Debt management plans

wood1e

Hi Bloody Hell....nice name

Thanks for that, as my debt are similar size, and I am managing to pay at some point the house of cards are going to tumble down!! So it is good to here from someone who has come out the other side.

Something I have not mentioned, before is that I live in marital home, which is in wifes name. I have a house I rent out. Will my martgage comapny get to find out all that is going on? As I don't want them involved at all. The less they know the better!!

Mortgage has been paid monthly with no missing payments.

dancingfairy

Hi Woodie - it seems some of your problems are from being self-employed. I don't know if your local business link could help out, a friendly accountant or even the Businessdebtline with regards to making sure your charging structures are right, chasing up people that owe you money and any tips to improve your cash flow - I am sure you are not unique in that sense.
There is also a small business board on here - don't know if they would have any suggestion?
I would think you would need to declare all your outgoings and income especially rental income but it should show what you have available to pay the creditors. As long as you are paying them on time there shouldn't be a problem - eventually creditors might start stiffing around and looking into charging orders if there is equity in either property but this depends on how long the dmp is likely to last, whether they are getting a good payment, what their policy is etc etc. A charging order will only be a problem when they have obtained a CCJ against you and then gone for an interim and then a final charging order which basically secures them an interst in any equity in the property when/if you sell -they can't force you to sell though. It might be worth having a lok on National Debtlines website regarding Charging Orders just so you can reassure yourself if it were to come to it.
Please don't let it put you off doing a dmp though if that's the right solution for you.
df

wood1e

NOt sure what charging orders have to do with it...As I am paying everyone at the moment.

My issue is not being able to clear down the debt, which in part is a cashflow issue.

Hannah_10

It's not that paying a debt early is frowned upon at all. It's that the way in which you were proposing to do it put you at further risk of it all going wrong than you needed to be. When things do hit the skids in the debt world, they often crash faster than you can stop them. The other reason was, it is sensible to get out of debt as inexpensively as possible, and therefore having a cash amount (which can also be dipped into to pay sub contractors btw) is a powerful tool for reducing your overall burden. By holding back any overpayments and then going for a reduced lump-sum settlement when you are able you have not only cut the amount you have repayed, but you have also got out of debt faster and taken fewer risks. So as regards your exclaimation that it is "Strange how paying debt early is frowned upon!!!" If it were indeed that we were frowing upon paying a debt early we would have let you blunder along your original path and not taken the time to reply.

wood1e

So what you are saying pay a lower amount than what I can afford.

Obviously that will be me suggesting a lower amount than I can afford. I presume there is a limit to the lowest amount one can offer on a monthly repayment basis.

Then that will free up more cash for subbies and living. And then any excess in all that offer to pay a lump sum of the debt at some point in the future.

Whilst continuing paying the monthly amount?

Or is a 'reduced lump-sum settlement' to a finishing repayment offer, even though more might be outstanding?

It just seemed straight forward to pay an additional amount each month I could afford it. Some months might be £500 some might be £100 some months it might be nothing!!

But if I can save!!! Then keeping a lump sum back may well be worth it.

Anyway, I don't believe I am blundering along any path..well a debt path I am.

But I am certainly not blundering along a debt repayment path at the moment, hence the reason I am here. To get valid points/hints/help etc.

Some of my questions, I quite possibly now the answers to, but when speaking to someone who is wanting to charge you...or when speaking to a debt charity who suggest bankruptcy or a IVA might be an option!!

As the guy at CCCS, I spoke to said, he is not the qualified assessor...so how does he know I might need bankruptcy or IVA!!

I don't, as I need a managed way out of my debts, not to loss my house etc etc etc...I am meeting the repayments, I am just not sure I will ever pay off capital.

So I ask the questions based on what CCCS and 'Debt management' Comapny have said.

It's hard work this debt management...and I am not even in it yet!!!

wood1e

Hi Everyone

Been thinking even more over the weekend, and think the getting rid of all credit cards is the best solution, no point keeping one out if other creditors are going to be annoyed!

If plan is put in place there will be additional cashflow to put aside for future projects where subbies are needed. And when I pay the subbies they get paid in staged payments, so I should be able to match that with payments from my customers.

So the choise now is payplan or CCCS?

Is there any difference between the two?

Or is it a case of whoever can see me first?

Many many thanks for all you pointers, tips and advice so far It has been most helpful and eye opening.

happyhaddock_2

Hi, have you done the Debt Remedy on the CCCS website www.cccs.co.uk if you put all your info in there it will calculate what the best solution is for you. I'ts confidential and free, i'ts how I started my DMP with them

wood1e

I can't do that as I am self-employed. I have to phone and the earliest they can interview me is 27th of this month.

I would like something started before then, but it is not essential.

And it is that phone call that the operative said 'how did I know DMP was best for me, and stated that IVA or Bankruptcy might be better!!!!!!'

Which for me it is not

happyhaddock_2

My apologies I didn't realise it's different if you're self employed. Hope you get something sorted out

Culex

wood1e wrote: »

I went looking for a debt consolidation loan online, and when I got a phone call from one of the borkers he mentioned DPM, although they call it a Financial PLan.

I'd not feel comfortable knowing that someone was borking with my money.