Question

Jon,

I was recently made redundant which I found odd as the store was hiring just when the last lock down lifted. I am challenging the redundancy, but for now I am out of work. I have researched and applied for Universal Credit, and that will help pay my rent, and food, but I have other bills as well. I owe HSBC for a credit card, and also have a loan with a peer to peer lender. These in total add up to £7,000. I cannot afford to pay these until I am back to work. Any suggestions?

Robbie

Answer

Robbie,

Have you spoke with HSBC and who you have the loan with yet?

That is your starting point, to let them know of your change in circumstance. Most lenders, and I know HSBC will work with you during this time.

Many lenders are offering a “breathing space” time period where you do not have to make monthly payments.

It also may be that a Token Payment Plan can be set-up until you find suitable work again.

Unfortunately, during this time of reduced payments it can affect your credit history and credit score, but that is secondary at this point to maintaining your priority bills, such as rent, utilities, and food.

Regards,

Jon

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