Desperate advice/help needed

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 2 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. (DRO through money wellness)

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, as moving is not an option (prices of rentals, no deposit upfront costs money available, lack of properties) 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

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 (PIP & carers allowance)

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 f 40

Telephone (land line) £24

Mobile phone £110 - 2 mobile in contract

TV Licence £14.2

Satellite/Cable TV £45

Internet services £32.99

Groceries etc. £330 (£55-£75/week)

Clothing £10

Petrol/diesel £250 - work travel

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 (essential due to disability and care costs)

Pet Insurance/Vet bills £85

Buildings Insurance 0

Contents Insurance 0

Life Assurance 0

Other Insurance 0

Presents (birthday, christmas etc.) £15

Haircuts £12

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(£)

Guarantor loan 1 £6640 cost/mnth £90 0

Guarantor loan 2 -£5080 -

Newday CC - £ 1650

Lowells catalogue 2 -£ 2100

Smart parking limited -£110

Lowells catalogue- £1601

PRA Group -£ 400

Vodafone -£ 2300

Lowells 1 credit card - £743

Water arrears - £220

Utility arrears -£615.4

Council tax -£660

Intrum Uk -£2435.54

Unsecured Debt totals 24554.94 92

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

I have a motability car hence £0 assets

McKneff

I am confused but you work full time .
 How is your carer caring for you. 
Why doesn't he work while you are working 

What is he doing while you are at work 99

Ms_Chocaholic

Are you claiming disabilities benefits?

Kirstevans80

@McKneff so I work full time predominantly from home. And on days I have to travel to work place he assists me when I have to travel. Disabled people can still work full time. 

@Ms_Chocaholic Yes I'm sure I noted that on my post. I claim PIP mobility and daily living parts.

warby68

Hi fuel costs of £250 pm suggest quite a lot of travel for work even though you predominantly work from home.

Have you explored all options for flexible working with your employer and are any expenses due or is it just a long commute?

The tobacco is a hefty one relative to income but I know that's tough. 

You do need to get your budget pre-debt to balance though to prevent escalation and at least stand still. Debt is a lot less scary when it stops going up even if you aren't able to reduce it much yet.

Could your partner do any side gigs such as surveys or an odd delivery shift within the limits of carer's allowance for a small boost?

Grumpelstiltskin

OPs original thread is here.

Help please I don't know what to do. — MoneySavingExpert Forum

Kirstevans80

@Warby68 yep fuel costs are a nightmare this is slightly lower now its got warmer.
I completely agree the travel cost are ridiculous. I work 2 days on site at different hospitals running clinics, and the commute is a long one. If I could bring this down I would love to.
He is looking at part time work which he can slot around my needs but so far nothing. 
Whilst I would love the other half to stop smoking he has in all honesty cut down. But one pouch is just under £40. He is trying. 

We are trying everything. We are not sitting back and just letting this spiral. We have been dealt a s@*t hand. I was fully able and independant before this injury even training for a triathlon. But since it happened it has just turned our world/finances upside down.
My partner had worked since he was 15, along with a semi- profrssional rugby career. So he is finding it hard to adjust. He would love to work but finding it really hard to find a part time job that will fit around my care needs.

I hope someone can give advice on a solution to this. We have explored benefits/grants/part time work but at the mo come up with zero. So we literally at the end of the road it feels x

RAS

It's not part-time income as such but do look at the Boost your Income forum here. If your partner can do surveys and the like, maybe a bit of on-line sales or a car boot that's one help.

The other is if you are walking distance from shops, can he check for yellow stickered goods, deals and menu plan? You might not save a lot but could eat better for fractionally less? If you have freezer space, portion a joint or a whole chicken and freeze most, even if it can't be refrozen, it can be cooked and frozen. Make enough for 2 or three meals and freeze those you don't cook. Or turn supermarket veg into soup? Less cooking, better eating and less money?

warby68

Has he (or you) tried Prolific for studies/surveys?

It might be a case of shaving your spending catergories by small increments to make the budget neutral before debt. They do add up.  If partner could stretch a pouch to 8 days rather than 7 that's over £240 a year. You're in a very tight spot so it does need doing probably as a priority as the right debt solution for you and the bigger picture might take time to become clear. There are solutions but not miracles and your situation with your debt being guaranteed by your landlord is quite a complication.

Once you have a small surplus, some other debt solutions open up and with what I read are reasonable prospects of your circumstances improving after your op, the two together might support a holding/token payment position with lenders for an initial period (although I'm not sure what levels of forebearance the guarantee lenders will offer before they call on their guarantors).

Stateofart

Kirstevans80 said:

 Disabled people can still work full time. 

I don't think they are disputing that. If you can work full-time and occasionally need help to get into the office, why isn't your partner working when they can.

Kirstevans80

@Stateofart it's honestly not for the lack of trying. He has applied for loads of part-time jobs he either does not hear back or they are not flexible hours that can work with my schedule. It's a nightmare. I honestly feel awful as if I didn't have this injury we wouldn't be where we are.