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 Non priority debt when on maternity leave
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clairemac86
New Member

3 Posts

Posted - 27 Apr 2016 :  19:45:05  Show Profile  Reply with Quote
Hello, I am trying to help find a solution. I have about ?5,000 of credit cards/ overdraft/ and catalogues. which my partner does not know about. I am due to go on maternity leave within the next week or two. Which means my wages will drop dramatically. I currently earn 11000 take home pay. However being on maternity means I will be getting SMP. Which once my priority bills are paid i.e rent/council tax I will be left with a very small amount. Definitely not enough to make the payments to my credit cards etc. My monthly payments to my debts is about ?300 well once I'm on maternity leave I will definitely be able to pay this amount. Has anyone got any advice for me please? I am trying to get excited about becoming a mother and my time off. However I'm just worrying a lot about these debts. Any advice would be greatly appreciated. Thank you

clairemac86
New Member

3 Posts

Posted - 27 Apr 2016 :  19:46:31  Show Profile  Reply with Quote
I was meant to say definitely not be able to make them payments.
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Phil Corfield
Debt Management Expert



897 Posts

Posted - 28 Apr 2016 :  11:55:02  Show Profile  Reply with Quote
Hi clairemac86 and welcome to the Debt Management Plan Forum.

Congratulations on the imminent arrival of your little one.

It sounds as though you are going to need to cease making the payments of ?300.00/month once your SMP begins. Have you worked out how much you will be able to afford once you're on SMP? How long are you planning to be on SMP?

We would always recommend that partners are made aware of debts as the stress of managing it alone secretly can become very stressful.

I am a CertDR qualified Debt Advisor and a Director of Bright Oak.
To contact me about a debt management plan or general debt advice please here:
   
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clairemac86
New Member

3 Posts

Posted - 02 May 2016 :  12:25:36  Show Profile  Reply with Quote
Hello, Thank you for getting back to me. I wont be able to pay much I'm afraid. Once my 6 weeks of full pay finishes and I will then earn smp. I am entitled to ?139pw of smp. Which will amount to about ?550 per monthMy maternity starts on the 27th May 2016 and I will be going back in January. So will be having between 6-7 months off. My priority bills rent/council tax etc are around ?430 per month. That includes broadband at the lowest I can get it and my mobile phone contract which I have already cut down from ?47 per month to ?18 per month. So I am averaging to have about ?100 left after paying my priority bills which will just about cover shopping/ baby milk etc.

As soon as I am back in work I will be going back to full time hours so my wages will return to what it was before maternity leave.

I currently owe ?2,500 on a vanquish credit card, ?250 on an aqua credit card, ?1,500 on a luma credit card,?1,500 overdraft and about ?900 on 2 catalogues. Which I have realised as ive wrote it down equals more that ?5,000. So I could probably scrape together about ?10 per month to my debtors.

Many thanks
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Phil Corfield
Debt Management Expert



897 Posts

Posted - 04 May 2016 :  10:43:49  Show Profile  Reply with Quote
Hi clairemac86

Thanks for the information. It looks like for the 7 months you're off on maternity leave you need to arrange a Token Payment Plan (TPP) with your creditors. You can arrange this yourself or contact the Money Advice Service to guide you further.

A Token Payment Plan is basically a temporary solution to keeping your creditors "ticking over" whilst you're unable to pay them an amount that would see the balances reducing. You could pay ?2.00 to each of your creditors (5 creditors x ?2.00 = ?10.00) and aim to keep your overdraft within its limits for those 7 months.

Your credit rating can be damaged by entering a TPP and could make future credit more difficult to obtain.

I am a CertDR qualified Debt Advisor and a Director of Bright Oak.
To contact me about a debt management plan or general debt advice please here:
   
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