My Dilemna

needhelpindebt

I am not sure what to do with my current finances. My situation is as follows;

I have around £24k debt on 1 £12000 loan with Halifax (only 1 month old) 1 MBNA credit card (3 months old) and 1 Bank of Scotland Credit Card (1 month old).

I have done the debt remedy on CCCS website which has advised a DMP for £264 a month which i feel i will be able to afford.

My parents have offered me a £20k loan to pay off the debts which will leave me with £4k left on one of the cards.

I feel i have the following options;

1. Start the DMP for a few months- a year and then attempt to make F & F offers for the total of £20k.

2. Pay off the majority of debt leaving £4k on one card to pay off on a monthly basis.

My situation is further compicated as my partner who i live with is unaware of these debts. So the using 1st option will obviously make it harder for me to keep this to myself.

I keep switching between each option as i am really not sure what is the best route to take.

Any advice would be greatly apprecited.

DGJsaver

Unless there is something deeper at play here...then for me its a no brainer....obtain a settlement figure on the loan.....then chose what to pay off , the money saved will go towards whats left

no?

Lilly11a

what have you done with the 20k from the loan

needhelpindebt

The 20k is basically sitting there waiting for me to decide what to do with it.

I was just seeing whether i would be better off starting a DMP for a year or so and then agreeing lower F & F settlement offers with my creditors.

This would mean that i would owe my parents less in the long run, but i am not sure how long i would need to be on a DMP before this would be worthwhile.

DGJsaver

Haver you not asked this question before? i have deja vu for some reason...

In any case , some posters might say , that your taking the DMP too lightly , it is a LOT of stress and hassle , and it could be well over a year before ANY creditors accep f&f..

Lilly11a

are any of the credit cards on interest free?

or if not if you used the 12k to pay them off, could you then afford the loan payments.

needhelpindebt

Yes i have asked a similar question on the forums recently, so don't worry you're not going mad!

I am just going round in circles in my head with the various options.

My main aim is to owe the money to my parents and not have any creditors hassling me.

I know that if i had the remaining £4k on a credit card that this would take a couple of years to pay back. Just wondering if i went down the DMP route that i could get there quicker. I know i'll obviously have to offset this with the initial stress on setting one up, plus the fact that i would have a default on my credit file. I am just at a loss as to what to do

needhelpindebt

Lilly11a wrote: »

are any of the credit cards on interest free?

or if not if you used the 12k to pay them off, could you then afford the loan payments.

Both CCs are still on interest free for the next 3 - 6 months.

The loan payments are £250 which would be around the same as what i have been quoted on a DMP through CCCS.

DGJsaver

This is strange

How can it be so difficult to work out ?

pay off 20k of credit , the freed up cash is used to service your 4k remaining debt + presumably repayments to your parents ?

DGJsaver

and of course you realise the CCCS saying £264 a month doesnt mean your creditors will be happy with it and will likely harass you constantly for months and months to come...