Should we or shouldn't we?

[Surfer01]

We are in a bit of a dilemma at present and the worry is affecting my health due to the stress.

Last year in October I was made redundant due to the company going into administration and could not get any work for almost 8 months. I will be sixty in the very near future with a mobility disability and that did not help on the job front either. When I was unemployed and off JSA we received a low housing and council tax benefit but that was better than nothing. This was because my wife worked more than 24 hours a week and earns just over £200 per week as a factory worker. We did not qualify for any other benefits. In addition, due to a massive mistake by the benefits agency, they left us with nearly £600 rent arrears but that is another long story.

At present we live in a council flat and receive no benefits because I have temporary work for a few months but it is highly unlikely that I will be taken on full time as there is not enough work to keep me going full time every day. My pay has dropped by over £400 and it is hard to come to terms with this.

We have credit card debt, three loan debts, overdraft and a HP totalling just over £600 per month. One of the loan debts is with Toyota finance for a car and as it is a loan we cannot hand back the car to them. The car is not tied to the debt. We do need two cars as my wife starts work at 6 am and finishes at about 2:30 pm whereas at present I start at 8 am and finish at 4 pm. In addition to this we have the other normal commitments associated with life like utilities, mobile phone contracts etc. After paying debts, buying food, fuel etc we have about £10 left over each week and we are finding this insufficient as it does not cover the unexpected i.e., a visit to the dentist, vet, road tax, insurance, MOT etc never mind having any social life..

We are now considering moving out of the flat into the touring caravan which is on HP and has less than 3 years to run on the HP. It is quite a large mobile caravan with an end bedroom which has a proper fixed bed like in a normal bedroom. Doing this will put at least an extra £220 plus in our pockets and in the event I get laid off again, at least we can manage to just about service our debts and lead a more or less normal life without too much stress as no utilities to pay, no council tax, and a slightly lower rent.

Looking to the future with no real prospect of permanent work, the main concern is giving up our brick and mortar rented accommodation to move into the caravan. We have found a nice site and did previously live in a caravan for over 2 years and no real issues. If we live in the caravan for the next 5 years, we can probably pay off all our debts within the first three years or sooner giving us two years to save even if I end up unemployed within the next few months. Hopefully when I turn sixty five we can go on the list for over 60’s accommodation. All our stuff in the meantime would go into storage which will be costing us less than £40 per month.

Do you think that we would we be making the right move or should we be considering some other options?

[Crapstone]

I'm sure that more suitable alternatives are available and on the face of it there isn't anything that can't be sorted either by a DMP, IVA or even BR. Your priority is the rent arrears as the unsecured loans won't lead to you losing your home because it's council owned.

 

On a personal level, if you were my parents I'd be horrified that you gave up a flat to live in a caravan because of money worries especially as you have a disability.

 

I think you need a thorough financial review and I'm not confident enough to give you that advice so I'll bump this up and alert someone that will be far more capable than me.

[Crapstone]

Can one of the site team take a look here please.

[Crapstone]

bump

[Surfer01]

Thanks. In order to book a pitch for next year we need to put down a small deposit within the next week.

I am not sure how Pension credits work if your spouse is employed and earning £194 per week. I keep getting different answers but if I can get Pension Credit at my age, then there would be no need to move anywhere.

The last time I was unemployed and the JSA ran out, I got no income whatsoever except for housing and council tax benefits yet I had to fund my transport to sign on which I thought was a bit iffy.

[42man]

Hi Surfer....I know exaclty what you are going through you are not alone....nobody can make your mind up for you as to what is the best move....but you know the score with the debts, CCA, penalty charges, PPI, etc....you could even ask them to write them off !! Don't go through bankruptcy as it really must be a very last resort....national debtline or CAB might be able to guide you though...

[Crapstone]

Thanks. In order to book a pitch for next year we need to put down a small deposit within the next week.

I am not sure how Pension credits work if your spouse is employed and earning £194 per week. I keep getting different answers but if I can get Pension Credit at my age, then there would be no need to move anywhere.

The last time I was unemployed and the JSA ran out, I got no income whatsoever except for housing and council tax benefits yet I had to fund my transport to sign on which I thought was a bit iffy.

 

There are a few web sites that you can use to check what you would be entitled to:

 

Benefits checker | Age Concern England

 

Start Calculation

 

Get busy and make those calls to find out what help you should or could get. Don't be afraid to ask questions or to have the answers explained more clearly if you don't understand them.

 

I'm sure there is nothing that can't be sorted out regarding your debts but as 42man said, only you can decide what would be best for you.

 

Whatever your decision I'm sure Cag will do it's very best to help you as much as we can.

 

hugs,

 

CS