Debt urgent help

DD2580

Hi - not really sure what area to post this in, so positing in a few, here goes!

I need some urgent advice. I have found myself out of a job since end of October. My line of work is secretarial and is on a contract basis, and usually go from job to job, mostly 1 year + contracts so have always been fine. this is the first time I am without a job and have made my last pay, and some small savings to last until now, and now I am running low and worrying that my bills wont get paid and don't know where to start. In the new year things wil be easier to get a contract it generally is this time of year so I don't know if its possible to freeze such things like credit cards. I'm listing my outgoings below.

1 credit card 0% int - monthly min £45
1 credit card 0% int - monthly min £ 40
1 credit card, (BCARD) int I am unsure right now but monthly min is £130
car insurance - £65
Mobile phone - £45
Mobile insurance - £10

Is it possible to "freeze" your credit cards for a period of time until I get another job?
I don't know what to do, want to sit and ring them all up today and have some sort of plan to help me over this few months just until mid / end Jan I think. I just want some advice first, scared to ring and say I don't have a job!

luckily living with parents so not needing to worry about rent etc but they are not in good shape financially either so can't ask for help.


please help me

Danni

pmlindyloo

The first thing to do is to apply for any benefits that you are entitled to.

If you have been paying class 1 national insurance contributions during the last two years then you are likely to be entitled to contribution based JSA. This is not dependent on savings.

This, at least would give you some income.

Also, seriously consider applying for any temporary work - Christmas time is a good time to find it - until you can go back to your usual work.

if you telephone all your creditors and explain the situation they may allow you a 'breathing period' whilst you find work. Always best to let them know what is happening.

sawyer1

I'd recommend posting an SOA to allow people to give the best advice.

stoozing.com/calculator/soa.php

Format for MSE and post the results here.

It's important to be honest as it will give people a better understanding of your current situation.

fatbelly

Your car insurance is a priority. In your case (jobhunting) the phone is too but you may be able to renegotiate a lower payment if half way through your contract (not my specialist subject)

Defaults are not registered against credit debts until 3-6 missed payments. These are all non-priority.

I agree with the above about a CBJSA claim, though I think for single people this is now called New-style JSA. Paid fortnightly in arrears after 7 waiting days at 57.90/73.10 pw depending on your age

https://www.gov.uk/jobseekers-allowance/what-type-you-get

I hate these benefit changes. They are never for the better.

National_Debtline

Hi Danni


There's some good advice above. Applying for benefits is a sensible idea, particularly if it takes a little longer to get back into work than expected. It would also help you afford your essential bills, like the car insurance and mobile phone costs. Make sure you have a bank account somewhere that you have no debt, this avoids a creditor being able to dip in and help themselves to money.


Most creditors will hold action for 30 days when you inform them you are falling into financial difficulties. And if necessary you can ask them to accept no payments and freeze interest until you start receiving an income again (you'll need to explain why you have no income). You can find a hold action letter here https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx.


When you do have an income you'll need to reassess your options, so it's a good idea to get in touch with one of the free debt advice agencies for more information on how to deal with the debts in the longer term. Good luck with the job hunt.


Susie
@natdebtline

fatbelly

If you don't want to phone the credit cards (and I'd be with you on that) then you could use a National Debtline standard letter

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

cross posted with susie. Great minds think alike.

GothicStirling

Right now, your priority debts are rent/mortgage, heating, council tax. That's the way the Law sees it, everyone else needs to wait. It may be necessary to SORN your car until you have a job offer, until then use public transport or walk. It's a painful lesson people think 'it won't happen to me', but it can happen to any of us, at any time. Good luck job hunting, and when you're back in work, try to save some !!!!-storm emergency fund, the recommended amount is at least 3 months salary.

ratrace

Hi danni, the great news is that you have a car this means you may be able to get a job asap, go to the like of dominoes or a chinese takeaway today and ask them if they are taking on drivers, i did this when my hours got cut at work and it wasnt so bad i enjoyed it. you get a wage + tips + a free meal at the end of your shift which is not bad

its not going to be forever but untill you find a new job hope this helps

LJB290

Christmas temp roles will definitely tide you over - whatever industry.
Temp roles can often lead to contract or permanent and the more people you talk to about work - the more doors open.
With your organisational skills - you won't be waiting around for long!

[Deleted User]

I'd have never said it before but start applying for jobs you've never really considered - it can sometimes have the reverse effect. It's a bit like waiting for the buses to arrive.

I've been out of work since Wednesday, had 3 interviews at places I kind of know would never be able to take me on, although today's one got me spirits up and if nothing else it turned out good to meet people from industries you might not have considered but when needs must - anyway couple of hours later someone calls from an October interview offering me a temporary job starting Monday. Could never have predicted that one, so I think there is a lot to be said for occupying yourself with other opportunities to take the mind of things.

Hope you get your break soon - Like I say things can definitely happen when you apply for jobs that aren't totally 'me' or outside the box. Can you get some recruitment agencies on the case?

DD2580

thank you all! and thanks Susie - I did call one of my credit cards today one of the lower payment ones, and they reused to freeze or hold the accounts as it is a 0% interest and I will then loose the 0% interest rate. they also refused to lower the minimum spend and instead advised I be handled through the collections department. this made me panic, I cried my eyes out and in the end just asked to leave as is. Made me more distressed about it all.

One thing I have done, and whether you agree this is a good idea or not is, I've used my overdraft and transferred money to my bills account to cover the direct debits that will come out this month till say mid Jan.

My question on JSA though (as I have never done it before) is do I then have to be going to Job centres and have to apply for jobs locally? I don't understand it as I contract in London and am set up with agencies looking in London, I just ask as I don't know how it works. If i'm honest, I went all the way to the end of the questionnaire and stopped - what if I do find a job in January when the payments come through? do I then pay back?

sorry for so many questions and thank you so so much