Help with debt and employment

Ssuzy315

Hello I’m after some help please. I’ve caught myself in a spiral of debt. 2 personal loans with HSBC & Ratesetter and 3 credit cards with AMEX. Due to change in income I’m no longer able to afford the monthly payments and stopped making payments in March 2022. I’ve cancelled the direct debits with all of them. Ratesetter and AMEX have given me breathing space however HSBC haven’t done anything. Because it’s been 3 months AMEX have suggested they put me on there Regain programme which means they’ll close by accounts with AMEX and send them over to there internal agencies which is either Allied or NCO. 

My concern right now I don’t want my accounts to default I want to work out a solution to start repaying all the creditors. I work in financial services and feel the default will impact me applying for any future roles where a credit search is carried out. Could you please help me in regards to this, is this the case?

I’ve also completed an Income and Expenditure with AMEX which shows I’m only left with £50 a month to pay my creditors. 

Have you ever come across where AMEX have suggested to go on the regain programme with the partner companies? If so, would this avoid a default being registered against me? 

Could you please help me to avoid a default I don’t want my career to get ruined Al the stress and anxiety is causing me a lot of worry and sleepless nights. Please can you point me in the right direction. 

Thanks 

[Deleted User]

Unless you can make up the arrears and get back to contractual payments, you're going to default - or go on an arrangement, which is worse.

What part of FS do you work in? There are only a very few roles where a default will be an issue.

Ssuzy315

Deleted_User said:

Unless you can make up the arrears and get back to contractual payments, you're going to default - or go on an arrangement, which is worse.

What part of FS do you work in? There are only a very few roles where a default will be an issue.

Why is going on an arrangement more worse than default? I work in onboarding looking to get into AML/KYC?

[Deleted User]

Ssuzy315 said:

Deleted_User said:

Unless you can make up the arrears and get back to contractual payments, you're going to default - or go on an arrangement, which is worse.

What part of FS do you work in? There are only a very few roles where a default will be an issue.

Why is going on an arrangement more worse than default? I work in onboarding looking to get into AML/KYC?

Because it's just a polite way of saying default, but lasts for longer.  

It sounds as if defaulting sooner rather than later is the best solution and is unlikely to have any impact on your career. If you think there is any way of cutting costs to keep repaying, then do that. The DFW board will help.

Ssuzy315

Deleted_User said:

Ssuzy315 said:

Deleted_User said:

Unless you can make up the arrears and get back to contractual payments, you're going to default - or go on an arrangement, which is worse.

What part of FS do you work in? There are only a very few roles where a default will be an issue.

Why is going on an arrangement more worse than default? I work in onboarding looking to get into AML/KYC?

Because it's just a polite way of saying default, but lasts for longer.  

It sounds as if defaulting sooner rather than later is the best solution and is unlikely to have any impact on your career. If you think there is any way of cutting costs to keep repaying, then do that. The DFW board will help.

Would they still default me if I set up a DMP? 

[Deleted User]

They should do, yes. If they don't, ask them to.

sourcrates

Anything other than, normal, contractual repayments can result in a default.

If you make an arrangement to pay, before an account defaults, those AP markers stay on your file for 6 years after you have repaid the debt, defaults stay for just 6 years regardless.

So if you can`t make the contractual repayments, its mostly better for you in the long run to be defaulted early on in the process, that way your credit file recovers quicker.

Ssuzy315

sourcrates said:

Anything other than, normal, contractual repayments can result in a default.

If you make an arrangement to pay, before an account defaults, those AP markers stay on your file for 6 years after you have repaid the debt, defaults stay for just 6 years regardless.

So if you can`t make the contractual repayments, its mostly better for you in the long run to be defaulted early on in the process, that way your credit file recovers quicker.

Thank you for the response. Would I be okay to apply for future roles within the bank where credit searches are done as part of pre employment checks if I have a default on my credit file? 

If I set a DMP plan through stepChange would that be okay and better than an arrangement to pay? What are the chances of getting a CCJ?

thanks in advance

hamilton20

Is it possible for you to increase your income at all and avoid the situation altogether eg second part time job or (self employed) side hustle? I have three part time income streams - one is part time employed and the other two are part time self employed side hustles. If one of these streams of income eg my part time employed income disappears I know I can increase the time and therefore my income doing the side hustles to make up for the loss of money from losing my employed job. Its good to have more than one income stream these days.

sourcrates

Ssuzy315 said:

sourcrates said:

Anything other than, normal, contractual repayments can result in a default.

If you make an arrangement to pay, before an account defaults, those AP markers stay on your file for 6 years after you have repaid the debt, defaults stay for just 6 years regardless.

So if you can`t make the contractual repayments, its mostly better for you in the long run to be defaulted early on in the process, that way your credit file recovers quicker.

Thank you for the response. Would I be okay to apply for future roles within the bank where credit searches are done as part of pre employment checks if I have a default on my credit file? 

If I set a DMP plan through stepChange would that be okay and better than an arrangement to pay? What are the chances of getting a CCJ?

thanks in advance

You have to accept defaults as par for the course in debt management.

Unfortunatly I cannot comment on the banks future employment strategy, that is up to them.

As long as your paying what`s affordable to your debts, legal action is very unlikely.

enthusiasticsaver

If you are unable to meet payments there will be defaults including if you go on any debt management program or arrangement to pay. I am not sure whether employers do credit searches these days on their employees.  I worked in FS years ago and debt was frowned on then but I cannot comment on current day practices.  You presumably have already defaulted though if your last payments were made in March so this is a bit like closing the stable door after  the horse has bolted.  Just focus on making a realistic budget and a plan to sort out the debt. As sourcrates says you are unlikely to see legal action if the debts are unsecured and you are unable to pay any more.