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Danny is looking at a couple of years inside (Picture: Getty Images) Listen to article Listen to article Your browser does not support the audio element. This week’s Money Problem poses a question most of us will (hopefully) never have to consider: what happens to your cash if you get sent to prison? Danny, from Stockport, is looking at a three-year sentence for GBH — but the thing weighing heaviest on his mind has nothing to do with visiting hours, cellmates or meals. Instead, the 32-year-old is worrying about managing his finances while inside, from debt to monthly bills. Here, he asks Metro consumer champion, Sarah Davidson, for insight. The problem… I’m 32 and am due in court next week to be sentenced for assault with grievous bodily harm and I’m expecting to get about three years. As long as nothing goes wrong, I reckon I’ll probably have to do around 15 to 18 months. I’m really worried about money. I’ve taken out what I had left in my bank account after my last payday, so I will have some cash to take with me. But I have a loan of £2,500 and £2,000 on my credit card that I was paying off at £250 a month and I won’t be able to pay either of these as will have no money coming in. I also have a two-year contract on a phone that I won’t be able to pay either. There are a few other small monthly payments like the gym and Netflix but I won’t be using them inside. What will happen with what I owe when I am in prison – will the companies come after me for not paying? The answer… Your problem may seem pretty niche to the majority of the country’s law-abiding citizens, Danny. They may even, I’d hazard a guess, tend towards thinking – who cares, you’ve assaulted someone badly and now you’re facing the consequences. I’m not here to pass judgment on your offence or make any assumptions about what’s fair or unfair. What I will say is that, regardless of whatever crime you may have committed, your attitude to money appears to be a sensible one. You’re thinking ahead, planning what happens after you’ve served your sentence and it seems you’re trying to be responsible. It’s also worth pointing out that millions of people will be in a very similar situation, faced with ongoing living costs and debts to pay but with no income for a prolonged period. It is not just those serving time in prison who are restricted from managing their finances in this way – anyone detained under the mental health act will find themselves in a very similar position. Even those who have simply lost their job, become too ill to work or been forced to give up to become a full-time carer face the same challenges you are currently. The simple answer to your question is, yes, companies can and will chase you for unpaid debts regardless of why you aren’t paying them. But there are things do about it before things get very bad. If he deals with this before sentencing, he can avoid missed payments with no explanation (Picture: Carl Court/Getty Images) First – call your bank now and tell them everything. Be completely honest and open and try to give as much information as possible; how long you expect to be in prison for, what money you do have and what hope to have coming in when you are released. You don’t have a lot of time to get this done, so when you speak to them, ask if there’s an option to appoint someone – a family member for example – to deal with your account while you’re in prison. You may be able to do this over the phone but it’s likely you’ll need to confirm in writing. Next, you must call up your credit card provider and loan provider and explain the situation to them. While not all providers are required to offer payment holidays, some will put your repayments on hold for a fixed number of months without penalties. You will end up paying more interest overall, but this would avoid them appointing debt collectors while there’s nothing you can do about repaying. You may find they’re open to reducing your monthly payments to a sum you can actually manage using the money you’ve withdrawn from your current account, although it would be sensible to keep some money in that account while you’re serving your sentence to cover unexpected costs. More Metro Money Problems I’ve earned £90,000 making adult video games but no bank wants my money I’m on £60,000 a year but can’t afford my commute to work I think I was ripped off by a sexist plumber — do I still have to pay him? I sent nude pictures of myself on a dating app and now I’m being blackmailed Then, the gym membership and TV streaming subscriptions. Cancel these immediately. It’s usually reasonably straightforward to do this through your account app or online for most services. For the gym membership, I’d recommend speaking to them and writing to them in an email confirming that you are ending the contract. They may still charge you to the end of any fixed term you’ve signed up for – be prepared for that. Alternatively, you could ask them to suspend your account and reactivate it when you’re out – that’s totally down to their discretion. Your phone contract will have similar conditions that prevent you from terminating the agreement without paying them the full amount you’d pay to the end of the two-year fixed period. Do still contact them to ask whether they have any options for people in your situation though – a lot of companies now would rather be flexible if they think your income situation is not permanent. Given the nature of your circumstances personally, this may not wash quite as well as if you were simply between jobs. Still, you can only ask the question. Next, make sure you go through your bank statements to check there are no other subscriptions going out of your account either weekly, monthly or annually. Cancel everything you can. A bounced payment will cause you no end of problems, especially if you only find out about it after you’re out. Lastly, there are several free and confidential advice services available to anyone worried about money. It’s well worth contacting someone today, before you begin your sentence, as they will be able to help you prepare as best as possible, taking into account all of your other personal circumstances. Free and confidential advice is available from: StepChange Debt Charity (0800 138 1111) PayPlan (0800 280 2816) National Debtline (0808 808 4000) Citizens Advice (0800 144 8848) Debt Advice Foundation (0800 622 61 51) Turn2Us (0808 802 2000) Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
