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Unable to pay car finance (UK)

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#16 Detection

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Posted 17 September 2012 - 19:36

I'm not eligable for job seekers as I haven't paid enough NI between 2009 and 2011 apparently, which is stupid because 2009 to 2010 I was claiming job seekers while working 8 hours a week, after graduating from college. Since 2010 to 2012, I have 2 years of full time work, where I paid my full NI. But they won't count the 2012 year for some stupid reason. Something which I'm going to protest.



Claim Income Based JSA instead of Contribution based then


#17 1941

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Posted 17 September 2012 - 19:40

If you talk to them they may work out a payment system that you can live with.

#18 |Rapture|

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Posted 17 September 2012 - 19:47

Claim Income Based JSA instead of Contribution based then

This. Speak to your local Job Centre.

Also, tell the finance company the situation. They'll probably be more interested in making some sort of payment plan than repossessing your mashed up car. You don't want something like that stuffing up your credit rating either.

#19 OP Daedroth

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Posted 17 September 2012 - 20:46

I can't claim income based JSA, because it's based on household income/hours worked. I'm not working at all, but my girlfriend is going 37 hours a week, meaning I am ineligible.

#20 what

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Posted 17 September 2012 - 20:47

I had a high voluntary excess, which I couldn't afford to pay.

i.e. you've been driving uninsured for two years, and apparently been living well beyond your means. Who were you trying to impress with your flash car?

#21 DrCheese

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Posted 17 September 2012 - 20:54

I can't claim income based JSA, because it's based on household income/hours worked. I'm not working at all, but my girlfriend is going 37 hours a week, meaning I am ineligible.

wut
I have friends who claimed it whist living @ home and both parents working o.O

#22 Detection

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Posted 17 September 2012 - 21:14

I can't claim income based JSA, because it's based on household income/hours worked. I'm not working at all, but my girlfriend is going 37 hours a week, meaning I am ineligible.


Which was what I said earlier, you either have savings/assets or are living with someone working full time, ask her for help.

EDIT - I lost my job and a similar thing happened to us, I couldn't claim with someone working full time living with me, she had to 'move out' ;) ;) so I could claim until I found work, which I have recently done so now she can 'move back in' ;) ;)

#23 1WayJonny

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Posted 17 September 2012 - 21:33

Worked in auto industry for 12 years.

1) Not sure about UK but in USA if you get a repocession of the car voluntary or involvtary it stays on your credit for a minimum of 7 years. Not sure about UK but this will destroy you in the future when it comes to buying a home or renting. New cars, crdit cards etc... - Crdit History is exactly that HISTORY.

If you have debt of $20,000 in bad credit and pay it all off the BAD marks will stay for 7 years, at ALL COST DO NOT LET THIS HAPPEN. If you even call the bank they will let you hand it in but nail you credit their is no different to a repo vs and involuntary repo


2) If you had a accident your fault or not your insurance would fix it but you have to pay a deductible to claim the insurance and this you may not have paid for. You should as this is deprciating the car you own but I udnerstand your sitiuation.


3) Based on 1 and 2, dude to save you credit their is no way out of this car PERIOD unless you sell it. If you do sell it for $15K but your load is $18K then you will still need to pay the remainder of the balance to close out the loan. Sell it (which will be hard) or pay it off.


4) Based on 1, 2 and 3 - I would get a job shoveling crap and picking up garbage for now to hold you over and allow you to pay. The next year or two might be painful but its a lot less painful then in 5 years you on yoru feet again and having saving but no one will lend you money becasue of this history.

Worst feeling in the world to be doing good and have a company your doing business with bring this up. Even though you making money now.

UK is different than USA and this is based on my knowledge if I am off or wrong about thing said then please consider.

Hope this helps.

P.S. You are 1/2 through you loan you will KILL you future if you let this repo.

#24 OP Daedroth

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Posted 30 September 2012 - 08:33

Thanks for all of the replies, they've been an interesting read.

Now I have a job lined up, I'm thinking about one of two options now, regarding trading the car in at a dealership and buying a newer second hand car.

1) Trade the car in, with 1000+ finance owed on it...let the dealer pay off the finance and buy another car, also on further finance.
2) Trade the car in, with 100+ finance owed on it...let the dealer pay off the finance and buy another car...but take a personal loan from the bank...because the interest rates are lower, and the car would be mine, rather than a finance company so it can't be reposessed.

#25 +zhiVago

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Posted 01 October 2012 - 17:15

Thanks for all of the replies, they've been an interesting read.

Now I have a job lined up, I'm thinking about one of two options now, regarding trading the car in at a dealership and buying a newer second hand car.

1) Trade the car in, with 1000+ finance owed on it...let the dealer pay off the finance and buy another car, also on further finance.
2) Trade the car in, with 100+ finance owed on it...let the dealer pay off the finance and buy another car...but take a personal loan from the bank...because the interest rates are lower, and the car would be mine, rather than a finance company so it can't be reposessed.


Unfortunately, there isn't enough information to figure out which is the best option for you. So you need to talk to your financial planner or whoever you're dealing with to figure out which is the most affordable and financially sound plan. You need to compare your total debt and monthly payments and decide if another car is something that you want/need or would you rather pay off the current debt and think about buying a new car later.