How to get debt free whilst unemployed

MissB1990

Hi everyone.

I am not sure where to start really as I am a little bit embarrassed about my situation.

My current situation is as follows, I have £3700 of credit card debt, which admittedly does not sound a lot but to me it is a huge amount and I am now worrying about how I shall repay it.

I lost my job back in October, I am currently on contribution based JSA so I have been able to make the minimum payments each month to my credit card, however my JSA is due to end at the start of March and I am an anxious mess on how I will pay my other bills such as car and mobile let alone the credit card. It is on 0% interest free up until next year however I wanted to get both credit cards cleared before this period. I have been searching and applying for all jobs under the sun but yet to be successful.

My partner is in full time employment therefore he has been left with all of the household bills, we own our home so he covers the mortgage, council tax, bills and then his own finances, so he is left with hardly anything at the end of the month. He also does not know about my debt and I do not want to tell him. I have a bit of a problem when it comes to spending. I am currently awaiting a diagnosis from the mental health team which I have been fighting the past year. They feel I have a personality disorder, therefore this can make me do really impulsive things, like maxing out credit cards. Last year I did the same and my parents gave me £4000 to clear them, as soon as they were clear I spent and spent and spent again, this is why I cannot go to them again or my partner as I feel awful about it. Once this debt is clear I am not going to have access to the credit card at all, so this will stop me doing it again.

I just feel so guilty and run down. It is making my mental health worse and I am in such a panic as I want to get this debt cleared so I can start a fresh and actually contribute to paying house bills, focus more on saving and not have to be in this mess anymore. I just do not know what to do when it comes to the end of February and I do not receive JSA anymore and I do not have a job.

I am actively applying for work and just waiting back from a couple of interviews I had last week so fingers crossed one of them will come through.

Just wondered if anyone has been or is in the same position as myself, how did you manage when unemployed. I have heard of things such as debt relief orders which is something I am not to sure on but do not think I qualify for anyway as we own our home. Also I do not think I will be entitled to any benefits after my JSA ends as my partner earns too much.

Sorry for rambling on so much, I appreciate all your advice.

DCFC79

Why not cut the credit card up now.


I know you said you didn't want to tell your partner but it would be a weight off your shoulders.


Entirely up to you, you know him best.

-taff

Can you do temp work in the meantime?

EssexHebridean

OK - firstly this is why so often people being bailed out of debt is not a good thing. it can often be that the very act of having to work hard to clear the debt makes it easier to avoid taking on more in the future as you learn the process "end to end" and accordingly are more reluctant to have to go through it again.

I'd say that by the sound of it at least at the moment you're not a good candidate to have a credit card - and especially allowing at the moment that you have no income and so spending on "extras" isn't an option now would be a great time to cut up the credit cards and remove the temptation. (You don't need to wait until the debt it cleared to do this as you don;t need the actual cards to make payments).

In terms of paying things off, if i were you I'd be looking first of all to applying for ANY job that will pay your basic bills, never mind whether it;s something you want to do longer term or not - just get something. The credit card bills are low priority compared with your household priority bills - rent/mortgage, council tax, food, utilities. Those must be met first. Assuming that you need your car for getting to interviews and your phone for job hunting then I would make those two things the next in line of priority personally.

Finally I'm going to echo the suggestion that you tell your partner about the situation - maybe have a think about how devastated he'll be if he finds out later and feels that you didn't trust him enough to share it with him, if nothing else?

Grumpelstiltskin

What did you buy?

Can you sell any of the things you have bought?

Are you sure your partner has no idea you have a problem, I mean were you suddenly bringing expensive items into the house?

You must put yourself in a situation where you have no access to credit otherwise it will happen again.

Synchro

Hi there,


With respect and love I must say that honesty is one of the foundations of trust and of healthy relationships.


I know that in my life honesty has released me from toxic shame and built much closer connections with loved ones.


I know that your life and situation are not my own. I am also not offering advice as I would hate you to take my advice and for it to backfire on you. Only you know what is best for you after all.


My mental health is at its healthiest when I have no secrets and I am leading an honest authentic life.


We are all simply doing our best, making mistakes from time to time for sure, BUT the healthiest of us recognise our shortcomings and strive to be better.


You are recognising your failings and getting honest on this ere forum. I applaud you. It is a great first step!


You clearly have a lot to deal with right now. Keep talking! If not on here, make sure you keep talking to somebody.


One way or another, diagnosis or no diagnosis, this debt issue will one day be behind you.


Have faith, keep job hunting, be kind to yourself and breathe deeply.


I have faith in you.


Good luck on your journey,


Andy

trex227

In your situation I would definitely tell my partner and if I were your partner I would want to know. If you enter into any debt management plan where you’re not making min payments and interest is suspended that’s going to be marked on your credit files. If you plan to move house in future or need to remortgage to a different lender this could cause issues. I know you’ve said money is tight for your partner but maybe you can both come up with a budget, luckily your debt isn’t enormous so min payments aren’t going to be too high. Best of luck

Retireby40

You owe it to your partner and family to come clean. Stop thinking about your feelings and think about theirs.

Your partner is obviously working hard covering all the essentials that you need while you are spending big on credit cards.

What is it you are buying? Food? Clothes? Surely you partner notices new things.

Your debt is relatively low and as suggested it's time to look for some kind of work. Even part time to help chip away at the debt.