Not sure what to do

tootsies19

Hi,
I have been reading all your posts on here, but since I have been worrying more about my debts lately, I thought I would take the plunge and post on here.

My Debts are about £18k, all on credit cards and as I am self employed and get paid weekly, not been paying them on time, so have had late charges and defaults, so credit file already bad. I have arranged some agreed payments with Mint and Barclaycard, but not with interest frozen though. I am paying about £500-£600 per month,but proberly not getting me very far. I opened my virgin c/c statement today and I paid £60 last month, but with the default and interest only reduced it by £5!!!

I am abit worried about a DMP, I am also a limited company, would this affect anything? Is it possible to get interest frozen yourself? have people done this? as some months maybe able to pay more.

What would people suggest is my best option, We have a mortgage and everything else is all paid on time. I feel like I am worrying all the time and have become a real misery!!!

Tixy

Hi Tootsies

The best starting point is to complete a monthly statement of affairs (bascially an income & expenditure account) using this calculator http://www.makesenseofcards.com/soacalc.html. This will show you and us your full situation.

If you decide to do a DMP I know CCCS have a department that deal with self-employed people. However if you trade through a limited company you may not be classed as self-employed. Do you pay yourself a set wage (directors remuneration) or do you take your money out as dividends?

It is possible to do a self-administered DMP and creditors may agree to freeze interest (never guaranteed whether you do it yourself or through a charity or commercial company). If you go the self-admin route its probably still worth getting advice from one of the charities first.

If you have some months you can pay more you are usually advised to put this to one side to use for full & final settlements in the future or to act as an emergency fund - as once you are on a DMP you will not be able to get anymore credit.

dancingfairy

I guess it depends on whether your debts you are struggling with are yours or the companies? You probably need to seperate them out if it's both. Also the only thing you would need to check is whether a ccj would affect your ability to run the company - hopefully National Debtline can advise?
Good Luck and as Tixy says -best place to start is the SOA really.
df