Must do something about all the debt- Help please!

[nafta]

Hi,

I have over £20000 debt. Some of it is in arrears, some defaulted, some I am still paying and now I also have a CCJ on file.
All this debt is in my name. It id credit cards and catalogues. I want to do something about it as I cannot keep ignoring all.

It is my husband myself and two children. We live in council accomodation and the car a drive is a motability one.
My husband suffered a stroke 5 years ago and he is unable to work and he is receiving DLA. I work fulltime.

I want to take care of this debts and as they are inmy name only I want to know if I can use only my income as the housewhole income? Do creditors also take into account child benefit as income?
I guess I need to do an income and expenditure form so I want to know if as income I can use only my own as the debdts are mine?

What options are there for me otherwise?

When I fill in one of this forms... what are the amounts the law says I can leave on. I dont use money for haircuts as I cut their hairs myself. We never go on holidays, the children dont have pocket money. The only thing we spend moeny on is in a sports club membership for the family £170 a month as it is the only place where my husband can get in the pool with the children . And I pay also £8 each child on swimming lessons every week.
I am afraid someone will tell mne this has to stop because it is the only place and only thing we do as a family?

PLease I need advice.

[Kati]

Re: Must do something about all the debt- Help please!

Hi [MENTION=45479]nafta[/MENTION]

I'll tag [MENTION=48934]Debt Camel[/MENTION] for you ... she should be able to advise xx

[nafta]

Re: Must do something about all the debt- Help please!

Thank you Kati!!! xx

[nemesis45]

Re: Must do something about all the debt- Help please!

Hi,

I have over £20000 debt. Some of it is in arrears, some defaulted, some I am still paying and now I also have a CCJ on file.
All this debt is in my name. It id credit cards and catalogues. I want to do something about it as I cannot keep ignoring all.

It is my husband myself and two children. We live in council accomodation and the car a drive is a motability one.
My husband suffered a stroke 5 years ago and he is unable to work and he is receiving DLA. I work fulltime.

I want to take care of this debts and as they are inmy name only I want to know if I can use only my income as the housewhole income? Do creditors also take into account child benefit as income?
I guess I need to do an income and expenditure form so I want to know if as income I can use only my own as the debdts are mine?

What options are there for me otherwise?

When I fill in one of this forms... what are the amounts the law says I can leave on. I dont use money for haircuts as I cut their hairs myself. We never go on holidays, the children dont have pocket money. The only thing we spend moeny on is in a sports club membership for the family £170 a month as it is the only place where my husband can get in the pool with the children . And I pay also £8 each child on swimming lessons every week.
I am afraid someone will tell mne this has to stop because it is the only place and only thing we do as a family?

PLease I need advice.

Good morning, welcome to LB,

I think there are two things to do first before you consider what to do about the debts.

1. A full and comprehensive income and expenditure statement.

2. A list of all the debt. The name of the creditor, the name of any debt collection company involved, the amount outstanding, the status of the debt is it defaulted, in collection process.

Do you use a credit reference agency? There's two free online ones Noddle and Free Score. This will give you default dates, amounts outstanding.
Is it possible that any of these debts are statute barred, no payments or written acknowledgements having been made in more than 6 years.

Take one debt at a time and consider what can be done about it. A file for each account is very helpful.

nem

[nafta]

Re: Must do something about all the debt- Help please!

Nemesis45 thank you so much for your response. Yes I do have a Noddle report. I have also downloaded an income and expenditure forms but I do not know how to fill it in as I dont have most of the expenditures in the forms. ie, my children dont have pocket money, they dont go on school trips, etc. should I still put something down there? what do creditors expect?

As I said before it is very important for me and my family to keep this membership going as it is for all of us to be active and do something together. My husnabd cannot come for walks with us as he is mlimited in his mobility and any chance of keeping healthy and active as a family is almost imposible apart from this club. I know some people will say if I have so much debt I should cancel that but maybe if I spread the cost of that across the form......

Will they ask for bank statements?

Many thanks again! xx

[nemesis45]

Re: Must do something about all the debt- Help please!

Nemesis45 thank you so much for your response. Yes I do have a Noddle report. I have also downloaded an income and expenditure forms but I do not know how to fill it in as I dont have most of the expenditures in the forms. ie, my children dont have pocket money, they dont go on school trips, etc. should I still put something down there? what do creditors expect?

As I said before it is very important for me and my family to keep this membership going as it is for all of us to be active and do something together. My husnabd cannot come for walks with us as he is mlimited in his mobility and any chance of keeping healthy and active as a family is almost imposible apart from this club. I know some people will say if I have so much debt I should cancel that but maybe if I spread the cost of that across the form......

Will they ask for bank statements?

Many thanks again! xx

Every single penny of outgoings should be listed.

