, the utility debts if you can manage it, the rest tell them you can`t pay anything.

fatbelly

You would get better response on the dfw board.

You are £189 short of a balanced budget. The areas I think you need to look at are

Benefits 624 

That sounds like PIP/CA. Are you getting any UC or council tax help from the council?

Mobile phone 110
TV 45
Groceries 330
Petrol 250
Medical 198
Haircuts 120
Tobacco 155

This is just highlighting areas where some costs might be shaved off in order to bridge the gap

Ps. Councils, water companies and utilities all have schemes to give grants to those in arrears. These are usually buried deep on their websites

Kirstevans80

@sourcrates I did misunderstand and I do apologise. What you have said does make complete sense. And again apologise its was a typo only have 2 guarantor loans.

@fatbelly what is DFW??

 yes 624 is my PIP and partners carers allowance. We have tried all avenues for extra support with council, DWP and because of my wage we do not qualify for any additional help/benefits (I've tried from all angles)

Mobile phone 110 - can't cancel without incurring early termination charge
TV 45 - also in contract for another yr
Groceries 330- is £75/wk alot for 2 adults and a dog? Could bring this down to £60 at a push
Petrol 250- is what it is, unfortunately have this cost for work.
Medical 198 - essential treatment care needs for my disability. Plus opticians included for both of us.
Haircuts 120 - oops this meant to be averages around 12/month.
Tobacco 155 - to be fair to my partner he has reduced this from 2 pouches to 1 per week. Pouches are nearly £40.

Any advice greatly appreciated
 I have tried the £1 token payment and they all say minimum of £5-£10 per month is the least they can do.

I have a tough year or two ahead of me health wise so really want to sort a solution out to at least take this stress away.

I appreciate both of you replying TY

fatbelly

DFW is debt free wannabe. The bankruptcy board tends to be a bit technical and fewer of us post here.

I just put your figures into the Turn2us calculator. It showed UC at £13 pw and this would help in applying for grants from Council, Water and Energy suppliers

Kirstevans80

@fatbelly ty will post on there also.

That's interesting when I done turn2us it was zero. But that was before the new tax year will have another look x

fatbelly

Yes. If you were borderline last year it's worth another look.

Also consider higher pension contributions to see if that brings you into UC.

And would you qualify for the LCW or LCWRA components of UC?