# Finances. Do you have to be debt free



## baby0684 (May 20, 2012)

Hi

I just wanted some advice really.

When I spoke to SW at 1st meeting she just said to try and reduce my debts. I now have a new SW and we havent discussed finances.

I have worked out that even paying my debts on leave that I will still have money left over for another child.

I already have most of the things that I would need for child to move in as I have a BC and very nice friends with children.

So do I need to have cleared my debts? 

Thanks


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## -x-Lolly-x- (Feb 3, 2012)

Ah, a subject we have discussed in length!!

No you do not have to be debt free, but depending on the amount of debt will probably depend on your agency's view on whether this may pose a problem or not.  Our debt was immediately an issue with one agency and not raised as a concern with another up front (but I do think it would have been raised down the line).  We were very honest from the off as we genuinely didn't think it would be made an issue of due to having a good chunk surplus each month and having savings.  The SW started posing questions surrounding some possible situations adopters may face, eg 'what if you needed longer maternity leave?' 'what if you had to reduce your working hours slightly' 'what if you need to access nursery more in the future' 'what if your child has siblings far away or medical appointments and you need extra petrol money or another car?'  All these things pointed to the fact we would need as much money coming in and staying in as we could.  She said that while the agency would progress if we wished, it would have to investigated fully and would probably be raised at panel.  Also she worried that a child's SW may be put off a bit when looking at us for a possible match.  Finally she said many still say it as 'irresponsible' to be in debt.  That bit upset me as I am sure tx puts many into debt, and it was not my fault my ex took everything I owned to put me in that position in the first place!!!

That is our experience.  I hope it doesn't scare you and i'm sure others may have vastly different expediences.  It really will depend on the amount though, i'm sure the expect a little, I think ours was over the 'tresh hold' so to speak.  We decided, with help from lovely family, to pay our loans off so we would present as best we could.  But I think we could have continued, just be prepared to have to justify them and how you will manage.  I am fully aware we may still have to discuss what we have learnt and how we will ensure it doesn't happen again once we get to that stage.

Good luck!!


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## baby0684 (May 20, 2012)

If you dont mind me asking, how much debt did your ex leave you in?

Not really thought of all the extra issues. Will have to give them all some thought.


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## Old Timer (Jan 23, 2005)

Hi

Different agencies will view this differently but the underlying issue will be whether you can afford another child and when you already have debt to pay off it can put an extra stress on you at a time when you have a reduced income and more outgoings which wouldn't be good for you, your BC or an adopted child.

We were told we had to have savings before panel which wasn't an issue, our agency will not take you forward with debt but others do.

It would be worthwhile you drawing up a plan of how you will reduce your debt while doing HS and how you think you will manage with another mouth to feed.  If you can save a bit you will need to assess whether its better to pay more off your debt or have a bit of cash tucked away.

OT x


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## Arrows (Nov 9, 2008)

finances was the one thing that worried me a lot but in the end was okay. ~We have a lot of debts but we were able to prove that we had taken it in hand, got a consolidation loan and so paying a regular sum each month and now budgeting to well within our means. We also built up some savings over the past few months which has helped.

They don't expect you to be perfect but if you can prove that you're getting back on track and have at least 6mths  where you show that you are living within you means and managing your finances responsibly you should be fine.


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## -x-Lolly-x- (Feb 3, 2012)

Think this really shows how different agencies vary and really you need some clarity from your SW about how they view this. Lets just say ours was over 10k but under 20! It is a lot and writing it down sounds a lot but we have never missed a payment and as we had savings which we add to each month silly me thought it would be ok. I think having read that you dont need to be in work and can be on benefits to apply to adopt had given me an unrealistic hope that surely we would be fine. Of course that is silly as this doesnt always reflect a households financial situation. Hope you can draft a good plan outlining how you will manage your finances moving forward x x x


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## CKay (Dec 31, 2009)

Can I ask a quick question related... Do they ask for your bank account details or a statement from the last 3 months or do they rely on you telling them? We don't have any debt (minus a car loan) but don't have any savings.


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## baby0684 (May 20, 2012)

My SW has just asked for proof of income and expendature.

She wants to see most things. She said that its not too bad if you dont have many savings. Just to prove that you have the money to afford to buy things for a new child, or if you not got alot of spare cash where you are going to get things that you need from.

As I got a BC I have alot of things already, and friends are great for donations.


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## CKay (Dec 31, 2009)

Thanks that's really helpful


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## skyblu (Sep 9, 2010)

Ckay, we had to show 3 months of statements including our currant account, dh business account and savings accounts.
She also wanted copies of all credit and store cards statements and our mortgage statements.
So beware not all SW and agencies are the same.

Good luck
Skyblu.xxx


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## baby0684 (May 20, 2012)

*Skyblu*

Did you have many debts/store cards?


