HELP! I've just lost my job

Scaredtodeath

I've lost my job and my wifes wage doesn't come close to paying our debts. What do I do?? I owe over 30k and was managing ok but have just lost my job after 17 years and haven't got a clue what to do. I will probably be able to make my next payment on each of my debts but if I don't get a job straight away that will be it!! If you need more info let me know but any advice would be really, really, really appreciated!!

savingmummy

So sorry to hear this, was it expected? if not what a shock for you.

I have no `solid` advise but i would advise paying the priority bills rent/mortgage, council tax etc.

Regarding debts what are these?
The case may be that you will have to seek professional help regarding repayments until you find new employment.
You will need to tell the creditors about your situation.

Others will advise you more about what to do from here. Again so sorry to hear this x

view

Did you receive redundancy / severance pay?

Dr.Shoe_2

Speak to the creditors first.

Then go to the CAB.

Then call Payplan or CCCS.

Scaredtodeath

NO severance/redundancy - I was about to be sacked but managed to resign. Thats not the issue though - my main concern are my finances

Deep_In_Debt

Speak to creditors and explain the situation and offer them token payments perhaps - £1.00, £5.00 per month - whatever you can afford, just to show willing whilst you are getting things sorted. National Debtline website has a good template letter you can use to write to your creditors for this and enclose your I&E.

Creditors will probably throw their toys but if you don't have it, they can't have it at least by offering a token payment you are showing that you are trying to pay your debts.

Scaredtodeath

Debts are combination of loans (non secured), credit and store cards.... I'm screwed aren't I!??!?

LeeSouthEast

The good news is they're all unsecured, so your home is not immediately at risk (or even at much of a risk down the road). You need to speak to your creditors and advise them of the situation. Do so in writing by recorded post if you do not fancy dealing with them on the phone.

I'm sure more skilled people will be along shortly.

dawyldthing

not necessarily, as long as you are honest with the companies and tell them what you can afford to pay off then its better for them to have a bit of something rather than a lot of nothing. It will take a lot longer to pay off, but if you have things like a car or other items that you can sell to help keep you afloat while you sort everything out then it could be a start

niccatw

Hey!

So sorry to hear that. I can't offer much more advice than has been given already, but here are the links to the three main debt charities. Even if you don't need to call them right away, their sites are full of useful info.

http://www.cccs.co.uk/
http://www.payplan.com/
http://www.payplan.com/

It might also be useful to complete a statement of affairs before contacting your creditors so you know exactly how much you can afford to pay them. That way, if they try to argue you have to pay more, you may find it easier to stand your ground and not agree to anything you know you can't afford. You'll also need this if contacting one of the charities.
http://www.makesenseofcards.com/soacalc.html

Often people post their SOA on this site for feedback on where to cut back too. I'm not suggesting you do that right away though! I think you might need time to take in everything that has just happened and work it through with your wife.

It can be done though. You're not "screwed" at all; it's just going to take longer and be a bit tougher than you originally thought. That's where we come in; there's always some-one to lend a hand, and a sympathetic ear. We know how tough it can get.

Take care and good luck

InDeepDebt

How much is your wife's wage. Deduct from that your mortgage, poll tax, food and other essentials. Is there any surplus?

Do you have kids? You may get tax credit. Find out about any and every benefit that you are entitled to. Not sure how you go about with the dole with you resigning - I may be wrong but it could have been better you being sacked.

If you haven't any surplus, speak to your mortgage provider - you may be able to get interest only for a year. Someone with more knowledge in these matters may say that that is a bad idea. I hope not though because that's what we've done.

Very first thing to do though is to pick up the phone and phone your creditors. Most that I've spoken to initially have been very good - it's a few months down the that they start to be a pain.

Good luck with everything.

Separate from your initial problem but can I ask why you handed in your notice and why you thought you were going to be sacked? You don't have to answer if it's personal, I'm just thinking of constructive dismissal (if appropriate). First things first though, contact creditors.

G