Tough times and defaulting on credit
Discussion
Hi all,
I’m not proud of this post, but I’m looking for some advice, please be kind
My mental and physical health hasn’t been great recently. I work fairly long hours with an hours commute either way, and I’ve started at a new company a couple of weeks ago, hoping it was just a toxic atmosphere making me hate work, but actually, it’s just the job, and the commute.
My mother has been unwell for the last year and it’s really put a strain on me as I’m an only child and she isn’t married, so on top of a busy work life, I’ve been running around for her, and she’s also very depressed which has had a knock on effect in my own mood, as much as I’ve tried to keep on pushing on.
I’ve almost got to the point where I just can’t do it any more, don’t want to get up in the morning for work, spend all weekend dreading the following week and I’ve just had enough. The job also impacts my physical health as I’m using things which I am slightly allergic to so I can barely breath through my constantly runny nose.
I went to the doctors and they just wanted to sign me off work and give me tablets, which I’m not keen on doing.
I really want to have a couple of weeks off and then just work 37.5 hours per week near home, and spend a bit more time on my well-being like going for a run or bike ride, cooking proper food etc. The only problem is the only things I can get near home is warehouse work which is approximately half of my current salary.
A friend suggested to me that I should just default on my loan which costs me £270 a month, and my credit card current balance is £6k, and when the debt collectors letter comes in, offer a small monthly repayment to make it feasible to take such an enormous pay cut.
I’m usually dead against anything like this and want to fulfil my obligations as best I can, but I’m completely burnt out, I’ve had enough and don’t know what to do. It would be nice to press reset, take my brain out and do some easy work with nice hours for a while especially while I have family problems going on. For some extra cash I may be able to do one or two shifts per month freelance at a company I used to work at which would help.
Any thoughts on this and any impact defaulting on payments like this would have in the long run much appreciated, sorry for the long post
I’m not proud of this post, but I’m looking for some advice, please be kind
My mental and physical health hasn’t been great recently. I work fairly long hours with an hours commute either way, and I’ve started at a new company a couple of weeks ago, hoping it was just a toxic atmosphere making me hate work, but actually, it’s just the job, and the commute.
My mother has been unwell for the last year and it’s really put a strain on me as I’m an only child and she isn’t married, so on top of a busy work life, I’ve been running around for her, and she’s also very depressed which has had a knock on effect in my own mood, as much as I’ve tried to keep on pushing on.
I’ve almost got to the point where I just can’t do it any more, don’t want to get up in the morning for work, spend all weekend dreading the following week and I’ve just had enough. The job also impacts my physical health as I’m using things which I am slightly allergic to so I can barely breath through my constantly runny nose.
I went to the doctors and they just wanted to sign me off work and give me tablets, which I’m not keen on doing.
I really want to have a couple of weeks off and then just work 37.5 hours per week near home, and spend a bit more time on my well-being like going for a run or bike ride, cooking proper food etc. The only problem is the only things I can get near home is warehouse work which is approximately half of my current salary.
A friend suggested to me that I should just default on my loan which costs me £270 a month, and my credit card current balance is £6k, and when the debt collectors letter comes in, offer a small monthly repayment to make it feasible to take such an enormous pay cut.
I’m usually dead against anything like this and want to fulfil my obligations as best I can, but I’m completely burnt out, I’ve had enough and don’t know what to do. It would be nice to press reset, take my brain out and do some easy work with nice hours for a while especially while I have family problems going on. For some extra cash I may be able to do one or two shifts per month freelance at a company I used to work at which would help.
Any thoughts on this and any impact defaulting on payments like this would have in the long run much appreciated, sorry for the long post
It's your health you need to focus on at the moment, not your finances. One is a cause and one is the effect, so focus your efforts on the cause and the results will be seen far beyond your finances.
I can't help much other than recommend slowing life down a bit; go on long walks in the countryside on your days off, go on a bike ride as you've said. Anything that takes your mind away from work
I can't help much other than recommend slowing life down a bit; go on long walks in the countryside on your days off, go on a bike ride as you've said. Anything that takes your mind away from work
Sorry to hear it’s all getting a bit much for you. As others have said, your mental and physical health is the most important factor here, by a long chalk.
