Drowning in debt - Breaking point!

Tarka1981

Hi,

I've not posted on here before so apologies if it's in the wrong section.

I am currently unemployed after losing my job at the end of November. I am in the process of trying to sign on for JSA but am not sure if I can claim. My debt issues began back in 2008 when I lost my job due to the recession. Over the next 18 months I drained my savings and ended up reliant on my credit card just to cover basic outgoings. I was not frivolous with my spending; I just ended up in a position where I had no other means of affording to live.

Due to the events industry struggling in the recession, I ended up taking a much lower paying retail job just to make ends meet. This role was lost before Christmas however and as of now, I am officially out of money which is putting additional financial strain on to my partner and consequently putting him into debt.

I have a collective credit card and overdraft debt of £10,150. (£1,700 of which is the overdraft.) The APRs on the cards have been hiked up to the 27.9% & 29.9% and before losing my job I was already struggling to make a dent in to the debt due to only being able to afford the minimum payment each month - therefore only paying off the interest for the most part. My HSBC card, for example, although unused for the past 6 months and paying £170 per month, I have only paid £100 worth of debt.

After speaking to a representative at Pay Plan, I wrote to HSBC before Christmas stating that I am unable to meet the payment requirements and have offered a token payment of £5 per month. I have yet to hear back or receive feedback after the first payment was 'defaulted'. I am in the process of writing similar letters to EGG & Amex where I will make a similar offer. I completed the online assessment with CCCS who recommended the same approach.

I have to admit though that I am in utter despair as I don't see how reducing my payments and accruing a series of default charges is going to help me when I was struggling to make the payments even before I lost my job. Speaking to HSBC did little to raise my hopes as they were completely inflexible and offered no helpful solutions when I spoke to them after my unemployment back in 2009.

This has been a slow burning issue that should have been addressed when I first encountered problems but I admit that I did suffer that delusional thinking that if ignored, it would be rectified!

I am now unable to make payments, I am past my overdraft limit so am being charged accordingly. (£20 per day up to £100 - thanks very much HSBC...)

I noticed something about Debt Relief Orders and wondered if I would be eligible if not in work and whether this would be a better option? I can't seem to find anyone that will talk through debt consolidation options with me and I feel I am too far gone for token payments.

I am not sleeping, my stress levels are horrific, the depression is overwhelming and I think my relationship is crumbling. Any help & suggestions would be greatly received.

cavework

Do you have insurance on your credit cards?

RAS

Welcome. I have to go shortly but

Tarka1981 wrote: »

I am currently unemployed after losing my job at the end of November. I am in the process of trying to sign on for JSA but am not sure if I can claim.

You can sign on on-line. Have you not done this in the last month?

I have a collective credit card and overdraft debt of £10,150. (£1,700 of which is the overdraft.)

The APRs on the cards have been hiked up to the 27.9% & 29.9% and before losing my job I was already struggling to make a dent in to the debt due to only being able to afford the minimum payment each month - therefore only paying off the interest for the most part.

If you have not spent any money on thees cards since the hike in percentages, you can write and demand that they reverse the hike in rates.

After speaking to a representative at Pay Plan, I wrote to HSBC before Christmas stating that I am unable to meet the payment requirements and have offered a token payment of £5 per month. I have yet to hear back or receive feedback after the first payment was 'defaulted'. I am in the process of writing similar letters to EGG & Amex where I will make a similar offer. I completed the online assessment with CCCS who recommended the same approach.

Good plan in the short-term

I am now unable to make payments, I am past my overdraft limit so am being charged accordingly. (£20 per day up to £100 - thanks very much HSBC...)

You need to open a new basic bank account immediately with someone to whom youi owe nothing. Otherwise any benefits you are entitled to will be used to off-set against your debts to HSBC

I noticed something about Debt Relief Orders and wondered if I would be eligible if not in work and whether this would be a better option?

CCCS and NDKL can talk to you about these

I can't seem to find anyone that will talk through debt consolidation options with me and I feel I am too far gone for token payments.

That is rarely ever a good idea and is not an option if you are unemployed

I am not sleeping, my stress levels are horrific, the depression is overwhelming and I think my relationship is crumbling. Any help & suggestions would be greatly received.

Has your partner checked whether he can claim anything with his income being the onkly one? www.entitledto.com leads to the turn2us web-site checker.

Tarka1981

Hi and thanks for replying.

I don't have insurance on the cards as I couldn't afford the additional cost. (Ironically.)

I haven't signed on yet as I got cut off last time I claimed after 6 months as I apparently didn't have enough contributions.(?) I did try to sign on the other day though but the site keeps crashing so I couldn't finish the assessment. I will try again now though.

I will set up a new bank account tomorrow.

Thanks.

RAS

Tarka1981 wrote: »

I haven't signed on yet as I got cut off last time I claimed after 6 months as I apparently didn't have enough contributions.(?)

No. Contributions based JSA is only paid for 6 months. After that you have to go on Income based JSA. So it depends what OH was earning. Did he try and claim WTC?

I did try to sign on the other day though but the site keeps crashing so I couldn't finish the assessment. I will try again now though.

Please do get this sort ASAP. Apart from anything else, not having any protect NI for the whole of December may mean that if you are unemployed again in two years time, you cannot get contributions based JSA. It can also affect future pension rights.


I will set up a new bank account tomorrow.

Thanks.

Make sure you ask for a basic account. No credit check.

millionaire_in_training

hiya. Jobseekers Allowance only runs for 6 months. If you have not had any for a year or so and have always paid your national insurance then you should get it okay. The sooner you claim the better. Don't despair. As Martin said he has never in all the years he has been doing this met anyone who has debt that is beyond redemption. You'll get there. Good luck xx

Tarka1981

Hi, I have paid NI since end of May, which is when I started my new job - so only six months worth of input by the time I left.

I am also no longer with my other half as our relation ended last night. Turned out I was right about thinking it was in trouble... My world just ended.

dancingfairy

Hi - if you can't get contribution based JSA (based on your NI record) then you should be able to get income based JSA - ie based on your income - which currently is nill so you should be able to get that surely.
Also once you have that in place it opens up more benefits- ie council tax benefit and housing benefit etc.
Keep your chin up.
df

isy1011

Sorry about your situation. Well done for posting. Can you put up a SOA so we can see the bigger picture and to see if we can help you save elsewhere?

usa1

Well done for posting, sorry to hear about your other stresses,

Tarka1981

Sorry, what's an SOA?