suddenly unemployed

[cagmee]

I find myself suddenly unemployed with no income. (Obviously will try to claim some benefit asap but that will not be for a few weeks). I have several credit card debts which are quickly going to become impossible to pay (ie immediately if I want to eat this month)

 

I plan to write to my creditors as per other posters here and offer to pay small amount per month in exchange for freeze on fees/interest while I'm in this situation.

 

However I'm not sure precisely what to write, or to who to write. Do you have to address these things to a particular part of the company or just to the general company address? (I know I have to use registered post.)

 

Should I instantly cancel the direct debits? I presume so, as I cannot afford for them to take out hundreds of pounds at this time.

 

Many thanks

[brokebutnotbeatn]

Hi, sorry to hear this.

If you look in the library (up top under banks and credit) you will find template letters there. In the immediate I would ring them all then refer to your phone call referencing date and time in your first letter. Reduce them all to £1. Do it asap. You should also send the 'do not telephone' letter.

[Surfer01]

Cancel all direct debits except priority ones as soon as possible otherwise you may incur numerous charges. Also inform your bank not to reinstate any of those DDs without your permission.

[cagmee]

Okay that's a good start, thanks! I have cancelled the direct debits and instructed the bank (through secure online banking comms, is this sufficient?) not to re-instate direct debits.

 

Tbh I don't really want to have to explain to the bank what's going on. If I can get my creditors to give me some breathing space then I should be able to work things out. but the last thing I need is my overdraft cancelled..

[brokebutnotbeatn]

Are any of your debts (credit card/loan) with your bank?

[cagmee]

No they are not. Bank is actually nationwide. Cards are with Barclaycard, MBNA (2), Mint and Bank of Scotland

[brokebutnotbeatn]

You really should ring your creditors and advise them what is happening, what you have done and request a freezing of interest and charges - otherwise you will incur charges with returned DD payments etc unnecessarily. At this point it's fine to ring them. Then you should follow up with a letter outlining what you have said and what they have agreed to do that you should send recorded. You can confirm the address to write to when you talk to them. You can put the 'in writing only' instruction into this letter as well.

[Surfer01]

Okay that's a good start, thanks! I have cancelled the direct debits and instructed the bank (through secure online banking comms, is this sufficient?) not to re-instate direct debits.

 

Tbh I don't really want to have to explain to the bank what's going on. If I can get my creditors to give me some breathing space then I should be able to work things out. but the last thing I need is my overdraft cancelled..

 

Check regularly to make sure that DD's are not reinstated by creditors.

[valignya]

Yes, phone them first,cagmee then follow up immediately with the letter (recorded delivery,of course. make a copy too, for your own records) I'll post up my letter that I wrote to cap1 (my bank of Scotland letter was identical) if you like.

 

Cap1 were actually fine with me as I've outlined on my original thread about it - it was BOS who began to get shirty and did the dirty on me with Moorcroft

 

Cancel everything on the cards - they'll inform you to do this anyway when they accept a token monthly payment. Read up on people's experiences on here. It's important no to panic and become despondent and anxious - it doesn't get you anywhere and is, in fact,pointless.I worried myself sick about this before I joined here only to realise quickly I was stupid to do so. IMO now, the CC companies are resigned to probably losing you if you are unemployed (or with no assets) and will sooner or later toss your debt to some dodgy DCA for ha'pennies