I’m no expert in this, but rather than deliberately defaulting then taking a lower paid job, it sounds better all round to take the lower paying job, then use a debt-help programme to draw up a plan which will bring the monthly cost down. Step Change is an excellent organisation which does exactly that.
Hopefully this way you can reset your work life and your financial outgoings without a default.
I’m no expert in this, but rather than deliberately defaulting then taking a lower paid job, it sounds better all round to take the lower paying job, then use a debt-help programme to draw up a plan which will bring the monthly cost down. Step Change is an excellent organisation which does exactly that.
Hopefully this way you can reset your work life and your financial outgoings without a default.
Well done for acknowledging your problem. I doubt anyone would judge you - half of the people on here are financed up to their eyeballs. I too have my own personal debt.
I wouldn't say your debt is high. However if you took a lower paying job could you afford to live and pay your existing finance arrangements?
Have you asked to see if you can take a "payment break" sometimes you can do this for a few months.
If you can avoid having the debtors come in that would be the best solution as often you get whacked with an extra 500-1000 just for them sending a few letters and attending, there's also no guarantee they won't seize goods if your proposed offer isn't good enough. It's not like you can literally pay 2 quid a month, it still would be in the hundreds. It would also have an impact of your future credit rating and this can take years to recover from. I doubt this would be a good thing to go through given your current state of mind.
Do you have any assets you can sell? Pushbikes, gym equipment , old tat?
Do you own a house? If so could you take a slightly larger mortgage to remove all of your debts?
Do you have any stocks or shares you could sell?
Do you have a newer, modern car you could sell and buy a cheaper car to free up some cash?
Have you asked at your work if you could do 2 or 3 days working from home? I find it ridiculous people still commute 5 days a week. I have had work from home jobs for the last 7 years and my work/life balance is fantastic.
Are there not other lines of work you could pursue, outside of warehouse work? Doing a mindless, low paid job and struggling for money can be just as bad a better paid position
What line of work are you qualified in, and what is your approximate location?
I wouldn't say your debt is high. However if you took a lower paying job could you afford to live and pay your existing finance arrangements?
Have you asked to see if you can take a "payment break" sometimes you can do this for a few months.
If you can avoid having the debtors come in that would be the best solution as often you get whacked with an extra 500-1000 just for them sending a few letters and attending, there's also no guarantee they won't seize goods if your proposed offer isn't good enough. It's not like you can literally pay 2 quid a month, it still would be in the hundreds. It would also have an impact of your future credit rating and this can take years to recover from. I doubt this would be a good thing to go through given your current state of mind.
Do you have any assets you can sell? Pushbikes, gym equipment , old tat?
Do you own a house? If so could you take a slightly larger mortgage to remove all of your debts?
Do you have any stocks or shares you could sell?
Do you have a newer, modern car you could sell and buy a cheaper car to free up some cash?
Have you asked at your work if you could do 2 or 3 days working from home? I find it ridiculous people still commute 5 days a week. I have had work from home jobs for the last 7 years and my work/life balance is fantastic.
Are there not other lines of work you could pursue, outside of warehouse work? Doing a mindless, low paid job and struggling for money can be just as bad a better paid position
What line of work are you qualified in, and what is your approximate location?
Thank you all for your replies, it means a lot.
I will look in to this step change thing.
Part of me feels like I should be more grateful for what I have, pull my socks up and get on with it, but it’s harder now than it Ever has been.
I don’t have anything to sell unfortunately, I downgraded my car recently to pay off some debt and consolidate in an effort to help my outgoings for such a situation, and it has helped a bit.
The good thing about finding work close to home means I’ll save at least £200 per month on fuel, it all helps.
I can’t refinance house unfortunately as we only bought it at the start of this year, fortunately I went against the grain of my friends and colleagues and went for something cheap. I will be asking my Mrs instead of paying a third of rent and bills if she could up this if I take a lower paid job which should help.
