I've lost my job.

doo_little

Thank you for taking your time to read this, any help is greatly appreciated.

I have found myself in a situation and I'm not sure of the best way to get out of it - at the beginning of last year I took out a loan and two credit cards, keeping up with the repayments was fine as I was employed then.

However, a few months ago I lost my job and since then I have been living off of the very little savings I had, I was sure I would find another job before repaying the debt became an issue, however finding a new job has been a lot harder than I originally thought.

At the moment I am not in arrears with the loan and credit card companies but I cannot afford to make the repayments from the next due dates.

I have no idea what I am suppose to do going forward, who do I need to talk to? Can I deal with the companies just in writing? Are repayment plans easy to set up? What do I need to include in the letters, are there any templates available?

Any help, tips or suggestions you have will be very helpful
THANK YOU

Growurown

The loan and CC's are non priority debts and as you are unemployed at the moment you can just make token payments. You can write to the companies and explain your situation, or telephone them but some may put pressure on you to pay what you can't afford. You could speak to a free debt advisory service such as CAB, Step Change or Payplan and see what they recommend but make sure you use a service that is free and not fee paying. Lots of sample letters here: -

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

doo_little

Thank you, those template letters are really helpful!

datlex

Hope you get sorted soon with a new job

doo_little

Thank you, datlex!!

Debtcrasher10

Hi

I was unemployed for 6 months and found myself in your situation. I contacted the credit card company via telephone & explained I was unemployed & asked for it to be put down on record as that was the reason I couldn't pay. I was then sent out an income & expenditure form to complete & send back to the credit card company showing my priority debts. My account was put on hold for thirty days until I sent back the form. You may still get pestered for payments but I explained it was a matter of time until I was employed before I could begin to make arrangements & that it was my every intention once I had a job I would then start payments.

Although it is scary talking to the companies it is sometimes the best approach as they know lots of people are in the middle of unemployment.

I have now got a temporary job & have been working three months over which time I have then contacted the credit card company & organised a debt plan payment for a few months to bring the account into alignment again. sometimes doing the income & expenditure form filling will allow companies to put the account on hold & buys some time whilst looking for work.

Hope explaining my experience helps a little & best of luck on your journey:)

doo_little

That's great thank you! At least I know there is a way forward now rather than sitting and being worried all the time. I have sent letters to the companies explaining my situation so waiting to hear back. Good luck to you!

lyndorset

Good luck finding a new job. In the meantime - you've come to the right place for advice! It will be a weight of your mind and enable you to concentrate on applying for jobs updating cv's etc once you have takent he few steps suggested.

Worrying about money is draining and debilitating - now you have sent off the letters, you can start to relax!

KT2802

Debtcrasher10 wrote: »

Hi

I was unemployed for 6 months and found myself in your situation. I contacted the credit card company via telephone & explained I was unemployed & asked for it to be put down on record as that was the reason I couldn't pay. I was then sent out an income & expenditure form to complete & send back to the credit card company showing my priority debts. My account was put on hold for thirty days until I sent back the form. You may still get pestered for payments but I explained it was a matter of time until I was employed before I could begin to make arrangements & that it was my every intention once I had a job I would then start payments.

Although it is scary talking to the companies it is sometimes the best approach as they know lots of people are in the middle of unemployment.

I have now got a temporary job & have been working three months over which time I have then contacted the credit card company & organised a debt plan payment for a few months to bring the account into alignment again. sometimes doing the income & expenditure form filling will allow companies to put the account on hold & buys some time whilst looking for work.

Hope explaining my experience helps a little & best of luck on your journey:)

Do you know how this has impacted on your credit rating? I may be in a similar position in a few months as my current job finishes soon. Just trying to get another job sorted but isn't looking too promising.

Good luck doo little!

Prothet_of_Doom

Be positive. Remember You Did not Lose the Job, it was taken away from you.

(Unless you gave it away?)

Anyway, another job is out there looking for you. It's yours for the taking. If it finds you.

Debtcrasher10

KT2802 wrote: »

Do you know how this has impacted on your credit rating? I may be in a similar position in a few months as my current job finishes soon. Just trying to get another job sorted but isn't looking too promising.

Good luck doo little!

I was told it may effect my credit rating. Eventually if the minimum payments can't be met they will send to a debt collection agency as formality. Whilst I couldn't make the minimum payments I paid what I could & remained in contact with the company letting them know how I was progressing towards finding employment.

When I became employed again the advisor explained the notes on my credit file had been added to indicate that the account had only went into arrears as a result of unemployment & so the onus isn't really on poor mismanagement of money that way. I believe it is better to have your unemployment status down on record as it creates a better understanding for anyone looking at the credit file etc of the external circumastances you were placed into rather than having the perception you just didn't meet payments & you are too high risk.

Hope this helps & good luck to you finding work as it will come your way eventually.:)