About to lose my job, help with a couple of questions

angiepooos

My first post. Please bear with me and I beg you to offer some comfort as I haven't slept for a month with worry.

I think I'm about to lose my job. I've never been unemployed in my whole adult life, but even though I've been applying for other jobs desperately for the last six weeks, I haven't even been offered an interview for one. I'm at rock bottom.

My husband's job is safe for now and covers the mortgage, council tax, tv license, utility bills etc, so in that respect we're much luckier than a lot of people. However, I have around 20K of unsecured credit cards in my name and a 11K loan which is secured on the house.

I maxed my cards out when we moved into this house a year ago as it needed so much doing to it (plumbing, damp etc) but I made all the curtains and tried to cut as many corner as I could. I thought it was the house where my daughters could live whenever they want and our future grandchildren could play, so the investment seemed worth it.

I was was just about coping with the interest payments at £650 each month on my three big cards 8K, 7.5k and 7.8K, I couldn't afford to pay much more as they're charging between 25 and 29% interest and I have to buy food and pay my loan of £220. I have paid off one card and am almost finished another in the last year though with hard work, but the others are costing me all that money to stand still.

I had thought my job was completely secure as I worked for a local authority, but turns out I was wrong. By the time my hubby as paid for everything he has about £400 left which he uses for petrol and to subsidise our daughter who’s in college (she does work in a shop at night but it pays peanuts she needs books and materials).

After almost not being able to function and having some very dark thoughts about not going on, I finally spoke to a lovely lady from Community Legal Advice today. What a wonderful woman, and such a kind person when you're feeling so low can bring you to your knees can't then.

I explained the situation and she said told me I didn’t have to sell the house or my car (which I'm going to need to get another job). She is sending me a pack to write to my unsecured creditors to ask them to freeze interest/payments. She said they may well not do that and that to steel myself that they may be awful, and threaten me and maybe sell my debt to a debt collection agency. She told me they can't send bailifs though and have to take me to court if they want to get more from me.

Question 1
My credit cards are with Egg, Halifax and Marks and Spencer. Does anybody know what their track record is for being helpful or unhelpful?

Question 2
Her best bit of advice was to move our current account somewhere where we don't owe money. We have our money in the Halifax and that's where my big 8K card is. She says they can dip into my account to take money. If I cancel my own account and have my last bit of salary paid into my husband's account, does that mean that the Halifax can't touch it as it's in his name and the credit card is in mine?

We have about 40K of equity in our house, but we couldn't sell it and realise that even if we wanted to as there are so many houses up for sale where we live and nothing’s selling. We could reduce it and lose 20K but when you add that to the 7K it would cost in legal fees and estate agent costs, it wouldn't even pay off our debts and we'd have nothing left. I'm in my late 40s and my husband's nearly 50 so this house is it for us.


My husband can't have CCJs or his job will be affected, so the cards we'll have to target are mine. I have to take the hit and have my credit affected for 6 years. Has anybody lived through something similar as I feel I can barely hold my head up with the shame and worry of it?

Ang

[Deleted User]

Hi,

Firstly, welcome to the forum, and well done for posting.

I have not hear of Community Legal Advice. Are they a service that you pay for. If so DO NOT go with these people - you don't have to pay for help/advice with debt.

Contact one of the debt charities - CCCS, Payplan, CAB, or call the national debtline.

Also, post a SOA here<http://www.makesenseofcards.com/soacalc.html>, and people will be able to tell you where you can make cutbacks/savings on your monthly costs.

HTH

D9

Jesthar

angiepooos wrote: »

My husband can't have CCJs or his job will be affected, so the cards we'll have to target are mine. I have to take the hit and have my credit affected for 6 years. Has anybody lived through something similar as I feel I can barely hold my head up with the shame and worry of it?

Ang

Not me personally, but absolutely! Look around this board the Debt Free Diaries section - you will find dozens, hundreds of people, even, in the same boat. Have a read when you have the time, I guarantee you that you'll be both comforted and inspired at the same time.

The lady who advised you was right - you need to change your bank account to one which is unconnected with your debts, or they will just take all the money they can from your corrent accout. I know, I had a friend be a victim of that tactic...

It probably isn't the best idea to put your money with your husbands, though. If you have joint finances, his credit rating will be affected too, so you need to double check you don't and get yourself taken off any joint accounts ASAP. Whilst paying your money into his account might not qualify as joint, it's not worth taking the risk and keeping all yout finances totally separate would be best. You can get basic bank accounts (which don't require a credit check) from several places; a lot of people on here seem to recommend the Co-op. You need to do all that before you write to creditors to be sure there are no problems.

You also need to focus on your priority debts. That means the secured loan, as that is the one where the most serious consequences could happen. The credit cards are unsecured, however, and not paying them will result in nothing more than lots of phonecalls (untill you tell them to stop) and lots of scary looking bluster-and-thunder letters in the worst case scenario.

However, whatever happens, you will find many people here who have been through similar things (plus a few of us who tag along for the ride ), and are more than willing to share both advice and a dodgy hug (:grouphug:) when things get tough.

*hugs* Keep smiling, hon! And maybe post a Statement of Affairs (SoA - link here in this thread, which is a good read: https://forums.moneysavingexpert.com/discussion/107280), it's the best thing for both helping you focus and to get yourself some good advice.

~Jes

angiepooos

Domino and Jesthar, thanks so much for your advice. I will definitely post a statement of affairs and get that sorted today.

Domino, don't worry, Community legal advice were recommended on this site, but I wonder if the CCCS is a better option - this lady was very nice though.

