A terrified newbie, can I ask for some help please

tinkerbelltoo_2

As my heading states. I am a newbie to this forum, although I've been lurking for about a week before finally plucking up the courage to post.

I have just this past week accepted the fact that my finances have got out of control....living beyond my means for a while, then due to illness and then a family bereavement which caused my OH to loose time from work (he doesn't get paid for any absences) we have fallen behind with payments on loans etc. I have been clearing mortgage arrears after an arrangement with mortgage co and will be back on track by end of Sept (all being well).
Our personnal loan is a different issue, and found that they have been anything but helpful eg asking for payments to be made on our CC or to borrow from someone to make our payments. Despite the fact I made an arrangement with them to pay £150 pm instead of £432 they are still hammering me with charges, interest etc. I have not missed a payment since then.
So to cut a long story short we are £19000 in debt (all unsecured) and bank loan have directed me to Payplan (I'd never heard of them until last week) they have worked out my finances (OH works full time ) I am on DLA due to heart problems, so cant go out to work to ease the situation.
Payplan have worked out that we can pay them £200 per month and they will clear our debts over the next 7 1/2 years.
I am terrified at the thought of all of this and wondering if this is the right way to go to get out of this situation. We are in arrears with approx half of our creditors, which range from personnal bank loans, to Egg CC to £140 owed to a catalogue.
I am sorry to rant on so long, but I really dont know where to turn now and find that now I'm accepting that I have a problem with our debts I want so much to solve my problems. Sorry to keep on.
Can you please offer me some advice on whether or not I should sign up with Payplan....what it will mean....or is there another way. to be DF.
Thank you all for listening.
tinkerbelltoo

Horace

Hi and welcome

Please post your SOA so that we can see what is coming in and what is going out, there maybe some areas where you can cut down to release money for your debts.

https://www.makesenseofcards.com/soacalc.html (use the MSE button on there to upload it here)

I am sure someone will come along who is more experienced with a DMP than I.

sjane2008

Well first thing is you've done the right thing by asking for help, post here more often!!! I havent heard of payplan i'm afraid maybe the others can help. I used http://www.nationaldebtline.co.uk/england_wales/ and http://www.cccs.co.uk/ both charity run organisations and booked myself in with citizens advice bureaux ASAP. The best thing is pen to paper and remembering to keep a clear head...altough easier said than done I appreciate. The fist thing is to talk to someone about a plan of action then contacting your creditors and following peoples advice here and searchign the forum.

Best wishes


xxxx

RAS

Hi

Thank heaven you were refereed to payplan, not a fee paying company. You might also want to have a chat with CCCS and ask their opinion. Some people find that their allowances are more generous, so they might take a little longer to pay off but your life might be omore comfortable in that time.

There are a number of things that you can also do to get money that reducesyour debt.

1. Have you got PPI on any of those debts? has it paid out in your situation. if not was it mis-sold and can you reclaim it?

2. If you are being charged fees for late payments, at any time over the last 6 years, you might be able to reclaim those.

They will use the money to reduce your debt, but it still brings your debt free date forward.

Also look at boost your incoem, as some of the clicks, surveys and freebies information can produce little bits of income in voucher or goods from that do not affect your benefit entitlement.

And are you allowed to work at all given your situation?

RAS

Debt charities link here http://www.moneysavingexpert.com/loans/debt-help-plan#help

Payplan are not a charity but one of the two biggest free DMP providers. Loads of poepel on here are with them.

Jacks_xxx

:wave: Hey my lovely,

I remember that feeling of not wanting to make the wrong decision so strongly as if it as yesterday. Ooh I can't breathe for a sec just remembering it.

I just want to echo what the others have said really.

Payplan are good people to go with but like RAS says I'd also speak to CCCS just to be sure that you've covered the bases and got the best solution for you.

http://www.cccs.co.uk/contact/contact.aspx

Their Debt Remedy tool is a good way of seeing in advance what they're likely to recommend to you:

https://www.cccs.co.uk/debtremedy/(S(aj3hx5552d44k4awvv45myil))/start.aspx?hp=5

Definitely post your oncoming and outgoings on here if you can so people can suggest better deals or better ways to do things. It's a thing that makes people feel vulnerable but you get so much help that it's worth it.

