Newbie - moving and debt

movingcities2010

Hello All,

Im not sure if this is where I should be posting, but I am finding this forum a bit confusing
I just need a little bit of advice...
I am about to move cities to live with my boyfriend and although I have a new job, its going to pay be considerably less than what I am on now.
I have about 25K worth of debts on loans and credit cards and have been able to pay the monthly amounts on these with what I earn now.
When I move, I think its going to be a very different story and im not sure what the best plan is.
My payments are nearly £800 a month at the moment and I really need to half them if possible. Do you think a DMP is the best plan for me? Or do I keep trying to maintain my payments as best I can.
My boyfriend and I really want to get a mortgage in a few years and I really dont want to screw my credit rating.
Im a bit confused to the best way to deal with it.

Thanks for the help in advance

Tixy

Hi

A DMP will allow you to pay less than your minimums, though the exact amount you would be asked to pay will be based on your income & expenditure account and how much it shows you can afford after reasonable expenses.

However a DMP will certainly impact on your credit rating for at least 6years as your creditors will issue defaults against your debts.

Do you know what your income & expenditure will be once you move yet? if so you could draw up a statement of affairs to show what you are likely to have left for debt repayments. That will show whether you might be able to struggle through a bit and preserve your rating or whether a DMP is a better option.

Here is the statement of affairs link, if you could post the results here we can advise better - http://www.makesenseofcards.com/soacalc.html

clairbear1000

Hi,

What Tixy says is right, you need to give people more details so they can help.

As well as cutting costs of your debt you need to look at getting a higher paid job and making sure your outgoings are as low as possible. If you have spent £25K is there anything you can sell.

Are you going to be able to pay the minimum's on your new wage with rent etc or is it not possible at all?