What am I doing? Is this is the right way?

DizzyDizzy

Hello, firstly I am very gratefull to anyone taking the time to read this and welcome any comments...

My OH and I have several loans and c cards which we have been trying to repay however we had a bit of a disaster on holiday over the New year which we ended up having to spend loads on c card to get out of trouble.

I'm about to start maternity leave and now my husband has found out he will be made redundant at the end of the month. On top of this he hadn't been paid since December anyway. This now means we have no hope in keeping up with repayments on any of our debts. Although we are technically only in arrears with one loan so far, I've cancelled the DD's for the end of this month as I think a DMP will be the only way forward. Can I set up a DMP yet without being in arrears with everything?

I've applied for a bank acct with a different bank as I would like to include my overdraft in the DMP if that's possible. I also owe my mum £300 but I don't know if I can include a loan from a relative.

I'm just about to start sending the letters to all our creditors to offer a "token payment" whilst a DMP is set up. However I'm still trying to pluck up the courage to pick up the phone and ring CCCS! I used to work in a call centre until I had to quit due to stress and I still have a bit of a phobia about picking up the phone...

My soa as I've worked it out so far is below; any helps of suggestions would be really welcome:

Monthly Income:

My wages £969 (after tax)
OH wages £0
Child Benefit £80
Tax Cedits £210

Expenditure:

Mortgage £508
2nd Mortgage £212
Water £45
TV licence £12.12
Gas £30 Not sure of exact amount as it comes from OH acct
Electricity £30 Not sure of exact amount as it comes from OH acct
Council tax £0 *
House ins £13
Life ins £9.49
BT vision £38 Covers landline /internet BB & TV
Phone calls £8
Petrol £60
Food £160
school trips
/activities £10

* council tax - am putting in a claim to try and get relief on this years bill. We also owe £700 from last year which I hope to possibly get reduced. If not that will end up going on DMP as well.

Debts:

Santander cards £3987 balance.....17.47% APR .....Monthly payment £116
Santander Loan £4500 balance.....APR? .............Monthly payment £137
Natwest c card £1958 balance.....19.2% APR....... Monthly payment £45
GE money loan £3500 balance ......APR? ..............Monthly payment £128
Natwest OD £2050 ....................APR? ...............Ongoing
Also owe mum £300 but haven't been able to pay any of that back yet.

I've just checked OH santander cards statement and found it has been passed to Fairfax solicitors. Does that mean I should make the offer of token payment to the solicitors or to santander?

Sorry this is a long post and probably doesn't make a lot of sense. I think I need to pluck up the courage to actually ring CCCS and get these letters sent out!

DGJsaver

Can you include CT on a DMP ?
I was under the impression it was a priority debt...?

magical28

Hi Dizzy

Just pick up the phone and call them hun, they are amazingly lovely people and very very helpful.

You will feel like the world has lifted from your shoulders once you have done it. They also give you letter templates to send out.

Good luck with your debt and with you new baby

rugbymum

DGJsaver wrote: »

Can you include CT on a DMP ?
I was under the impression it was a priority debt...?

You're absolutely right. It is a priority debt & will have to be paid before any unsecured debts.
The consequences of not paying CT are going to a lot worse than a bunch of CC's & loans. CCCS will help you sort out your budget to take CT & CT arrears into account. Anything left over will be shared among your other creditors.
Well done for getting this far :T. Big hugs!

DizzyDizzy

Thank you for so many quick replies! I'm going back to the council next week as I had to provide some more evidence for our claim with them. I think after that I will able to ring CCCS as I will know then what we have to pay regarding the council tax arrears. The guy at the council was very helpful and said we might be able to sort out some sort of plan with them if we can't get the arrears reduced. Do I have to wait until I know the outcome of this or can I ring CCCS before and get the ball rolling?

magical28

DizzyDizzy wrote: »

Thank you for so many quick replies! I'm going back to the council next week as I had to provide some more evidence for our claim with them. I think after that I will able to ring CCCS as I will know then what we have to pay regarding the council tax arrears. The guy at the council was very helpful and said we might be able to sort out some sort of plan with them if we can't get the arrears reduced. Do I have to wait until I know the outcome of this or can I ring CCCS before and get the ball rolling?

