Debt Bemusement - Help/Advice request.

Beaded_Lady

Hi everyone,

I usually lurk around the freebie forums but have just discovered this forum due to being at my wits end regarding my current money problems, which I am hoping someone may be able to advise me with.

Due to mistakes made and giving my trust to someone who took it for granted, i found myself in £7,000 of debt 3 years ago, and having sought help from a debt management company have now decreased this debt down to around £3,000.

But over the past few months despite paying in around £250 per month (including fees) I have hardly noticed a shift in the debt and this is really starting to get me down.

I am now considering getting a credit card which I can then use to pay off this sum in one blow allowing me to pay the credit card bill back at my own pace rather than being 'told' to pay the set amount each month.

What does anyone else think?
Is a credit card a good idea or are there better options available?

As I desperately need to sort this debt out so I can look to the future.

spud30

Hi Beaded Lady, and welcome to DFW.

Does the company dealing with your DMP charge you for the priviledge?

If they do, look into swapping over to one of the charities, CCCS, Payplan or CAB.

tawnyowls

Might be worth it, IF you can swear honestly that you will pay that off and won't be tempted to use it for more spending. One problem you may have is getting the card in the first place, as presumably your credit record is rocky.

Beaded_Lady

spud30 wrote:

Hi Beaded Lady, and welcome to DFW.

Does the company dealing with your DMP charge you for the priviledge?

If they do, look into swapping over to one of the charities, CCCS, Payplan or CAB.

They currently charge me £37 a month.

tawnyowls wrote:

Might be worth it, IF you can swear honestly that you will pay that off and won't be tempted to use it for more spending. One problem you may have is getting the card in the first place, as presumably your credit record is rocky

I can definately swear not to spend it, as I want to move away from home and make a fresh start with my boyfreind, and the debt is really holding me back, which was caused not by spending but by a friend taking a phone out in my name and running up high bills, which due to my inexperience were managed badly and they spiralled quickly. The card availability is another issue im currenly unsure of as this is an idea I've only had.

spud30

£37 per month !!!

If you move to one of the charities that help people with DMPs, they provide the service free of charge, CCCS and Payplan are even freephone numbers.

MCBIRNIE25

Hi Beaded Lady,
welcome to our gang.
First thing to do, get shut of the Debt Management Company.
Go to CCCS, payplan or national debtline who do not charge.We can give you the web addresses if needed.
That's 37 quid extra to pay towards your debts per month then. The CC is a good idea, but only if it will defo be paid off. Also, why not pop up your SOA and we can look at your spending, see if we can help find futher savings.
There is an initial post on this, but comps playing up so i can't give you the link.
Have a good one,
MCBIRNIE25

Beaded_Lady

MCBIRNIE25 wrote:

Hi Beaded Lady,
welcome to our gang.
First thing to do, get shut of the Debt Management Company.
Go to CCCS, payplan or national debtline who do not charge.We can give you the web addresses if needed.
That's 37 quid extra to pay towards your debts per month then. The CC is a good idea, but only if it will defo be paid off. Also, why not pop up your SOA and we can look at your spending, see if we can help find futher savings.
There is an initial post on this, but comps playing up so i can't give you the link.
Have a good one,
MCBIRNIE25

Thank you all so much, I never quite expected so much help especially so quickly, I will look into this more today and post full details soon, first task tomorrow though is bin the management company!!!

spud30

Absolutely Beaded Lady, good for you.

CCCS has a waiting list of around 2 weeks for an appointment with a debt counsellor (mine is next week). I'm not sure about Payplan.

Let us know how it goes, and come back soon with your SOA.

x

tawnyowls

Beaded_Lady wrote:

Thank you all so much, I never quite expected so much help especially so quickly, I will look into this more today and post full details soon, first task tomorrow though is bin the management company!!!

J

ust in case the company get awkward and make things difficult for you - head them off at the pass by informing your creditors that you feel you're now able to control your debts yourself and you will be continuing with the payments as agreed. Presumably you pay a sum of money to the DMC and they then dole it out? If so, make sure you set up DDs to pay the creditors directly from your bank account. If you do that, you probably won't need any help from CCCS immediately, but probably worth contacting them anyway.

You could try applying for a 0% credit card anyway and see what happens.

Are you paying the maximum you can afford at the mo? Could you add anything more onto it, maybe even get an extra job just for a few weeks? Have you anything you could sell on ebay or similar?

CosmoCat

just wanted to say welcome and looking forward to seeing your soa to see if we can save you even more!!

all the best

lynzpower

just a quick :wave: and welcome from me too,

im in ythe middle of entertaining but just wanted to say HI and to offer you a virtual burger accross the ether

Dont worry, it will all come right with some perseverence :beer: