Is this the best plan for dealing with my debt??

Twinkles08

Hello everyone!I would like some advice and words of wisdom if poss on if I am 'handling' my debt correctly.Basically in 2005 ,hubby and me had approx £11,000 worth of debt including a loan,3 credit cards,catalogue,electricity arrears etc-we were pants with money to cut a long story short!We have been going to the cab since this time and they have helped us to beat back the creditors with a stick,which has worked to our advantage naturally.However I'm beginning to feel a little restricted with the way cab work.We have a v modest income of approx £1400ish a month,incl benefits.So each creditor has been on an agreement to accept £1-2 a month.Our min payments to all total £11.00 a month.On paper this is all we can afford,but we are clearly never going to clear the debt this way.I have prev done a soa on here and by cutting back and tweaking mse style I have found an extra £90 a month to throw at the debts-yay!'cos I don't want to rock the boat we have been paying this extra money towards our 3 overdrafts which are not part of the cab agreement and charge us interest (all other debt is frozen,no int being incurred).Is this the logical correct thing to do?My biggest debt is with my halifax loan which now stands at approx £1920,this is what stops us from coming away from cab and having everything unfrozen as I do not believe we could afford the monthly repayments of it all.Cab have told us not to offer our creditors more than the agreed £1.Should I save after I have finished paying off overdrafts and pay off loan in a f and f settlement or will I be opening a can of worms?Sorry for all the rambling and questions-just wanted opinions really.Ps can get no new credit to transfer etc as c rating has been shot for a while!Thanks all

Twinkles08

Any suggestions?I'm thinking if I save up and do f and f offers on my debts I might be able to knock some of the debt off,so therefore bringing my dfd closer.But I'm concerned if I start chipping away like this,the remaining creditors will start hassling when they realise what we're doing.Cab are positive that (on paper)we have a shortfall in income and outgoings,but when I pointed out that we don't spend x on groceries per month they said unless we put x (a much larger amount) that the debt companys simply wouldn't believe that it was a true figure (kinda flattering in a strange way!lol).Sigh,my hubby and the cab seem to share the same attitude which is to loosen the belt a little but spread the debt further (forever in cab case).I should point out that our income won't be changing at all for at least another 2 yrs.Although I have been ebaying,quidco,carbooting,amazon etc

boo80

Hey Twinkles, I really don't know what the best was forward is, but if none of your creditors are charging interest and adding charges, I'd say the best thing would be to save up all your extra ££ and then offer some F&F's once you have some savings. Good luck with it. x

tasha-debt

Are any of your debts with the same banks your OD's are with? If so they would be seeing that you are re-paying the OD's and possiably ask for a higher repayment for your other debts. Im not an expert though, some one else will be along soon to advise you more.

Have you though about going to CCS and setting up a DMP using the £11 and the £90, £111 a month will bring your DFD forward I should think???

Good luck.

Keeping_Positive

I think your plan is a reasonable one. Clear ODs then save for F&F offers especially is the other debts are frozen. Well done on making the savings. It would be easy to just stick to the minimum payment. Also having some savings is important for emergencies if you have access to additional credit.

savingholmes

boo80 wrote: »

Hey Twinkles, I really don't know what the best was forward is, but if none of your creditors are charging interest and adding charges, I'd say the best thing would be to save up all your extra ££ and then offer some F&F's once you have some savings. Good luck with it. x

I agree with boo

I would save up the £90 a month providing you are disciplined enough and the overdrafts are cleared and then offer f and f settlements when you can. £90 is not a lot to have left at the end of the month and you do need to build up an emergency fund too - especially as you no longer have access to credit. There is no point prioritising the debts which have 0% interest charge. I am surprised tho that the CAB didn't include your overdrafts in your plan but there we go. I personally wouldn't rock the boat by changing to CCCS since they (your creditors) have all stopped charging interest there is no benefit to you to do this.

Also right now you are managing to have £90 surplus but it may be if you have cut back to the bone that you will need to give yourself the odd treat from time to time to stay on track. Don't make things too hard for yourself!

Hope that helps....

GeorgeUK

I think you are going about this the right way Twinkles. Anything that is charging interest is your priority and once that is dealt with, you could say that a relative has offered some funds to clear the debts.

Have you claimed back bank charges and PPI for any of these debts? If not, then you might want to look into how much you may be able to reclaim if they do start to get stroppy. Right now though, it might not be worth rocking the boat.