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## AoC (Oct 28, 2008)

Baby, it really does vary between agencies.  We've had some early experiences with an LA and are now proceeding with a VA.  We're due (fingers crossed) to go to panel in Aug.

Nearly three years ago now, we got into major debt difficulties.  I won't go into the ins and outs, but at one stage we owed over £30k to 7 creditors, and in the middle of our last IVF we hit crunch point and couldn't pay them all.  We acquired some black marks on our credit record which will be with us for six years.

We took advice from the Consumer Credit Counselling Services, did everything they advised us to, and by dint of hard work, living without luxuries (a bottle of wine is a treat, not a normal grocery purchase!) and the generosity of my Mum have got that down to approx £6k and 2 creditors.  We haven't borrowed a penny more (no store cards, credit cards, overdrafts, nothing) since then.  We are still in a Debt Management Plan.

When we made approaches to agencies, we included with our initial enquiries a letter which explained our situation, stressing the key points that we have made great steps to correct our situation, that we have a good income, that we know where we went wrong and have learned from it, that our creditors are very happy with our progress (we're model DMP citizens!) and that our budget is flexible.  This means that as our circumstances change, our payments to creditors can change, which means we can increase our monthly budget to cover the additional costs of having a child.  We also stressed that we're deeply ashamed of how badly we managed in the past, and incredibly proud of how well we manage now.

By careful management, and also be sheer accident (an unexpected tax rebate!) we're actually going to panel with some savings, too.  

Our SW has looked carefully at our bank statements, at our DMP budget and paperwork, and at our mortgage statement (which is squeaky clean).  Both agencies checked with their supervisors whether we could proceed, both said we could - in fact, they said they were impressed with how we've managed, with how open and honest we've been, and that our experience shows we're resilient, can get help and take advice, and we've got useful crisis management skills!

To be honest, they've all seemed less concerned about it being a problem than we have.  Of course, my recurring nightmare is that we get to panel and they say, "great, super, now come back when you've paid it all off."  It should take under two years, but I've had enough of waiting!

The proof of the pudding is in the eating, so I'll let you know how we get on at panel!

I know there will be some people reading thinking, "they're crazy to adopt, how can they possibly be a good family for a child?!" but it comes down to this:  being a good parent has never been about how much you can buy, but about how much you can give.  And how much you can give is not measured in pounds and pence.  

But the short answer is that debts are not necessarily a bar to adoption.


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## CKay (Dec 31, 2009)

Thanks skyblu that's really helpful too.  We can do that, do they ask for these during the home study when they are visiting regularly?  

AoC that's also really interesting we only have a car loan and money we owe to parents from previous treatment I might see if we can pay them off asap before we start the process.  At least then we can build up some savings.  Good luck at panel     

Baby - sounds like things could be OK?  

CKay xxx


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## -x-Lolly-x- (Feb 3, 2012)

AoC what a brilliant post. You have clearly overcome a lot of so called 'black marks' against you to fight for all you believe in. If that doesnt show strength, determination, care and understanding, then I dont know what does. You will surely fly through panel. Good luck!!x x x x x


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## baby0684 (May 20, 2012)

Thanks guys. It has made me feel alot better about my situation. 

I know it is down to the agency. But feeling hopeful.


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## skyblu (Sep 9, 2010)

AoC , well done on getting through your debt and agree withyou , that it is not about the toys you can buy it is about the way you bring your children up in a loving and safe environment, but at the same time children can be expensive with clothes,shoes,the basics you need to buy for a new child and that is why they need to see if you you can manage money and have some savings.
But well done again getting through what must of been a scary and difficult time and I am sure you will fly through panel in August.
Good luck.  

Baby0684, I have 3 store cards and 5 credit cards, but not all my credit cards are in use and I never go over £200 on my store cards even though my credit is between £1000 and £6000 and I suppose it showed them that i can controll my spending and I have never missed a payment.
I f you are showing you are paying off your debt and you can a afford a child then I am sure you will be fine.
Good luck. 

Skyblu.xx


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## AoC (Oct 28, 2008)

You're quite right, Sky, and thank you.   And Lolly, thanks so much, you've made my bottom lip go all wobbly!  

Good luck, Baby - keep your options open at this stage and be up front with the agencies you're contacting, and be prepared to show how you're managing and improving your situation.


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## -x-Lolly-x- (Feb 3, 2012)

Reading that you had gone all wobbly then made me go all wobbly!! Im a muppet!!

We did all the reading we could before applying, lots of people posting similar threads on adoption uk. It varies so greatly between agencies and even individual sw that you just never can tell until you bite the bullet. Good luck to everyone. My DF is ringing round today to see if all the right people have the right paperwork with the right boxes ticked and the right signatures at the bottom, so we can hopefully hopefully get back on track and be in the black! Oooh poet and... I cant bring myself to say it!! I just want that letter in my hand to confirm it all so we can start already! x x x x x


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