Really need help ASAP

lostmyjobyesterday37

Hi there,

I would like some help on my situation.

I lost my long term job yesterday due to company closing down. I have been told my last pay will be low because company doesn’t have the capacity to pay my full salary.

I have a credit card currently with £1,600 on and another £1,860.

If I tell them I can’t pay my credit cards all on interest free, will they allow me to pay a final settlement much lower. 

I also own a house with allot of equity so very concerned about this, all credit cards are unsecured debts. 

tacpot12

Although it may take time, you can claim some of your unpaid wages and redundancy from the Government Insolvency Service: have a read of the information here:  What to do when you've been made redundant - GOV.UK (www.gov.uk)

You can probably claim Jobseekers Allowance, and should do so as soon as you are no longer an employee. You might look to see what other benefits you might be entitled to (based on your circumstances) using the benefits calculator at Benefits Calculator - entitledto - independent | accurate | reliable

I can't advise about your credit card debts as this isn't something I know anything about. Sorry you find your self in this situation. I hope you secure a new job quickly as this is the best way to preserve your credit rating and your sanity. 

Grumpelstiltskin

Right firstly don't panic, nothing terrible is going to happen.

In order for us to give you the best advice of the way forward you need to compete a SOA and post it on here.

SOA Calculator (lemonfool.co.uk)this is the link you need.
 Complete it, format for MSE and copy and paste on here.

EssexHebridean

I'm so sorry to hear what an awful situation you've found yourself in - it must have been a real shock, too.

First things first IMO, is to establish whether you have sufficient income this month to cover the minimum payments on your cards. If you do not, then you may as well call the card providers immediately, explain the situation, and ask for them to give you breathing space while you sort yourself out. 

Definitely complete the SOA as suggested above - that will also help you to clearly see what you can cover payments to, and what you can't. 

sourcrates

Don`t worry about your debts, just write a simple letter to each creditor explaining your circumstances, they will put all your accounts on a temporary hold, for a period of time, after which they will want an update, if nothing has changed, it will be rinse and re-peat.

Affordability is the key thing at the moment, creditors are well aware of this, all you have to do is tell them your situation, all will be fine.

lostmyjobyesterday37

Thanks for your reply.

can they take personal assets my home I share with my wife or my car etc? 

Bonfire_Bride

Hello. I am so sorry to hear you're in this position. I'm sure you will be back on your feet in no time. 

Credit Card companies cannot touch your home as it is unsecured debt. Please dont worry about that. 

lostmyjobyesterday37

Bonfire_Bride said:

Hello. I am so sorry to hear you're in this position. I'm sure you will be back on your feet in no time. 

Credit Card companies cannot touch your home as it is unsecured debt. Please dont worry about that. 

I was worried they can get a ccj against me and then get a high court bailiff?

sourcrates

lostmyjobyesterday37 said:

Bonfire_Bride said:

Hello. I am so sorry to hear you're in this position. I'm sure you will be back on your feet in no time. 

Credit Card companies cannot touch your home as it is unsecured debt. Please dont worry about that. 

I was worried they can get a ccj against me and then get a high court bailiff?

Please try to stop the overthinking.

Debts amounting to many times what you owe don`t get that treatment.

You have two, quite small credit card balances, your card providers will hardly bat an eyelid, once you inform them of your job loss, they will help you in the way I described above.

The money you owe is very near the bottom of the scale, any collection activity would consist of a few phone calls and the odd letter, this would remain the case forever and a day, if this turns into a long term affair, your accounts may be sold, or they may be sent to external collectors, either way, just keep whoever writes to you informed of your circumstances and you won`t have any trouble.

Forget bailiffs, high court enforcement, CCJ`s Jessie J`s, father Christmas, and the tooth fairy, non of that is going to happen.

And remember, they are both non priority debts, and should not be paid whilst you do not have any income, putting food on the table and paying your essential bills is far more important than credit cards.

Martico

So sorry about your job loss, that's really tough.

And just to try to give some more reassurance, @sourcrates knows what they're talking about and always gives solid and helpful advice. I can't add any more to those words of wisdom. 

TheAble

In any case, contractually you only have to make the minimums right? Even if you have to pay some interest in the worst case, it's not as if you have to pay it all back in one go.

As Sourcrates says though, talk to your lenders to explain the situation and they'll likely help you out with it.