General financial difficulty..

[thedryad]

Hi all,

 

I hope I'm posting this in the right forum.

 

At the moment we are really struggling with money. This is mainly because of debts.

 

We're married in our 30's with one child who is disabled,

we received DLA for him and carers allowance, also child tax credits,

income support and of course child benefit.

 

I am self employed but don't earn a profit, and hubby is also self employed

but again only just breaks even as both our businesses are still new.

 

The debts we have are mainly catalogue debts and credit,

 

I have written to all of the companies and made an offer to pay a token payment of £1 a month

until our circumstances improve.

 

A couple have accepted our offer but others haven't even acknowledged it and a couple have declined it.

 

All letters I've sent were sent by recorded delivery and I included an income and expenditure form with them.

 

I'm going to have to chase up the companies who are still adding interest and phoning us up demanding payment.

 

I always refuse to discuss matters over the phone and insist on doing everything in writing.

 

I've also requested CCA's from the companies concerned.

 

Other debts are to friends, the local garage who fixed my car and the vets.

I owe two friends £100 each and so far they've been pretty understanding about it.

 

I owe the garage £300 (the original bill was £470 and I've been paying off bit by bit as and when).

 

I e-mailed them this morning to apologise for the delay in paying

and asked if they're happy to accept £50 a month from us or more if we're in a position to pay more.

Just waiting to hear back from them (they're pretty good, local friendly garage

and as I've been known to them for many years they often carry out work for me

and allow me to pay them later.

In the past I've always been able to pay in full within a few days and this is the first time

I've had trouble paying them).

 

The vets bill was £80 and so far I've paid £40 off, so I still owe £40.

I'm planning on going in and asking if I can pay £20 this week and another £20 in a couple of weeks.

 

I'm just wondering if there's anything else I can do or if I'm doing everything right.

 

Borrowing more money is not an option and we're already living off the bare minimum

by cutting out luxuries such as sky tv, holidays, alcohol, nights out,

clothes for ourselves (obviously we still buy our son everything he needs

and also things my stepdaughter needs, though she only lives with us part time).

 

We're on an electricity meter because we fell behind with payments so they installed that

and now we pay for our electricity as we go.

They take £3 a week from it too to cover the debt to them.

 

I've been trying to get other work here and there where I can, doing the odd modelling job

(I used to be a full time model in my 20s) and helping out at a friends shop.

I always declare my earnings as part of my self employed job as an events organiser.

 

I think that covers everything, sorry if it's long or not very clear.

 

TIA

[dx100uk]

hey well done

 

particularly with Cat debts and Credit card debts

have you investigated PENALTIES & PPI?

 

might be worth it.

 

dx

[thedryad]

Yes thanks definitely no PPI etc

[citizenB]

If they have been adding penalty charges, then as dx has advised, you should be able to reclaim those.

 

It is very frustrating when people who are struggling financially are advised to let their creditors know as soon as possible in order for them to "help". Then when you do, all the creditor does is to either ramp up the interest or turn their backs

 

Send the letter linked below to those creditors who have refused - you should start a file for each of your creditors so that you can keep all correspondence and postal receipts in.. just in case they start to rattle their cages. You should not telephone them - even if their letters start to set deadlines. You should insist that all communication is dealt with in writing - this is your legal right. If they refuse and continue telephoning you, then we have letters that will deal with that.

 

What credit card companies are you with ?

 

You do not have to waste money by sending letters by recorded mail - you should however obtain a free proof of posting slip from the post office and keep that with your copy of the letter.

 

Are you receiving everything you are entitled to by way of benefits?

 

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387359-Creditor-Refusal-of-£1-token-payment-proposal

 

I will find out for sure, but I dont think the money you receive in benefits on behalf of your son can be used as "income" for the benefit of your creditors.

 

I will ask someone to pop in an confirm that for you.

[BRIGADIER2JCS]

You are correct CB the childs benefits cannot be touched.

[citizenB]

thedryad, it might be worth considering opening a basic bank account with a totally different bank that has no connection to your current provider and have your Sons DLA benefits and other benefits paid into that. That way your current bank cannot touch them

[thedryad]

Have opened a parachute bank account already, I've done my research

[citizenB]