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  • FIRST POST
    • tessindebt
    • By tessindebt 16th May 18, 1:52 PM
    • 5Posts
    • 0Thanks
    tessindebt
    Really need some advice please
    • #1
    • 16th May 18, 1:52 PM
    Really need some advice please 16th May 18 at 1:52 PM
    Hi,

    So I'm in a really bad position. I have debt coming out of every orifice and no way to pay it off at all. I'm a disabled student, and have been receiving a stipend to live off (I'm on a scholarship), but that has finished. My only personal income is from PIP.

    My husband does work, but his wages cover the bills and his own personal debt (which he is in control of).

    Please no judgement; I always worked until I was disabled literally overnight, and I always had balances that I was in control of and never missed payments on.

    As I am under contract, I am not able to work, apart from a few hours here and there. I have managed to pick up a 'job' of sorts, though the payment is 500 per academic term, if a placement is found (I am currently on placement, and it's looking positive for the future).

    I'm not willing to give up my studies, as I'm only 18 months from completion, and not paying any fees - the likelihood of being able to come back to my studies and not having to pay fees in the future is zero.

    Over the last year or so, I've been paying each of my creditors a token payment of 1.00 pcm, which my husband has been paying. But he now doesn't have a penny spare, as my care costs have gone up and now exceed my PIP income, and so he is contributing to that also.

    Two debt charities have told me that I have no choice but to make token payments, but I literally cannot afford a single penny.

    Here is my SoA (I haven't included my husband's figures as I don't know them off the top of my head and I'm at work; I am willing to add them if absolutely necessary later on tonight, but I'd rather see if there's an option for me that doesn't involve him, as I cause him enough worry and stress):

    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 0
    Benefits................................ 370.93 PIP Daily Living; converted to monthly payments
    Other income............................ 0
    Total monthly income.................... 370.93


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 100 I have already reduced this from 180, but can't do my appointments etc. for any less
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 330 Adult care costs - husband contributes shortfall
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 430



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0 My car is on a Motability agreement
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts All interest has been reduced to 0%
    Description....................Debt......Monthly.. .APR
    Vanquis Bank...................3515.65...0.........0
    Express Gifts..................167.99....0.........0
    Shop Direct....................509.86....0.........0
    Express Gifts..................587.34....0.........0
    Capital One....................1285.86...0.........0
    Marbles........................1889.59...0........ .0
    Barclaycard....................2592.92...0........ .0
    J D Williams...................69.9......0.........0
    V12 Personal Finance...........184.17....0.........0
    Argos Card Services............358.65....0.........0
    Shop Direct....................262.3.....0.........0
    Total unsecured debts..........11424.23..0.........-



    Monthly Budget Summary

    Total monthly income.................... 370.93
    Expenses (including HP & secured debts). 430
    Available for debt repayments........... -59.07
    Monthly UNsecured debt repayments....... 0
    Amount short for making debt repayments. -59.07


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -11,424.23
    Net Assets.............................. -11,424.23


    Created using the SOA calculator
    Reproduced on Moneysavingexpert with permission, using other browser.
Page 1
    • thegirlinthegreenscarf
    • By thegirlinthegreenscarf 16th May 18, 2:19 PM
    • 90 Posts
    • 221 Thanks
    thegirlinthegreenscarf
    • #2
    • 16th May 18, 2:19 PM
    • #2
    • 16th May 18, 2:19 PM
    I didn't want to read and run but unfortunately I am not an expert, so most of what I have to say you will have heard already. This people on here are great - no judgement and plenty of support. I think many of us would be in your situation had we found ourselves unable to work.


    I suppose the first suggestions would be to try to save money elsewhere - ie reduce the amount your husband pays to allow him to help you out more. You could try selling on ebay or gumtree. Have a look at the "up your income" boards to see if you are able to make some money that way - surveys, clicks, mystery shopper etc. Even your food budget - look and see if you can reduce your spending there also.


    I know it is difficult. Try not to be too hard on yourself. Hopefully somebody else more qualified than me will come on and be able to help further.


    Good luck xxx
    MBNA (Was 2000), Now 1,441.22 (Expected date Dec/2019)
    CAR (Was 300) Now
    2,280 (Interest free loan from family member)



    **Want to be on my way to being debt free for 40**
  • National Debtline
    • #3
    • 16th May 18, 3:22 PM
    • #3
    • 16th May 18, 3:22 PM
    Hi tessindebt,


    I appreciate this must be a difficult situation, and if your circumstances have changed (i.e. your care costs increasing) and you and your husband are now struggling to have even 11 per month spare for token payment, then I think a joint SOA would be very useful. This doesn't necessarily mean this will create surplus for debts, but your husband may need to compromise on what he is paying to his debt to ensure the house expenses are covered.


    Anyway, looking at your circumstances, I am surprised a Debt Relief Order hasn't been mentioned before. Your SOA doesn't suggest you are homeowners so this could be suitable. A Debt Relief Order (DRO) is a way to get the debts written off for people who owe less than 20,000 of debt, have less than 50pcm available for the debts and have less than 1000 worth of assets (plus you are allowed to have a car that is also worth up to 1000).


