Panicking about managing to pay debt

Jo_R_2

I've got an unsecured loan that I took out when with my ex. It was mainly to consolidate his debts from before we met but a portion of it paid of my credit card.

We've been separated over a year, and although he pays me maintenance, he has never contributed anything for this loan. I got made redundant a couple of months ago and the maintenance was only brought about through me claiming Income Support, so even if he were to offer an amount, I don't think I'd be able to legally accept it.

My youngest has gone to live with my parents for a while, and so I've signed over the Child Benefit and Tax Credits for her to my mother, which means I have even less money now. I'm not working due to mental health problems, hopefully once the cogs are in progress treatment-wise and things start to improve I will be able to work again.

But what can I do in the meantime? So far I have managed to make the payments but I'm not sure how I'm going to manage in the near future. I did have some PPI but I have no idea what happened to it, it used to be on a separate DD but it's vanished, I must have accidentally deleted it somewhere along the line!

Any help/advice welcomed!

Runnybabbit

Hi Jo, Your thread made me quite upset - my heart goes out to you huns. Just going to give you a 'bump' as I don't feel anywhere near confident about helping you, good luck and hope all goes well for you. Babbit x

bintie22

Hi Jo

Just wanted to bump you up to the top a bit, i'm sure someone will be able to offer some words of advice shortly.

Good luck x

bintie22

Great minds think alike babbit!

Runnybabbit

bintie22 wrote: »

Great minds think alike babbit!

Blimey, that's scary - you took the words right out of my mouth then!!!.:cool:

alwaysonthego_2

Is the loan in your name, just checking I had as client (cab) in not so long ago who was paying a loan in her ex partners name and did not realise that she was not responsible for it.

Hi, you are on Income support so you should only be making token payments of a £1 a month. What you need to do is fill out an expenditure sheet http://www.adviceguide.org.uk/d_budget_sheet.pdf and send a letter explaining that you're on income support and will make an token offer of a £1 a month. Cancel your direct debit and pay the £1 on the usual date. If you need help writing the letter, pop to your local cab who will be pleased to help you.

Can I ask if you have any other debts such as priority (gas, electric, rent etc). Just to reassure you your loan is not a priority debt and should not be paid over rent, gas, eletric, food etc.

edit. if you bank with the loan provider you need to change your bank account to avoid them having access to your money.
A booklet that the cab gives out to clients from National debt line http://www.nationaldebtline.co.uk/england_wales/pdf/self_help_pack/full_pack.pdf
Page 29 has the template letter that I get clients to use for token payments

Verbatim

If your PPI is no longer in existance or you can't claim on it consider whether you have a claim that it was missold, eg if your circumstances were such that it would never have paid out.

Try not to worry and take care of your health.

xV

RAS

Hi

you should be paying a maximum of £1 per month towards this debt and if you do that, there is a possibilty that the company will start to pursue the your ex.

Certainly consider reclaiming the PPI on this, whether or not it is still operational.

Also, you might want to advise the company that you are unwell and cannot cope with stres,. They would then be breaking OFT Guidelines if they haressed you.

alwaysonthego_2

RAS wrote: »

Hi

you should be paying a maximum of £1 per month towards this debt and if you do that, there is a possibilty that the company will start to pursue the your ex.

Depends whether the loan was in joint names

Jo_R_2

Hi all and thank you so much

The loan is just in my name. It was taken out to pay off five or six debts he had, plus a credit card balance I had outstanding. He wasn't able to take out anything else in his name because his credit record was not good, plus he was only working very part-time whereas I was then working full-time. At the time it was a good idea because when we moved in together as we were expecting DD1, it saved us around £300 a month.

However, now I'm left paying it. I didn't know the thing about paying £1 as I'm on Income Support. Can I ask, how will this affect my credit? Obviously I'm hoping that soon enough (whenever that is), I will be able to return to work, and I'm not getting any younger, I do in the next few years want to look at buying a house but I don't want to mess up my credit rating because of this situation now.

alwaysonthego_2

It probably will affect your credit rating to some extent, but you need to concentrate on now and getting yourself sorted out for your children and peace of mind. Good luck Jo!