Is it worth working while in debt? Need advice please

Maisiepaisie

I'm new to this forum so apologies if I've put this in the wrong place or if its been covered already but I can't find any information about it.

My question is, what happens regarding reduced debts when your income increases? I currently have £13,000 debt on credit cards and loans. I have an appointment with a CAB advisor next week but at the moment have been paying £1 per month on my debts after sending letters printed from the National debtline website. I'm confident that the CAB will sort it out for the companies to stop hassling me, however the problem is that I want to get a job. At the moment I am living on income support as I'm a single parent but would be better off in work if it wasn't for these debts. Once a payment plan has been established in my current situation and interest is frozen would my creditors start to add interest and increase payments again if I'm earning money? If thats the case its pointless me working but I really do want to work. Please can anyone advise?

phildamb

Maisiepaisie wrote: »

I'm new to this forum so apologies if I've put this in the wrong place or if its been covered already but I can't find any information about it.

My question is, what happens regarding reduced debts when your income increases? I currently have £13,000 debt on credit cards and loans. I have an appointment with a CAB advisor next week but at the moment have been paying £1 per month on my debts after sending letters printed from the National debtline website. I'm confident that the CAB will sort it out for the companies to stop hassling me, however the problem is that I want to get a job. At the moment I am living on income support as I'm a single parent but would be better off in work if it wasn't for these debts. Once a payment plan has been established in my current situation and interest is frozen would my creditors start to add interest and increase payments again if I'm earning money? If thats the case its pointless me working but I really do want to work. Please can anyone advise?

Dont quote me but I would believe that the companies would want to start charging you as normal once your circumstances change. Wait to see if anyone here can give you a more specific answer from experience or wait for the CAB appointment.

msmicawber

I was in your position many years ago, Maisiepaisie, and the CAB negotiated that the CC companies froze the interest and allowed me to pay a paltry amount each month. I started working again around the time the agreement was made, and continued to make the same agreed payments. After a year the CC companies sent me letters to review the payments and raise them to a more 'realistic' level. I just wrote back saying that although I was working, I was also paying childcare and still had very little money. I offered them something like an extra £2.50 a month and they accepted it. As you can see from my signature, over the years I was able to offer them slightly more each year and eventually paid it all off. They never 'unfroze' the interest again. Just let them know at each review that your circumstances haven't really changed (assuming that's the case) and always offer to increase the payments, even if it's just by 50p and that seems to keep them happy. I also found that setting up a standing order for the payments showed good faith and prevented any late payments.

Good luck.