Newbie Needs Help Please

numb3rs

Hi,

I'm in a bit of bother at the moment.

I've just lost my job due to longterm sickness.
I lost my job today - hence this post.
I'm going to be on benefits I guess for a while.

Here's my current situation.

Rent £ 300 p/m (living with parents)
Sky £38 p/m
Phone £20 p/m
Pet food/insurance £25 p/m
Petrol £50 p/m
Car insurance £20p/m
Other £100 p/m
IF loan - £4000 (£3000 approx outstanding)
First Direct Loan - £15,000 (£9000 outstanding)
Egg Credit Card = £4200
Capital One credit card - £800
Mint Card - £3300

Total = £27,000 (approx)

I've never missed a payment & always paid off past loans with no problems.
If I hadn't lost my job - I would have carried on as I am & eventually paid the lot off.
Now I'm scared - not sure what to do - don't know how much benefits will be etc.. or how I'm going pay for things.

I was going to write to all my creditors telling them my situation & hoping they'll be understanding - but I'm not sure if thats the correct thing to do.
I've heard about Payplan - would they be able to help me in this situation?

I have one more pay day of £1300 on the 30th of this month then - I'm going to have problems.:eek:

Telling my parents isn't an option - I'd prefer to keep them out of it - my Dads recently had to pack in work due to back problems.

Any advice very much appreciated - would especially like to hear from somebody who's been in a similar situation.
Only found these boards 2 days ago - you seem like a nice bunch.

lynzpower

hi there Sorry to hear of your situation.

Yes, call payplan. or cccs who will discuss with you a debt management plan

Also check out https://www.entitledto.co.uk

I would also recommend that you sell anything you can ( ebay amazon etc)
and consider getting rid of your sky, as your benefits money would be unlikely to stretch to this. Also have a really good read if you havnet already- great ways to cut back hunt at the top of the page

All the best
lynzx

lynzpower

the other thing to note is that Im not sure whether you would be able to continue to pay your parents the 300pcm- there are strict rules to the use of housing benefit, particularly if your parents are claiming- are they ?

I dont know a huge amount about it, but Im remembering something similar happened to one of my clients- adn there was loads of jiggery-pokery going on with the benefits agency about this

Piggybank_2

Do you have job loss /sickness coverage on your loans and cards? If so, then do use them as you have been paying for the priveledge!
If not, then do get in touch with the CCCS or Payplan and set up an immediate dmp before your situation gets worse due to being off work.
Most importantly of all - don't worry!! There will be more people coming along who will be able to help - there is light at the end of the tunnel!
Good luck!

Storm

I echo Lynz - find out what benefits you will be able to claim so you've got your monthly income figure. Then speak to Payplan or CCCS to sort out a DMP that is affordable for you.

Also, if you live with your parents you're surely going to have to tell them at some point? Won't they wonder why you're not going to work every morning?

With the loans & CCs can you put them in your SoA with the monthly repayments? The IF loan looks like it's due to finish soon, which is good news as it will be one less creditor to deal with.

Good luck, and keep posting

numb3rs

Thanks for the replies so far - my parents know about my job etc.. but not my debts.

I have no insurance cover on my CC or loans.
Again - thanks for the very quick advice.

justruth

Rent £ 300 p/m (living with parents)As mentioned this could be a problem when claiming housing benefit
Sky £38 p/mGet rid or reduce to the minimal package
Phone £20 p/mnot bad but see if you can get it down to £10
Pet food/insurance £25 p/mcan you get cheaper food, and do you need the insurance, PDSA are free for people on benenfits
Petrol £50 p/mThis is high, as you are not working, could you get this down a little?
Car insurance £20p/m
Other £100 p/mWhat other? If you have money unaccounted for you could try keeping a spending diary
IF loan - £4000 (£300 approx outstanding)Waht is the APR on all the loans and credit cards?
First Direct Loan - £15,000 (£9000 outstanding)
Egg Credit Card = £4200
Capital One credit card - £800
Mint Card - £3300

It might help if we knew the amount payable each month and the APR of all these, then you could prioritise your debts. I personally would be tempted to pay off the IF loan £300 first to ease the pressure and have a little more spare cash to throw at the other debt.

If you have been paying into insurance schemes for the debt then time to collect. Well done on tackling this before it comes to the crunch.