to ask what will happen if we don't pay this?

[strappedforcash]

Sorry I know this isn't the right board but am desperate and need quick answers.
We are really struggling for money right now. I have a few interviews for PT jobs coming up and DH is awaiting outcome of an interview for a job with better money so things will hopefully improve. But right now this minute we are shafted. We've had a horrendous couple of weeks with some totally unexpected bills (don't want to out myself by saying what they were but they were one offs) and are left with no money. Literally, nothing. Have tried bank to extend overdraft by £200 which would see us through to payday for food, petrol etc, but they said no. Our only option is for this month only cancelling the payment on a personal unsecured loan which comes out on the 6th of each month, it's £220 per month. Makes me feel sick to do it, we always pay our debts, but it's that or be penniless. And when payday comes make 2 x payments to get back up to date which we'll be able to do.
Will this ruin DH's very good credit record? We've been racking our brains all morning, trying to see if there's anythign we could sell,there isn't, and no friends or family who we could borrow from.
Please don't flame, we do try to be careful with money, just would appreciate quick advice.

Payday company do go on your credit file and a lot of lenders don't view it as a good thing even if they're paid off in full.

0% balance credit card which you pay off in full and then cut up, sounds like the answer for buying food, petrol etc.

If you list the food you do have in your fridge and cupboards, clever MNetters will help you meal plan.

Could you do anything to earn cash - cleaning, take ironing in, gardening, a few weekend shifts at a shop or bar?

Some credit cards ate offering interest free on balance transfers so you could even pay bits off each month

The OP needs the money in days so a credit card would not be an option. I would rather use a payday loan company wisely (ie. paing off in full) & have that on file than a missed payment personally.

When I changed bank accounts I ended up missing a loan payment. They just sent me a letter telling me to make the payment by X date, so I did. I don't think it's affrcted my credit rating.

If she has a credit card atmo she could put it on there then apply for a new one and transfer balance to it.

Cherry it depends whether op has missed any before or if shes on a form of plan

I know it's not ideal (but I've done it before) - have you anything you could pawn? I realise you have nothing you could sell,but if you pawn,you can get the things back - jewellery is what I used to let uncle look after.

can you pay something else late instead that won't affect your credit rating? gas, council tax, rent?

I would call the citizens advice bureau and ask them for advice. They may be able to talk to the loan company and arrange something for you, or help you draft a letter with your payment suggestion. Sometimes having someone "official" call the company for you can make all the difference.

You have to prioritise the outgoings ie rent , ct, utilities then debt . If you can manage any payment then they may accept that rather than nothing but do take proper , free advice and the agency you use may write a letter on your behalf. It might still affect your dh's rating though if problems are on-going.

Call StepChange asap and go through your outgoings with them. They'll be able to tell you who best to approach and how. I wouldn't advise you to miss payments on any loans, it'll only end up costing you more.

Is there really nothing you can sell? No electronics/kitchen appliances/garden stuff/tools you don't use? You could list stuff on ebay tomorrow for 3 days ending Sunday, which is the best day.

Yes, I'd cancel your council tax payment for this month, or gas/water bill - with any of those, by the time they respond you should be able to pay the late instalment and catch up.

CAB is also a good suggestion, as is looking on the Money Saving Expert site and forums for advice.

Do you have any nectar or club card vouchers that you could cash in at the supermarket to help pay for food?

Do you have any friends you could ask for help? I know it's difficult to put yourselfin that situation, but I'd hate to know that a friend was really stuck and afraid to ask - I'd help like a shot if I could!

The thing is,that even if you do get these jobs,there may be a transition period with wages that could affect money flow and you will be starting next months budget over £200 short.

I wonder if it is worth just accepting that your credit rating may possibly be affected,but entering into an agreement for a short while,so you can pay all your priority stuff and still make smaller,more affordable payments for,say, 3 months to the loan. The crucial thing is communication with the bank.

If you are so close to the edge at the moment perhaps you need a little breather.

It's not the end of the world to not have a squeaky clean credit rating.There's a hell of a lot of people in the same boat.

Good luck,and don't let it get out of proportion.

Don't cancel your council tax payment whatever you do.

If you do you will break the terms for payments spread through the year. The whole of the remaining year's tax will then be due immediately and if you can't pay the lump sum, you'll end up with an adverse credit score and a summons.

Agree with CT , it is a priority debt along with rent. Remember even if dh or yourself are successful chances are you won't see the benefit of extra income for a few months yet. You need to ask CAB et al to help you budget head so you don't just get further into trouble. What is the loan for , could you sell the car for example .

If you cancel your council tax DD, a number of things could happen but it depends if you've done it before.
If this is your first time then you'll just get a reminder letter to pay the amount outstanding.
If it is your second or third time, you could be summonsed to court. It will not affect your credit and you just need to ring your local authority to set up a payment plan. Although they do not have to accept your offer of payment if it isn't high enough.
I'd personally cancel my council tax DD.

Can you apply for an overdraft, or change your bank account, they may give you a free overdraft for a couple of months to cover direct debit mistakes.