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  • FIRST POST
    • robbie85
    • By robbie85 6th Jan 18, 11:13 AM
    • 3Posts
    • 0Thanks
    robbie85
    Hours cut at work - please give advice for temporary situation
    • #1
    • 6th Jan 18, 11:13 AM
    Hours cut at work - please give advice for temporary situation 6th Jan 18 at 11:13 AM
    My hours have been cut at work.
    I'm looking for another job and plan to increase my income back to what it was within a year.
    For now I don't have enough to cover payments on what I owe.

    I googled what to do and have been learning about IVAs and DMPs and token payments.
    Some places say lenders are more lenient if you contact them directly, some places say do it through Citizen's Advice.

    I want to be a first-time buyer within the next 4-5 years so I don't want to damage my rating.
    With my old income I was on track to pay off everything in 3 years.

    What's the best way forward?

    Thanks
    Robbie
Page 1
    • sourcrates
    • By sourcrates 6th Jan 18, 12:01 PM
    • 13,097 Posts
    • 12,398 Thanks
    sourcrates
    • #2
    • 6th Jan 18, 12:01 PM
    • #2
    • 6th Jan 18, 12:01 PM
    Hi Robbie,

    Unfortunately if you have to make reduced payments to your creditors, you will have to accept that it may reflect badly on your credit file.

    If having your hours cut has triggered a crisis, then you were pretty close to the edge anyway, you can do this in one of two ways, dependent on how confident you are, and how much involvement you want, you can either write to you creditors yourself, explain about your situation, ask for a reduced payment plan (best to sit down and work out your budget first before doing this), remember, all unsecured credit debts are what we term "non priority" and are last on the list for payment.

    Priority debts are things such as rent/mortgage/council tax/secured loans etc, then utility bills, food etc etc.

    Or, you can phone one of the free debt charities and ask them to help you do this.

    Good luck.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 3:14 PM
    • 5,215 Posts
    • 9,920 Thanks
    enthusiasticsaver
    • #3
    • 6th Jan 18, 3:14 PM
    • #3
    • 6th Jan 18, 3:14 PM
    If you are asking lenders to accept reduced payments because of changed circumstances it will show up on your credit file. Cut back as far as possible while you are looking for another job.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • robbie85
    • By robbie85 6th Jan 18, 6:08 PM
    • 3 Posts
    • 0 Thanks
    robbie85
    • #4
    • 6th Jan 18, 6:08 PM
    • #4
    • 6th Jan 18, 6:08 PM
    Sourcrates, I phoned Stepchange and they said they can setup and manage a plan but can't be sure interest will stop or that I won't get defaults.

    Before the restructure I was managing. I got in crisis because I took PDLs to try to cover the gap, otherwise payments (expenses 783, repayments 860 = total 1643) were met by income of 1800.

    Really I just need 2 months breathing space to get a job with more hours so I can pay as normal. I don't want to shortchange anyone but also don't want it to reflect badly on my file when it was a corporate restructure out of my hands. I phoned a few creditors and they would only agree to 30-45 days with payments on hold.

    Here's my SOA. Is it ok?

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1: OH's

    Monthly Income Details

    Monthly income after tax................ 986
    Partners monthly income after tax....... N/A
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 986


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 300
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 20
    Mobile phone............................ 30
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 28
    Groceries etc. ......................... 138
    Clothing................................ 25
    Petrol/diesel........................... 100
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 15
    Car parking............................. 25
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 25
    Pet insurance/vet bills................. 30
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 12
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 15
    Total monthly expenses.................. 783



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Overdraft......................1700......70....... .NaN
    Loan...........................7900......300...... .NaN
    Cards x5.......................18100.....420.......NaN
    Payday loans x6................4500......1200......NaN
    Credit line....................1300......70........NaN
    Total unsecured debts..........33500.....2060......-



    Monthly Budget Summary

    Total monthly income.................... 986
    Expenses (including HP & secured debts). 783
    Available for debt repayments........... 203
    Monthly UNsecured debt repayments....... 2,060
    Amount short for making debt repayments. -1,857


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -33,500
    Net Assets.............................. -33,500


    * You have included petrol but have missed other car related expenses. OH's car
    * If you have a TV licence, enter a 12th of the cost in your monthly expenses. Part of rent
    * Enter a 12th of your annual birthday/christmas present spend. Will make do without
    * Do you use gas or oil? Nothing entered. Part of rent
    * You have missed out electricity costs. Part of rent
    * No council tax specified. Is that correct? Part of rent
    * No water rates specified. Is that correct? Part of rent
    * You have not entered any assets. Is this correct? Yes
    * You appear to own a car but have not added it as an asset. OH's car, I pay for petrol and servicing

