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Delete33

Hi All
I have been made redundant after ten years service. However I also have a second job ( zero Hours contract ) I am seeking debt advice regarding 2 credit cards Crap 1 and Barclaycard. I owe Crap 1 4000 and Barclaycard 8000 I realise now I will not be able to pay even the minimum monthly payments as I also have a mortgage to pay. Any advice would be welcome, I have read similar posts and the members of this forum seem well clued up and are very knowledgable re: debt matters.

sourcrates

If you really cant afford to pay anything, then you should write to each creditor telling them so, explain your situation, and offer to update them in six months.

If you dont tell them, then your accounts will face further collection action, so always best to keep them informed, if you cant pay, tell them so.

Have a look on National Debtline website, there are some good template letters you can use.

Bobarella

Will you get any sort of redundancy package? Surely after 10 years they owe you something?

Delete33

Thanks for your advice sourcrates, I will have a look. My problem at the moment is that on a zero hours contract I can not commit to a fixed sum payment unless it is very low. It is possible to earn a full time wage one month but then the next month a pittance.. I will write to CC companies and see how they respond and I will keep in touch with this forum.

HappyMJ

Delete33 wrote: »

Thanks for your advice sourcrates, I will have a look. My problem at the moment is that on a zero hours contract I can not commit to a fixed sum payment unless it is very low. It is possible to earn a full time wage one month but then the next month a pittance.. I will write to CC companies and see how they respond and I will keep in touch with this forum.

You should be able to commit to £1 per month. This acknowledges the debt exists. When your circumstances change then you can increase your offer.

Personally if you can't make the minimum's without fail each month now then you'll get defaults anyway so I'd just offer £1 then save like anything to get a reasonable sum saved to be able to live off in the lean months...you still need to pay the mortgage in those months and you still need to buy food you can't live off nothing.

Then...in a year or so if you still haven't found a full time salaried job then I'd look at what I'd saved up and offer them a little more each month....then after 5 years or so of this just before the defaults drop off the credit report I'd offer them a full and final settlement using most of the savings to get them all off my credit report.

katy_ann

Like the others have said I would offer a £1 as a token payment, it shows that you acknowledge the debt and that you are not ignoring them

Delete33

Hi Folks
Letters sent to cc companies, awaiting responses.

katy_ann

Glad you got the letters sent off Anything you offer to them is better than nothing, at least they know that you are not trying to hide

patman99

Please contact one of the charities such as stepchange or payplan. They are non-judgemental and will help you set up a DMP.

Don't forget that even though you are on a zero hours contract, you can make use of your local food bank to help you make ends meet.

Delete33

Hi all, things have moved on since I last posted. I now have a F/T job, CC cards are all cut up and binned, Crap1 paid off £4000, Barclaycard owe £7000 and Interest is frozen, paying at least £100 month to clear this debt. I have a rainy day fund of £1000 in a three year fixed rate savings account. Feel a lot more positive than a few months ago, thank you to all who have given advice to me.

asparagus1968

glad things have worked out well for you