Debt Help

jamesdean91

Me and my wife (both in our mid 30’s) have around £36,000 of debt, accumulated over the past few years due to unforeseen circumstances. We have entered into a DMP and have been paying consistently for a year now. I am concerned about my employment due to the nature of the regulated business and need to disclose this but am worried I will lose my job. We are considering downsizing (renting currently) or moving back to my wife’s parents to save and pay off our debts quicker. Please can someone advise what they would do in this situation?

sourcrates

What is the nature of your job, I`m guessing its in the financial sector, most work contracts only stipulate insolvency or bankruptcy as an issue, if you have a copy of your work contract, it may help to see what it actually says.

Debt management is very informal, and will not leave a mark on your credit file, although any defaults associated with the DMP will obviously show up there, check what it says about them as well, if anything.

Hope the DMP is through Stepchange or PayPlan or another free provider.

jamesdean91

The DMP is through Stepchange the contract states I should notify my manager of this some sort of fit and proper checks ect. I am concerned as I cannot lose my job over this.

Brie

I prefer the idea of telling someone something rather than having to defend why you didn't tell them when they do find out. Without having more details it's hard to judge how serious an effect a DMP will have on your job. I know that some industries will not allow their members to be bankrupts or some other types of insolvency. Accountants I think may be one.

Having worked in banking for many years I am aware of a number of colleagues who were in serious debt, in either formal or casual DMPs. I never heard of anyone losing their job because of it.

Have you done all the regular things like challenging the debts - whether there is a credit agreement, whether you should have been allowed the credit due to affordability or mental/physical health issues?

jamesdean91

I have challenged all debts, we aren’t shying away from them and aim to pay in full which is why we are considering downsizing. I plan to disclose this in the near future and hope that they understand as the reasons were out of our control and I’ve had no prior misconduct issues.

Brie

Do you have a union or similar that you could talk to about this? They would know better than us presumably.

elsien

What is the exact wording as to what your contract says you have to tell them about?

MasterG83

I work in the financial sector, when I had debts I didn't tell my company, but none of them were missed payments or defaulted. We have annual checks done on us, obviously I work for a bank so cant have any issues, as others have said check your contract. We have our own inhouse debt management group which is independent but can help people, there is also a company fund for people that are really in need.

MEM62

I am concerned about my employment due to the nature of the regulated business and need to disclose this but am worried I will lose my job. 

As other have alluded to, you need to establish exactly where you stand with respect to this. You cannot make any kind of plan without establishing this. Also, not knowing is just causing needless worry and stress.

jamesdean91

There is nothing in my contract or handbook that states non disclosure could lead to dismissal but changes to financial situations are encouraged.

enthusiasticsaver

A DMP is an informal arrangement. It is normally bankruptcy you should advise employers of. It is not recorded anywhere although of course the defaults will show on your credit file. It is financial insolvency (bankruptcy) you should advise employers of which is not a DMP. Of course if your contract stipulates anything to do with personal finances you should check that carefully and disclose if applicable. I worked in finance for many years and anyone with financial difficulties was told they should tell their manager but they did not lose their jobs.