First post - debt help/advice/support needed please.

ladykate

Hello all,

I have been lurking on here for a couple of days but have only just plucked up the courage to post.

I am married and have 2 beautiful children. For a while (5 years ish) I have buried my head in the sand when it comes to money and debt.... but over the past 2 weeks me and my husband have confronted our debt problem. We owe £22,535. Ouch, that hurt.

We have contacted the national debtline and they suggested a debt management plan. We considered this but it won't work because our circumstances will change within the next 6 months (I return to work off maternity leave - childcare costs increase - some of our debts are very small £100 ish) -

SO ..... over the weekend .... We have worked out every penny we owe, we have a 'debt' file in our cupboard ....... We have done the whole budgeting thing online and we have worked out pro-rata payments to pay to all our creditors - I have just now posted the letters (recorded delivery) to see if they will accept the pro-rata offers and I am just so worried.... What if they don't accept the payments - then what?

Does anybody have any experience of working out pro-rata payments... What we have also done is to budget for some 'savings' which we will use to pay off some of the smaller bills in a few months - does this seem like a good idea?

Thank you for any advice. We're so new to this and just feel 'lost'

Thanks,

ladyk

MrsTinks

Welcome to the boards

First question: Why do you think that a DMP won't work just because your circumstances will change in the next 6 months? An IVA might be different but there is no reason for why a DMP won't be suitable as far as I can see...

ladykate

Mrs Tine,

When we spoke to the national debtline they said a DMP can't be set up when your circumstances are due to change within the next 6 months....

RAS

it sounds like you are doing a self-managed DMP?

ladykate

Ras - yeh that's it I suppose.... It's what we have been advised to do - contact our creditors ourselves and offer the pro rata payments.....

doodledo_2

Hi Ladykate and welcome to the forum you have definately found a brilliant place for support.

Well done on facing your debts and getting those letters sent off.

A good first step on here is to fill out a Statement of Affairs. I will put a link in at the bottom. This lists all your incomings/outgoings/debts etc. If you do this you will be amazed the advice that floods in.

When I first joined I was quite savvy or so I thought, after posting my SOA I have made so many changes and reduced my outgoings by a couple of hundred pounds a month

Good luck

http://www.makesenseofcards.com/soacalc.html

RAS

Dod you ask CCCS or Payplan if they will consider you even if your circumstances change?

ladykate

Ras - no we didn't - didn't think that far!

I will do a SOA asap.... need to do a few things today so will be back on here when children are in bed tonight.

Thank you for your advice and help and support.... It's VERY MUCH APPRECIATED!

earplugs

Hi Ladykate

You've taken the hardest step already by working out your financial situation. If any of your creditors do come back and reject your offers you can still set up standing orders for paying them in the sums that you can afford. the creditors will tell the credit agencies so your credit references will be affected, but it means that you can pay what you can afford.

Look forward to your SOA and any help I can give.

ladykate

Thank you all for your replies - it's really good to know that we are not the only people dealing with this.

Today my husband is cancelling all our Directdebits (to our creditors) and the days these are supposed to come out, we will make the payment which we have said we can afford on our pro-rata agreement. Is this the right thing to do?

Thanks in advance

K.

earplugs

thats definately the right step to take.