Advice needed Please

Cullumpster

Hi folks.

I need a bit of advice please, i've got myself into a mess and don't know what to do

I'm in the middle of sorting out a DMP and am going to send the letters of to my creditors, however i've just had a call from my loan company (Direct line) who have told me that i need to set up an arrangement with them today and stick to it otherwise they will pass my details onto their solicitors who will ask me for the full amount :eek: i haven't got their monthly payment that they asked for let alone the full amount.

I have recently had a baby and was on maternity leave, however i have had to go back to work as i was only getting £106 a week and that wasn't even covering my mortgage :eek:

My partner works but is self employed and is also going through a bit of a stale patch at the moment.

i'm only working part time so my wages have dropped dramatically but i'm also having to pay for child care which is £90 wk.

Sorry i've been waffling, my question is what will happen if i don't give direct line a payment today? can i be taken to court ?

I'm really scared i don't know what to do, my outgoings are far more than my incomings, but if i do a DMP does that mean that i'll never be able to get say another mortgage again ?

Jolinar

They're just trying to scare you into paying them. It's a common tactic unfortunately. Stick to your plans and if you feel like you want more support during the process you can give CCCS a call they are very reassuring about what creditors can and can't do. Hang in there things tend to be a bit rough at the beginning but it should all calm down once the creditors accept your offers. They will probably reject at first but keep plugging away at it.

Good luck

Cullumpster

I think i'm doing my DMP right, is that the first step or do i have to do something else first ? i'm new to all this.

Also all of my c/c's etc are on direct debit so do i cancel them?
I've also incurred over £700 in bank charges since April this year :eek: i'm going to try and claim them back but i'm not sure whether they'll play ball as i've been overdrawn for as long as i can remember, although calling me at home and shouting at me the day i took my new born baby home isn't the best customer service i've heard of !!

Snaggles

Sorry you're having a hard time with them Cullumpster. Are you sorting out the DMP by yourself or via CCCS/Payplan? Either one should be able to advise you what to do. It does sound like a scare tactic, because basically, if you haven't got it, you can't give it to them.

A DMP will affect your credit score if you are going to be making less than the minimum payments each month, however this doesn't mean you will NEVER get a mortgage. It will be more difficult to get a mortgage though, and you may end up having to pay a higher rate of interest. (If you default, or agree reduced payments, this will show on your file for 6 years after you have settled the default or caught up on the repayments, so this is the sort of timescale you would be looking at being affected for).

I'm sure there will be others along who can advise better, but I have heard people suggest making a token payment to show them that you are prepared to pay something - is this a possibility for you?

I hope you manage to get this resolved quickly so you can get on with enjoying your time with the new baby (who is absolutely gorgeous by the way).

Take care, love Snaggles xx

Snaggles

If you are in the early stages of a DMP, I have heard it is best to wait until everything is in place before claiming your charges back (I suppose to try and keep your bank onside as much as possible). But I'm sure someone will be able to clarify if this is true or not.

Bear in mind that if you claim your charges back, they may close your account, so try to make sure you have another account set up before you start your claim, just in case.

Why not pop your SOA on here so we can have a look and see if we can help you save any money.

Cullumpster

ok Thanks i'll try and get it on here asap

Cullumpster

My SOA
Income - £705.79
WTC - £172.68 TOTAL INCOME £1002.87
CTAX - £54.60
CB - £69.80

OUTGOINGS (Here we go :eek:) EVERYTHING INCLUDING C/C'S ETC COME OUT OF MY A/C BY DD
MORTGAGE - £447.38
B&C INSURANCE - £25.70
LIFE INS - £13.14
COUNCIL TAX - £81
WATER - £28.82 TOTAL OF PRIORITY DEBTS - £738.36
GAS - £18
ELECTRIC - £17
TV LICENCE - £11.37
TELEPHONE - £11.00
SKY - £28.80 (WAS £51 BUT CALLED AND CHANGED)
CAR INS - £56.15 (I DON'T DRIVE THIS IS MY B/F'S CAR)
WEEKLY DEBTS
£8.50 per wk BUS FARE
£20 - 40 wk FOOD TOTAL OF WEEKLY DEBTS - £138.50
£90 - CHILDCARE

DEBTS :EEK:
DIRECT LINE £283.23 PER MTH
BARCLAYCARD - £1654.87 BALANCE CREDIT LIMIT £2,000 APR 21.9%
RBS - £3727.44 B CL - £6,600 APR ?
VIRGIN - £8364.29 B CL - £8,200 APR ? but it says 1.0941% on my statement
EGG - £1773.26 B CL - £2,000 APR 16.9%
TESCO - £1700 B CL - £2500 APR ? again says 1.408 on statement!
NATWEST - £2000 B CL- £2500 APR 0% FOR ONE MORE MONTH

I thought i was clever and started being a c/c tart and then forget to swop and spent on them :eek:

Is this enough information or do you need more?

I forgot to add that my partner is self empoloyed and obviously earns money but is having trouble at the moment and seems to be constantly chasing it, at a push i'd say that we'd be able to pay the childcare cost through the money he earns.

Snaggles

I hope you don't mind me asking but is your partner struggling to actually find the work, or is he doing loads of work but just not getting paid for it? Just wondered if there was any scope for him to find a bit of part time work if things are a bit slow on the self employed front at the moment?

Cullumpster

No don't mind you asking at all.
He's always got stack of work on, he's never advertised and his phone is always ringing, but it's got to the point where say for example the job takes a week or 2, he'll pull sa £100 off the job to pay for the childminder, then another £50 to pay for some shopping for the week, and by the time he's finished the there's only a couple of £100 left to collect, he uses that to pay for materials for the next job etc etc.

It's just got into a bit of a visious circle, it's only his 2nd year as well, he's going to pack it in and get a job so we'll have regular money coming in but i fell really bad about that as it's his dream to have his own business.

I can't make extra money on e-bay / amazon either as this is a work computer and i shouldn't really even be on here !!

toontastic

Can you not get access to a library computer for free and then use that to get access to ebay and amazon to sell your stuff, either that or a car boot over the weekend

smokybabe

You say you recieve WTC does this include the childcare element? As I understand from our claim, you can get up to 80%of the costs of the care back if both partners are working.