I don’t want to give too much away about my work on here as I have friends and colleagues who use the forums and I’d like to remain fairly anonymous for this reason. What I can say is though I’m basically a (relative to the skill required) well paid skilled factory worker/engineering technician. I’ve been looking to get out for the last 5 years but haven’t been able to take the pay cut to do anything else, although now my mental health is kind of forcing my hand here somewhat. Currently earn a basic of £36k, which is actually the least I’ve earned for years, I took a big pay cut for a job at a new company hoping it would give me a kick up the backside, it hasn’t, I still hate dragging myself out of bed at silly o’clock and sitting in traffic for an hour to stand and do boring work all day, go home f
ked and pissed off and sit in more traffic.
I will look in to this step change thing.
Part of me feels like I should be more grateful for what I have, pull my socks up and get on with it, but it’s harder now than it Ever has been.
I don’t have anything to sell unfortunately, I downgraded my car recently to pay off some debt and consolidate in an effort to help my outgoings for such a situation, and it has helped a bit.
The good thing about finding work close to home means I’ll save at least £200 per month on fuel, it all helps.
I can’t refinance house unfortunately as we only bought it at the start of this year, fortunately I went against the grain of my friends and colleagues and went for something cheap. I will be asking my Mrs instead of paying a third of rent and bills if she could up this if I take a lower paid job which should help.
I don’t want to give too much away about my work on here as I have friends and colleagues who use the forums and I’d like to remain fairly anonymous for this reason. What I can say is though I’m basically a (relative to the skill required) well paid skilled factory worker/engineering technician. I’ve been looking to get out for the last 5 years but haven’t been able to take the pay cut to do anything else, although now my mental health is kind of forcing my hand here somewhat. Currently earn a basic of £36k, which is actually the least I’ve earned for years, I took a big pay cut for a job at a new company hoping it would give me a kick up the backside, it hasn’t, I still hate dragging myself out of bed at silly o’clock and sitting in traffic for an hour to stand and do boring work all day, go home f
ked and pissed off and sit in more traffic. Fair enough.
However it's important to note that you should not be ashamed of money problems.
By hiding this from your actual true friends this will cause further mental issues. I know first hand as I have been there myself. As I said many pistonheaders have plenty of debt, they just are perhaps too embarrassed to admit it. At the end of the day if they judge you or treat you differently because of this then they are not your true friends.
Sounds like your option would be to find a job closer to home. However I would hold out and try and find a better paid position locally. Might be worth uploading your CV onto Reed/Indeed and seeing what trickles in. I don't normally rate recruiters especially in the less specialised end of the job market however you never know what you may find.
I certainly would find it hard to stomach such a paycut. I went from 45k a year to 30k (this was forced due to redundancy) and it was incredibly difficult to financially re-adjust. I think at the time once all my bills had gone out I had around £150 to do my fuel/hobby money.
A little bit of hopping around and I'm on more than I was to begin with with a much nicer company. I'm sure you could find something similar , don't undersell yourself. Could you use your existing skills to transfer into a different industry? Or could you look at retraining all together
Don't however feel like you need to suck it up. This is something my Mrs thinks and it's incredibly draining. "Oh you are paid XXXXX so you should expect to do such-and-such" or "for ##k a year I would do anything!" of course completely missing the point.
However it's important to note that you should not be ashamed of money problems.
By hiding this from your actual true friends this will cause further mental issues. I know first hand as I have been there myself. As I said many pistonheaders have plenty of debt, they just are perhaps too embarrassed to admit it. At the end of the day if they judge you or treat you differently because of this then they are not your true friends.
Sounds like your option would be to find a job closer to home. However I would hold out and try and find a better paid position locally. Might be worth uploading your CV onto Reed/Indeed and seeing what trickles in. I don't normally rate recruiters especially in the less specialised end of the job market however you never know what you may find.
I certainly would find it hard to stomach such a paycut. I went from 45k a year to 30k (this was forced due to redundancy) and it was incredibly difficult to financially re-adjust. I think at the time once all my bills had gone out I had around £150 to do my fuel/hobby money.
A little bit of hopping around and I'm on more than I was to begin with with a much nicer company. I'm sure you could find something similar , don't undersell yourself. Could you use your existing skills to transfer into a different industry? Or could you look at retraining all together
Don't however feel like you need to suck it up. This is something my Mrs thinks and it's incredibly draining. "Oh you are paid XXXXX so you should expect to do such-and-such" or "for ##k a year I would do anything!" of course completely missing the point.
