help!!

[moneyworries]

I owe about �31k in loans, credit cards etc, my partner can only work part-time due to looking after our daughter of 12mths, I will be short of �-527 per month, the bank cannot help me, we rent our property and dont want our landlord to know, what should we do??

[Kathyan]

Try ringing CAB who may be able to point you in the right direction. Or look on this site:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Good luck!

[SaxyJag]

Your Citizens' Advice Bureau should be able to put you in touch with a debt counsellor. He or she can help you by negotiating with loan and credit card companies on your behalf and lowering your payments, freezing interest etc.

Unfortunately it would also mean cutting up most, if not all your credit cards, but it could be worth it in the long term.

If you're not already claiming benefits, then check out what you qualify for. Once you get one form of benefit, then you often qualify automatically for a range of others (and your landlord doesn't have to know about any housing benefit - you can have it paid direct to you if you want). Here's a good place to start:

http://www.direct.gov.uk/MoneyTaxAndBenefits/B enefitsTaxCreditsAndOtherSupport/fs/en

Please try not to worry about threatening letters, CCJs, bankruptcy and everything else that being short of readies entails. Courts are generally sympathetic towards debtors who are genuinely trying to pay their dues, and they have little time for the big boys of the finance world.

[moneyworries]

Thanks both you. We get �45 per week housing benefit but thats still not enough. If we do an IVA then our landlord will be informed, then he will want us out, we wont be able to rent another property due to our credit file being messed up, Our council is no help we just dont have enough points. Were are in a real mess help?

[Polotoo]

Hi moneyworries

Firstly try not to worry, I know its difficult but you are doing the right thing by trying to find out what you can do, which is much better than burying your head in the sand.

Have you contacted the National Debtline? http://www.nationaldebtline.co.uk/ There is a lot of information on their website, including dealing with priority debts, like rent, council tax etc and information on how to reduce what you owe and negotiate what you can pay back. They also have a helpline number, and the advisors are very friendly and helpful - its a freephone number so doesn't cost you anything. Theres a debt pack which seems to cover most things, and there is draft letters to credit card companies to reduce or stop repayments for x months to enable you to get back on your feet.

Like saxyjag says it would also be worth looking at if you are entitled to any additional benefits or tax credits - Sorry I can't really help with further information on these, but hopefully someone can point you in the right direction. Do the jobcentre have a benefits advisor? Or perhaps give your council (housing department?) a ring to see if they have a benefits advisor? Just found this website from the CAB http://www.adviceguide.org.uk/index/life/benefits.htm hopefully you will see if there is anything else you could probably claim for?

You've taken the first step to sorting your debts out, which is the hardest, don't ignore it as it will only get worse, good luck, and post again if you need any more help or advice - there's loads of clever people on here who will always help you out.

Kind regards, Polotoo

[moneyworries]

WOW you guy are so helpful. We are claiming housing benefit, child ben and chid tax credit but its not enough, we cant contact the creditors to stop payment as we can never start it again. IVA??

[sandbach99]

Go to the CAB but do not go to any of these companies which offer help with debts.
I know your wife has her hands full but has she a skill she can do at home ie accounts for a small business, typing etc, or even do ironing for someone even if it is only �20 per week it will add up, Listen to friends relatives etc moaning that they wish they could find someone to do something if either of you can offer for a price, cash in hand is very helpful! Take care regarding the taxman.

Have you anything you can sell at a car boot sale, or on Ebay see if you can find clothes toys etc for your baby at car boots charity shops very often you can find brand new things very cheap. I found a Ladybird winter set priced in Woolworths at �20 with all labels still on, the stallholder asked for �5.00 I offered �4 and took it home.

If you are near a supermarket near to closing time they sometimes sell perishable goods very very cheap. Take sandwiches to work instead of buying them, think of anything you can do to save a bit, I don't think you will manage all your shortfall bit it will all mount up and you will get a bit of satisfaction knowing you are really trying. Good luck you will see the light again.

[sandbach99]

Had another thought whilst on the money expert web site find the letter you send to banks etc that have charged you too much in charges, people are getting money back of the banks, Where a bank charges �20.00 plus for a failed standing order they should only charge something like �12. If you can't find it and you think you may be entitled to a refund post again someone will tell you how there have been answers previously.

[kevb0444]

Hi..i feel so sorry for you. Debt is a nightmare for soo many people. Go see the CAB straight away. They are soo good and will help you with any forms or letters. DONT ever be tempted to go with one of these debt help firms who want to charge you for there help. The CAB can do the same (and more) for free. As to your land lord. If the debt is only in your name you could get your partner to take over the lease in just his name. Then if it all goes to pot and you may have to go bankrupt then the order will just be on you...not your partner. That way the land lord should never find out and if he does he can't get rid of you as the lease will be in your partners name.

[jason1980]

Hi I just want to say good luck after reading all I have read. Just keep in mind that so long as the rent is paid and you pay only what you can afford elsewhere - that it will just have to do and dont accept all the junk mail and phone calls for demands. sometimes a debt management company will ask what you can afford to pay, and they contact all the people for you and act as your middle man...

[Polotoo]

Waffled on too long - sorry a two part post!

Just wanted to say, in case there was any confusion, that the national debt advice line is not a debt agency firm or anything, they are designed to help people in debt, and offer free confidential and independant advice. You don't have to give them your personal details if you don't want to, just explain the situation.