I would still ring them now and explain your situation as it takes a few phone calls to get everything sorted anyway. After the first call, they arranged a convenient time for a councilor to call me back for the full interview which was a couple of days away anyway. They also might advise you on how best to deal with the council people.

dancingfairy

can your husband get any legal advice? if he hasn't been paid since December. Don't the goverment have some sort of scheme? Maybe the local CAB can help advise how to reclaim any overdue money or there is a scheme to provide legal aid for people on low incomes etc - CLS (community legal scheme? I think that's what they are called. ). He should also get some redunancy money as well shouldn't he?
I hope you get things sorted.
Oh and if you don't feel up to phoning CCCS - you can always try the website option first before you call them.
df

pollywoggle

I didn't ring them, I did it all on-line, however when I did have a question and needed to speak to them, they were really great, she was soft spoken, very calm and so matter of fact and not at all judgemental, I came off the phone feeling calm, reassured and confident.:A

give them a call:j

mikon

Dizzy Dizzy

Like you I have had enormous stress and worry even contemplated just packing up and leaving. But today I contacted the Nation Debt Helpline and a problem shared is a problem halved however another set of questions are now running through my head. I am about to embark on a Debt Management Plan although I would like the following questions answered

The DMP seems a better option although it will be over a longer term I am concerned about the impact it will have on my credit rating and daily life.

Question 1. Will I be able to get credit to buy such things as household essentials ie fridge freezer etc?

Question 2. Will I be able to get a Debit card?

Question 3. After I have paid the debt which may be 10 yrs will my credit record be affected for a further 6yrs?

Question 4. I need a car for work. How can I purchase a car if I have a bad credit record?

Question 5. Some of my debts although the smaller ones will be paid off in 2 yrs will they spread the payments out over a longer period?

Question 6. Will the DMP administration team deal with all the letters of threating court action or will I still receive these letters?

I have not missed any payments to any of my creditors but am struggling to keep everything together. How is a DMP going to affect my day to day activities such as online purchases etc. I know these seem trivial but I just need to get my head around what impact the DMP will have. I have a wife and 2 children and I do not want to lose my home. I am worried sick and need advice.

Please can anyone help me or advise me.

So Dizzy Dizzy I know how you feel, but make contact with either CCCS or the National Debt Helpline they offer free DMP service do not pay any company for a DMP you can get it free. Good Luck keep your chin up and spirits high.

rugbymum

mikon wrote: »

Dizzy Dizzy

Like you I have had enormous stress and worry even contemplated just packing up and leaving. But today I contacted the Nation Debt Helpline and a problem shared is a problem halved however another set of questions are now running through my head. I am about to embark on a Debt Management Plan although I would like the following questions answered

The DMP seems a better option although it will be over a longer term I am concerned about the impact it will have on my credit rating and daily life.

Question 1. Will I be able to get credit to buy such things as household essentials ie fridge freezer etc?

Question 2. Will I be able to get a Debit card?

Question 3. After I have paid the debt which may be 10 yrs will my credit record be affected for a further 6yrs?

Question 4. I need a car for work. How can I purchase a car if I have a bad credit record?

Question 5. Some of my debts although the smaller ones will be paid off in 2 yrs will they spread the payments out over a longer period?

Question 6. Will the DMP administration team deal with all the letters of threating court action or will I still receive these letters?

I have not missed any payments to any of my creditors but am struggling to keep everything together. How is a DMP going to affect my day to day activities such as online purchases etc. I know these seem trivial but I just need to get my head around what impact the DMP will have. I have a wife and 2 children and I do not want to lose my home. I am worried sick and need advice.

Please can anyone help me or advise me.

So Dizzy Dizzy I know how you feel, but make contact with either CCCS or the National Debt Helpline they offer free DMP service do not pay any company for a DMP you can get it free. Good Luck keep your chin up and spirits high.

Hi
You need to start your own thread. Things will get confused otherwise.
Any & all question will then be answered by the many knowledgeable people on here.

mikon

Rugbymum thanks for the advice I have started thread. Just wanted to reassure Dizzy Dizzy that she is not alone.