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

[Deleted User]

angiepooos wrote: »

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?

Okay, I misunderstood, just thought it was worth considering.

That's good though that won't have effect on job.

D9

angiepooos

If I looked into declaring myself bankrupt, would my husband's half of the equity be safe? All the unsecured loans are mine, and he's kept up with the mortgage, council tax etc. The mortgage is in both our names, and there is about £40K equity in there. I have around 40K debt.

Squirrel29

Hi, I really don't think you need to go to the extremeness of bankruptcy. It crossed my mind when I had my lightbulb moment. You go into panic mode and start wildly looking at all options! I've got £20k of debt and have recently started a debt mgt plan with Payplan. So far the creditors have been really good. M&S have stopped interest as have MBNA. I've had some defaults but as I don't want credit again, I don't care. They stopped ringing when asked and noone has been to the door. The advice you have been given ie change bank and if you do get made redundant, make token payments for a while. Your priority is a roof over your head, warmth and food.

angiepooos

Squirrel, thanks for the reassurance.

Even if I don't lose my job I can't afford to carry on as I am. I'd like to start a debt management plan too. Is PAYPLAN a charity or at least non-profit? Payplan looks good but I couldn't see them recommended on this site. Do you see them in person or deal with them online? I've tried readying about DMP but what I don't understand is whether you have to keep paying until your debts are paid off? Because that may be never with 40K of debt if the interest keeps building. That's my worry that I could end up owing 50 times what I owe now in ten years.

I don't want credit again either.

Squirrel29

Yes Payplan are free, every penny you pay goes towards the debt. I contacted CCCS and Payplan and I went with Payplan because they got back to me faster ... 8 am the next morning, and the lady was so kind and unjudgemental. CCCS were a bit slower and I'd already started the process with Payplan. I was sobbing down the phone, but after they confirmed they could help me and emailed with my budget plan I had the best night sleep in months.

I get a generous budget and now can save for things like car tax, haircuts etc, instead of scrabbling around for the cash when it's due. My surplus left for creditors is £100 which they've accepted. I've got car finance which is kept out of it but in 4 yrs when it's paid off, my payment will be added to increase the plan. It'll take 9 years to pay off but I have option of increasing payment (only when I feel I can comfortably do so) or save any surplus or overtime and offer full and final settlements. Say 60% of balance. Payplan will also negotiate that for me.

Many, many people are in our position. Cost of living has rocketed, once secure jobs are being lost and we had good years of easy credit. So easily done. Making that call was the best decision ever.

Squirrel29

Sorry, I meant to add you can look at their website and either put in a contact request on there or call them. Not face to face. They are based in Lincs.

Squirrel29

Also, yes you kept paying until it's paid off but CCCS and Payplan have good relationships with creditors and many freeze interest and charges. Put it this way, I'd rather be in a DMP for approx 9 years than be making min payments on a 23% cc which when I put the figures into the tool on this site, told me would take 43 years to pay off! I expect to be dead by then!!

angiepooos

I agree, it's what I'm going to do, you've made up my mind. GIANT MASSIVE VIRTUAL HUG TO YOU.

RAS

Hi

Your really do need to talk to several of the debt charities - CCCS and NDL as a minimum before deciding what to do.

In the short-term a DMP would give you some breathing space to sort out your finances and see if you can get back into work.

You need to sign on for JSA immediately you can - you get 6 months contribution based as long as you have NI credits in the right years.

Please get together with hubbie and both of you put your details ionto www.turn2us.org.uk in case you can get any support now, or when the JSA ends.

Paying the secured loan is vital; if necessary pay a mere £1 per month to the cards.

If you are contemplating BR do not under any circumstance pay back the debt to your mother; this is regarded very poorly by the OR and you could end up with her being asked to return it to the OR and a BRU/BRO, wghich will wreck your credit rating for a long time.

angiepooos

Thanks RAS, but what is a BR, OR and BRU/BRO?