little advice please

Kezcon1 · 13 November 2017 at 12:51PM

Hey guys, I have a DMP inplace and there is £1500 left to pay I am paying £300 a month it was originally at £100. I also have current debt but all is up to date and is showing all green on my credit file which is fine, the problem that I have got is that I am paying £300 to my DMP and 100% of that is going to debt I pay £50 to social loan fund from 15 years ago that will finish in May next year and 100% of that £50 comes of the debt too. My current debt I pay out £280 on minium payments which is dead money, I would love to to be able to get my hands on £7.5k this will pay off my £1500 dmp and the rest of the current debt , even if i could get a loan with a smaller interest but my credit bad is there anything else i could do, I also come from a poor family so they cant help either, I mean soon as my DMP is paid and social loan then of course I can put that towards the current debt but it will just take a lot longer.

StopIt · 13 November 2017 at 12:58PM

You need a better relationship with money.

You entered a DMP, then took on more debt? Aside from being a breach of the DMP conditions (And I hope you're not paying a fee for this and using Stepchange or any of the free DMP providers), it shows that you haven't addressed why you needed a DMP to begin with.

No, stop seeking more and more credit to pay for past credit, you already know where it leads.

Getting another loan will not pay off your debt, it'll be an escalation because nobody is going to offer you a lower APR to pay off existing debts, so you'll end up on the hook for even more.

Post up an SOA, and find ways to allocate the DMP funding towards paying the new debts off once that is paid by snowballing.

Once these issues are addressed, look to build an emergency fund, and find ways to pay things without resorting to credit.

EssexHebridean · 13 November 2017 at 1:19PM

Beautifully summed up by StopIt.

Get that SOA done and posted and let's take a look. You then have a proper document that you can learn to budget by using. Do you still have credit cards in use now? If so cut them up.

MrsSave · 13 November 2017 at 3:50PM

If I've read that correctly you have a dmp, you have borrowed more money, you also owe elsewhere and now you want to consolidate by borrowing more. This is not a good idea at all. You'll end up owing more, and digging deeper into the debt hole.

You need to fill in an SOA, showing accurately your incomings and all outgoings (use bank statements to be as accurate as possible). You need to see where you've been over spending and why you've needed to continue borrowing. You then need to address this borrowing and over spending and contact step change (or which ever company you have your dmp with), fill them in with what's been going on. Please do not borrow any more money.

National_Debtline · 13 November 2017 at 6:02PM

Hi Kezcon

It's hard to argue with the above replies. The key to any effective debt solution is that it should be realistic and sustainable, and that it should equip you to be less likely to fall back into debt in the future.

Therefore, please put any thoughts of further loans completely out of your head - they couldn't be any less helpful in your situation.

I know these responses may not have been the ones you were envisaging, but that doesn't mean they're wrong.

I hope you can get the advice you need, whether here or elsewhere.

Dennis
@natdebtline

little advice please

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