Is debt management the nail in the coffin?

geniegal

sorry for that depressing title... I am new not just here but in the last 2 days am facing my 25k debts rather than hiding them from myself and borrowing more for the pleasure.

So you see this realisation is like an avalanche to me, all started by the realisation I had no idea how I would buy my 2 sons some new shoes (found i have enoigh on the card for this last purchase)

just watched martins vid about debt crisis and him saying how debt management takes you out of the system. what does this actually mean? It feels lika another avalanche to me

i desperately need some people to tell me debt management is not an avalanche. i have had a good credit rating up til now - but that is only achieved by my borrowing to pay my debts off

thanks for any inspiration

savingmummy

Hi and welcome.

You need to sit down and go through all your paperwork. You need to see what debts you have, the amounts and APR`s.
Then complete a SOA using accurate monthly incomings and outgoings http://www.makesenseofcards.com/soacalc.html save and hit the MSE button.

This is very helpful and really does show the true extent on whats happening each month! You can then see where you can reduce.

Alot of people on here have had professional help so will beable to advise you there. Here is a link to help http://forums.moneysavingexpert.com/showthread.html?t=2077631


I would cut up the cards, cancel any catalogues or store cards it really helps to have the temptation gone!

Goodluck x

nsimpson123

Hi Geniagal,
It's certainly not the nail in the coffin where I'm concerned, it enabled me to be able to sleep at nite and not to be scared of answering the telephone when it rang! good luck x
Nicky

Nargleblast

Geniegal, debt management is the start of a new life where you have your "lightbulb" moment, then sit down and put a plan into action. The plan (i.e. to become free of debt) may take a few years to complete but the challenge is to find new and interesting ways to live within your means and to bring your debt-free date closer. Imagine the satisfaction you will have knowing that Christmas and birthdays and holidays are all paid for without owing anyone a penny! it will be hard going at times but people on here have all been there, done that, thrown up over the teeshirt etc so will be glad to help give some advice and support where needed.

blossom36

geniegal wrote: »

sorry for that depressing title... I am new not just here but in the last 2 days am facing my 25k debts rather than hiding them from myself and borrowing more for the pleasure.

So you see this realisation is like an avalanche to me, all started by the realisation I had no idea how I would buy my 2 sons some new shoes (found i have enoigh on the card for this last purchase)

just watched martins vid about debt crisis and him saying how debt management takes you out of the system. what does this actually mean? It feels lika another avalanche to me

i desperately need some people to tell me debt management is not an avalanche. i have had a good credit rating up til now - but that is only achieved by my borrowing to pay my debts off

thanks for any inspiration

Hi, I'm afraid i cannot yet offer advice but just wanted to say, your post really struck a chord with me. Have just come from speaking to the CCCS who have recommended a DMP for almost £30k of debt..... I too had a moment this week when i realised i cannot buy my 16 yr old a birthday present without putting it on credit! And i have had credit thrown at me for years - to the point where i now have an excellent credit score but am helpless and owe more than i thought imaginable.
So no, i hope a DMP is not a nail but a lifeline to a more manageable existence. I think i can do it and perhaps so can you

savingmummy

DMP success http://forums.moneysavingexpert.com/showthread.html?p=29536181&highlight=dmp+success#post29536181

May give you an idea - they help so many people

Deep_In_Debt

As others have said, a dmp is about managing your debts and paying an amount you can afford and still being able to live. Yes, it can be hard at times but at least there is a light at the end of the tunnel.

I've been on my dmp for 2 years now and have made some serious headway into my debts whilst still being able to live and not having to worry about how I am going to put food on the table. I started with 27k of debt and now down to about 15k. Yes, I still have a long way to go but without my dmp, I'd still be struggling and wondering how I'd meet my unsecured repayments.

niccatw

Hi geniegal

Welcome to the forums and well done on taking the scariest step and realising you need to tackle your debt!

As savingmummy suggested, spend a while going through the paperwork and working how much you owe, to whom and at what interest rates and all of your incomings and outgoings.

There are many people using professional DMPs, many more using sef-administrating DMPs and yet more just throwing any spare cash at their debts. You need to work out what is right for you and your two boys - and also what is realistic for your siuation and outlook on life.

Posting an SOA (statement of affairs) is hard to do - but it certainly opens your eyes to the possiblities available; other people can question you with complete objectivity as they are not in your situation, which gives you a great opportunity to look at the options available and decide which ones work for you.

Bunnyinthelights

Your credit rating will be destroyed but then, it will be anyway if you continue on the path you are on and cannot pay your debt off-robbing peter to pay paul. I know, I did it for years.

I have been with CCCS since 2006 and it was the best thing I ever did-it will get worse before it gets better but you will be able to sleep at night and breath when the post hits the mat in the morning.

geniegal

Thanks everyone. will ring cccs today. i have been skirting round my debt for a few years now mentally and thats why i talked of the avalanche feeling, you cant ignore a massive fall of snow on your head, you have to deal with it and that is exactly whats happening to me here.

i am so used to sharing my problems with all my friends it feels like having an arm cut off not being able to with this. best become a DFW forum addict!

OMG i am now hearing this language, bit dramatic. hey could be in haiti eh

right - time to the soa. a pretty good at writing expenditure down then at 8 will ring the cccs

im still going to buy my louis some shoes!

hey simon cowell and peter jones both went bankrupt

ald65

Hi Geniegal
We are in the third year of our DMP. I thought it was the end of the world when we went into it, however it was the start of a new beginning. It can be tough at times, but nothing compared to the sleepless nights and panic that we had before we started.
good luck x