Jobless With Debts

Tom_G_3

Hi Guys and Girls,

I Lost my job through dismissal (which I am looking into for unfair dismissal), on Jan 26th. I have activly been seeking employment and it feels unreal as I have been working since I was 16 without any gaps. I signed into the local job centre for the first time in my life on Monday, have arranged JSA (Job Seekers Allowance), which I was quite embarassed about, never thought I be in this position. However, with out some form of financial income I would have nothing to live off, I have no savings or any form of money to fall back on. my partner is 6 months pregnant and she works very few hours, but does her bit bless her. Prior to all this I spun debts out of control. I was getting things back to a realistic level I could afford to repay, but now I am seriously worried. I have a Barclaycard run up, A barclay Loan, an Egg Loan, and an overdraft. This are my main outgoings the rest I can cast off (mobile, Sky etc). I have been to the CAB (Citizan Advise) 3 times first thing in the morning and they have not been able to see me. My next set of direct debits come out between the 26th and the 1st of the following month, I have nothing to pay them with and have no idea on the steps I need to take, I do not want to bury my head in the sands, I have no PPI on any of the loans cards etc. I want to get this sorted and want to pay them but if I dont have the funds I simply cant pay.

Has anyone been in this position, before that can advise what they did, how long everthing takes to be put into play, what steps I should/need to be taking.

Im dreading seeing demand and debt collection letters falling through the front door, knowing as things stand I can do nothing. Please give a very worried man some help.

Many thanks Tom

Tom_G_3

also to add, not helping the matter is the bank charging for bounced payments (not yet but I know they will), they have charged me stupid amounts in the past on my account, on average £60 a month for what they call a "reserve fee", I triedto avoid using it but fell into the trap, as I live in my overdraft. I wouldnt say im depressed but it is starting to really worry me knowing im getting ever closer to the next set of direct debits, that I have no money to pay!

Tixy

Hi

As you have an overdraft (is it with barclays like the loan?) you need to first set up a basic bank account with a bank you owe nothing to, so that you can have your benefits etc paid into there. This will protect you from off setting and them recalling your overdraft (well it won't stop them recalling it but will stop them taking your benefits etc).

Then I'd suggest you cancel all the DDs and send out a version of this letter - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

This should buy you a month whilst you get advice from CAB or one of the others listed here - http://forums.moneysavingexpert.com/showthread.html?t=2077631

As the next step you need to work out a budget to show what you will have coming in (JSA and any other benefits) and what you have going out as priority items (anything before secured debts). This is a good starting form to use and whichever charity you contact will need this info - http://www.makesenseofcards.com/soacalc.html

Tom_G_3

Thanks for the quick reply Tixy,

I advised the Job Center, of this with regards to my benefit money (god I hate saying that)! They advised I set up a post office card account, which I have done that same day. Will take a look at the advised thank you.

You are correct, the overdraft as is the loan are with Barclays. Do I need to phone them or would this just start trouble and should I simply write to them. I use online banking so can stop all my dd's online.

Tixy

I would not ring them, writing that letter will be enough - you need to be aware that when they get that they may stop payments for any other items (dds for utilities etc as well as for debt repayments).

Its always better to do everything by phone as 1) they cannot bully you and 2) you have a proper trail of all that has been said.