Panorama - surviving on the dole

[stigmundfreud]

Just watching tonights show which is following hte lives of ex Woolies employees that are struggling since the firm went bust.

One couple were both working as managers for the firm and were just in CAB seeking advice on how to improve their situation. They have a repayment mortgage and the CAB lady advised they switch to an interest only mortgage.

WTF?

False economy love. Is that the type of advice CAB are giving out? I have never once seen CAB give any useful advice, I even wonder what the hell they exist for as all they do (in my experience) is point you either to some other department to deal with or give you a useless leaflet (which ultimately points you somewhere other than their door step)

[tinman0]

stigmundfreud said:

I have never once seen CAB give any useful advice, I even wonder what the hell they exist for as all they do (in my experience) is point you either to some other department to deal with or give you a useless leaflet (which ultimately points you somewhere other than their door step)

Their immigration information is very good.

[stigmundfreud]

tinman0 said:

stigmundfreud said:

I have never once seen CAB give any useful advice, I even wonder what the hell they exist for as all they do (in my experience) is point you either to some other department to deal with or give you a useless leaflet (which ultimately points you somewhere other than their door step)

Their immigration information is very good.

lol

[Road Pest]

Didn't see it, but I hope the CAB person was qualified to give mortgage advice.

If the couple are young enough then switching to i/o may be a short term solution while they get back on their feet. Selling up may be an alternative depending on their current ltv.

[Engineer1]

Switching to interest only may give the couple breathing space, the couple could have been in a position where at the time it looked like they would only be unemployed a short time, this recession seems to be unpredictable at least as far as the advisers are concerned.

[tinman0]

stigmundfreud said:

tinman0 said:

stigmundfreud said:

I have never once seen CAB give any useful advice, I even wonder what the hell they exist for as all they do (in my experience) is point you either to some other department to deal with or give you a useless leaflet (which ultimately points you somewhere other than their door step)

Their immigration information is very good.

lol

No, seriously! Had to get some advice, got all the right forms, the numbers for the Home Office, some excellent advice and followed it through perfectly. Or, I could have done the same thing by paying some immigration specialists £600 to fill out the identical forms etc.

[Simpo Two]

It would reduce costs in the short term.

What shocked me was that a third of people only have enough savings to last for 11 days - a sad indictment of modern 'borrow as much as you can and piss it up the wall' attitudes.

[Jasandjules]

Depends on what equity they have in the house, on what the difference between IO and Repayment is, how much they have in savings, how easy it is to sell etc.. so without knowing a lot more about their finances, it may well have been fair advice....

PLUS, if they are both on the dole then the DSS pay rent/mortage or similar so it may have been that the IO amount was such that the DSS covered it?

[Alfa_75_Steve]

What amused me was the £900 / month mortgage in Caerphilly.

He must have a 5 bed detached with double garage.....

[ianash]

The CAB does offer advice on a huge range of topics. They are a charity and do not charge for their services. What they are not is magicians, they cannot make £62 per week JSA cover a £900 a month mortgage. They have access to up to date and legally accurate information via a database. They are often the first port of call for people who are at their wits end. They do have financial specialists available to advise. Unlike financial advisers and solicitors they will always try to help, fee free. The vast majority of their advisors are unpaid volunteers and will have spent many months studying. If the problem requires "expert" or legal advice, then a lawyer or licensed financial advisor should be employed and of course paid for.

[im]

ianash said:

The CAB does offer advice on a huge range of topics. They are a charity and do not charge for their services. What they are not is magicians, they cannot make £62 per week JSA cover a £900 a month mortgage. They have access to up to date and legally accurate information via a database. They are often the first port of call for people who are at their wits end. They do have financial specialists available to advise. Unlike financial advisers and solicitors they will always try to help, fee free. The vast majority of their advisors are unpaid volunteers and will have spent many months studying. If the problem requires "expert" or legal advice, then a lawyer or licensed financial advisor should be employed and of course paid for.

^^^^^^

What he said.

I belive the benefits office cover your Interest payments whilst you are looking for employment - not the capital sum so the logical thing to do if caught in the hell of unemployment is to switch to an Interest Only mortgage until you can get back on your feet.

All IMHO

[Deva Link]

Alfa_75_Steve said:

What amused me was the £900 / month mortgage in Caerphilly.

He must have a 5 bed detached with double garage.....

I think the Essex couple (the guy was warehouse manager on £15K and the girl was asst store manager on £25K) had an £800/mth mortgage too - that's a heck of a mortgage especially with her popping out sprogs.


I thought the divorced/separated mother was badly treated by the Job Centre (although she was lucky to find one that hasn't been closed down). I find the whole benefits thing weird - there are apparently many people who can't afford to feed themselves properly, yet you constantly read the "big plasma TVs" stories about people on benefits.

[im]

Deva Link said:

I find the whole benefits thing weird - there are apparently many people who can't afford to feed themselves properly, yet you constantly read the "big plasma TVs" stories about people on benefits.

Thats only when Benefit fraud is being committed. NOBODY can any new TV - let alone Plasma - unless something else is 'going on' ie undeclared earnings or the kids are literally starving to death to pay for it.

The sums involved for the truly unemployed (with absolutely no other source of income) are meagre to say the least.