I cant afford my debts

gazduk

hi,

I need help, I have been told that my contract wil not be renewed at the end of may. I have started applying for jobs but as yet i havent had any luck.

I currently have a loan with £2600 still to pay
A credit card with £2500 stil to pay
plus some other little things that add up to about £1000

and i have an overdraft of £1200 that is being reduced by £50 each month

i dont know what to do, i cant pay these off by the end of the month, plus i have my rent and bills to pay still on top of everything. i could seel my car but tht still wont cover all that i owe.

please if anyone can give me some advice

tealady

Hi
I would contact your local Council for housing benefit forms for help with rent and council tax. Also explain to your bank whats going on and that you will only be making token payments when you lose your job.
I would also open a sparate basic bank account to have your benefits paid into otherwise your current bank could use them against your overdraft.
Have a hunt round the house for things to ebay or car boot as well
HTH

Tixy

Hi gazduk and welcome.

Have you looked to see what benefits you will be able to get in terms of JSA and you may get housing benefits etc.

Check if you have any PPI cover on any of your debts.

Your rent, council tax & utility bills etc have to take priority over your debt repayments. The truth is that benefits are not sufficent to cover debt repayments and usually people have to end up defaulting on their unsecured debts. The advice is usually to cancel the DD and to send a letter explaining that you are out of work, and then just pay a token payment to each creditor each month (as little as £1 to each if thats all you can afford).

This route does mean that it will impact on your credit rating but often there is no other choice. You might also want to seek advice from - https://forums.moneysavingexpert.com/discussion/2077631

In the meantime, cut back wherever you can, e.g. reduce your grocery shopping, check you are with the cheapest providers for gas & elec, for telephone, internet & mobile, considering cancelling SKY, check out if water meter would be cheaper than unmeasured etc.