Well WELL Stuck!

michael001

Hiya. Any advice would be most welcome!

Through payday loans/credit cards I now owe just under £5000 but no way can keep up with all of the monthly repayments...

I went to the CAB and they suggested a debt relief order as I only earn £1000 a month, and my 'essentail' living costs come to near £1000 (my SOA is on my other post).

Thats fine but in the 'essential living costs' they included my car insurance/phone/internet etc etc so AFTER these have been taken out - I wont qualify for the DRO.

I cant go onto a DMP as apparently according to Payplan I dont have enough debt! I cannot afford to pay the repayments on all of this debt, the comapnies wont freeze the intrest.

I have my car on Hire Purchase and the car is pretty much essentail as I live way out in the sticks and trains/buses dont come anyware near (I work about 20 miles from where I live).

Any suggestions/assistance would be most welcome, I just dont know where to turn!

azkaban420

Hi Michael, firstly try not to panic!! I see you've got some people looking at your SOA on the other thread so hopefully you'll get some good advice and suggestions there. It's usually best to keep it all in one thread so that your questions don't get lost over two separate threads.

You're not alone in this and now that you've taken the step to tackle your debts, I'm sure things will work out. It's not an overnight solution, but there's lots of help and advice here, so you're in the right place

Az

DarkConvict

Mikes' other topic - https://forums.moneysavingexpert.com/discussion/2458665

He is in a difficult position, his income overs his expenses but not the debt repayment (even the secured car repayments aren't covered). If you don't pay for the car you will lose it anyway making the job and insurance no go zones. My only two recommendation is overtime/second job, and check out what benefits you can get.

Move out of your current location closer to work to cut out the car costs. Obvious problem is car is on HP and insurance is a contract so there is no longer an immediate benefit to moving closer.

Another answer is switch to a local job, give up the car and go though with a DRO and wait the 12 or so months until getting life back on track and getting a new job.

GeorgeUK

DarkConvict, just a thought (and i've not looked at tother thread yet), but if the main problem is the interest and charges not being stopped, could an administration order be a solution?

michael001

to be honest If i can totally cut down i can scrape in my living expenses, car and insurance in my monthly salary. with about 50-100 spare. The only trouble is I need to get all the charges and interest stopped (one of the PD loans interest os over 8,000% apr lol) and everything frozen to give me a chance to pay it all off.. Im guessing I need a DMP - but just trying to find one - everyone (payplan etc) say I dont have enough debt!! grrrr

Orville

michael001 wrote: »

Thats fine but in the 'essential living costs' they included my car insurance/phone/internet etc etc so AFTER these have been taken out - I wont qualify for the DRO.

Isn't car Insurance, Phone etc included in a DRO then..? Does anyone have a link to what is/ isn't included..?

immoral_angeluk

Orville wrote: »

Isn't car Insurance, Phone etc included in a DRO then..? Does anyone have a link to what is/ isn't included..?

Yes they are, so I'm confused as to what the OP means.

DarkConvict

administration order be a solution?

I don't know what that is, so i can't comment.

michael001

immoral_angeluk wrote: »

Yes they are, so I'm confused as to what the OP means.

Sorry.

Basically for the DRO you have to have a max of£50 free income AFTER all of your essentail living costs come out... On paper I do, but the CAB included in my 'essential living costs' my car insurance and my mobile phone contract.

If I went for the DRO I would loose my car, so wont need the insurance at £97 a month.. with that extra £97 'in my pocket' as it were - I wouldnt qualify for the DRO, as I would have £150 free a month - £100 more than I am allowed.

Hope that makes sense, and you see what i mean...

In terms of a DMP - I cant find ANYWHERE that is either free or dont tell me that my debt is to little !!

Ames

Have you tried Christians Against Poverty or CAB? They're probably more used to dealing with smaller debts.

SouthCoast

Some folks manage their own DMP.

http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/how_to_sort_out_your_debts.htm