id be very grateful for any advice on what to do

Mrs_Trouble

Hello - I was in a very similar position to you a few weeks ago and the best thing I did was go online to CCCS - I filled out the Debt Remedy form and they recommended a DMP. Is there any reason you think they will recommend an IVA? Once you have filled the form in I think you can ring them up and discuss it - it will make you feel a lot less lost.

With a heavy heart I have accepted that we cannot continue the way that we are and as of 1st May my first payment to CCCS will go. It has been a huge rollercoaster, but had I not sought some help I can well imagine that 12 months down the line we would be in £10,000 more debt and risk losing our home. Our debt will take over 7 years to pay off
but a lot of people on here have said that that date will come down as my circumstance improve.

Our total debts were costing us £1,600 per month and we were paying interest of approximately £1,000 per month so getting nowhere.

Try the CCCS and see what they recommend you do. I do not think that a DMP is an easy option and I am hoping that I am not faced with difficult creditors, but my life is no longer over whelmed with the thoughts of debt and I actually do sleep at night again.

Even if they recommend something that you feel you can't do, I can assure you that you will feel a lot lot better for speaking to someone.

tbourner

Have you read the Big Guide:
https://forums.moneysavingexpert.com/discussion/2976812
Might be something useful in there.

If it were me I'd want to cut back on everything first, find out how much free money you can muster for debts and then find out how long it will actually take to pay it all off. If it comes out as 537 years or something then I'd guess bancruptcy would be an option!

rubbish_rosie

Hi

Thank you to everyones comments and advice.

Ive been on the CCCS calculator and it is recommending a DMP. I ve read up on what this means and I was wondering if its not a legal document woud I be able to contact my creditors myself and set this up or does it hold much more clout if you have an organisation behind you?

Also, should I try and struggle on as I am until we have renegotated our new mortage in December. We have to change it then as it was a fixed rate and it changes to something ridiculously high in December. Am I best to hold fire and sort the mortgage first?

How do I stand with the mortage company - if the mortgage is higher than what the house is valued at the moment? Can they refuse to transfer the mortage to a different plan?

Oh wat a mess, what a fool I am for getting into this position. Im so ashamed.

Thanks again for you help so far

Mrs_Trouble

Have you checked with your mortgage provider if they will be willing to move you onto a new rate? Before my full blown LBM I spoke to our mortgage company, we are on a repayment mortgage and have about £20k of equity in but we were in too much debt for them to agree a new mortgage deal for us, as they would only lend me so much x my salary and it wasn't enough - does that make sense?

Suppose what I am saying is maybe check with the mortgage company where you stand first, most have a maximum of 95% LTV anyway.

To put off dealing with the debts until December means 9 months of stress, financial dire straits - do you think you can manage that long without getting into further debt?

Not sure if I have helped but I have had identical fears to you and I think only looking at the bigger picture helped me make the decision to do something about it sooner rather than later. An advisor at the CCCS told me that a mortgage company would be more willing to assist if I was showing I was doing something about my debts rather than have so much outstanding - you could have had a plan in place for 9 months by them and show you are committed to dealing with your debts.

rubbish_rosie

Thanks Miss Trouble for you help. Its good to know others are in a similar situation. Ive know the day of reckoning was coming for a while but just kept turning the other cheek. It wouldnt be so bad if we had been living a high life and have great memories, i can account for £20,000 in solicitors fees for my son with special needs but the other £40,000 of debt is on just nothing it all seems to have snowballed and as you say the interest is just overhwhelming.

Ive never budgeted before (obviously or I wouldnt be in this mess) Im terrified of doing all the figures wrong. Im not working friday so I shall call CCCS and get some more advice but I like the sound of the DMP rather than the IVA or bankrupcy. Id love to keep our home if I can. I rang the mortgage company last week and they said they couldnt comment until november time as their deals and terms change all the time. All they did say was I cant change my deal now as I would have a £5000 redemption fee. But I thik your right I need to act now.

If creditors dont agree to DMP can you switch to a IVA before it gets to CCJ stage, or is a IVA as bad as a CCJ on your credit report?

Many thanks again,

[Deleted User]

Bless you Rosie,
I have just read your message on my thread, thank you for that, and went on to read your thread- its unbelieveable to think that so many people are in similar situations- I thought I was the only one!!
I have got fantastic advice and support here, everyone is so kind and generous with their time and advice.
I know what youre saying about feeling ashamed, I do too. But it sounds like some of your debt was beyond your control, being a great mother to your son.
I find I am feeling less ashamed as the days go by and I read peoples posts, realise I have just been navive and caught up in a consumer culture, promoting the perfect lifestyle and feeling that pressure to achieve this.
Realise that I have tried to 'keep up with the Jones's'- (again feel ashamed by this), and still feel under pressure by friends and colleagues who (I assume) do not have the debt and want to go for coffee or lunch daily. I have been saying no for a couple of weeks, however I too feel bit lonely and isolated but also realise I couldnt maintain this- was spending up to £10 each day to have lunch in nice coffee shops- now realise how stupid I was considering I was in so much debt (thats £200 per month- this is now my grocery budget).
Anyway, we must stop feeling guilty and ashamed, I am trying to feel proud that I am dealing with things.
Must dash, just realised the time, DH and DS are still asleep, we'll all be late!!!
Will suscribe to your thread, would love to know how you get on, think we'll be in it for the long haul.
Good luck - will be thinking of you x

tbourner

rubbish_rosie wrote: »

If creditors dont agree to DMP can you switch to a IVA before it gets to CCJ stage, or is a IVA as bad as a CCJ on your credit report?

I'll be blunt with my opinion here, you need to stop thinking about protecting your credit report! It's beyond that now, you WILL have defaults on your file, and possibly worse, by the time this is over.

BUT; that doesn't matter. Remember your defaults et al on your file will go away in time - if you can pay off all your debts in 3, 5 or even 10 years with some defaults and non-payments showing on your file (IVA/DMP route) - that's better than struggling with a clean file for the next 20 years or more trying to pay it all off on your own!

[Deleted User]

Hi Rosie,
Just wondered how you are getting on? would love to hear how you journey goes- keep in touch x :rotfl::rotfl::rotfl:

foxgloves

Hi Rosie,
Just wanted to say that budgetting is scary at first & very daunting. I think that's because it means getting out all the paperwork and being confronted with the truth in black & white. I have to admit that I haven't ever been in a position where I've owed as much as you, but the spending & 'having nothing to show for it' was definitely what mounted up our debts in the first place. Even just sitting down somehwere quietly & starting to work through it on paper, looking at where you can trim, what you can stop paying altogether will feel like making a start. I didn't discover budgeting until I was about 40. It is the absolute KEY to living within your means. I wish it could be taught to school leavers, as it's far more useful than trigonometry, equations & all the maths we used to do. I do hope something works out for you, it may be that it is out of your hands this time, but whatever happens, learning to set out a monthly budget & stick to it, can only help you in future. I wish I had discovered this 20 years ago, but it's never too late to learn a new skill & this one can only benefit you & your family.

Mrs_Trouble

Hi Rosie - just wondered how things were going?