Do not know what to do :(

[jed2004]

This is the first time i've posted here and i'm a bit of a mess right now i can't eat i can't sleep Basically due to suffering domestic violence for a long time i am now a single parent on benefits!! And i now can no longer afford to pay any of my debts! I owe over £5000 to provident and they won't leave me alone they are threatening me with court they want £80 a week!!! which is nearly my whole benefit payment, I have 2 accounts with my current bank rbos one is £1000 overdrawn due to charges and i'm getting letters and phone calls constantly i even offered to pay something into it each week to try sort it out but they refused!! And said that i have to pay £160 a month or they will just take it out the account i am using at the moment with them which my benefits get paid into!! So i burst into tears and had to hang up!
I have tried to open another bank account with another bank but it was declined!! I can open a post office account but my housing benefit can't get paid in and the council refused to pay it direct to my landlord it has to be sent to me!!
Once i have paid my gas and electric/council tax and food shopping i have about £10 to spare!! I just feel terrible especially for my son he has been through so much with his dad and now i feel like i am failing him!! I just can't see anyway out of this and do not know how to deal with it as i just keep busting into tears when i try to talk to someone, Can anyone please lead me in the right direction cause my head is a blur i just do not know where to start, Thankyou.

[Michael Browne]

I owe over £5000 to provident and they won't leave me alone they are threatening me with court they want £80 a week!!!

This is not a priority debt unlike your gas and electric/council tax and food shopping, so you should resist paying them anything. If they took you to court, with only £10 disposable income, the court is likely to order you to pay just £1 a week and Provident know that, which is why they are hounding and threatening you, trying to scare you into paying more than you can afford

And said that i have to pay £160 a month or they will just take it out the account i am using at the moment with them which my benefits get paid into!!

Unfortunately they can do this, it's called off-setting, which is why it's important to try and open an a/c elsewhere.

Have you tried the Co-op Cashminder a/c or NatWest Step a/c, both can be applied for on-line.

I'd recommend you talk to National Debtline:
National Debtline England & Wales, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

0808 808 4000
They are very helpful and non-judgemental and you can be anonymous if you wish

[rory32]

Regarding opening another bank account there are loads of basic bank accounts that you can open (Michael has posted a couple but here's a quick guide to them http://www.moneymadeclear.fsa.gov.uk...k_accounts.pdf )

You shouldn't have any trouble opening one of these but would be refused for a current account which is what I assume you applied for.

Have you prepared an income and expenditure sheet to show your income and essential outgoing? You need to do this and make each creditor an offer on a pro rata basis based on your disposable income. As Michael has stated earlier this is all a court would do. You need to do this in writing and insist that all communication is in writing only.

An example letter to your creditors is shown below

Dear Sirs,

RE: Account Number: xxxx

I write to advise that due to unforseen circumstances, I consider that I will be unable to meet my financial commitments in full, for the immediate future.

I would like to assure you that I take my responsibilities quite seriously in this respect and have given the matter much consideration. Whilst I hope that my situation will improve in time, I feel that I will be unable to satisfy my debts in full, with careful planning and a little assistance from my creditors.

I originally considered approaching a debt management company, but rather than incur significant fees in this respect, I feel that if we can agree on sensible proposals, it would be better to use the money saved, to pay off my debt to you in a shorter time.

I have enclosed herewith a list of my creditors, which shows the balances left to pay, together with a list of my income and expenditure. You will note from the statement, that I have a monthly disposable income of £x.

Under the circumstances, I propose to divide the balance of these monies amongst my creditors, on a pro rata basis. I would also add that in the event that my circumstances change for the better, I will increase payments as and when I am able and would propose in any event to review the situation with you on a quarterly basis.

I would be most grateful if you would kindly consider freezing interest on this account, to give me a realistic chance of resolving the matter quickly.

I await your response and must insist that all further communication on this matter is now conducted in writing only.