Saving the money seems to be the right thing to do - you will also be earning a little bit of interest on it and be prepared for any unexpcted costs that may come up without putting your DMP in doubt. Well done on making those savings.

Twinkles08

Thanks everyone!I've just had a raging row with hubby and am now sat in tears as he has stormed off to work till 11 o'clock.We were arguing about money or lack of it!He is extremely miffed that I am using too much of our money and paying off too much to the debts every month and it is making life unbearable app.I know we don't have any money to socialise or go for family days out etc but we don't starve.I'm focused on our dfd whereas he really doesn't care.He doesn't ever build up new credit but he overspends on the budget and I then have to work out how to cover the shortfall.Made worse by the fact that he has just given up smoking in the last month (he only had approx 10 a day)but he is v mentally hooked on them and were his 'only release' app ('cos his life is so hard-according to him)I admit he works hard for us and he is prob bored with his life as his job is pants,but I am sick of his negativity,snappiness,moods,woe is me thing he's got going on.He says this week he has only spent what he would have with smoking in a month (he says he saved it up)but I would be shocked if he hadn't spent bits and pieces here and there in the prev 3 weeks.He said we need to stop giving the debts so much so that we have something to enjoy.I want to tighten the belt and clr the debt as quickly as poss,he wants to loosen the belt and spread the debt out for as long as it takes (app he doesn't care if it takes another 7 yrs or more?!I'm so upset.We just went into town and I gave him £20 I had saved up to lower his overdraft.(hightest bal and inter rate so makes sense)but during the arguement he said he doesn't care and he only lowered the overdraft to keep me quiet!I'm gutted 'cos i would have loved to put that amount towards my od.Am I being to anal in thinking we don't deserve to have it easier?Grrr so upset and cross,sorry for moaning x

Thank you so much for the comments everyone,I'm glad I'm thinking along the right lines

GeorgeUK

Ouch - tough one twinkles.

Although as you say it is important to get debt free as soon as possible, you need to do this as a team instead of dragging him along kicking and screaming.

"It's a journey, not a race" as mentioned on the board before but you are correct in not wanting it to drag on indefinately.

Do you have a reward scheme set up? Set small goals for yourselves and when they are met allow yourselves a small treat? There's no point in putting your life on hold until you are debt free - you still need to live (and live with each other).

Do you both keep a spending diary to account for all your money? This may jolt him into realising just how much he may be wasting (and could be spending on his beloved instead).

I think there needs to be a little give and take when dealing with debt, especially if it is going to take a while to settle. Hopefully you'll be able to find a good balance, but i think the first thing you should start with is setting up a finance meeting so that he can see how much effort you are putting into this and how it affects you. He needs to pull his own weight and i don't just mean going out working. He needs to work with you instead of throwing his dummy out the pram.

Hope you can get it sorted.

Twinkles08

Yes,I think I don't have the balance right,I think you've all hit the nail on the head there.After I have paid all bills and min payments,we have approx £70 for the 3 of us for a month if I put £100 additional towards debt.So I can see my hubbys point but it's been like that for 6 months now so not sure why he's decided to kick off.I honestly think that giving up the cigs (his only vice now)has broken him!
My mum suggested that we look at the budget again and jig things around so there is a bit more dosh to spare and that we both get a set amount as 'our' money and once it's gone that's it.It might work but I feel a bit childish!lol.Also she suggested that if he really isn't bothered or grateful that I'm trying to clear his od first that I should concentrate on mine which has a slighty lower apr.I have tried to warn him about 'setting off' as he is maxed out on his overdraft which his wages go into and he has a credit card with the same bank.But I feel he is being naive by saying he has always had a good relationship with his bank.I am in a similar position with my bank barclays and my barclaycard but I am about to move for this reason.Perhaps I'm being cautious?He says he blames this forum!!Would it be petty of me to clr some of my debts if he really doesn't give a dahm about his?

I have reclaimed my loan ppi which was a nice amount to get back approx £1218.00ish.And I have just printed off some letters to reclaim my bank charges too-whoop whoop!

Keeping_Positive

I wouldnt call it petty if fact I almost posted earlier to say concentrate on your debts if you are the one working the hardest and actually care that you are in debt.

A set spending amount per week/month is good though if he agrees that way he is left to spend it how he feels without "nagging" increase it by some of the excess debt busting money so he feels he is enjoying more and you can use that part of your budget to clear your own debts. Both of you get hopefully what you want.

Good luck

PS My OH moans about this site too. More fool them!!