Need debt advice

jonnyp100

Iam 21 years old and iam in £13,500 of debt already.

I am now in a debt managment plan with churchwood and by the looks of things of what is being said on here not a very good idea.

I have just got engaged and me and my fiancee are looking for a house, but we want to buy and no morgage company is gonna touch me with my track record.

I want to get get of of debt asap, but dont know where to turn

Can anyone please help me with some advice and what has worked for you.

Because the way iam going with churchwood iam gonna be in debt for another 5 years.

Cheers

NorthernLas

Companies who you pay to manage your debt are not recommended because you spend around 17% each month paying them to do it, when you could use a free charity / company like CCCS or PayPlan.

Read Martin's article on debts and what to do http://www.moneysavingexpert.com/loans/debt-help-plan and fill in a statement of affairs http://www.makesenseofcards.com/soacalc.html

Look at national debtline for information http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#3

If you really want to get rid of the debt you need to maximise your income, minimise your outgoings and budget. A good idea that you can do straight away is to start a spending diary, where you write down everything you spend. Then you will be able to see where it disappears to and you have a chance to decide whether to spend before you do it.

jonnyp100

How do i go about changing my debt managment plan from churchwood to someone who doesnt charge every month to use them?
Would churchwood charge me for switching?

Does being in a debt management plan effect my chances of getting a morgage?

Which is the best place to switch my debts to?

Please help me

Thank you

Nottoobadyet

I don't know if Churchwood would charge you - have you signed anything that committed you to them? Some of the charities that are recommended here are CCS and Payplan.

Being on a DMP will crash your credit rating for 6 years, but if you are already on one then you have probably already defaulted on payments so the damage is done. I wouldn't expect that you'd be able to get a mortgage on any sort of decent rate before then. Anyway - how would you find a deposit if you are 13k in debt? You usually need about 10-20% these days.

Mrs_Jojo

Don't even think about trying to get a mortgage before you have paid off your debt and saved a deposit - it will take time, but it will be worth waiting for!

NorthernLas

How long have you been with Churchill? If it has been more than a few days then I would have thought you have to give them notice for them to stop managing your debts.

Being in debt management will affect your credit rating if you have been paying less than the minimum amounts to your creditors.

Getting into debt has taken you a little while and getting out of it will too.

The starting point is a budget with incomings and outgoings on it. Once you have that you will know what you can afford.