    Created using the SOA calculator at stoozing.com
    Reproduced on Moneysavingexpert with permission.
    Last edited by robbie85; 06-01-2018 at 6:38 PM.
    • NekoZombie
    • By NekoZombie 6th Jan 18, 6:33 PM
    • 1,622 Posts
    • 1,504 Thanks
    NekoZombie
    • #5
    • 6th Jan 18, 6:33 PM
    • #5
    • 6th Jan 18, 6:33 PM
    Having seen your SOA, I’m not sure reduced payments are going to be a viable option as you are very much in the red on a month to month basis. To be honest, I would strongly recommend contacting one of the debt charities to get some advice and valuable emotional support.
    BCSC Member 70
    .
    • Windofchange
    • By Windofchange 6th Jan 18, 7:01 PM
    • 678 Posts
    • 755 Thanks
    Windofchange
    • #6
    • 6th Jan 18, 7:01 PM
    • #6
    • 6th Jan 18, 7:01 PM
    The obvious thing is those payday loans. How on earth were you paying £1200 a month on those even when you were earning your normal salary? Are they new - as in the last few weeks, or have you been doing that for some time? The priority has to be to pay those back, but I suspect there is no hope of that to be blunt.

    From looking at the SOA, it's not as if you are a few quid short, you are around a grand short each month before you've even considered housing yourself and eating. I would do as suggested above - contact a debt charity and see what they have to say. I can't really see this heading any other way than some sort of DMP / bankruptcy. Others will be along with the fine details I'm sure.
    Debt Free by Xmas 2018 0% of £1,626.91
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    • robbie85
    • By robbie85 6th Jan 18, 7:08 PM
    • 3 Posts
    • 0 Thanks
    robbie85
    • #7
    • 6th Jan 18, 7:08 PM
    • #7
    • 6th Jan 18, 7:08 PM
    Yes, they are new. Not being able to make ends meet and robbing Peter to pay Paul. Should have looked for help before taking them, they only bought a month extra and made things more difficult.

    I wasn't short before my hours were cut. I didn't have the PDLs and my expenses 783 and repayments 860 came to 1643, so were covered by my take home pay 1800.
    • Jon B
    • By Jon B 6th Jan 18, 9:40 PM
    • 801 Posts
    • 741 Thanks
    Jon B
    • #8
    • 6th Jan 18, 9:40 PM
    • #8
    • 6th Jan 18, 9:40 PM
    Did it occur to you that spending more a month on debt repayment than your living expenses might not be normal?

    Can your OH get a job? Stacking shelves in Tesco will bring in nearly a grand a month.
    • Windofchange
    • By Windofchange 6th Jan 18, 9:41 PM
    • 678 Posts
    • 755 Thanks
    Windofchange
    • #9
    • 6th Jan 18, 9:41 PM
    • #9
    • 6th Jan 18, 9:41 PM
    Yes, they are new. Not being able to make ends meet and robbing Peter to pay Paul. Should have looked for help before taking them, they only bought a month extra and made things more difficult.

    I wasn't short before my hours were cut. I didn't have the PDLs and my expenses 783 and repayments 860 came to 1643, so were covered by my take home pay 1800.
    Originally posted by robbie85
    I'm assuming then that the PDL's have a time pressured commitment to them? I'm not the expert, but can they only roll over for a maximum of 90 days? In other words, are you about to go bust anyway as come next month or the month after you won't be able to extend or service them, and they will then automatically default?

    What will two months breathing space do for you? You need to find £2000 a month simply to service your debts, and this is before you've even started to think about rent and food etc. That's a post tax salary of around £30k gone on debt repayment alone! I think you need to get back on the phone to Stepchange and spell out where you are at. There will be a solution, but it's going to involve a considerable amount of financial pain I would suggest.
    Last edited by Windofchange; 06-01-2018 at 9:44 PM.
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    • Windofchange
    • By Windofchange 6th Jan 18, 9:59 PM
    • 678 Posts
    • 755 Thanks
    Windofchange
    My hours have been cut at work.
    I'm looking for another job and plan to increase my income back to what it was within a year.
    For now I don't have enough to cover payments on what I owe.

    I googled what to do and have been learning about IVAs and DMPs and token payments.
    Some places say lenders are more lenient if you contact them directly, some places say do it through Citizen's Advice.

    I want to be a first-time buyer within the next 4-5 years so I don't want to damage my rating.
    With my old income I was on track to pay off everything in 3 years.

    What's the best way forward?

    Thanks
    Robbie
    Originally posted by robbie85
    The other thing to say is take this as a good hard slap round the face reality check. Being frank, you weren't on track to pay anything off, whatever you may claim here. You were / are addicted to credit - 5 credit cards, a loan, an overdraft, a credit line and then the PDL's ontop of it all. I say this as I've been there, got the t-shirt, and just about made it out the other side unscathed. I'm not trying to come across as judgemental or holier than thou, although I can see it may seem that way.

    You'll get a resolution to all this of some sort or another, and the sun will continue to rise in the morning. The biggest part of resolving a problem is recognising it in the first place. Have an honest word with yourself, and whatever fall out there is in the coming months, own your mistakes and resolve to never go there again!
    Last edited by Windofchange; 06-01-2018 at 10:01 PM.
    Debt Free by Xmas 2018 0% of £1,626.91
    Save £6k by 31/12/2018 £700 / £6000
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