Teetering on the brink

SuzeQStan

Hey EB - been thinking about you and just a couple thoughts below 

I know you said you would pay back your bro and the highest interest bearing credit cards if you got the leaving payment, but wondered if you could possibly reduce to the benefit threshold you mention by repaying some mortgage instead. What I don’t know is if this could be viewed as deprivation of assets in certain circumstances - hoping someone in the know on forum?

Also was thinking if you had more equity in your home you would therefore have ‘something to show’ for the money from your employment if it comes through. And obviously reduce your monthly outlay. And the mortgage is an existing essential to pay debt so it makes sense to a lay person like me.  Maybe something to look into?

Additionally if there is any groundwork/evidence you can put in place (with your gp?) to show that despite ‘voluntarily’ leaving work, you had no choice but to do so through ill health.  And as you are now struggling with 1/2 pay is it time anyway to stop credit card payments possibly so you can put that money toward essentials rather than credit debt?

badmemory

If you are going to be seriously short of cash, have you thought of paying your brother & the rest off the mortgage & stop paying the rest.  So you won't have access to a credit card & your credit report will not look good, but seriously will that matter.

EatingBeans

Thanks. Honestly, it wouldn’t even occur to me to use the payout to pay off some of the mortgage. To me the logical thing is to pay off the highest interest rate so that the credit card balances reduce, I stop paying a ridiculous amount in interest and I have more change to get a new 0% BT offer to make it easier to pay the rest. 

Can I ask why the mortgage sounds like a better option? What am I missing? 🤔

Paying my brother off is non negotiable in my mind as there is no way I am not paying him back even if they do slap me with deprivation of assets or whatever. If there is any chance at all that I am not going to be able to work then it is number one priority to give him his money back asap no matter how poor I get. 

Cherryfudge

I would say the mortgage is a roof over your head, and necessarily a lot of money owed, so if you can make it more yours, that's in your favour. Accommodation, and less going out in interest.

The debts to prioritise are those which, if unpaid, mean you lose something. It's grim but practical - accommodation, utilities, Council Tax. I can't remember at this time of night if there are others but you could get advice on that through one of the free debt support websites. Non-payment of (for instance) a store card or credit card is lower priority than your gas, electricity, mortgage or rent, Council Tax.

cafelady

Hi @EatingBeans. I’m sorry you’re having such a rough time. 

I wonder if you should put a post in the main debt-free board to see what advice you get on managing this situation?

daisy_1571

Eatingbeans   paying off the highest rates is definitely the best way to go...if you are managing to service all your debts.  If there's a chance you won't be able to pay all your debts you have to focus on the most important and as cherryfudge says your home could be lost if you default on a mortgage, your ongoing bills also important. 

You definitely need to go get help to sort out your unsecured debt, the longer you dont talk to the lenders the worse its getting in terms of interest.   Please think again about going to stepchange or citizens advice or any other of the free debt help agencies martin talks about.  You need better guidance than we can give about the order to tackle everything in with your change of circumstances.  They won't make you do anything,  but the advice they will give will be invaluable 

Dxxx

lucielle

Stepchange is with a call. I would make contact now, you would be given advice on the different scenarios. 

L

daisy_1571

Me again!  Still thinking about your situation- the advice is hard to give as we are talking about 2 or more scenarios 1 how you get through the next 4 months or so on half pay (I'm presuming the 3 months starts from when they confirm who is going under the scheme) 2 what to do with the lump sum if you get picked.

Short term- if you've agreed with your daughter she's not getting any of the £720 you've saved for her birthday - get that paid off one of the small ccs immediately.   That will mostly clear the fluid or aqua.   That might get you somewhere if you are hoping for a new 0% amount saving you interest almost immediately on the £720 paid off and any new 0% amount. 

OR use it to plug your gap from this months half pay.


As soon as you hear for definite and in writing that you will be going under this scheme I wonder if you can approach HR, the union or any other mediatory body that you have in your organisation to ask if your leaving date can exceptionally be made sooner ie waiving your right to 3 months paid notice.  Since it is unlikely you will be fit in the short term they might make an exception rather than have you on the payroll getting half pay but them not getting any work out you. 

Either that or they ask if they can pay you your three months notice payment in a lump sum sooner along with your other final payments.   In this way they get you off their books sooner, I think they pay less ni as they are paying pilon (pay in lieu of notice) instead of monthly wages and you don't have to get your half pay in dribs each month.  As I say, I can understand them wanting staff to come in and work their notice but it makes less financial sense to insist on this for somebody they are getting no actual work from.

Just things that have occurred, obviously there will be drawbacks to each that im sure im not aware of or thought about but maybe you can talk to someone at work/cab/stepchange etc about it all?

Dxxx

ellenvan

Team beans member post- trying to help.
Maybe post a revised picture of where you are up to, in terms of outgoings,income and amounts owed  with interest rates.
Essentially a new Soa .
. 
Also maybe give the figures for the leaving package?
We're all trying to help find you a solution.
If you don't want to or feel up to doing it just ignore this post.

badmemory

First secure the roof over your head then your utilities, everything else can take a hike.  As Cherryfudge put it so much more politely.  Do a statement of affairs based on what your future income will be.  Post that on here & see what they suggest.  Can someone post the link??