Community Legal Advice (includes Housing Duty Scheme)

Jesthar, thanks in particular for that tip about putting money with my husband. I will apply for a basci coop account before I go to work today. I haven't lost my job quite yet so this is the time to make this change.

Any other things I should do before the axe falls?

Should my husband move his account too, we HATE the Halifax and they've taken so many charges off us over the years. I know I could challenge that, but I've been with them for 20 years and haven't the strength to think about that battle now. They don't keep archived PDFs up for that long.

We have two separte accounts and a joint account with the Halifax. If I move my account should we cancel the joint to save me being associated with my husband's credit. I guess the mortgage will always link us in any case.

I did sleep almost a full night last night for a month after speaking to the debt lady and going through this site. So thank you. At least I have started to formulate a plan now.

dancingfairy

Just a few more thoughts for you:
1) are you entitled to any redundancy pay - hopefully you should get something?
2) make sure you sign on as soon as you can - if you qualify for other benefits you generally need to have got jobseekers first and for some reason they don't seemto like it if you use savings first and then sign on?? You should be getting what 60 pounds a week based on your National Insurance contributions.
3) the secured loan is obviously a priority along with the mortgage - do not make token payments to this - you need to pay this in full if at all possible
4). Can your husband do any overtime to get you through the next few months?
5) have you cancelled everything you don't really need any more - any old insurance plans for appliances you no longer have, magazine subscriptions you don't read, etc etc.

Obviously any shoring up /pre-planning you can do now will stand you in good stead.
While CCCS are also good the person you spoke to also sounds good and there doesn't seem to be a particularly pressing reason to change at the moment - especially since she knows your situation and you have face to face contact at the moment. It sounds like you are getting personalised advice and I suspect she can offer you slightly better support just because I suspect CCCS are snowed under it really is up to you though. I suspect whoever you go through you will need to steel yourself for snotty letters/threatening letters which the companies will send until they actually twig that you won't be bullied into paying money you dont have and that they have to accept what you've got or lump it

Best of Luck
df

Butti

Angiepoos,

Have they given you any indication of the level of redundancy they will be paying you. I had been working for local authorities for 17 years (remember it is the continuous service that is the important bit!) and they ended up paying me £20k which has allowed me to pay off most of my debts and study for the last year.

Also if you have a good payment record on your mortgages and some equity they may allow you to take up to a 6 month mortgage holiday. Without this I couldn't have got things to balance.

B

mandyl

hi,
Community Legal Advice have been good with me, if thats any help

Jesthar

angiepooos wrote: »

Should my husband move his account too, we HATE the Halifax and they've taken so many charges off us over the years. I know I could challenge that, but I've been with them for 20 years and haven't the strength to think about that battle now. They don't keep archived PDFs up for that long.

We have two separte accounts and a joint account with the Halifax. If I move my account should we cancel the joint to save me being associated with my husband's credit. I guess the mortgage will always link us in any case.

If they're that bad, why not? Have a read of the Best Bank Accounts section on the main site, and make sure you pick a bank you don't have any debts with. Oh, and DON'T let hubby get talked into an account which charges a monthly fee unless you are both absolutely sure you will profit from the benefits offered.

You definitely need to close the joint account down before missing any payments on CCs etc. I don't think anything can be done with the mortgage, though - to put in in your husbands name only would require a new mortgage, I think, you can't just remove a name from it.

Bear in mind that you'd have to clear any overdraft on an account before you closed it, but if you can do that and you're both fed up with Halifax, then why not switch?

Also, do you know if you have a good credit rating at the moment? If so, it may (repeat, may) be worth trying to apply for a balance transfer credit card. Given the amount of credit debt you already have, you may not be able to get one, though - others are better on this subject than me Main site article on this is here: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Wherever you move to, though, the one thing to be certain of is that their is no association between them and your creditor banks - that's the most important thing.

~Jes

[Deleted User]

Do you have any other joint finances that may link you? Mortgage? Credit cards? loans?

Worth thinking about all financial links if it will have a devestating effect on OH's job

D9

angiepooos

Hi Domino, bad credit won't have a negative effect on hubby's job, but any CCJs will as he works in finance. But CCJs will be in my name as I'll be defaulting is that correct?

Dancing Fairy... some good news is that I've realised that the loan I thought was secured is actually just in my name and unsecured, so that's good I guess.

My hubby's credit rating is 'excellent' but that means very little as his percentages of commitments are 90 odd percent. He can't afford to pay anything more than he pays, my stuff is all unsecured so I will have to make sure that it's me that takes the hit with any defaults.

I won't get much redundancy as I haven't worked there for long enough, and what I will get I need to pay my mum as she loaned us a couple of grand when we moved here last year and she really needs it back. The bit left over will need to pay off my overdraft.

My husband and I only have the mortgage in common. All other loans and credit cards are separate.

Mandyl, I'm reassured you had a good experience with this organisation. They seem lovely.

Jesthar, good banking advice. I am thinking of the co-op, do you or anybody else know if they have association with Halifax, Egg or M&S? I don't think so but you can never be sure.

I'm scared about the future. Scared because I used to have 650 left after bills and I always had more month than money. Scared that that the credit cards will sell my debt to thugs who'll come to the house and smash my car etc. Can anybody reassure me on that?

I'm so touched that you've all responded. I have felt alive again today for the first time in weeks thanks to knowing there are other people who've been in the same boat. Big love to you all xxxxxxxxxx

katsu

I have heard lots of complaints about debt collectors here, but none about them smashing cars, so I would not worry about that.

HTH