We spoke to them last year about an old debt we were being chased for, I know its not the same situation but they were very helpful.

I sound like an old nag, but there is information on their website covering freezing debts, ie-no further interest added. And although your minimum payments each month may be �200, and you can only afford �50, they may be able to help you negotiate something that will suit your creditors and yourself.

You don't specifically say that you are behind with your rent, if you are not, I cannot see why your landlord would evict you? I'm not an expert but everyone gets themselves into a muddle sometimes, and it would seem a little harsh if you are still paying rent on time.

As Sandbach says, look at selling items (all those old baby clothes that have already been grown out of?), its a good way to clear off a larger amount in one go, perhaps your wife could deliver leaflets or something locally. My sister in law (shes in her forties with 2 kids) has a weekly paper round, and that generates approx �20 extra a week for her, which really helps. And if there are a lot of leaflets it can be �30 odd! So thats an extra income of say �100 in a month?

[Polotoo]

Still me, I'm sorry!

Also collect all the money off tokens you can, I don't mind admitting I use them all the time in my local 'big' supermarket and they will accept them for things I haven't even brought. I know they are not supposed to, and I do get embaressed sometimes but if you can get �6 off everytime you go shopping its worth it! (Ours only take a max of �6, but I can do several small shops a week to use them up) Just make sure you go to a student/young check out person - no offence but the older ones tend not to do it!

I don't know anything about IVA's, I'm afraid and thought that was really only as a last resort, so perhaps see if you can get some advice on how to tackle those you owe money to, and take it from there.

I feel for you, I can understand how distressing and stressful it must be, but there are places you can go and get advice, so take advantage of it.

Good Luck. I hope it works out for you. xx

[moneyworries]

Thank you sooo much everyone, I think the CAB is a good options, but they will only tell us what we arleady know. We will have to do the IVA there is no expense until you have completed it, plus even though our credit file will be screwed up but at least the debt will be clear in 5 years. Will our landlord have to know we have done an IVA?

[themas]

I'm far from sure that an IVA is the right answer for you. They are usually only appropriate for people who own a property they don't want to lose, as well as having at least �100 - �150 per month available to pay creditors.

You could (with help of CAB or CCCS or Payplan) try to get an arrangement with your creditors to accept reduced monthly payments and freeze interest and charges.

Alternatively, have you considered bankruptcy? You can find a lot about it on the Insolvency Service site.

Why are you so concerned about your landlord? If your rent is not in arrears there is no rational reason why he/she should be worried.

[Pippa68]

Plenty of good advice here ~ but just wanted to say that there is absolutely no need for your landlord to know about your financial difficulties, unless (as themas has already said) you are behind with payments.

It wouldn't be any of his business as long as you are good with the rent..I speak from experience :o)

[moneyworries]

pippa68, what happened with you?

Its hard though isnt it?

[Kathyan]

themas, I think you may find that an IVA requires about �250 per month after living expenses otherwise it will fail. We went down that road and it was the biggest mistake we made. We are now in the process of remortgaging to pay the creditors off. Moneyworries, if you do consider an IVA, please read through everything first before you commit to one. Hope everything works out for you, I know from experience, how debt can get you down.

[moneyworries]

kathyan if we take off all our debt we would have about �118 per month left to pay a loan of �452 per and 2 c/cards. So what your saying is we would not be excepted?? How much did you owe?

Pippa68 what happened to you?

[Pippa68]

Hi moneyworries

We (or should I say my partner as it was all his debt) started off by going through one of those companies who deal with the debt for you..of course after a while it became apparent that absolutely none of the real debt was being paid off & most of the payments were going in fees. After several letters from creditors asking where their payments were, we discovered that some of them weren't being paid at all :o(

My husband then bit the bullet & declared himself bankrupt. He owed money for a mortgage which was in his & his ex wifes name ~ she relinquished her responsibility and we had no way of paying over �30,000 to the building society (it was a small flat which had been in negative equity & she refused to sign the forms to rent the property out in order for him to keep the mortgage going!)

Anyway, since then he has been discharged but it is still hard to get straight. We have rented our house for 10 years and have always been good with the payments. Our landlord has never known about our financial state. I don't know if you have thought about bankruptcy as an option..I would see the CAB to get some advice but to be honest it is no worse than what you are going through right now.

It is a bitter sweet experience ~ relief & anxiety are mixed because you still have the long standing implications with bankruptcy.

Hope you get it sorted :o)

[Kathyan]

moneyworries. When you start an IVA the company who does it for you will work out how much you have coming in and going out. If you have at least �250 left after living expenses then you should be OK. Don't forget that the payments you are making on the debts now will stop once you are in the IVA and you will just pay the amount that is left (after living expenses) to your IP (the person who arranges your IVA) We owed �62k and started off paying �944 a month (my husband has a good job!) After the creditors meeting the payments were reduced to �449 a month (due to change in circumstances but I can't go into that on here!) We own our house and have quite a bit of equity, so we are trying to release some of that to make a full and final settlement to the creditors. If they accept we will be debt free! I hope you can understand this, if not give me a shout!

[moneyworries]

so what your saying is if I go through an IVA they will not pay the loan and c/cards?

We wont be accept as we dont have �250 per month left over?

Pippa68 what state of play are you in now? We are rented but if we need to move we wont be able to =0(

Kathyan so you sound like things could be sorted now?

So would we be debt free in 5 years then have to start building things back up?