Don't pay this months debts..good idea ?

Pickle49

I started a new job a couple of weeks ago and because of the interruption in steady income, I have a bit of a cash flow problem. I have debts with 3 CC's and 4 catalogue companies. I have been very careful with my spending this month and have managed to continue to make the minimum payments on them all so they are all up to date and I'm not in arrears. However, I don't get paid until the end of June which means that I won't be able to make repayments throughout the month of June and I will have to save my wages at the the end of June to pay for whats owed in July....you with me ?

I have no other bills to pay, my husband takes care of the rest. I have no income for a few more weeks so there aren't any other areas where I can make cutbacks...and certainly not to the tune of finding £700 ( that's the total of the monthly repayments ).

The way I see it, I have two options. I can either contact them all and say that I can't pay Junes but I will be back on track to pay July's or I can borrow cash on one of the credit cards to cover Junes payment. Neither one is a great idea and they are both going to cost me in interest..but I dont really have another plan.

Any ideas or thoughts as to what may be the best way forward..

Thanks

lazer

Your options are

1 - Ask your employer for an advance on wages?
2 - Ask your husband for help with making the payments or for him to cover the other expenses?
3 - Sell some stuff - if you have £700 on minimum payments - the amount of stuff you have should be quite high - anything you can sell to at least partially cover the payments

Only once these options shold you look at the other options which you have outlined

But personally if it is a cashflow problem and is genuinely only for 1 month I would consider living as frugally as possible for that month with all available money going on the payments and possibly using one of the CC's to pay what I haven't got the cash to pay. If you default on the payment it will affect your credit rating

whitewing

Int free loan from your husband?

happycamel_2

Talk to your husband, the vow "everything I have, I give to you" springs to mind. You'll lose less wealth to 3rd parties in he form of interest if you work together to minimise debt as a family. By the way £700 is a hefty minimum payment, it sounds like you have a lot of debt to pay back.

Your other option is sell stuff.

Pickle49

Thanks for the reply lazer.

1. I'm now working for a big corporate company and because of the way their system works it is not possible to get a wages advance.

2.my husband is already covering every other bill and expense from the mortgage, utilities, groceries, paying for my travel fares...etc etc...everything.

3. I am doing a car boot at the weekend, so that will give me something, but I know it's not going to give me enough to cover my repayments.

It is a genuine cash flow problem and will be for one month only. I can't live any more frugally than what I have done for this month. I literally have no money coming in to live frugally on. All my last wage packet went on paying Mays repayments and some travel expenses for training in my new job ( which I will be reimbursed for at the end of next month.

I realise it will impact on my credit rating and once I have paid off the catalogues in about a year, I wanted to apply for a 0% balance transfer card to tackle the loans. This could put paid to those plans..

Moneymash

Don't get a payday loan.

happycamel_2

Actually your other one is some extra work, take in ironing, cleaning, deliveries etc.

Pickle49

Unfortunately whitewing my husband doesn't have a pot at the end of the rainbow to dip into. He has been supporting us both and has been very understanding about the £21,000 worth of debts that I built up that he only found out about a few months back.

Pickle49

Thanks happycamel. I think my previous replies probably cover the points you made.
As for other work...easier said then done. By the time I've found someone who wants a bit of ironing done, my short time without having any cash will be over.
I'm also doing long days training for this new job and haven't even had the time to do my own ironing...:rotfl:

Pickle49

Moneymash.........I would never be that silly. That's not even on my radar to consider that option...ever..

happycamel_2

Wow, £21k debt and no savings and a £700 a month repayment commitment, that's a nasty combination. I'd say selling stuff is your best option, maybe even big stuff, spare furniture etc. Your new job means you have few employment rights, I think your long term plans for clearing the debt are good but late payments might mean you can't implement them.

Some big sacrifices now could pay dividends later, I think you need to do everything not to miss those payments.