“We were expecting the bailiffs and thought we’d lose everything”

But, as one family from Shirley found out even a debt of £10,000 and serious rent arrears can be sorted. Just ask for help.

John and Lynne were drowning in huge debts and had resigned themselves to losing everything, before a call to our Welfare Rights & Money Advice Team changed their lives forever. We offered support to help the family of five maximise their household income, resolve debt problems and keep their council home. This is their story.

When John was made redundant last year, he made a claim for Universal Credit. The family also receive Council Tax Support and Child Benefit, but the benefit cap restricted their monthly payments to £1,835.

Their living expenses including rent, council tax, utility bills, insurance, mobile phone, TV, groceries, petrol, and loan repayments all added up to over £2,096 leaving a big shortfall each month. The couple were constantly ‘juggling money’ and soon fell behind on bills which caused a huge amount of stress and worry. When their debts spiralled to £10,000 and the bailiffs were notified John and Lynne turned to our Welfare Rights & Money Advice Team for help. We took the following steps to help the family take control of their finances:

Step 1 – Maximise income

We identified that one of the children was eligible for Disability Living Allowance (DLA) and helped the family make a successful claim which also resulted in an increase in their Universal Credit and a carer element for his mum. The Benefit Cap no longer applied, and their monthly income increased by £692.55.

Step 2 – Look at expenses

We helped the family draw up a budget so they could see where their money was going and suggested opening a savings account to pay for Christmas and birthday presents rather than borrowing money for this.

Step 3 – Repay priority debts

Firstly, we arranged an affordable repayment plan to tackle their rent arrears and ensure the family could stay in their council home.

We liaised with the Council Tax department, who agreed to cancel the bailiffs, and collect the arrears by an attachment to their Universal Credit.

Southern Water said the family were eligible for the WaterSure discount, which caps their ongoing bills, and the New Start scheme (NSS), which matches the payments they make for their arrears.

Step 4 – Payments for non-priority debts

Welfare Rights Officers contacted the other places where John and Lynne owed money and negotiated lower repayments for their non-priority debts.

A brighter future

The family are now in control of their finances, and safe in the knowledge they won’t lose their home. By maximising their benefit entitlement, they are now much better able to balance the household budget and are tackling their debts by making manageable payments each month. As Lynne told us: “It goes to show that no matter how bad the situation might feel, there is a way forward.”

If you’re worried about debt, don’t stick your head in the sand. Talk to us – we’re here to help you as we did with John and Lynne.

*Names changed to protect residents’ privacy.