PLEASE HELP- I'm scared!

PaulBruce_2

Hello moneysavers. I've just lost my job and am forced to claim jobseekers allowance for the time being whilst I am actively seeking work. I have 2 credit cards (barclaycard and virgin) and I am obviously unable to pay them for the time being. What will they do to me? I don't own a house or anything.

jd87

What are the minimum monthly payments on them? Can't you make the JSA stretch far enough to pay them? Are there any other benefits you could be claiming? Income support maybe?

For the first couple of months you will just get a missed payment recorded on your credit file which isn't too bad. Then there will be defaults. Then they will probably go down some kind of debt collection/CCJ route, but hopefully you will find a job before it gets that far, so there's really nothing to be too scared about. It's just going to damage your credit file if you can't pay. That's all.

PaulBruce_2

jd87 wrote: »

What are the minimum monthly payments on them? Can't you make the JSA stretch far enough to pay them? Are there any other benefits you could be claiming. Income support maybe?

They are around £60 each every month so £120. As far as I'm aware, the only benefit i'm entitled to whilst looking for a job is JSA. I live at home with my parents and am worried how this will adversely affect them. I'm not worried about my credit rating as it's already ruined but I care about theirs.

jd87

As long as the cards are in your name it won't affect your parents at all. The only way it could affect them is if you have any bank accounts in joint names with one of them.

JSA is about £60 a week last time I checked.

Moggles_2

I live at home with my parents and am worried how this will adversely affect them.

This will not affect your parents' credit status.

If you share a financial product (eg. joint bank a/c) with someone else, then you are financially linked to them and your affairs could have an effect on their credit rating, but simply occupying the same home as someone with a poor credit history, has no effect whatsoever.

Moggles_2

I'm not worried about my credit rating as it's already ruined.

Why do you say that? Have you checked your credit reports lately to see what's on there? For help, see page 1 of the *How to obtain credit reports* sticky.

Fingers crossed you land another job soon

Meanwhile, I would stop spending on the cards, if you have not already done so.

As long as you continue to meet the minimum monthly payments, your credit rating remains unaffected.

If you do not have savings, I would swallow your pride and borrow some money from family. Your credit rating is precious and, once shot, it takes years to rebuild.

McKneff

If you really tried I'm sure you could make your JSA
pay your CCs. £30 (half) a week shouldnt be too out of reach. Perhaps your parents could waive your board until you find a job. Better owing them money than getting defaults/charges/bad credit.

duggie1982

Also check with your cc company as you might have payment protection with them for when you get made unemployed

mwaheed

Give your credit companies a call and see if they can arrange a lower minimum payment for you.
They are supposed to be more helpful lately because of the economic climate.
If you have poor credit rating already then maybe go on a payment plan with them, some charge no APR on your payments for a fixed period such as 6 months etc and hopefully by then you will get a job

PARIS_5000

I would try and use your JSA to pay CC to save your credit and as you live with your parents so maybe you can ask them to help you in the short-term.

Moggles_2

mwaheed wrote: »

Give your credit companies a call and see if they can arrange a lower minimum payment for you.

Caution: this is no soft option, there are consequences. It will be marked as "arrangement
to pay" on your credit file, which will trash it for 6 years (ie. long after you're back in regular employment.)

Currently, you have two mainstream credit cards. In particular, Virgin is a market-leader, so your credit rating may be better than you think.

Fingers crossed you get another job soon.

Very best
M