Major Debt problem

onthemend

Hello Everyone
Thanks for your replies and suggestions.

Ive now spoken with CCCs who were really very helpful and understanding. Im hopefully going to set up a DMP starting in 1st March. Although the initial payments will be quite low, hopefully as time goes by we can up the payments.

We have applied for new current a/c which hopefully will be in place before the end of the month.

From all the feedback regarding MBNA tactics, it looks that we are going to be in for a rocky ride initially from them and our other creditors.

We are now carefully logging our weekly spends for all our outgings, especially food shopping. In January we averaged a weekly food shop to £75/week (2 adults/2 teenagers/1 dog).

One item Im still not sure how to work it, is our car HP which we will still have to pay to keep the car , it finishes in September this year. I then have a balloon payment of about £5750. To get finance in September will be impossible as the DMP will be well under way.

One option is to find out if I can re-finance the loan incl. the final payment with one of my existing creditors - Northern Rock now and continue it until paid off. This will certainly be less than the current monthly payments and therefore give us a bit more monthly free income.

Any suggestions would be really useful.