Unemployed and in debt!

MrVolle

Hi, this is my first post on here so I apologise if it's in the wrong section.

Basically, I am in quite bit of debt and I am no longer working or earning money. I owe a payday loan company (minicredit.co.uk) £254.60, and they keep adding on further amounts. I am also around £220 over my bank overdraft limit, so that obviously needs to be paid off asap as well. My phone has now been cut off as I owe around £50 for the contract on that as well.

I am also in arrears with a Littlewoods account but I've already approached them to suggest a slower repayment plan, so hopefully they'll go along with that.

I'm trying desperately hard to get a job but there's no guarantee of when I'll be able to get one, and even then the first payment would be likely to be anything up to a month after the day I get the job.

Has anyone else been in a similar situation, or have any of you got any advice on the best plan of action? I've been incredibly stupid to get myself into this situation but I don't want to just ignore it. Are there any debt management companies that would help an unemployed person in this sort of situation?

Thanks in advance for any help

Tixy

Hi and welcome

You could certainly go to one of the debt charities for some advice on dealing with your debts. IMPORTANT - Where to seek professional impartial advice about your debts.

I would suggest you open a new bank account first with a bank you don't owe any money to - you may find you need to apply for a basic bank account to be accepted. Once that account is opened arrange to have any benefits / income etc paid to the new account. Once your income is secure I would send out letters to your creditors (incl) the overdraft to offer them each a token payment a month whilst you are unemployed, explain that you current only have JSA (or whatever) to live on and cannot afford anymore currently. Don't give the payday loan company know your new bank account details or set up a new DD with them. Instead either pay by standing order (so only you can change the amount you have agreed to pay) or ask for a paying in book to pay them over the counter in a bank.

Possible starting letter here - http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=51

You haven't been incredibly stupid, being unemployed is not something that many people plan for and your situation is common, so don't beat yourself up about it.
Remember that whilst you need to repay your debts there are other priority items you need to be paying first, such as housing costs, food etc, so only offer them what you can afford - even if that happens to be as little as £1 a month each.

MrVolle

Thanks for the help.

One of your links lead me to a site called CCCS Debt Remedy, so I'm filling out their online form at the moment to see what they suggest. It's the Payday loan company that I'm most worried about as I know they'll be likely to add more and more to the amount I owe.

Numpty_Monkey

Hi MrVolle
the stuff Tixy posted is the correct stuff:T

Due to your cicumstance (I'm in the same boat) CCCS
will sugguested sending the token payment letter
you have done the correct thing :T on the debt remedy site you will be given a ref number, put that in your letter, shows you are trying:T
and don't listen to the crappy TV adverts:mad:

I do know what it's like trying to find a job(unemployed for 2 years now)

MrVolle

Thanks Numpty

I've now applied online for a standard bank account with Natwest and they'll be sending me a letter to confirm in the next couple of days. I'll have around £100 I can pay into that account, so I guess I'll just have to send out the letter and start making the token payments.

Has anyone got any other specific advice on how to deal with the Payday loan company? Is there any way I can stop them from constantly adding extra costs?

Hannah_10

The payday loan co are likely to be aggressive pains in the !!!!, I would say get in touch with the CCCS on the phone and let them help you. I think I know what what CCCS will say- make token offers because that is honestly all you can afford and tough luck on the payday loan shark. Don't take my word for that though, do call. SaltnVinegar has posted about payday loan sharks here too.