Can no longer afford O2 package

Damawyn

Hi - any advice for my granddaughter - she's 22, was working as a chef but has had to stop as she is 5 months pregnant, living at home with mum who has a slipped disk and is unable to work or do anything physical. She is only entitled to £240 a month to live off on benefit before the baby is born, and £139 of this goes to her apple watch/mobile phone + airtime/ipad + airtime/earphones... obviously, when she took out the individual contracts for these items she was working full-time and expecting to continue. O2 are saying she can only change the contract by buying the phone outright, with £458 to pay, and she can't cancel the airtime on the phone as it comes together under the contract. Naturally she cannot afford to live on the balance of her benefit, and can't be without a phone... suggestions welcome.

km1500

No suggestions other than she abide by the terms of the contract she agreed to.or accept the consequences

cymruchris

What's the used value of the items she has? (Watch/Ipad/Earphones?) If she sells them can she cover the £458? If so it might be worth selling them - any additional funds raised put towards the ongoing line rental element of the contract and cancelling as soon as it's up for renewal. Might be time to have a look around the house for things to Ebay. It's also a time where the focus is better on the finances and the forthcoming baby than having the shiniest newest models of tech. As long as she's got a working phone, the other items are more 'nice to haves' when times are tight.

The consequence of not paying will mean the account will go to default, debt collectors will start to chase, potentially a county court judgment would follow, and the ability to get any form of credit in the coming years scuppered. If there are no other options - that might be the way to go - but understand the consequences. I imagine you were hoping to hear how there might be an easy way out - but sadly to my knowledge there isn't.

ladruid

Unless the contract has a get out clause for getting pregnant and packing in your job, they'll have to pay as per the contract(unless O2 kindly agree otherwise). Its not really O2's fault for someone else making life choices. Sadly this is the problem these days with people purchasing things they can't really afford because they don't plan for the future and possible bumps (excuse the pun) in the road.

Have they asked if they can buy out the phone, then reduce the monthly contract payment to a lesser amount?

Over all best bet is they get another job that's more pregnant friendly and pay for the things they have bought. Or maybe as others have suggested, sell the Apple devices, or other valuables, and use the money to pay off the debts.

WhiskersTheWonderCat

Is the father able to help out while she is pregnant and not working? I assume she will be looking for a new job at some point after birth. 

superbigal

I didn't know you had to stop work at 5 months pregnant.

Damawyn

Thanks for all the comments.
The father works as a gardener on a low income (everyone down here in the far west is on a low income), and helps when he can, which isn't often. This is an impoverished area. She's keen to get back to work as soon as is sensibly possible once the baby is born.
Unfortunately she doesn't have any spare cash to buy out the phone from O2. As her grandmother, I'm spent out buying the baby equipment...
'I didn't know you had to stop work at 5 months pregnant.'
It's not compulsory - she works as a chef in a local pub, who laid her off as they were concerned about reliability (tourist area, she would have to finish work just before it kicks off) and a growing bump in their tiny kitchen. 

wild666

Could she file an unfair dismissal case against the employer? If she was reliable before getting pregnant then I think she would have a good chance.

ididgetwhereiamtoday

It seems like O2 haven't done a proper financial means test before letting her have all this credit.

cymruchris

ididgetwhereiamtoday said:

It seems like O2 haven't done a proper financial means test before letting her have all this credit.

At the time the OP's daughter took out the agreement, they were working, so it's likely that if other credit was well managed, and there were no red flags on her credit file - it would have been granted.