debt

[stephen2504]

been made redundant got no savings or money just my 60.50 a week to live on i own my house with mortgage the dole are going to pay the interest on my mortgage so im ok with the house im just worried about my credit card bills i have 2 credit cards totalling 6000 and 1 year left on a bank loan how do i pay them and what will happen if i cant

[bednobs]

you need to speak with the creditors immediately. you may find they are helpful

[mumof3angels]

Why not speak to the CAB -I'm sure they would give you good, free, legal advice about what to do. You're lucky that your mortgage interest is going to be paid, when my hubby was made redundant 4 yrs ago he got his weekly dole but we never got our mortgage paid. We went to the cab and they gave us advice and forms about what to do with creditors etc. Luckily he got a job shortly after, so we were ok. I hope things work out.

[Buenchico]

Simply contact the lenders and explain the situation. If their actions follow the normal pattern, the credit card companies will suspend the interest on your account and agree to accept small payments each month until your financial position improves. (You'll have to cut up your cards and send them back to the credit card companies). Don't let them persuade you to offer more than you can afford. Some firms will accept, say, a tenner a month without the intervention of any external body. Other firms won't accept less than 1% of the outstanding balance unless you arrange a payment plan through an recognised organisation such as the Citizens' Advice Bureau.

The bank might be a little more difficult to deal with if you've got a current account with the same firm. They might try to draw upon the funds in that account to reduce the loan. It could be a good idea to open a 'basic' account, with another bank, to have your JSA paid into. Even so, most banks are reasonably helpful.

Don't get too worried about your debts. Lenders will nearly always accept minimal payments when you've got a very limited income. If they don't, all they can do (in the first instance) is to take you to court to obtain a County Court Judgement against you. Since that would only order you to pay what you could afford each month, they don't really gain anything by following that route.

The really serious problems which can arise from being in debt (like having bailiffs turn up to seize your belongings) can only occur if a lender has first obtained a CCJ and then you've failed to keep up with the payments.

For further information and advice, contact CCCS. (It's an independent charity dedicated to helping people with debt problems):
http://www.cccs.co.uk/

Chris

[stephen2504]

thanks for replying ive been to citizens advice and they say they will write to creditors and tell them my circumstances and offer them a token payment of 1 pound a week what happens if they dont accept it and make me sell my house even tho they are not secured on it

[CheekyChops]

They can't make you sell your house yet.

If your credit card provider doesn't accept your token payments, eventually they will sell the debt to a Debt Collection Agency (DCA). The DCA will then hassle your for payment and if they don't accept token payments, they will eventually take you to court to get a CCJ against you.

They could then go to court again to apply for a charging order (get the debt secured against your house) and if this is granted, they could eventually try and force the sale of your house.

All this is a long way off yet and whilst is is possible, it is unlikely that they would allowed to force you to sell.

[sunbeam42]

Please call Christians Against Poverty on 0800 328 0006, they are an award winning national debt counselling charity who help anyone regardless of belief or other circumstances, and most of all they are FREE OF CHARGE. Give them a call and they will definitely be able to help you! Hope that you get things sorted.