    This is a form of insolvency, and there are a lot of different aspects to consider but essentially a DRO means that for 12 months you do not pay your debts, you would have restrictions placed on you during this time (known as a moratorium), and if after the 12 months you are in the same financial position (i.e. that you still have less than 50pcm for your debts), the debts are written off and you are no longer liable. It can affect other things, such as some private tenancies, employments (within certain industries) and even immigration status. It costs a one off fee of 90, it is very damaging to your Credit Reference File and you must meet the rules for the full 12 months. But this could be a solution for you, good luck.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • tessindebt
    • By tessindebt 16th May 18, 4:11 PM
    • 5 Posts
    • 0 Thanks
    tessindebt
    • #4
    • 16th May 18, 4:11 PM
    • #4
    • 16th May 18, 4:11 PM
    My husband sent me all the info I needed, so here is the joint SoA:

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 1471.86
    Benefits................................ 370.93
    Other income............................ 0
    Total monthly income.................... 1842.79


    Monthly Expense Details

    Mortgage................................ 365.8
    Secured/HP loan repayments.............. 140.8
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 99.67
    Electricity............................. 30
    Gas..................................... 35
    Oil..................................... 0
    Water rates............................. 42.72
    Telephone (land line)................... 0
    Mobile phone............................ 20
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 use phones for Internet
    Groceries etc. ......................... 200
    Clothing................................ 10
    Petrol/diesel........................... 300 2 cars - 1 on Motability
    Road tax................................ 30 - just noticed I made a mistake here - it's 30 per year
    Car Insurance........................... 27.09
    Car maintenance (including MOT)......... 10
    Car parking............................. 20 Husband has a monthly pass to park at work
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 340 adult care costs + husband's prescription prepayment card
    Pet insurance/vet bills................. 10
    Buildings insurance..................... 5
    Contents insurance...................... 5.43
    Life assurance ......................... 0
    Other insurance......................... 30
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 5
    Entertainment........................... 10
    Holiday................................. 0
    Emergency fund.......................... 10
    HMRC.................................... 20
    DWP DM.................................. 43.33
    Total monthly expenses.................. 1832.21



    Assets

    Cash.................................... 0
    House value (Gross)..................... 100000
    Shares and bonds........................ 0
    Car(s).................................. 3000
    Other assets............................ 0
    Total Assets............................ 103000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 69000....(365.8)....0
    Hire Purchase (HP) debt ...... 4000.....(140.8)....0
    Total secured & HP debts...... 73000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Vanquis Bank...................3515.65...0.........0
    Express Gifts..................167.99....0.........0
    Shop Direct....................509.86....0.........0
    Express Gifts..................587.34....0.........0
    Capital One....................1285.86...0.........0
    Marbles........................1889.59...0........ .0
    Barclaycard....................2592.92...0........ .0
    J D Williams...................69.9......0.........0
    V12 Personal Finance...........184.17....0.........0
    Argos Card Services............358.65....0.........0
    Shop Direct....................262.3.....0.........0
    Total unsecured debts..........11424.23..0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,842.79
    Expenses (including HP & secured debts). 1,832.21
    Available for debt repayments........... 10.58
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 10.58


    Personal Balance Sheet Summary
    Total assets (things you own)........... 103,000
    Total HP & Secured debt................. -73,000
    Total Unsecured debt.................... -11,424.23
    Net Assets.............................. 18,575.77


    Created using the SOA calculator.
    Reproduced on Moneysavingexpert with permission, using other browser.
  • National Debtline
    • #5
    • 17th May 18, 12:36 PM
    • #5
    • 17th May 18, 12:36 PM
    Hello again,


    Thank you for posting more details. In light of the fact that the property is mortgaged a DRO may not be suitable. If the mortgage is in joint names it would definitely rule out a DRO as an option. If the property is in your husbands sole name then a DRO may be possible, but you will need to speak to one of the free debt charities in more detail about this as it's more complicated.


    You also list two priority debts (to the HMRC and DWP) and a vehicle on hire purchase on your SOA. To try and help create a bit more surplus for the credit debts, you could consider renegotiating with the priority debts (specifically the DWP) to pay a bit less (such as 5-7 per week) or - as a more extreme choice - look to terminate the HP agreement, return the car and share the mobility car. I appreciate this may not be practical, but it is just another idea to consider. This would free up some money to help you deal with the credit debts.


    The credit debts are not a priority and you can offer them as little as 1 or nothing per month, but this won't resolve them long term. You could consider asking them for a write off, based on your health and lack of disposable money, but this is discretionary and can be less likely when you have a large asset (like a property). If you are named on the mortgage it would almost certainly rule out bankruptcy, so it is important to look at informal options.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Brookside88
    • By Brookside88 17th May 18, 1:03 PM
    • 205 Posts
    • 294 Thanks
    Brookside88
    • #6
    • 17th May 18, 1:03 PM
    • #6
    • 17th May 18, 1:03 PM
    How about trying to make some extra money each month by doing surveys and studies? I've recently started using prolific.ac and Qmee and have made 46 so far this month (my target is 60 which I think I'll easily achieve). I know it won't solve all of your problems but spending maybe an hour a day on it (I sit in front of the TV refreshing it every evening) could give you a bit of breathing space to make your token payments until your situation improves
    Last edited by Brookside88; 17-05-2018 at 1:46 PM.
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
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