Brand new to this and need help!

In_my_dreams · 31 August 2009 at 8:04PM

Glad you are feeling better from posting on here. Just helps knowing people are being supportive.

I have no experience re DMP etc but at least you are looking at all your options.

Hope you're managing to get your feet up at the same time before the baby arrives!

debtaghh · 31 August 2009 at 8:23PM

Just wanted to say I really know how you are feeling.I am due in a couple of weeks with my second and have loads of debt, we contacted payplan and they recommended an IVA- we are not taking it due to other reasons.

The only recommendations I can try and offer is try cutting your groceries down and your contents and buildings insurance seems quite high. Try searching on confused.com and then when you find the cheapest and the one that suits you the most check if topcashback or another free cashback site will give you cashback. I did this and have technically only paid £6 per year for my contents insurance.

Good luck.

rubydoiwannabee · 31 August 2009 at 8:34PM

Hi, I just wanted to pop in and say well done for having a lightbulb moment. Try not to get too stressed out about this with baby due so soon, it will be here for a while and you can develop a good solid plan over the next few months whilst having baby and getting used to having two children.

Come back and post regularly I am sure you will get lots of support and good solid advice.

Poosmate · 31 August 2009 at 8:36PM

I don't really have any experience of DMP's either. I did go on the CCCS website and filled in their questionnaire thingy but it made me cry. I am "managing" atm even though one of my nasty CC issuers put my interest rate up by 7% for no apparent reason. When asked about it I was told it was "because I could afford it"!! Cheeky gits! If I could afford it I'd have been paying more than the minimum payments!!! Grrrr!

Well I managed to pay a chunk off but not nearly as much as I'd have liked so am resigned to being in debt for as long as it takes.

I haven't asked either of my CC issuers to reduce the interest rate because I'm affraid they will panic and raise it so am just sitting tight and chipping away. In a perverse kind of way, it's nice to see the monthly minimum payments reduce by a few pence each month freeing up a bit of cash to pay off my OD. Although that's probably going to get swallowed up on petrol with it going up 2p per litre at midnight.

Hope everyone with cars has filled up or will fill up before the prices go up!

All the best

Poo

Darlinbud · 31 August 2009 at 9:14PM

Hello,

Not much advice here as I'm a newbie too! but wanted to say that I am due to have a baby any day and I think like you this has made me think it's time to sort money out! - yes you (we) should be taking it easy but on the other hand we can use this time to sit down and sort this out!! esp before baby arrives! and hopefully sorting debts out will be a weight off our shoulders before baby is here! so just wanted to say well done on taking the first step!... I'm off to write an SOA (or whatever it's called!) now!
xx

Fire_Fox · 31 August 2009 at 10:40PM

CASR25 wrote: »

Oh thank you, yes it's really scary - but it's great to have friendly posts!
I don't think we'll be able to go secured either - it's just we really need to free up 500 a month, and have all debt cleared in 7 years. - so need about 30k. What you said is bascially what Nationwide said when I phoned to enquire about a mortgage break while on maternity!

You have come to the right place, we are straight talking but there's a lot of knowledge and experience here (and we are not known as the 'huggy' board for nothing

).

I very much doubt you will get any further credit that isn't at extortionate rates so you are better off forgetting that idea. You need to start living within your means, more debt is not the answer to unmanageable debts. Have you chopped up all those cards yet?

Your energy bills are massive, do you have debt? Double insulate the loft, buy a heated underblanket for your bed, turn the shower off when you are shampooing, laundry at 30C (unless nappies), no tumble dryer etc. Babies need a house cooler than an adult, 16C is fine so turn the thermostats down and put a sweater on.

I'm struggling to understand why you are talking of combining the Sky and BT package. Cancel Sky you do not need this - at the moment you are effectively prioritising this over food! Your creditors will be hoping for a decent monthly payment, Sky won't help them take you seriously. Freeview is very good these days, with new channels all the time.

You will probably not be able to put the money you owe to your mother-in-law on your DMP so be prepared for this. Also be prepared for the banks you have credit cards and current accounts with to want to 'offset' your salary against your debt. :mad: You will probably need to open a new basic current account with a bank not connected to any of your other debts.

Many financial institutions are pleased when you go onto a DMP and are polite as soon as you give them your CCCS/ Payplan client number. Any that ring and hassle you do not answer the security questions and they cannot speak to you about the debt. We have template letters here to ask for all communication in writing.

Something to make you and your husband giggle, which will be good for you and your baby!

http://forums.moneysavingexpert.com/showthread.html?t=741653

dorisday · 31 August 2009 at 10:48PM

Having looked over your SOA you are really only short of making these debt payments of £284, so where does your HO bonus/commision go? as you state that it is between £50/£1000 a month, surely this will go towards your shortage. Also perhaps your HO could get a weekend job (I know - no one WANTS to do this, but even if he made £40 a weekend its nearly £200 a month towards your shortage. We get into debt and we never think that its going to be tough getting out of it, but thats the reality of it. The first years is difficult, doing something you havent done before, having to really cut the spending out, counting every penny etc, but I assure you the feeling of knowing the debts are going down makes you feel so happy you may even find it becomes an addiction and you really enjoy being thrifty. Way back in my younger days we didnt have cc and had to save for what we wanted to buy, and we did appreciate things more, it wasnt a throw away society as it is now. But enough of my ramblings. Please dont go borrowing more to pay these debts it never works (first had experience) Just tighten your belts on everything and try to up your income even by a little. Remember when your fixed rate mortgage ends you will need another, so you about 2.1/2 years to make a big hole in your debts.

