£1 offers accepted, do i still go BR?

lindsaygalaxy

Although I had made up my mind to go BR, and fill out the forms I am once again havinng doubt.

Most of my creditors have accepted £1 payment. Next year I will be on more money again, would I be better paying the £1 payments, and then when im on more money next year start paying it off?

Im so confused by it all.

dalip

Sorry linda. Can you refresh our memories:o . How much total debt is there and have your creditors agreed to freeze the interest?

For my own interest have you gone through CAB/CCCS or have you done this offer by yourself?.I ask as i am offering £1 to my DH creditors at the moment!.D

lindsaygalaxy

My debt is around £27,000 plus £4000 tax credits. I also have a student loan that wouldnt get included.

All interest has stopped on these accounts over a year ago. I was with payplan, but did not find them very supportive. So a few months ago I decided to go BR and stopped paying them. I made all my creditors the £1 offer and most have replied and accepted.

I change career in a months time and for a year will have no spare money at all! What makes me really frustrated, is if I was able to get a council house and not have to pay private prices I could afford to pay off my debts!

In a years time will be about £4000 a year better off, as well as not having any childcare costs to pay for (currently around £200 a month with no help
from tax credits). My OH also works FT but has his own debts too.

One part of my just wants to go BR and get all this nightmare sorted. The other part of me thinks should I just hang on. In the future I want a mortage. Credit wise it makes no difference, I cannot get any now and dont really want it!

My thinking is if I go BR now, in 6/7 years my file will be clear and I can start again, being able to save my extra earnings through the years towards a deposit on a house. But if I dont I will be able to pay off my debts and not go BR.

I dont know what to do and I am paniking as my career changes in a month and want to have everything sorted by then.

dalip

Yes linda i can understand your dilema. I know from personal experience that i dreaded going bc and if there had been another way out i would have taken it. That said i would have just been putting off the enevitable. When i did go it was not half as hard(process wise) as i had imagined and now looking back i am glad i did. The relief at not having to find the min payments,being able to answer the phone ect ect is awsome.

One thing is that now you are no longer with payplan your crediors may start to add interest to the debts which by nxt year will be twice as much.

IMHO i would say go bc now,get it over with and start afresh.D

fiveyearplan

Only you can make the decision but if your increase in earnings is due in one year, you'd be discharged by then. I wouldn't worry about a mortgage as you could always get one, albeit the rate may be higher and as you said you don't have deposit anyway. The £1.00 payments could be revoked at any time and the interest will be piling back on. I think you should list all the pros and cons of going BR or not going BR.

I put my own BR off for months, I would have definitely been discharged by now if I'd done it when first advised. It just didn't sink in that I was 'insolvent'.

lindsaygalaxy

thank you for all your advice.

I think it would just be putting off the inevitable, and i dont sleep now, not sure I could cope with wondering when the letters would start coming back in wanting more money.

I planned to do it tuesday, so I think im just gonna get on with it and do it!

dalip

Well good luck linda. Let us know how it goes,if you are not back mon night with pre court nerves that is;) .D

shadowdragon

Well seeing that I couldnt expect to be well enought to work for at least the next 12 months CCCS advised my best option was to go BC. And I had 40k of debt. If you have no assets (mortgage, expensive car, Large Plasma TV etc) BC will remove the debt, how long is it going to take to pay the debt off at £1 per month???? You need to look at the pros and cons. Mortgage wise, its a bad time to be thinking about purchasing a house, the market is falling, theres lots of neg equity ect around. Even if you had the deposit I would recommend hanging around for a year to see how the market is.

Broken_hearted

BR is ment to be a last option for those who can't pay their debts back not an easy option for those who choose not to.

piggeh

BR is meant to be a chance to start afresh if your debts become overwhelming -pretty much anyone would not be able to say they could never pay their debts back and be 100% certain about it, unless they're unable to earn anything and do not have any inheritances or other possible windfalls that could come their way.

shadowdragon

Broken_hearted wrote: »

BR is ment to be a last option for those who can't pay their debts back not an easy option for those who choose not to.

http://www.youtube.com/watch?v=4B1QacDSJb0

listen to the lyrics, i think it rings true.#

Then when you have done there, look here

http://forums.moneysavingexpert.com/announcement.html?f=136