Considering a DMP - advice needed

Emmamr

Hi there

I have stupidly run up about £11k of unsecured debt on loans and credit cards. These debts are in my name only and I have no arears or CCCJ's. In fact, my credit score is excellent but I am concerned that, although I can just about scrape the minimum repayments together every month, I am not actually paying any real amount of debt off so it will never decrease.

So I am considering a DMp. I am determined to pay this debt off myself and not make my husband do it as it is my own stupid fault that I have got myself into this hole. I don't want his credit being affected by me at all.

We have a joint account together and a joint mortgage. Will a DMP adversely affect these?

I am very stressed out and feel depressed a lot of the time. Unfortunately, this can lead to me spending more which just makes the problem worse. I feel like I am in a downward spiral.
we have pared back on everything recently but with 2 children under 4 it is hard not to spend anything at all.
Any help or advice would be much appreciated
Emma

Tixy

Hi

If you have a joint bank account and go into a DMP then the bank would carry on expecting your OH to repay this. They may even recall it straight away. Ideally it would be best to get your name taken off the account.

If you have a joint mortgage (or any joint financial products) then you will be financially associated which will affect his credit rating if he tries to get new credit.

Also as you will end up with defaults on your credit file then it will make it hard to remortgage your property if you should need to switch to a new provider (although you would be able to leave it on SVR when your current deal finished- but that could get costly if interest rates rise).

Does your OH know that you are considering a DMP? certainly it would not be fair not to tell him as he will be affected.

Have you posted up a statement of affairs at any point to see if people can suggest any alternatives to a DMP ( egpossibly switching to cheaper credit / 0% cards etc) or anymore places you could reduce costs?

Have you done a snowball calculator to see how long it would take you to become debt free at your current rate of repayment? (if you don't do a DMP)

Hopelessly_Hopeful

Emmamr wrote: »

Hi there

I have stupidly run up about £11k of unsecured debt on loans and credit cards. These debts are in my name only and I have no arears or CCCJ's. In fact, my credit score is excellent but I am concerned that, although I can just about scrape the minimum repayments together every month, I am not actually paying any real amount of debt off so it will never decrease.

So I am considering a DMp. I am determined to pay this debt off myself and not make my husband do it as it is my own stupid fault that I have got myself into this hole. I don't want his credit being affected by me at all.

We have a joint account together and a joint mortgage. Will a DMP adversely affect these?

I am very stressed out and feel depressed a lot of the time. Unfortunately, this can lead to me spending more which just makes the problem worse. I feel like I am in a downward spiral.
we have pared back on everything recently but with 2 children under 4 it is hard not to spend anything at all.
Any help or advice would be much appreciated
Emma

Hi Emma

Have you tried the CCCS debt remedy online tool. It's confidential and you dont have to out any identity details into it. That will help you to look at your budget and whether dmp is the right route for you. You can also call CCCS or the National debtline (another good website) to ask those questions about impact on joint names etc.

Good luck whatever you decide

HH x

Emmamr

thanks for the advice

I think that considering a DMP was my initial knee-jerk reaction to realising the state I had got myself into. I will look into the snowball calculator and transferring balances of credit cards, closing my Next account etc before going down that route.

If I do end up with a DMP I will definitely tell my husband, I just wanted to makre sure that there was a way of preventing his credit being ruined by my stupidity!

Thanks for replying,
Emma