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No job and mounting debt!!

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  • Locke
    Locke Posts: 485 Forumite
    http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

    3rd one down is a sample letter to creditors to tell them your circumstances have changed and to ask them to accept a token payment and freeze interest.

    Good luck.
  • I agree with what others have said, it may be worth offering a token payment of what ever you can afford - £5, £10 etc as it shows that you are committed to clearing your debts and not trying to run from them.

    Do ring the creditors and explain your situation. Also call National Debtline who will offer non-judgemental advice and also the CAB maybe able to help.

    But I also agree, that £320 pm is a lot to pay for a car - can you not use that money and buy a cheapie run around that will get you to and from interviews etc and then when you are in work again you could consider getting a better car?
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • Thanks all for the help.

    With regards to the car I am locked into a three year lease agreement else I would hand it back. My job when I am working takes me all over the country.

    I had a job to go to when I took the car but it was working away from home and I was holding out for a local job and they both fell through leaving me lumped with the car and lease.

    It is only a matter of time before I get a job and can pay back the debt quickly but I just need a breather for a month or so until that happens.
  • steverido wrote: »
    Thanks all for the help.

    With regards to the car I am locked into a three year lease agreement else I would hand it back. My job when I am working takes me all over the country.

    I had a job to go to when I took the car but it was working away from home and I was holding out for a local job and they both fell through leaving me lumped with the car and lease.

    It is only a matter of time before I get a job and can pay back the debt quickly but I just need a breather for a month or so until that happens.

    You may be able to re-negotiate the lease. I have heard of HP companies giving an extra three months and tagging onto the end, have a look at your contract to see if you have some room on this. Or take it down to CAB and see if they can help with it.
    Blackadder: Am I jumping the gun, Baldrick, or are the words 'I have a cunning plan' marching with ill-deserved confidence in the direction of this conversation?
    Still lurking around with a hope of some salvation:cool:
  • In that case, give National Debtline and CAB a tinkle, they are free and will be able to advise.

    In the meantime, I'd get in touch with your creditors and explain the situation and offer a token payment that you (not what they want), but do this in writing as they will only try and bully you.

    I think another poster has said, National Debtline website has a good standard letter for this.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • piggeh
    piggeh Posts: 1,723 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    £320 isnt that much for a car if needed for business use. However I would advise looking at a 30/60/90 day rental programme in the future - it's slightly more expensive (maybe £80 a month more) but could be worthwhile if you need the flexibility. Talk to the leasing company about your current situation and other creditors, I'd imagine the lease car may be taken back but it's easy enough to sort out another one once you find work. They will probably want it as residual value will fall the longer you have it and there's no guarantee when you can recommence payments.
    matched betting: £879.63
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