Welcome to the new Debt Questions forum. Feel free to say Hi and tell us a little about yourself.

Moderators: TalbotWoods, JaneClack

By Uncle Billy
#112288 Hi!

I'm another newcomer to this forum, having lurked for a couple of weeks. My DMP starts this month so hopefully I'm on the road to recovery. It's been a relief just to stop the downward spiral and look forward to not ending the month with an even bigger overdraft and credit card bill! Making ends meet has always been a problem, but what finally pushed me under was having my tax credits stopped (about £160 month). I work for a large organisation and changed departments last year to better my chances of promotion. The new post is much further away but the organisation generously pays for extra travel costs for 2 years, and then decreases this by a 3rd each year for 3 years when it stops. I stupidly didn't realise that the fuel payment counts as additional income and I was therefore overpaid on the tax credits last year so now they've been stopped completely. My basic pay is the same as before the move, because the extra money goes on the extra fuel, but I'm now £160 down. Does that all make sense - it's been a long day and I really ought to sleep!

I contacted CCCS and worked out a monthly balance of £240 to pay to my creditors. (I was paying about £550 a month, mostly by VISA and overdraft). In total I owe £43k, excluding mortgage which is interest only as the endowment was cashed in some time ago. I owe American Express, the co-operative bank and Northern Rock. The only one giving me any grief is Northern Rock. They don't appear to have read any of my letters and are questioning my budget figure for fuel. I'd sent them a letter detailing my daily commute mileage, weekly shopping trip, etc, my car's mpg, the cost of fuel, to calculate the monthly figure but they want me to send them my fuel receipts. I'm now ignoring their calls and letters. The other creditors have accepted the payment offer with no problems.

My big concern now is that my income will decrease by about £300 pounds per month over the next 3 years as my fuel payments stop. This will be slightly offset by an annual payrise, historically about £40 per month per year, so in 2009 my pay will be down about £180. Again, sorry if that's confusing, I really ought to sleep but I need to talk to someone! So in 2009 I'll only have about £60 to offer the creditors. I know I need to take each year as it comes, but I worry about what will happen eventually. Do you think I'll eventually need to go bankrupt?

Sorry for the long post. If you made it to this point then thanks for sticking with me :D

#112291 still here :D
your story is very similar to many on here you are not alone
often changes in circumstances put the kybosh on our best laid plans
youv'e come to the right place for advice though

im not that clever but wanted to say hi & welcome one of the clever ones will no doubt be along soon

By gardener
#112429 Hi Billy

Have you asked CCCS? I was under the impression that if you had less than £100 excess a month they advise bankruptcy. I had only £89 excess when I spoke to them and it would have taken 60 years to pay off so obviously with me the answer was bankruptcy. But you never know whats round the corner and things might be better for you rather than worse in a couple of years.
User avatar
By puddleduck
#112435 Hi & welcome to the forum , it may be worth contacting ccs again & discussing your concerns about your income reducing & seeing if bankruptcy may be your best option. Obviously there are alot of factors to consider especially if you own your house .

User avatar
By onke
#112516 Hi and welcome, I do think CCCS base the advice they give you on how you aproach them as well, My 1st words to them " I dont want to lose my house " therefore they advised me DMP ! and so far it is working.
By Uncle Billy
#113498 Thanks for your replies. I told CCCS when we were going over my budget that my pay would be going down over the next 3 years and they just recommended that I request a budget review each time it happens. :? Losing the house isn't an option as far as I'm concerned - it's been our home for 20 years and my 3 young children have all their friends in the village.

I've taken on some lousy 2nd and 3rd jobs in the past and I'll do it again. :? My pay will bottom out just after my 50th birthday and then pick up again so life begins at 50 :D
User avatar
By onke
#113505 I am hoping that it does Billy, hitting that one next month !!!!!