Any experience with this?

KT2802

Hi everyone,

I have been unemployed for the last few months and claiming JSA. I have managed to meet the minimum payments on my debts up until now as I moved back home to my parents which means I have very minimal outgoing costs and I got the deposit back on my house. I am not behind on any of my payments yet.

The situation is that I will be starting my new job in a couple of weeks where I will be easily able to afford the minimum payments and am hoping to clear lots of my debt by living at home for a while. With my new job starting in a few weeks, I am not going to be paid until the end of January and my JSA will obviously have stopped so I have no money from when my job starts until the end of January.

This means I won't be able to make my minimum payments for one month. I am planning on ringing all my creditors tomorrow or Monday to let them know and see what they say. I have no way of borrowing any money from anyone and have already sold everything that is worth any money. What I was wanting to know is, do you think I am likely to get a default for missing a months payments? I can understand it from the banks point of view but I would be gutted if this happened because it has been out of my control and I will soon be starting a well paid job.

Thanks for any advice/help. I am really worried about this.

haycorns

Have you thought about asking for a salary advance from your new employer? They might be able to help. When do you actually start work?
It is Christmas so they might be more undertanding thn normal,

KT2802

haycorns wrote: »

Have you thought about asking for a salary advance from your new employer? They might be able to help. When do you actually start work?
It is Christmas so they might be more undertanding thn normal,

I start second week in December. I work in the public sector so I don't think this is possible. Thanks though - I will ask and see what they say.

dancingfairy

As it is for 1 month can you borrow from your parents at all? I wouldn't normally suggest this but it seems a shame to get a default for missing one month and I can't see the banks becoming compassionate and not giving you a default to be honest (and let's face it it would be a default and they are supposed to record accurate information on your file).
Hope you can find a way around this.
df

KT2802

dancingfairy wrote: »

As it is for 1 month can you borrow from your parents at all? I wouldn't normally suggest this but it seems a shame to get a default for missing one month and I can't see the banks becoming compassionate and not giving you a default to be honest (and let's face it it would be a default and they are supposed to record accurate information on your file).
Hope you can find a way around this.
df

Thanks dancing fairy. Unfortunately not it is really frustrating, I don't know what to do

Tixy

A default notice is not normally issued until you are around 3months behind with repayments.
If it is just 1 month then they will likely mark your credit files to show a missed payment and charge you fees/interest but not issue a default.

If you can't pay minimum payments then can you pay something to each debt? better than paying nothing at all if possible.

As it is just one month then possibly another option it to effectively borrow on them to repay them this month, paying any costs you can for the month on the cards etc, or even possibly taking cash out on a card (its not a brilliant solution but you could consider it if it really is just a 1month problem).

mummygems

It might be different but wont you get 2 weeks wages from new employer in December (totally dependent on when your pay day will be). Will you get JSA up until you start?

I really hope talking to your creditors will help and they will understand.

KT2802

Tixy wrote: »

A default notice is not normally issued until you are around 3months behind with repayments.
If it is just 1 month then they will likely mark your credit files to show a missed payment and charge you fees/interest but not issue a default.

If you can't pay minimum payments then can you pay something to each debt? better than paying nothing at all if possible.

As it is just one month then possibly another option it to effectively borrow on them to repay them this month, paying any costs you can for the month on the cards etc, or even possibly taking cash out on a card (its not a brilliant solution but you could consider it if it really is just a 1month problem).

Thanks Tixy, that's good to know. I am thinking a missed payment wouldn't be great on my file but better than a default? I will be able to pay something towards each debt, some of them I will be able to meet the minimum payments for (storecards etc.) but not the loans and credit cards. I will offer a token payment. Unfortunately all my cards are maxed out apart from one which I closed as they wanted to increase the interest. I am planning on targeting paying them off once I am working again.

mummygems wrote: »

It might be different but wont you get 2 weeks wages from new employer in December (totally dependent on when your pay day will be). Will you get JSA up until you start?

I really hope talking to your creditors will help and they will understand.

Thanks mummygems - unfortunately I will miss the cut off for December pay day which means I won't get the money until the end of Jan Yes I will get JSA up until I start I think so I am going to use that money to offer token payments to the ones I can't meet the minimum payment for. Really hope the others don't default me.

RosaBernicia

Public sector can do salary advance or pay after 2 weeks not full month - at least NHS used to and I've had a foreign government do so too. Have you explained to HR that you are moving off JSA and that it will be difficult? I would ring them as soon as you can so you can find out what needs to be done - they probably can't set anything up til you turn up on day 1, but at least you and they could be prepared.

Good luck

Rosa xx

KT2802

RosaBernicia wrote: »

Public sector can do salary advance or pay after 2 weeks not full month - at least NHS used to and I've had a foreign government do so too. Have you explained to HR that you are moving off JSA and that it will be difficult? I would ring them as soon as you can so you can find out what needs to be done - they probably can't set anything up til you turn up on day 1, but at least you and they could be prepared.

Good luck

Rosa xx

Thanks Rosa - I am pretty sure that I will miss the cut off date to be paid at the end of December but like you say, perhaps if I explain it in more detail to them they may be able to do something. I will give that a go by calling them and see what they say. If they are able to that will help a lot, I still won't have enough to meet all the minimum payments but would be able to meet a lot more than if I don't get paid until the end of Jan :eek:

haycorns

KT2802 wrote: »

Thanks Rosa - I am pretty sure that I will miss the cut off date to be paid at the end of December but like you say, perhaps if I explain it in more detail to them they may be able to do something. I will give that a go by calling them and see what they say. If they are able to that will help a lot, I still won't have enough to meet all the minimum payments but would be able to meet a lot more than if I don't get paid until the end of Jan :eek:

Definitely ask. I work in local government. If you are starting mid december you aren't even asking for a cash advance , you are askig for your December pay . Even if payroll cut off is before you start ( ours in 13th december), they know you are coming so can set you up on the payroll and if for whatever reason you weren't to show up they just pull the BACS payment before the money goes into your bank - i think our payments are a week early so 23rd this year..

I am sure they can do it and what you are asking isn't unreasonable at all.

HR are very helpful people