I've faced it... and I feel SOOOO much better!!!

in_over_my_head_2

Hi all,

I posted here for the first time last week because I was considering a debt management plan - Payplan have now gone thru my financial crisis with me this morning, and I've agreen a payment plan with them... I now feel like bouncing thru the streets and shouting from the rooftops!!! She warned me that this would affect my credit rating, but hey I have NO credit rating

My dire situation is as follows:
Wages 1340.92
Child benefit 69.80
Working Tax 22.89
Maintenance 100
TOTAL 1533.61

Priority debts:
Mortgage 624.67 (can't move this till next year, and goodness knows what rate I'll get with no credit rating, but Payplan say they'll help with this)
Gas & elec 80.50 (already checked that I'm on the lowest supplier)
Telewest 60 (TV, phone and broadband - needed as I often work from home)
Life ins 10.43
Home and contents 33.84
Water 28.28
TV licence 11.37
Mobile 12
Car insurance 26.39
Petrol 40
Council Tax 140 (paying arrears - they agree that this is a priority so must remain at this amount)
CCJ for catalogue 80 (again, they agree this must remain at this as there are only 3 months left to pay)
TOTAL 1147.48
Then they added on estimated costs for food, car tax, toiletries etc, and came to the conclusion that I have £100 a month spare to pay creditors.

Creditors:
Northern Rock 104 month, 1214 outstanding
Egg 185 month, 9102 outstanding
Lloyds 121 month, 6298 outstanding
HSBC Loan 189 month, 7006 outstanding
HSBC overdraft 1939
GE Bank (store card) 120 month, 3024 outstanding

They reckon that at this rate it will take me 24 years to pay them all off, but I'm in a good situation in that once the CCJ and council tax arrears are paid I'll have an extra 140 a month to pay creditors, and also next year when my daughter starts school full time I can go back to work full time - which may also help me get a better mortgage deal.

However, I still haven't had the bottle to answer the phone to any of the creditors who keep ringing me to tell them what I'm doing... I will answer the next one tho, I swear!!!!!!

KatrinaC_2

in_over_my_head wrote:

I'm in a good situation in that once the CCJ and council tax arrears are paid I'll have an extra 140 a month to pay creditors

Even better than that - I reckon you'll have an extra £220 per month as the CCJ is £80 and the C-Tax is £140!

in_over_my_head wrote:

However, I still haven't had the bottle to answer the phone to any of the creditors who keep ringing me to tell them what I'm doing... I will answer the next one tho, I swear!!!!!!

Shouldn't Payplan be writing to them all to tell them what's happening? If not, get proactive and write to them to tell them what is happening and that from here on you will not be entering into any correspondance by telephone.

Kat

raq

good on you girl... Really hope you can do it.

I still need to do my soa but although we have debt ( who hasn't ) we are able to pay everyone back and I have changed a few deals over the last couple of weeks with reference to household bills. Really pleased with the outcome.

My credit scoring isn't too great either but at least I can sleep at night knowing it is all paid and we really want to pay more every month as soon as my husband is in a better paid job which is next year.

good luck with the phone calls. be strong, very strong

in_over_my_head_2

The council tax arrears I'm paying includes "proper" council tax, so that will go down to approx 80 a month once the arrears are paid. So 80 from the CCJ and 60 from the c-tax arrears - if that makes sense?

Payplan are going to write to the creditors, but they've been ringing me because I haven't answered their letters or phonecalls - I didn't know what to say, I have no money and I know I'm in the wrong... at least now I have something positive to say if they call, so it doesn't feel quite so bad.

Lookie - I have a signature now! I just feel so positive about the whole situation, despite the fact that Payplan have estimated 24 years to pay my debts, it's still a teeny tiny light at the end of a v v v long tunnel! The thought of all my debts made me feel physically sick, so I'd try not to think about them at all... I was having visions of me and my daughter out on the street, me in jail for not paying things - this may sound extreme, but I really think I went through a period of depression before finally getting the push to face up to things.

Verbatim

I'm so glad you're feeling better and have a positive outlook.

Welcome to dfw

southernscouser

Although you are on the cheapest gas and electicity you can still do things to reduce your bill. Get in the habit of switching stuff off you're not using, ie lights, tv etc. Turn your central heating down a notch or 2 and put a jumper on if your cold!

Look after the pennies and all that!

dancingfairy

congratulations for getting it all sorted and welcome :hello:

in_over_my_head_2

I did it, I answered the phone to Egg... and they were great!! The guy even wished me luck for the future and hopes I get things sorted out! It was so painless, why did I hide from them????

Thanks for the elec tips southernscouser, you're right I do leave things on standby way too much. I also live in an old terraced house which can be very cold in the winter so I tend to have the heating on low and often, which is another reason why the bill is so high.

Thanks for all the encouragement everyone, this is such a welcoming forum - I'm loving the fact that I'm not alone in this (I know that sounds awful, but you know what I mean!!)

atypicalblonde

Hello!!! WOW.... You have had a GREAT day havent you!!! It is really wonderful to hear that things are very positive for you, good on you hun you should be very VERY proud of yourself xx:T

HHH_2

Well done you - I'm in a similar situation but havent managed to answer phone ye!!!! got my DMP almost sorted and 10 years of payments ahead but at least I'm doing someting. Im looking forward to the money I spend, although only enough to get by, being REAL money not yet another lump on the CC. Looking forward to a decent nights sleep after so long. Isnt this site fantastic I doubt I would have had the courage to do anything about my predidament without it and the lovely people who made me feel human! Lots of luck to you.