Yours sincerely

You can also find an income and expenditure calculator here

[patrickq1]

This is not a priority debt unlike your gas and electric/council tax and food shopping, so you should resist paying them anything. If they took you to court, with only £10 disposable income, the court is likely to order you to pay just £1 a week and Provident know that, which is why they are hounding and threatening you, trying to scare you into paying more than you can afford
yes it is not a priority and you can offer them a pond a week i hope you can get another account also you should write a letter to the cheif excecutive of the finance dept of the council explaining your dilema and also to the housing dept of the council see if you can get a reduction in your council tax the more you confront your problems the easier it will become and the less stress you will feel...you may also find that the energy companies have a helpline for those on benefits and you may be able to get a reduction from them every little counts also if you can get to someone like cab and get them to help you filling in forms etc
patrickq1
good luck

[angel_1]

hiya jed2004

i just wanted to say hiya after i read your post, i can see you have already had some brill advice from the micheal, patrick and rory, please dont despair, we can help here and you can start right away with whats already been posted

i am very sorry to hear you are having a bad time at the moment but we are really friendly here so keep coming back and posting any questions
ive used the national debtline site and the advisors are fab too

pls take care and ill subscribe to your thread and ill look in to see how you are getting on from time to time

ciao for now have a relaxing evening MAZ

[jadzia.dax1]

Hi jed2004

You have come to the right place for help and support so please try not to worry...I know that is a lot easier said than done.

If your only income is benefits I think there is a letter you can take to the bank called a 'right of appropriation' letter basically it tells the bank that your benefit money is for essentialls like food heating etc...

I think this would help in your case.

Please bear with me while I go and check and find the letter as i'm not 100% sure and don't want to give you the wrong info...

It might also be worth giving the social a ring and tell them the bank is taking your benefits they should be able to help aswell.

It may not seem like it now but this is sortable

[jadzia.dax1]

Hi jed2004

I found the thread with the letter mentioned in my above post.

Have a look on there it has some great advice that I think will help with your situation.

Is the bank taking your Benefits ?

Don't forget any questions about anything just ask someone 's always around to answer

[jadzia.dax1]

Originally Posted by jed2004

I have 2 accounts with my current bank rbos one is £1000 overdrawn due to charges and i'm getting letters and phone calls constantly i even offered to pay something into it each week to try sort it out but they refused!! And said that i have to pay £160 a month or they will just take it out the account i am using at the moment with them which my benefits get paid into!!

Again have a read through the whole thread, but I think....If the bank has taken your benefit to pay bank charges you may be entitled to claim your money back.

This letter below may be of use to you...

letter to get charges back when on benefits

I'll have a look around and see what else I can find

As for Provident as someone else has advised that is not a priority debt and they are trying to bully you.

You could mabye consider sending them something like the following letters (amended to suit your situation)

Don't forget to mention your only income is benefits.

Offer of token payments.

Dear Sir/Madam
Re: your reference :

Since making the above agreement with you, my circumstances have changed. I am unable to afford the agreed monthly repayments at the present time.

This is due to ........ give details of your personal circumstances which have led to the problems e.g. losing a job, income reduced, relationship breakdown, ill health etc.

I enclose a personal budget sheet which shows my present financial position. As you can see I have no money left to pay my credit commitments.

I view of my circumstances I ask that you accept a token offer of £1 per month to be reviewed in six months. I would also ask that you consider freezing interest and charges so that the debt does not increase further.

In order that I can make these payments easily, please forward a payment book/standing order/direct debit form (delete as appropriate)

I hope you will give kind consideration to my personal circumstances, and of course if my circumstances do improve I will contact you again.

I thank you for your attention to this matter, and I look forward to hearing from you soon.

Yours faithfully

Or maybe:

Unable to offer a payment.

Dear Sir/Madam
Re: your reference :

Since making the above agreement with you, my circumstances have changed. I am unable to afford the agreed monthly repayments at the present time.

This is due to ........ give details of your personal circumstances which have led to the problems e.g. losing a job, income reduced, relationship breakdown, ill health etc.

I enclose a personal budget sheet which shows my present financial position. As you can see I have no money left to pay my credit commitments. At the moment I do not have enough to meet even my basic needs.

I view of my circumstances I ask that you allow me to cease payments for a period of six months. I would also ask that you consider freezing interest and charges so that the debt does not increase further. If your circumstances are likely to be better in near future give details here e.g. will be possibly back in work in 6 months etc.

I hope you will give kind consideration to my personal circumstances, and of course if my circumstances do improve I will contact you again immediately.
I thank you for your attention to this matter, and I look forward to hearing from you soon.

Yours faithfully

I'm sure someone else will be along with advice soon x

(I wonder if you would maybe get more advice if a moderator could possibly move this post to the debt section)

[AA99]

Hey Jed, don't give up hope or despair. I sounded like you 6 months ago and now I'm a firing vixen. Stay with site, donate a few pounds when you can, and read all the relevant bank threads. It's a lot to start with and will take a few hours...... when you feel ready enough, start your own thread in the relevant section. Be Strong, Chin Up, Consumer Action Group is where Consumers can have their say, especially against our wonderful big banks!