CASR25 · 1 September 2009 at 11:58AM

FireFox - thank you so much for your reply...

Your energy bills are massive, do you have debt? Double insulate the loft, buy a heated underblanket for your bed, turn the shower off when you are shampooing, laundry at 30C (unless nappies), no tumble dryer etc. Babies need a house cooler than an adult, 16C is fine so turn the thermostats down and put a sweater on. We were in debt yes - we and the energy company we swapped to last year underestimated the bill - we'll be in credit now but then by the time winter comes! Our house a large C19th terraced, with wood floors in many rooms - it's hard to heat but will certainly follow your advice (we have a real fire int he lounge which we use duirng the winter alot - using rubbish and collected wood! Most of our washing we do on a 30 quick wash and don't own a tumble dryer! This is something we're actually looking forward to combating this winter as we don't want to be in debt again after using to much energy.

I'm struggling to understand why you are talking of combining the Sky and BT package. Cancel Sky you do not need this - at the moment you are effectively prioritising this over food! Your creditors will be hoping for a decent monthly payment, Sky won't help them take you seriously. Freeview is very good these days, with new channels all the time. We were going to combine the sky and bt package as we pay 45 per quart for bt which we only use for line rental as we don't use our land line and we est 25 for sky (once we down grade) - we can get free line rental with them. We need to really consider getting rid of sky - needs must I know - it's just a hard wrench when we've had it for years and hardly go out anyway - but I do know you're right!

You will probably not be able to put the money you owe to your mother-in-law on your DMP so be prepared for this.Thought as much - will have to deal with that, the bill is going down steadily though! Also be prepared for the banks you have credit cards and current accounts with to want to 'offset' your salary against your debt. :mad: You will probably need to open a new basic current account with a bank not connected to any of your other debts. So would they do this if we get a dmp or ask them to reduce the interest ourselves (which I dare not do so will go with dmp if choose that route) Would we open an account that our salaries go into? Then transfer the money over to accounts the cc companies are aware of?

Many financial institutions are pleased when you go onto a DMP and are polite as soon as you give them your CCCS/ Payplan client number. Any that ring and hassle you do not answer the security questions and they cannot speak to you about the debt. We have template letters here to ask for all communication in writing. That's good to hear - we're just not used to having companies ringing us about that sort of thing - it panics me just thinking about it!

Thanks again for your fab reply!

C

CASR25 · 1 September 2009 at 12:11PM

dorisday wrote: »

Having looked over your SOA you are really only short of making these debt payments of £284, so where does your HO bonus/commision go? as you state that it is between £50/£1000 a month, surely this will go towards your shortage. We try not to rely on this as it's not always there - when it is then we pay it off highest interest cards or pay for things like car tax - or much needed, but very cheap wardrobes. he is expecting a fair few good months on the run up to xmas but we're going to put that towards my maternity leave cover - even though i'm going to go back as soon as I go down to just 120 a week - which is after 4mths (heartwrenching but our fault!) Also perhaps your HO could get a weekend job (I know - no one WANTS to do this, but even if he made £40 a weekend its nearly £200 a month towards your shortage. I'll certainly put it to him - but i'm not sure - it's our family time - which i know again we ahve to sacrifice, he could work evenings?!) We get into debt and we never think that its going to be tough getting out of it, but thats the reality of it. The first years is difficult, doing something you havent done before, having to really cut the spending out, counting every penny etc, but I assure you the feeling of knowing the debts are going down makes you feel so happy you may even find it becomes an addiction and you really enjoy being thrifty. I think it will - when i sold my daughter's baby clothes on ebay recently I was hooked! Way back in my younger days we didnt have cc and had to save for what we wanted to buy, and we did appreciate things more, it wasnt a throw away society as it is now. But enough of my ramblings. Please dont go borrowing more to pay these debts it never works (first had experience) Just tighten your belts on everything and try to up your income even by a little. Remember when your fixed rate mortgage ends you will need another, so you about 2.1/2 years to make a big hole in your debts.

You're so so right, we are ready to do this!

Many thanks for your fab reply! Everyone is great on here.

CASR25 · 1 September 2009 at 12:17PM

It is strange that right when some of us are about to have a baby we do these things - life changing moments I reckon!

I'm weridly looking forward to sorting it - i'm just so reluctant to go down the dmp route - just wish we could deal with it ourselves. cut up the cards, get 30k from the lottery or gameshow (!!!!!) to pay off cc and therefore huge interest rates then just work towards being debt free in 6/7 years.

We certainly need to sort it before we need a new mortgage deal.

I know we shouldn't get another loan to put the cc on, and don't actually think we'll be able to as another post rightly pointed out, at least not myself, but that would be how i see an easy way out instead of the dmp route - i know it's stupid - it's just stuck in my head, why because we won't get it i bet! (do i definitely need shooting!?!)

But, on the other hand, maybe the effects/shock of dmp will force us to sort it whether we like it or not.

I just also know that we are ready to combat this.

Brand new to this and need help!

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