Wages will be 3 months late - advice needed

Alex79uk

Hi all,

I have a loan with Tesco, and my repayments are £269 a month. This is manageable for me and I've never missed a payment.

However, I work in the voluntary sector and our non-profit company is completely reliant on funding. Things have been difficult lately with lots of cuts but we've always been paid. Today I've been told my wages will be three months late. I will not be paid any money until April. This means I absolutely will not be able to afford to pay my loan in February or March.

Is there anything I can do? I did phone up Tesco about 18 months ago one difficult month, and they were completely dismissive, didn't care, and refused my request for a one month break from my loan.

What can I do? I know my employers will happily write any letter, or confirm to Tesco that I will be paid, but not until April. I haven't contacted Tesco yet as I was hoping for some advice. Is there anything at all I can do? Perhaps pay interest only for 3 months, or anything.

I'm really at a complete loss of what I can do about this. Any advice is appreciated.

Thanks.

ILW

3 months sounds like your employers really are in the mire. I would plan on not getting the money at all.

BackOnTrack

Your choices are limited but I would say they are:

1. Look for another job
2. Look for part time job (in addition to regular job)
3. Borrow from a family/firend (Don't get a payday loan)
4. Default for 2 months and make up arrears when you get paid (will affect your credit score but you shouldn't get a default and it will be marked late payment)

Apples2

And a new Job.

You can't lead a credit filled life with that kind of wage pattern.

Alex79uk

Thanks for the replies guys, I was hoping someone might be able to offer some advice regarding holding my loan for a couple of months. Like if Tesco did actually have any obligation to do this?

@ILW : Yes I can see what it sounds like, but it's not as bad as that. It is a funding thing, funding comes in randomly and at different times, it just so happens there is none coming in till April, then it's all coming in at once. I am one of the managers at the centre, and I'm aware of all the financial business, it's not like the people 'at the top' are hiding something from the workers.

weegieblue

If you call up and explain the situation they should listen. Are you able to make a token payment - even £10 a month? This will stop it being showed as a missed payment, and as long as you get all your wages in a lump sum you should be able to bring your account back up to date as soon as you get paid.

The concern is what happens if you don't get paid......

HappyMJ

I think it's time to move on and look for another job. Charities can borrow money to pay wages and they should be doing that. If you left and went onto benefits you'll be paid straight away (the reason for leaving is breach of contract by employer so you won't be sanctioned) and can then meet your loan payments.

If you miss the payment it will be a red mark on your credit file and you will find it difficult getting credit in the future.

If you can pay the payment then get a crisis loan to pay for essentials you don't need to be claiming to get a crisis loan from DWP.

Alex79uk

It's not a charity, it's a CIC (Community Interest Company). It's a centre which provides training and childcare in an area of deprivation, and I've worked here for 10 years. It's easy to say 'get a new job' but it's harder to actually do.

Tixy

Your loan provider are not under any obligation to make changes to your payments, let you pay interest only etc etc. You could try talking to them to see if they may be prepared to make you an offer.

Aside from that you need to write to them, explain the situation and offer them a token payment for the next few months until your finances improve. It hard to say exactly what effect it will have on your credit file as each lender acts differently, likelihood is you will show late payments but not a default if its only for a couple of months. You could get a default notice prior to that and if it goes on longer than 3months you will almost certainly get a default.

Apples2

Alex79uk wrote: »

Thanks for the replies guys, I was hoping someone might be able to offer some advice regarding holding my loan for a couple of months. Like if Tesco did actually have any obligation to do this?

I tip my hat to you for your commitment to those less fortunate around you.

Sadly this debt is quite real and takes no prisoners. If (and thats a big IF) Tesco were to lend you a sympathetic ear, from the posts on here, they probably wouldn't describe fully the effect it will have on your credit file.

Any payment break will have a negative effect as it breaches the terms of the agreement, both on your credit file, and the amount you will ultimately repay.

AMILLIONDOLLARS

You should cancel your standing order, as Tesco will try to take the payments as normal. This will cause you to rack up bank charges. Then do as suggested and make a nominal payment each month until April.

AMD