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£92k debt, time to face up to it!

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  • pandapaws
    pandapaws Posts: 2,119 Forumite
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    As I said before, I think a lot of people get freaked out by big numbers and see BR as the only option but it really isn't such a quick fix. I don't think there's anything wrong with a DMP, my only problem with it is that you WILL be a credit-leper for a very long time afterwards which has serious implications (I mean for mortgages, utilities and the likes, not loans and cards) and it seems a shame when you've maintained a good record for so long despite all odds, and when you're so relatively close to being able to manage your own DMP. But it's still way better than IVA/BR, and much better than burying head in sand!

    Whatever you do, you will get support on here (plus, as you've seen, the occasional !!!!!! to give you a real slating and a good laugh). It's amazing how motivating it is as well - I never believed it when I first joined but it does make a huge difference to know that there are loads of others in the same position.
  • hypno06
    hypno06 Posts: 32,296 Forumite
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    Hellooo again!

    If you are "only" £300 a month short, how about joining in the £10 a day challenge, that is on this site - it is amazing how much you can pull in as extra money when you use the ideas from the people on this site. That £10 a day would be the difference between managing to pay the debt and not.

    That is the way I have done it - my debt started at over £100k on top of the mortgage, and I considered, as Pandapaws did, going on a DMP but we decided to do it without any risk of default etc, and have battled on, and those extra bits of cash we can earn here there and everywhere get thrown at the debt and as you can see from my signature, are really bringing it down.

    Of course, if things change -if one of us loses a job for example, then we can still go on a DMP, but as every day goes by we are at less risk of having to do that.

    So, if you are only going to be offering each creditor a smidgen under what you are currently paying them, then you may be just as well to knuckle on down and find that smallish amount of extra money.

    I know it is all difficult to deal with - people saying go on a DMP, people saying do one extreme, or the other, and at the end of the day it is your choice, but at least you are getting some good ideas to think about!!!
    Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)
    Life begins at the end of your comfort zone (Neale Donald Walsch)
  • vixsta7
    vixsta7 Posts: 163 Forumite
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    Gonnawin I understand completely where your coming from not wanting to go BR, I would be exactly the same. You're not on your own and fair play to you for coming out and getting it off your chest. I really do wish you the best of luck. I think what you've done is really brave, I have no financial advice I can give you (I don't think I'd be the best) However I'd like to offer you my full support and the best of luck. x
  • vixsta7
    vixsta7 Posts: 163 Forumite
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    Forgot to add... I did notice on your SOA that you have a few credit cards. Could you maybe check if you have any late payment charges to reclaim. That could reduce your balances and monthly payments too.
  • GirlyGirl_2
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    Am I right in thinking you have £20k secured debt on your house ? If that is the case miss one payment on your debt management plan and they will make you bankrupt anyway. Am I right in thinking you work in the media ? If so start arriving for work looking anything but current and polished and you'll be sacked, in fact it's highly highly likely in the current economic climate where nurses are having hours reduced you'll loose your job soon anyway.
    If I was in your Jimmy Choo's I would cut your losses, stop throwing good money after bad and get rid of the debt instead of wasting 9 years of your life sorting this out you could have a nice shiny new credit card back in your purse within 18 months and start rebuilding your credit record, which will be ruined by a DMP.

    As for learning your lesson, jesus you're over 18 really you know you've been a !!!! but you don't have to spend 9 years suffering when other people in your position are just walking away from it.
  • hypno06
    hypno06 Posts: 32,296 Forumite
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    It is NOT the case that if you miss a payment on a DMP you will be made bankrupt, and you should check your information before you say such things please.

    A DMP is NOT an IVA - a DMP is designed to be flexible, where as an IVA is not.

    It is correct that if you fail on an IVA you may well be made bankrupt, but not on a DMP, and certainly not after just one missed payment.
    Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)
    Life begins at the end of your comfort zone (Neale Donald Walsch)
  • 10past6
    10past6 Posts: 4,962 Forumite
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    GirlyGirl wrote: »
    If that is the case miss one payment on your debt management plan and they will make you bankrupt anyway.
    Not quite true, in fact, most of your post is incorrect.

    If you HAVE PROOF that someone's been made BR through missing one payment whilst on a DMP, post it up.

    You should be very careful about posting incorrect facts on here, many people view these forums for advice without joining, your post could very easily give the wrong impression.
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
  • gonnawin
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    You know what - GirlyGirl - you actually talk a lot of sense! Totally get what you're saying and appreciate the honesty and (I think) advice in what you're saying. But a big part of me wants to start with DMP and if I end up having to take a different course then so be it but I'd like to try facing up to it first.

    Thanks GG!
  • gonnawin
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    OK so there were flaws in GG's response but it made me laugh for the first time reading some of the negative comments. Thanks guys for correcting it though, it panicked me for a second!
  • 10past6
    10past6 Posts: 4,962 Forumite
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    hypno06 wrote: »
    It is correct that if you fail on an IVA you may well be made bankrupt, but not on a DMP, and certainly not after just one missed payment.
    Even on an IVA, it's not a given fact one will be made BR, it deends on the circumstancs which created the missed payments.
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
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