Advise sought please

System

This discussion was created from comments split from: Struggling with debt? Ask a stepchange debt adviser a question.

worried269

Could anyone please advise, I have 12 thousand debt of loan and credit cards , 3 years ago my husband collapsed and due to on going health problems will never work again I also no longer work as I am now his carer, I have been unaw to pay anything off loan  or card since may 2022 and can see no way to ever be able to pay, we live off husbands pension, attendance allowance and my carers allowance, debt was with lloyds and mbna then last year went to morecroft and is now with lowell, any advise appreciated 

fatbelly

You haven't paid anything for 3 years. Have you been writing to any of them? If not, then you are half-way to these being statute barred.

So one strategy would just be to continue as you are and se if you can get to the 6-year point without a court claim.

Another would be to engage and ask for write-offs

Another would be to see if you were suited to an insolvency solution like a DRO.

If you could supply a bit more detail that would help. There's a template here

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

I take it that you don't bank with Lloyds/Halifax/tsb these days?

enthusiasticsaver

As they are defaulted and you are not likely to be able to repay them I suggest that you do nothing and forget about them.  Obviously this will affect your credit rating but as  you are on a reduced income borrowing is presumably not something you want to consider anyway. Do you have a mortgage still or have any assets? If your main bank account is with Lloyds/TSB group I would move it. 

iceandfire1

worried269 said:

Could anyone please advise, I have 12 thousand debt of loan and credit cards , 3 years ago my husband collapsed and due to on going health problems will never work again I also no longer work as I am now his carer, I have been unaw to pay anything off loan  or card since may 2022 and can see no way to ever be able to pay, we live off husbands pension, attendance allowance and my carers allowance, debt was with lloyds and mbna then last year went to morecroft and is now with lowell, any advise appreciated 

Sorry to hear about your husband. Did you get a CCJ? 

fatbelly

There's no mention of court action. If it were to happen, it would be most likely in year 5. The OP should be aware that you can ignore most debt correspondence as empty threats.

However, if you get a letter before claim, the sort that comes with a reply form and 30-day limit, then you do need to respond.

kimwp

Are you making sure you are getting ni credits for your pension (if you need them for the full state pension)