Help needed - Crisis Point

southernscouser

Southern I am afraid I disagree with this by going DMP route there is a possibility of having your interest frozen (4 out of 5 of my creditors have agreed to this) which mean all the money you are paying goes towards reducing the debt. As moustache is paying out 3/4 of his salary (or more) in maintaining his debts I feel he really does need to contact CCCS and find out about a DMP. d

I know everyone else has a different opinion and I respect that. But it isn't just a case of not paying interest. The negative side is that you have no chance of getting credit for 6 years. Now I know people will say the last thing that person needs right now is more credit but in say 3 years time the situation could be totally different. The OP may want to buy a house and be able to afford it but coz of the defaults on his file he won't be able to.

All situations are different and I appreciate that taking different routes works well for different people. Each to their own and all that!

sparkle84

Yes I know everyone is different the point I was making was to forget about mortgages or if he can pay it in 5 or 6 years (with added interest it will be more like 15) he cannot afford the debt its not a game to see who can pay the most off and who can pay the quickest he needs good advice and at the moment on a salary of £15,000 and debts of £27,000 he needs to contact the cccs or payplan and set up a debt management plan in my very humble opinion anyone who owes more than their annual salary (and I include myself in this I earn £35k and owe £43k) is going to find it very difficult to pay their debt off in any reasonable length of time without help from their creditors or cccs or payplan

Re the interest I do not condone debt avoidance however if you can have your interest reduced or stopped you would have to be mad not to go for that he will reduce his debt way quicker

southernscouser

sparkle84 wrote:

Yes I know everyone is different the point I was making was to forget about mortgages or if he can pay it in 5 or 6 years (with added interest it will be more like 15) he cannot afford the debt its not a game to see who can pay the most off and who can pay the quickest he needs good advice and at the moment on a salary of £15,000 and debts of £27,000 he needs to contact the cccs or payplan and set up a debt management plan in my very humble opinion anyone who owes more than their annual salary (and I include myself in this I earn £35k and owe £43k) is going to find it very difficult to pay their debt off in any reasonable length of time without help from their creditors or cccs or payplan

Re the interest I do not condone debt avoidance however if you can have your interest reduced or stopped you would have to be mad not to go for that he will reduce his debt way quicker

You make very valid points. But I owe £37,000+ and earn £21,300. It won't be and isn't easy but I will be debt free by April 2010 at the longest.

I know circumstances differ but in my case although this is the hardest way I think the best way for me.

Ember999

southernscouser wrote:

You make very valid points. But I owe £37,000+ and earn £21,300. It won't be and isn't easy but I will be debt free by April 2010 at the longest.

I know circumstances differ but in my case although this is the hardest way I think the best way for me.

May I ask how you are able to pay off over £7,000 + per year? on a salary of £21,300? I think you're an inspiration to be able to do that and I am sure anyone reading this thread would like to hear how you make that possible.
Good Luck to you.

Ember xx

johannamse

sparkle84 wrote:

Re the interest I do not condone debt avoidance however if you can have your interest reduced or stopped you would have to be mad not to go for that he will reduce his debt way quicker

Going on a DMP or IVA does effect your credit report though, so it is not ALL positive. You would not necessarily be mad NOT to go down the DMP route. Your credit score may be really important to you/ your job etc.

If it seems too good to be true, it normally is.

sparkle84

Going on a DMP or IVA does effect your credit report though, so it is not ALL positive. You would not necessarily be mad NOT to go down the DMP route. Your credit score may be really important to you/ your job etc.

If it seems too good to be true, it normally is.

If you earn £15,000 and owe £27,000 your credit rating is already effected (the same as mine is effected by earning £35k and owing £43k) you will not be given any more credit and I believe you will find it a struggle to repay without some help that is all I am saying.

Interestingly today I got a letter from Morgan Stanley agreeing to my DMP for the next year and they said "Please note that whilst you are on a payment arrangement with us this may be reflected in your credit reference file, however at this time we are not issuing you with a default" how strange is that!!! I don't care if they do or not but I would have assumed they would in fact I thought they had to???

southernscouser

Ember999 wrote:

May I ask how you are able to pay off over £7,000 + per year? on a salary of £21,300? I think you're an inspiration to be able to do that and I am sure anyone reading this thread would like to hear how you make that possible.
Good Luck to you.

Ember xx

I've been called alot of things in the past but never inspirational! :rotfl:

Moustacheman

I'm gonna try and answer all the questions that have been asked in this thread as I really do need your help.

Here Goes:

1. I get paid again on the 28th November and the £32 I have in my bank is all I have till then, although I had set that £32 aside to go towards the payemnt of the bills

2. The debt has come from 7-8 years of living way beyond my means. It all started with a capital one credit card with a limit of only £250. I knew back then it was a bad idea to do it!!

3. The situation with the bills is that Me and my 2 housemates take it in turns to pay the bills each quarter. I pay the bills for a quarter, my housemate pays the next quarter etc etc. The council tax needs paying monthly and we take it in turns to pay that also. I was, at one stage putting £60 a month aside to cover the bills when they came but that has since gone out of the window and I now fond myself in the situation where I cant afford to pay the bills.

4. My credit score is so bad due to a combination of 2 things. The level of debt I have, and also down to missed payments

5. I pay that much to the dentist each mont as I am on Denplan and its is impossible to find an NHS dentist in Hereford



I have a few questions of my own:

1. How do I find out the Apr's on my cards? Isnt there a different rate for cash advances, balance transfers and purchases on each card as all of my cards have a combination of the three on them.

2. With a DMP, I dont really know anything about this. How does it work and what are the implications?

Please Help I really want to get on top and this and sort my debt out.

Ember999

southernscouser wrote:

I've been called alot of things in the past but never inspirational! :rotfl:

I take it that is your polite way of ignoring my question? I notice you didn't answer it

ceegee

Moustacheman wrote:

3. The situation with the bills is that Me and my 2 housemates take it in turns to pay the bills each quarter. I pay the bills for a quarter, my housemate pays the next quarter etc etc. The council tax needs paying monthly and we take it in turns to pay that also. I was, at one stage putting £60 a month aside to cover the bills when they came but that has since gone out of the window and I now fond myself in the situation where I cant afford to pay the bills.
QUOTE]

This looks like a really bad idea to me. Lucky the person who ends up with the summer fuel bills!!!!

As far as fuel bills and council tax are concerned, you ought to work out the annual total of these bills, divide it by 3 (for three housemates), then divide that amount by 12 and each put this final amount aside each month. That would be a much fairer way to do it and would stop any one person from having a massive bill to pay.

Sorry, can't think of a way out of your current predicament other than doing a car boot sale at the weekend....it's a quick way to get some cash and I bet you've got tons of stuff that you don't need! :cool: