Urgent Help Needed

Baileydog421

Hi,

My current situation is:

Unemployed
No savings

Current debts:
Credit card - 3500
credit card 1500
credit card - 500
personal loan - 2000
payday loan - 800
payday loan - 600

I have no income, and cannot receive JSA as I have recently returned from working overseas.

I'm unsure what the best course of action is. If I default, then 6 years from now there is no trace of this remaining, whereas if I look at a DMP surely this will last longer as each time I make a partial payment it extends the 6 year period?

Any help greatly appreciated

OneLife_OneShot

I can't see how anything but defaulting can happen if you have no income no savings almost £9,000 worth of debt. I am no expert but I really do not see another option.

MrsTinks

Baileydog421 wrote: »

I'm unsure what the best course of action is. If I default, then 6 years from now there is no trace of this remaining, whereas if I look at a DMP surely this will last longer as each time I make a partial payment it extends the 6 year period?

Any help greatly appreciated

No... the default date will not change and your DP will no doubt result in defaults anyway. If by defaulting you mean "Don't pay and hide for the next 6 years" then your risk is that a CCJ may be logged against you at any point in the next 6 years. So long as they dontinue to try and collect that and contact you then in theory they can get that CCJ extended indefinitely.

Can you afford to pay this money? I guess the answer is no.

Your options then are:

-Default and try to avoid debts indefinitely
-Default and put a DMP in place
-Look at bankruptcy/DRO

Not saying there aren't others but unless you can land a job then paying them clearly isn't an option?

Baileydog421

I am looking for work, and hope to be in employment within the next few weeks. Until then, I can raise approximately £3000 from family, but I don't expect this to be enough to offer settlements to each company.

sourcrates

Hi,

If you can't pay it, you can't pay it, simply write and tell your creditors your unemployed, so can't make any kind of payment to them right now.

You will be back in touch in six months to update them on your situation.

If this spell of unemployment is going to last 12 months or more, then get a debt relief order, otherwise, sort it out when you are working again.

They can't take what you haven't got can they !!

National_Debtline

Hi,


You can approach them with a settlement offer (no harm in asking), make sure everything is agreed in writing before any money is sent. Highlight that if they reject this offer you will not be able to make any payments for the foreseeable future but can review this in 6months (as mentioned above).


You should also check potential benefit claims at www.turn2us.org.uk - you may not be able to claim 'contribution based' benefits, but you may be able to claim 'income based' ones depending on your circumstances.


Your options to deal with the debts will change, as your disposable money changes. At the moment there is no disposable (monthly) money so it would seem that you need to delay negotiations until you can make a real impact on the money owed, or consider a DRO if this could be more long term.


Laura
@natdebtline

Maximum_Saving

Hello. I think that you might be able to work in a shop at this time of the year as a temporary employee. There is a busy time for shops you see and they need extra people. You could speak to the CAB to get your debts into a settled form with one payment each month. Have a look to see if you can claim any benefits like Income Support. Good luck.

ravsd

Wake up tomorrow determined to find a job. Any job. Literally anything that will provide some form of income.

Cut your costs ruthlessly and then look to pay off your debts as much as you can! It'll be tough but it'll allow you to pay off some of that debt!

Good luck.

January2015

Do not borrow from family to make any payments or settlements towards this debt. If you don't have the money the creditors can't have any. It is likely to strain family relationships borrowing money from them - even if it doesn't bother your relatives it is likely you will feel some level of pressure to clear the money owed to relatives as quickly as possible.

It's just not worth involving relatives if it can be avoided and in your case it looks like it can.

Baileydog421

I am currently looking for work, and I'm prepared to do any job I'm offered to bring in an income. I have began contacting my creditors to request a temporary hold while I assess my options.
I get that involving family can be a bad idea, and companies can't take money I don't have, but that feels like my best option to borrow and hopefully achieve settlements.
I have worried about this for so long, I knew I was getting into trouble but lenders were happy to keep giving me more money and in my stupidity I took it, I just want to get it all out of my life as soon as possible and start moving towards a future.

MrsTinks

Whilst nothing is ever impossible then chances of creditors settling a debt that hasn't been defaulted and in arrears for a while is low.
In partially settling them or delaying payments you are in effect putting the accounts into default anyway. Unless you get very lucky no creditor will mark an account as settled if you haven't defaulted and then only pay a % of your debt to close the account. This will be on your credit file for 6 years.

I know around where I am there are retail jobs up the wazoo because it's Christmas. We're near a retail outlet and there is a gazillion jobs - so work is out there. Look in all the towns near you and contact all the agencies. Accept night shifts and anything you can for now.