Dr Jekyll said:
If the doctor suggests tablets then at least try them. It may be that the underlying pissed offness isn't really caused by the job.
This. Don't dismiss professional advice so quickly. Pills aren't going to magically fix everything, but depresssion is ultimately caused by chemical imbalances in the brain, and a few months taking some light medication can just give you the space you need to start sorting everything else out.Don't default, that's the worst advice ever, while some forms of debt management/avoidance do make you default they follow specific plans, and really should be a last resort as it'll fck up your credit history then you'll pay more for credit/mortgage going forwards.
There are many companies that help manage debt, some are quite shady, but you can do it yourself simply by contacting your debtors, explain you're in over your head and asking them to freeze the debt (no interest) and accept much smaller monthly payments (start at say 5% of current monthly) until you're on your feet - this is known as a voluntary arrangement and many creditors are amenable so long as $ is being received although it varies lender to lender, some will insist on more, some won't play nice at all.
There are many companies that help manage debt, some are quite shady, but you can do it yourself simply by contacting your debtors, explain you're in over your head and asking them to freeze the debt (no interest) and accept much smaller monthly payments (start at say 5% of current monthly) until you're on your feet - this is known as a voluntary arrangement and many creditors are amenable so long as $ is being received although it varies lender to lender, some will insist on more, some won't play nice at all.
Ring your creditors and try and get interest freezed for a bit for some breathing space.
Do some warehouse work if that’s what you fancy, give your brain a rest.
You could even enjoy it and end up Supervisor on good money and no more nasty commuting.
I know you may not have the time currently vu if you do change jobs, make sure you exercise, it really really helps
Do some warehouse work if that’s what you fancy, give your brain a rest.
You could even enjoy it and end up Supervisor on good money and no more nasty commuting.
I know you may not have the time currently vu if you do change jobs, make sure you exercise, it really really helps
Hi
If you have changed to a new company recently, the job does not sound like the issue. Changing to another lower paid job may not be the solution.
My wife (and another friend) has started using something called 'Headspace', using it during your commute 'might' help as well as before bed. It is an App and has several 'free' sessions. Personally, I don't quite know what it is all about, but a few on here rate it, as well as my wife. For free it is worth trying. Our work has paid for a couple of colleagues to use it too - so it might be worth approaching your work for support too.
I know this is very brief, but I wish you all the best.
Mike
If you have changed to a new company recently, the job does not sound like the issue. Changing to another lower paid job may not be the solution.
My wife (and another friend) has started using something called 'Headspace', using it during your commute 'might' help as well as before bed. It is an App and has several 'free' sessions. Personally, I don't quite know what it is all about, but a few on here rate it, as well as my wife. For free it is worth trying. Our work has paid for a couple of colleagues to use it too - so it might be worth approaching your work for support too.
I know this is very brief, but I wish you all the best.
Mike
Definitely don't default.
Aside from how you're feeling, have you put all of your outgoings into a spreadsheet etc?
As the advice from everyone on here, it really is a great way to work out exactly what you can do to help out financially.
With your 2 hour commute, what's the total 'work time' every week?
If you're allergic to something at work, surely there is another similar job role that doesn't have this issue?
Aside from how you're feeling, have you put all of your outgoings into a spreadsheet etc?
As the advice from everyone on here, it really is a great way to work out exactly what you can do to help out financially.
With your 2 hour commute, what's the total 'work time' every week?
If you're allergic to something at work, surely there is another similar job role that doesn't have this issue?
Edited by pibby on Monday 2nd September 19:44
Thanks again for all of your replies, I’m thankful for the support even if it is on the Internet, it helps.
I sat down last night and did some honest sums.
Current situation is this;
My share of mortgage & bills: £750
Loan: £270
Credit card: £100
Car insurance: £60
Fuel: £250
Phone: £20
My share of food shopping: £150
Total of £1600 before allocating any money to car maintenance, holidays, Christmas, paying extra off credit card, house maintenance and projects etc.
After tax and pension income: £2208 without any overtime. So each month I’m left with around £600 to cover all this stuff, meals out etc. Which is all fine.