Failing that read lots of other people's to get ideas for changes you can make.

Have a go at getting your head round eBay or mystery shopping to earn some extra dosh. Most of us have some clutter we could sell and most of the Mystery shops I do these days seem to be on the phone.

http://www.retaileyes.co.uk/uk/home/retaileyes_aboutus.php

Ooh and check out entitled to to see if there's anything you should be getting:

http://www.entitledto.co.uk/entitlementcalculator.aspx

Big hugs honey - once you get a plan in place you'll feel better about it all I promise.

Love Jacks xxx

poorandindenial

I can't add to the excellent advice given already but just wanted to say hi. Please don't be terrified, especially not on here, no-one is going to judge you and you are in good company (just check out some of our signatures and you will see that there are all flavours of debt on here and there are as many reasons for the debt as there are different amounts of debt)

I can see you have logged off the forum for a bit (no, I am not in your house, there is a green light on your posts that is on when you are logged in and off when you aren't), hopefully you are putting your statement of affairs together and then we can see if we can help you to sort this out.

All the best and hopefully we'll see you again soon

tinkerbelltoo_2

Thank you all so much for not only your advice but for such a warm welcome. I am only just realising how lonely this debt situation can make you feel. Of course I'm too embarassed to tell anyone yet of my situation. But already feel as if a weight has been lifted from my shoulders just sharing my worries on here.
I will look to posting my SOA asap.
I am not sure if I would be allowed to work re my benefits, but would not be fit to do so anyway. Although the idea of secret shopping by phone etc does appeal to me. Also from reading these boards I keep seeing things like...clicks, surveys etc being mentioned, but cant seem to make head nor tail of what it means. although I have trawled the boards looking for a post which explains it to no avail....would welcome any help here too.

I have never sold on ebay, but will defo look to clearing out some things...again I'll have to learn how to sell on that site...but I'm keen to learn.
Lastly, thanks to this site I have sent a letter to my bank asking for a list of charges....I may need a valium when I discover exactly how much I've paid over the years.....so I will defo apply for them using the letter that I have seen on here.....would it automatically go to payplan if I sign up for their services ? I am willing to try anything to get these debts down ! My only other worry is that (I know my credit rating must be abyssmal just now) but will it be shot for ever after this.
Oh I cant believe the relief I feel with talking about it all.
Thank you all.
Tinkerbell

fatbelly

Hi tinkerbell

You're asking all the right questions. I can point you in the right direction on a few of them.

If you could find paid employment that you could do, your DLA doesn't prohibit you from working.

Clicks refer to cashback sites. Martin's written an article here - others will go into greater detail if you ask them.

Your credit rating will not be shot for ever. It wil get worse. It will then get better. As I think Martin has said 'the question is not will I get through this but what strategy should I use and how long will it take'. Or something like that.

One thing that struck me from your first post is - who is your current account with? It should be with a bank that is unconnected to any of your debts, so that you have full control over your income. You may have to switch.

Jacks_xxx

Eager Learner is the queen of clicks round here honey I only do bits and bobs so i can't really be much help on that front

But check this thread out for loads of info:

http://forums.moneysavingexpert.com/showthread.html?t=609037&highlight=eager+learner

I'm so glad you're starting to feel a bit more positive about things now. This site usually has that effect!

Your credit rating is usually only bad for 6 years after you default on the loans and enter a Debt Management Plan but I confess I don't know what happens if you get your charges back whilst in a DMP.

Chin Up Chick - and keep posting!

Love Jacks xxx

tinkerbelltoo_2

Thanks yet again to all of you.

I phoned RBOS to see if I can open/transfer my accounts to them ...re yours and Pay plan advice....it has been agreed in principal what ever that means.
We have been with present bank for 30+ years but obviously this is not ideal now, due current debt situation.
My new worry now though is....will RBOS allow me to open an account with them, due to my current state. What does 'in principal'mean.
If they now declitoone me what on earth do I do next ?
I am really sorry to keep firing questions at you, but I really am in a tizzy just now and dont know where else I can get answers.
I will sit this evening and do the Soa that has been suggested in the hope of giving you a better insight.
But for the moment I wonder if you can answer my queries regarding the banks.
Thank you all again, what a great bunch of people you all are.

Tinkerbelltoo