Mental health crisis breathing space

SashaD

Hi there
I've got debts of around 6k 
I got into debt around early 2000s whilst living in London when I had first serious mental health breakdown.
In 2022 and 2023 I relapsed and ending up in hospital a few times and had to give up my job and ended up moving into supported accomodation. I'm a single man aged 50 and I want to move back into my own place instead of having to share bathroom kitchen etc.
With this in mind I contacted a debt adviser last year who setup a mental health crisis breathing space for me.
This means minimal contact from my creditors no hassle phonecalls or demanding letters.
I have a personal loan owing around 3600 which I'm paying back at 198 a month, then I have an payment plan with CABOT debt collection paying 50 a month for an outstanding debt of 2200.
I have 4500 to 5k in my current account which I was going to use to move to a new place moving costs and all things I'd need to buy.
At the moment I can afford to pay my monthly bills, however like a lot of people I'm worried about pending benefits cuts as I don't work due to severe and enduring mental health issues.
The money I owe is really concerning me. I could afford to pay off the personal loan early and that would mean I would have an extra 198 per month, however my debt adviser advised at the time to not make payments to the debt until I'd actually found my own place and moved.
However once the benefit cuts happen I won't be able to afford my monthly repayment plan so I'm thinking as I have the money now why don't I pay it off early.

RAS

Have you considered asking for a write off on health grounds? If you are on benefits, it's possible they'd agree.

ManyWays

i think you need that money for moving and buying anything needed for your new place. If your benefits are cut, you can then reduce the payments to the loan and to Cabot, or ask for a write off at that point

tigergambit

SashaD said:

Hi there
I've got debts of around 6k 
I got into debt around early 2000s whilst living in London when I had first serious mental health breakdown.
In 2022 and 2023 I relapsed and ending up in hospital a few times and had to give up my job and ended up moving into supported accomodation. I'm a single man aged 50 and I want to move back into my own place instead of having to share bathroom kitchen etc.
With this in mind I contacted a debt adviser last year who setup a mental health crisis breathing space for me.
This means minimal contact from my creditors no hassle phonecalls or demanding letters.
I have a personal loan owing around 3600 which I'm paying back at 198 a month, then I have an payment plan with CABOT debt collection paying 50 a month for an outstanding debt of 2200.
I have 4500 to 5k in my current account which I was going to use to move to a new place moving costs and all things I'd need to buy.
At the moment I can afford to pay my monthly bills, however like a lot of people I'm worried about pending benefits cuts as I don't work due to severe and enduring mental health issues.
The money I owe is really concerning me. I could afford to pay off the personal loan early and that would mean I would have an extra 198 per month, however my debt adviser advised at the time to not make payments to the debt until I'd actually found my own place and moved.
However once the benefit cuts happen I won't be able to afford my monthly repayment plan so I'm thinking as I have the money now why don't I pay it off early.

Hi Sasha, sorry to hear of your ongoing MH struggle. As a fellow sufferer I think you need to take a step back. Your first port of call should be your doctor/MH practitioner. They will be able to help you gain perspective and will also be able to help you follow RAS's suggestion to apply for a write off. 

I understand your concern over your debt but you need your nest egg to go set up on your own, so please don't think of paying off as yet. If you are liable for the cuts you may not be able to afford to move on if you did that. 

ManyWays

help you follow RAS's suggestion to apply for a write off. 
I agree the doctor may be able to help at some point in the future with write off requests, not now.
You cant sensibly ask for one when you have the money in the bank to clear the debts. 
So sorting out your housing is top priority, and then look at write-offs, also the case for them will be more compelling when you can pay less because of new housing costs and/or benefit reductions.

SashaD

Thanks everyone for kind words and advice
I think I will hold off on paying back my loan for now as suggested and keep my money for moving to a new place.
Might think about write off suggestion but I feel I should pay my debts off if I can, doesn't sit comfortably with me asking for write off.
Thanks.

PurpleMouse5

You have options - once you move into your new place and know what your money situation is, you can look whether write offs are the right option, or maybe a debt management plan where you just pay back the amount you can afford each month not the full monthly repayment.