If I go for a lower paid role nearby to give myself a break, here is how I see my expenses:
My share of mortgage and bills: £550
Loan: £270
Credit card (hoping I can talk the bank into freezing interest and pay less) £50
Car insurance £60
Fuel: £50, could be less if I cycle but will be back and forth to mums house as she’s unwell anyway, 9miles ea way
Phone: could get this down a bit, £15
My share of food shopping (switch to Aldi) £100
Total of £1095. Assuming I can get £9.50 (local warehouse rate for example, with overtime at around £12ph, I should earn £18,500pa on basic 37.5 hours per week, take home £1343 per month assuming no pension. This leaves me ££248, which isn’t a lot, but you know what, it’s damn well do able.
At the moment I’m doing a standard 42 hour week, with 10 hours per week commuting, so that’s an extra 14.5 hours lost. If I did an extra 8 hours per week OT at the new job I’d be alright if say. Not much wiggle room if my car breaks or whatever but other people seem to manage.... and I’d hope for a promotion at some point and when remortgage time comes o could sort the debt out a bit. Could be In a much nicer balanced life after all...
Of course, it could make me down being skint too, who knows, can always go back to my old ‘trade’ as it were, or do a few 10 hour shifts here and there at a former employer as and when I need the cash which should get me £200 per shift.
I’m actually feeling optimistic. I’m imagining finishing at 2pm and going for a bike ride or dog walk and it feels pretty good.
I sat down last night and did some honest sums.
Current situation is this;
My share of mortgage & bills: £750
Loan: £270
Credit card: £100
Car insurance: £60
Fuel: £250
Phone: £20
My share of food shopping: £150
Total of £1600 before allocating any money to car maintenance, holidays, Christmas, paying extra off credit card, house maintenance and projects etc.
After tax and pension income: £2208 without any overtime. So each month I’m left with around £600 to cover all this stuff, meals out etc. Which is all fine.
If I go for a lower paid role nearby to give myself a break, here is how I see my expenses:
My share of mortgage and bills: £550
Loan: £270
Credit card (hoping I can talk the bank into freezing interest and pay less) £50
Car insurance £60
Fuel: £50, could be less if I cycle but will be back and forth to mums house as she’s unwell anyway, 9miles ea way
Phone: could get this down a bit, £15
My share of food shopping (switch to Aldi) £100
Total of £1095. Assuming I can get £9.50 (local warehouse rate for example, with overtime at around £12ph, I should earn £18,500pa on basic 37.5 hours per week, take home £1343 per month assuming no pension. This leaves me ££248, which isn’t a lot, but you know what, it’s damn well do able.
At the moment I’m doing a standard 42 hour week, with 10 hours per week commuting, so that’s an extra 14.5 hours lost. If I did an extra 8 hours per week OT at the new job I’d be alright if say. Not much wiggle room if my car breaks or whatever but other people seem to manage.... and I’d hope for a promotion at some point and when remortgage time comes o could sort the debt out a bit. Could be In a much nicer balanced life after all...
Of course, it could make me down being skint too, who knows, can always go back to my old ‘trade’ as it were, or do a few 10 hour shifts here and there at a former employer as and when I need the cash which should get me £200 per shift.
I’m actually feeling optimistic. I’m imagining finishing at 2pm and going for a bike ride or dog walk and it feels pretty good.
You've done the right thing by breaking down your bills and working out ways to improve. Props to you for that.
Sounds completely doable, you could always pick up extra shifts if need be. You would basically be able to pick up 10 hours per week and still be "working" no less than you are currently if you include your commute.
Regarding the credit card, is your credit rating in the position to transfer the balance to another card on a 0% balance transfer? You may end up having to pay a small cost around 30-40 quid for the actual transfer but then you have 18 months or so of 0% interest so you could effectively pay nothing at all.
Sounds completely doable, you could always pick up extra shifts if need be. You would basically be able to pick up 10 hours per week and still be "working" no less than you are currently if you include your commute.
Regarding the credit card, is your credit rating in the position to transfer the balance to another card on a 0% balance transfer? You may end up having to pay a small cost around 30-40 quid for the actual transfer but then you have 18 months or so of 0% interest so you could effectively pay nothing at all.
Gassing Station | Finance | Top of Page | What's New | My Stuff