Spot of advice, partners finances

pootas

So been with my partner for nearly 2 years now. She is recently divorced and has debts of approximately:

£5000 Virgin Credit Card
£3000 Tesco Credit Card
£10,000 Santander Unsecured Loan
£3000 Lloyds Tsb Overdraft
£2000 Solicitor fees @ 0%

To be perfectly honest despite my advice for the last 2 years she has basically ignored the debts. She has rented out the ex marital home as it is in negative equity so at least that's sorted for the next 24 months.

She is presently looking at a DMP but worried about defaults, wrecking her credit file and a CCJ against the ex marital home.

She currently pays circa £450 a month on her debts but this is just minimum payments on credit cards.

So my question is...What's best for her? Straight into a DMP with CCCS or should she contact creditors herself and as for a reduction in interest etc...

I'm really just looking at what will be best for her and us in the long run as eventually we would be looking to get a mortgage together...

bottleofred

Hi Pootas and welcome to the forum,

If you put your partners finances on as a statement of affairs, you'll get loads of help and advice on how she can save money, which can then go towards the debts. http://www.makesenseofcards.com/soacalc.html
A dmp could be the way to go, but it will leave defaults on your partners credit file and it will be difficult to benefit from the offer of a decent mortgage rate for at least 6 years until the defaults go off the file. You could also contact the consumer credit counselling service for advice or the local citizens advice. National debtline are also good. Don't however pay a debt management company regardless of what they promise!

pootas

Funnily enough she has spoken to CAB who recommended "Churchwood Finance" who charge for a DMP...After a bit of research I swayed her into contacting CCCS who have sent out an info pack for her. I'm wondering whether using the templates off the National Debtline site and sending them to her creditors may sway them to reduce or 0% interest for a while...