now on antidepressants due partly to debt, is it time for a dmp?

megisabel

hi

We are in quite a lot of debt, alot of it kept secret from my husband after we remortgaged 2 years ago to consolidate our last lot of debt.

I have a 9 month old baby, our 3rd child, and have just been diagnosed with postnatal depression due to severe anxiety, most of it tied up in money.

I cant watch or hear anything about credit crunch without having a panic attack.

I am starting to not even be able to cover our minimum repayments

Can I ask some questions on DMP?

1. Do you end up having absolutely no money to live on for presents, clothes etc (just thinking of kids)
2. how tight is the budget for food etc
3. do you have to include every debt (ie could i keep existing bank account and OD or would that have to go in?)
4. how does it affect you getting a mortgage when it becomes due for renewal?

Many Thanks
Rebecca

Deep_In_Debt

Hi and welcome
In answer to your questions:

1. You do get an allowance for presents and clothes etc. As time goes on, you will probably find that you can live on less on the groceries budget you are given thus freeing up more money for presents etc.

2. I find the budget for food is ok. You will find lots of ideas on how to feed well for less money

3. You have to include all unsecured debts which means you will need to change banks and include your current overdraft in the dmp.

4. Your credit rating will be trashed for the whole time you are on a dmp and for 6 years after your last payments so getting a mortgage may mean higher interest rates.

If you are considering a dmp, please contact one of the non profit, free dmp providers - CCCS, Payplan or CAB.

Good luck and keep posting.

~Beanie~

Hi

1 - All the items you mention are budgeted for.
2 - For 2 adults and 3 children it is over £220 per month I think
3 - You will need to include your OD so will need to open a new bank account
4 - It will make it more difficult to get a remortgage with another lender.

If you go to the CCCS website, you can fill in their online debt remedy and it will show you how much they recommend for food, clothing, presents etc. It will give you an idea of what you will have to pay out and you don't need to put your name or address in it or anything.

https://www.cccs.co.uk/

cat4772

Megisable

I'm on a DIY DMP and it hasn't affected my credit score as I've just been approved for a new CC (though I have always managed to make the minimum payments). If you can't make the minimum payments each month this WILL affect your credit file.

Why not post up a SOA so folks can see where economies can be made.

Back in 2006 and 2007, on what'sthecost.com my original Debt free date was July 2011; by posting up my SOA and having it picked apart by the experts here, and by following Martin's advice I should be debt free by April 2009 (December this year if I can pull it off)!

Things that have really helped me are
1) keep a spending diary to track where all the money goes
2) meal plan, write a shopping list and stick to it!
3) set up a realistic budget
4) sign up to a challenge or two
5) balance transfer to cheaper cards
6) sign up for daily clicks, mystery shopping and any opportunity to earn a little extra (don't forget to give the taxman his share)
7) take packed lunches to work
8) make overpayments on your highest interest card

megisabel

Difficulty in obtaining mortgage in future scares me alot!!!

I will prepare a SOA, think it might take some doing though

Just dont know what to do

Im not working due to depression so that has just sent things crashing losing income

megisabel

!!!!, !!!!, !!!!, !!!!

first of all i am registered self employed (childminder and doula) although havent done any work for sometime now

the cccs thing flagged that up as a problem and to call them

secondly i went through with figures just to see and it says that we are £315 a month short of covering even our priority expenditure before creditors etc so wouldnt be able to help anyway

what the !!!! do i do????

sorry for language

Gemmzie

Have a look at http://www.makesenseofcards.com/soacalc.html for an SOA - it's quite good for including everything.

Are you getting sick pay from work? or Income Support?

churchrat

hi
please put up your soa, without it there is only a little that can be done on here.
and I think that you are having a panic right now--a perfectly normal side effect of the light bulb moment!! please just try to keep posting!!

megisabel

no, as i said i am self employed so no employer to get sick pay from, i was getting maternity allowance but that has ended now

i will look at the soa thing

trying to ward off full blown panic attacki

Gemmzie

Don't panic, have a cuppa and start on the SOA, we're here!

talliedebtbuster

Hi Rebecca, please dont feel bad, this is the moment you have realised so you should be so proud of yourself for admitting there is a debt problem. Write everyone down, i mean everything that you owe. What your outgoings are each month. The first savings are food and groceries, basics foods is going to be what helps reduce the costs. Basics non food items like 65p soap powder in sainsburys, 7p noodles, squash rather than fizzy drinks.

You can do it, try and get some benifit, sign on, you are entitled and the 50 quid a week or whatever it is these days will help.

Best of luck, Tallie x