About to take the first step to becoming a DFW

Rikochet

Hi there,

I have debts of around £10000 owed to various creditors.

I live in Scotland and my income is about £800 a month. This can change depending on which benefits the DWP decides to stop and also how many hours work my local temp agency can find for me.

I have been hiding under a big pile of coats for years hoping that things would eventually sort themselves out but since I haven't found that winning scratchcard yet I've decided that now is the time to be taking those first steps to a debt free existence.

When I met my OH 4 years ago she had hardly any debt but that quickly changed after I lost my job, we moved away to Aberdeen for a year, moved back, bought cars, ate in nice restaurants, bought clothes, holidays etc together and pretty much just enjoyed ourselves!!

We don't regret the good times we had but we do wish we'd been a bit more cautious when it comes to money.

We're now expecting our first child and we'd like to be able to look back on his/her early years without the black cloud of debt hanging over us.

My OH has been in a DM with Gregory Pennington which has now been running for a year. She's happy with this and her Think Banking account but I don't know if I'd be better with a Trust Deed since I live in Scotland.

Anyway first things first, I sent away last week for copies of my Credit Report from Equifax, Experian and Call Credit to see exactly where I stand. What should I be doing in the meantime?

Tixy

Hi

I'd suggest in the meantime you work out a detailed household budget (statement of affairs) to work out what you are spending where and how much you have left to repay your debts. http://www.makesenseofcards.com/soacalc.html

Then go through each cost item and see if you can get the same thing cheaper (from a different supplier/tariff), whether you can stop it altogether or whether you can cut down.

If you both have debts it can sometimes make sense to do a joint debt management plan. Are you and OH aware that you can do a DMP with an organisation that won't take a cut of your monthly payment? How much are GP currently taking for their fees each month?
I'd seriously suggest you look at these alternatives - http://forums.moneysavingexpert.com/showthread.html?t=2077631