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£92k debt, time to face up to it!



  • ameratsu
    Tbh, I think that would just be delaying the problem - your lenders will expect full payments after they have "graciously" accepted lower payments for a while and you will be back to square one. Most people welcome defaults as the interest is then stopped.
    You luckily have a very high income and can afford £1200 on a DMP easily - that would mean less than 7 years to pay it off, you can also save a couple of £100s a month and learn to live without relying on credit - hard I know, from experience.
  • pandapaws
    pandapaws Posts: 2,119 Forumite

    Just a thought - are you sure you definitely want to go down the DMP route? You've got a good wage and your defecit is (relatively) small. Any chance of making cutbacks, and making the whole thing work while maintaining a good credit rating for when you come out the other side of it?

    I've been exactly where you are now, and braved the storm and definitely come out of it a stronger person - feel free to give me a shout any time if I can help with anything.
  • gonnawin
    Hey thanks again guys, really appreciated.

    The problem I have is that I simply MUST stop getting more debt, it's crazy. So I am short £300 a month at least at the moment which is £3600 over a year and getting a loan to finance it doesn't work out at all. So I really do think I have no choice but to do this and it will probably be better for me in the long run. Does anyone have any alternative suggestions? I'm about to send off for my DMP and very very scared and nervous about it. But according to the online form at CCCS it will mean I will be debt free in 4 years and 7 months. That is amazing just to think of that!!! But my credit record which is excellent at the moment will be destroyed. Major quandry!
  • Steel_2
    Steel_2 Posts: 1,649 Forumite
    First Anniversary Combo Breaker
    Hi gonnawin

    Would your other half be willing to take over most or all of the bills in the house and you can throw most or all of your wages at the debt every month until it's gone?
    "carpe that diem"
  • bargainbetty
    Your credit rating could be destroyed with a few defaults - anyway, do you really want extra credit right now?

    Do you have the option of a second job? Part-time work brings in money, and reduces outgoings (can't spend if you're working).

    When I had my LBM, I found that as well as debt, I had amassed quite a hoard of junk - DVDs, CDs, books, clothes, jewellery and stuff. All those little 'it's only a tenner/fiver' treats. I whacked a stack of stuff on Ebay and made about £700 inside two months. Could you have a declutter and see what's saleable?

    Just a few thoughts... hope they are some help.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!

    May grocery challenge £45.61/£120
  • brownbabygirl
    is your partner unable to work?
    QUIDCO £2827 paid out since October 2007:D
  • simone83
    simone83 Posts: 228 Forumite

    just a quick thought. I found that for me the best way forward was to get the small debts off my hands first, I felt like I had acheived something and it was one less debt to deal with, plus they werent calling and sending letters - which eased things a bit!

    I had two vodaphone contracts (me and the hubby) which I only took out in Feb and I called them last month - they dropped my contract from £50.00 each per month to £25.00, it means that its a new 12 month contract - but thats how long was left on the last one. It never hurts to call - and if they can cut your contract its an ongoing saving.

    I agree with the EBAY idea, I ended up with lots of 'stuff' which I bought on credit, getting rid of it helps.

    Also, are you able to think of any freelance work you could do? you seem to earn a good wage so must have some talents!

    good luck
    light bulb moment: 30.08.08!!
  • JonnyBravo
    JonnyBravo Posts: 4,103 Forumite
    Mortgage-free Glee!
    gonnawin wrote: »
    Also, I have only had the CitiFinancial and Welcome loans for two months - would they go nuts if I go for DMP so soon??

    Thanks :(

    You had £18k two months ago?

    You can't have spent that on your repayments in two months accordinging to your SOA. What happened to that £18k?
  • roxy7699
    roxy7699 Posts: 1,067 Forumite
    First Anniversary Combo Breaker
    I agree with all of the above, sell eveything of yours that isnt screwed down and then perhaps see if you can approach your partner to pay the bills as then you are proving that you have sacrifised as he seems so angry.
    Also see if you can find the snowball calculator as someone mentioned above even in a dmp see if you can throw money at the cheapest debts first.
  • gonnawin
    Hi Jonny Bravo - sorry I should have explained - they were refinanced from existing loans with them so actually only a total of £2.5k additional but as they are refinanced they started from scratch within the last 3 months, WF one two months ago. Hope that makes sense.

    I've done the eBay thing already, there's hardly anything left now!! Decluttered is not the word.

    My partner won't pay anything towards it as they earn a lot less than me and already paying out their wages (though has not debt). Also to be honest he's so angry the relationship is in bits anyway at the moment, wouldn't dare ask!

    Can't get another job as I work pretty much 70 hours a week already on average - work in media so it's all hours if necessary.

    My feeling really is I have no choice without getting further into debt and I'm feeling like I desperately need to take responsibility for running up such huge debts and trying to believe everything was fine. I don't understand why I'm so bad with money when I'm so responsible in other areas of my life, especially at work.
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