Urgent Advice Needed Please :(

DragonHeart_2

Hi All,

Hope someone can give me some advice, as my heads spinning at the moment. Ive have 3 Loans (Unsecured) and a few Credit Cards and ive never missed a payment for all these years ive had them.

But i am to be made Redunant on Wednessday ...... so i will have no income comming in........ i really dont know what to do...... i plan on calling the CCCS on Wednessday for info... but i have a few questions.

1) Can i just cancel any direct debits for my loans ? as i cant pay them with no money comming in i have called them and they havent been helpful. How can i pay if i dont have the money

2) I have an overdraft at the bank should i tell them the situation and cancel it ?

3) I am getting around £5,000 Redundancy but i need this to live on, so should i just leave it in the bank account. (BTW its no where near enought to even make a dent in the loans and cc

Im just really confused, as ive never been in this situation before and i dont know where to turn

Someone please help

claire0710

First of all, write letters to all the companies you owe - explain the situation and that you have had to cancel the DD's but will be setting up a payment plan with CCCS.
CCCS are excellent,when you ring them make sure you have a full list of your incomings and outgoings and they will help draw up a payment plan and deal with your creditors for you. The generally manage to get interest frozen and the administer the payments for you - no cost involved. The payment plan is reviewed yearly.
Make an appointment with your bank to discuss your situation, maybe they could help keep your o/d costs to a minimum or help work out a solution, if you have generally good credit then your bank should help you out.
Make sure you only cancel DD's for loans/credit cards and not your mortgage or council tax (you can go to jail for non-payment of ct!)
I am not entirely sure about the redundancy payment but it may be expected that you use some or all of it to reduce your debts, CCCS will be able to advise more on this.
Good luck.

markandkate

First of all check whether you have anyy payment protection insurance on your credit cards.

I agree that you should talk to the bank but remember that they willonly be interested in their debt so any advice will not be impartial.Also ask them to put everything in writing do not agree to anything or sign anything in the bank.

Under no circumstances pay your redundancy cheque into the bank Open a new account or a building society one then you will at least reatin control of your money.

If your loan is with the bank that has your current account they will tell you that you cannot cancel it which is untrue. Ypu could always use some of your redundancy to pay off your overdraft or if you are over your limit with any of your cards use the money to bring yourself below the limit just to prevent penalty charges