Food
All Utilities
The cost of the motability car each month
The running cost of the car
other travel costs
Rent
Council Tax
Arrears if any
Catalogue debts
Credit Card debts Monthly payments
Clothing Especially Kids clothes.
Any special cost arising from you husbands disability.
Special diet needs
Prescription Charges.
The Gym/sports club is in my opinion much needed, do they not give a discount for disabled people?
Any other recurring charges/ payments.
Once you have this you will be able to assess what the possibilities are for clearing some of the debt.

Are any of the debts likely to be statute barred?

nem

[nafta]

Re: Must do something about all the debt- Help please!

HI, Nemesis45,

Non of the debts are statuted barred. About the memebrship they do not offer disccounts

You menttion ont he list motability car costs etc. If possible I do not want to add my husbands afairs into this? He pays these using his DLA. I am trying to do this using only my income as these debts are only mine. IS this possible to do this an include my husband in the form or because I am filling in the forms as a family I also have to include his dla as income?

Many thanks!!

[nemesis45]

Re: Must do something about all the debt- Help please!

HI, Nemesis45,

Non of the debts are statuted barred. About the memebrship they do not offer disccounts

You menttion ont he list motability car costs etc. If possible I do not want to add my husbands afairs into this? He pays these using his DLA. I am trying to do this using only my income as these debts are only mine. IS this possible to do this an include my husband in the form or because I am filling in the forms as a family I also have to include his dla as income?

Many thanks!!

Hello Nafta

In your situation as the sole earner in the family it's important I think to look at every single expenditure that is made by the " family".
You can leave out the DLA.
nem

[nafta]

Re: Must do something about all the debt- Help please!

Hello nemesis45,

Thank you again so much for this. But if I leave out the DLA then I also leave out the car costs right? just to clarify
So when doing this form I use my income and child benefit.

Many thanks again!!

[seduraed]

Re: Must do something about all the debt- Help please!

Nem has made some good points. If your husband is getting DLA are you getting all the benefits you are entitled to.
Check and see if you can get free prescriptions for yourself or you husband. HC2 is the form from the pharmacist. If your husband needs certain medicines to live he may be able to get free prescriptions.
Go to the council and check and apply for courtesy collect tax relief. Make sure that the council cil are aware of of your husband's condition.
Are your children entitled to free school meals?

Part of doing an income and expenditure is so that you can see where the money is going.
You can probably get reduced rates at the gym for husband and maybe for a carer too. There may be local charities which can help with school uniform costs.
All the utility companies have funds to help people who can't pay and an application to each of them would be a good idea. This could result in you having some or all of the debt written off.
I don't know how old your children are but involve them. Help them to help you.
You should approach one of the debt charities as many creditors will want to see a common financial statement. Christians against poverty seem quite good.
It's not an insuperable position and although I don't have children my debt is huge but with careful budgeting getting reduced.

[nafta]

Re: Must do something about all the debt- Help please!

Thank you Seduraed. We have already looked at benefits and it looks we get all we are entilted to which is not much but I will look into Christians against poverty. Thank you again for you advice.

[Debt Camel]

Re: Must do something about all the debt- Help please!

Hi nafta,

I'm going to take the opposite approach to nemesis and say that you need to look at your overall situation, not the individual debts.

Your children may be too young to go on school trips or have pocket money at the moment, but this will come! So if it is going to take 6 years to pay off your debts, you have to think that your children's needs are going to change during that time.

You do not have to include his dla as income. You do have to include the child benefit.

I suggest you should go to your local Citizens Advice if you would like face to face advice. Christian Against Poverty are another possible option if there is a branch near you. Or if you would like telephone advice, talk to National Debtline 0808 808 4000.

[nafta]

Re: Must do something about all the debt- Help please!

Thank you Debt Camel for you advice. I am trying to slowley work out everything and see what I have before contatcing the Help line.

[nafta]

Re: Must do something about all the debt- Help please!

[MENTION=48934]Debt Camel[/MENTION].
I have followed the advice given here and my husband has been adviced to go bankrupt as his only income is DLA.
I now then have to worry about my own debts which I am trying to deal with one at a time as I have a couple of court claims and 3 credit cards . I have been concentrating on the court ones for the moment again with all your help.

The 3 credit cards two account were opened in 2007 defaulted last year. I am hoping to be able to ask for CCA on the hope that I put a stop to them at least for some time. I am not sure of this is the best approach but for the moment all feels a bit overwhelming.

I dont qualify for a a DRO and I am trying to avoid a bankruptcy myself as I apart from my job I am studying to become a surface pattern designer adn I am using some of my designs now to sell products and bring some more money home. Hopefully one day be able to work from home and spend more time with the kids as well as spending more time with my husband and better looking after him.