HB overpayment and other debts

[DarkDarkNight]

I get part HB and take my payslips in to my local council every month so usually get either an overpayment invoice or a credit as my wages vary depending on whether there is weekend work available.

However yesterday I got an invoice for £549 and a letter that as of April I was not entitled at all and need to repay everything I was paid from April to August. This came about because I got some backmoney from a pay increase. I wrote an explanation of what this money was and what period it covered but they have broken down what I have been paid so far this year and I am no longer entitled.

The invoice is due in 21 days and I can’t pay it all at once. I am seeing somebody on Tuesday and I’m aware they will let me pay in instalments but how much will they accept? I genuinely am in a really bad way financially, I have no idea how I will pay full rent and repay this on top of all my other bills especially because sometimes I get a flat wage and on those months it doesn’t even cover the basics. I have £220 a month in credit card repayments, will they take this in to account when I tell them what I can afford to repay?

I have switched energy provider, cut broadband/tv/phone costs and am looking at a balance transfer credit card. I was quite proud of myself going in to Winter, now I don’t know how I will cope.

It's going to depend upon the council, but when I've had arrears they've been happy with 10/week. I hope that's of some comfort.

Thank you for your answer. Even £10 a week seems out of reach, I am hoping they will agree to £20 a month even if it will take longer to repay.

I know they will look at rent, council tax and utilities but I am hoping they will consider credit card payments and overdraft charges.

For me it was definitely a case of I told them what I could afford rather than them dictating. I think they're happy you agree to make payments and are willing to do so.

The legal minimum is 5 percent of the current income support rate for a single person. It's worth having a look at a debt relief order or some other debt solution.

That is a relief, I found the letter on the doormat on Friday, I managed to talk to somebody but ended up crying on the phone. They to.d me not to get upset and I am going to see about it on Tuesday. I will write a list of outgoings to take.

Hi Joe66 I have looked at Stepchange before, but I have never completed it. I got too anxious about it all as I had to include my overdraft or they said the credit card companies wouldn’t accept it. I looked for a basic account but got turned down when they heard what it was for.

My debt is so much better than it was just by fixing the monthly payment not repaying the minimum and I would really like to transfer to a 0% card and carry on plugging away at it.

Just a tip, when you do your list of outgoings, make sure you give yourself enough for food and utilities. People generally aren't generous enough with the figures and find it difficult to maintain a very frugal budget long term. The council will try to tell you a housing benefit overpayment is more of a priority than your credit card, but that isn't necessarily the case providing you are no longer in receipt of housing benefit. Barclays do a basic bank account and are not supposed to refuse people in those circumstances. Good luck

Thank you Joe66 that is interesting about which debt would be considered a priority. I am really unwilling to drop my CC payments as the interest is sky high and it has made me ill in the past with the worry, I want them gone as quickly as possible. I feel like as I didn’t deliberately provide false information, and the overpayment was a result of the backpay I am in a position to offer a lower amount.

Totally agree with making sure you put every expenditure on your form, lots of people forget things like water rates, tv licence and travel to work. Like Joe says, whatever you offer needs to be sustainable over a long period of time, otherwise they could start action through the Courts if you start to default.

I think your main problem though is your Credit Card Debt. I know you are anxious but I really would talk to Step Change or Christians Against Poverty. Once you Credit Card debts are more under control I’m sure you’ll begin to feel a bit better.

Also agree to try Barclays for a basic bank account. They’ll give basic bank accounts to people who’ve gone bankrupt so I’m sure you’ll be ok

Hi, thank you JiltedJohnsJulie I went to see somebody about the overpayment. I called Home after work beforehand and found an invoice sent a few days before about the overpayment dated April saying Final Demand and court proceedings would start if not paid!

I was so upset and started crying in front of him as I had only had the letters saying I was no longer entitled since my wage increase. He said not to worry they were just system letters and should not have been sent. I had wrote all my expenses down but he didn’t look at them, he wrote down what I said about credit card payments though. He said he would send a new invoice with a paymen5 of £40 a month and he didn’t want me struggling so to get in touch if it was unaffordable and he could lower it. It feels unaffordable, but I am going to try as I would like it paid as soon as possible.

I am just so upset by this as in the two weeks beforehand I had sorted a 0% for 32 months M&S card. The day before I got the first letter from the council I was on a high because I found out the limit was £3000 and it meant I could move almost the whole balance of my highest interest card. I was applying for another shorter term 0% card to deal with another card and I was feeling really positive for the first time in ages. Another debt of £540 and an invoice threatening court proceedings was th least thing I wanted.

I will think about debt management, but a part of me feels like if I can get this out of the way I will be doing ok. The debt is a lot lower than it was and at least the interest is gone for the majority.

Getting rid of the interest is a huge plus. Don’t underestimate what a difference that will make to you. Make sure you keep up your payments paying back the Housing Benefit, the last thing you need is a Jusgement on your credit file.