A sympathetic ear...

furrypaws_2

Hi All

I'm totally new to all this chatroom stuff, so please excuse any mistakes... Well, I've finally bitten the bullet with my debts and sent off letter to my creditors today... just sitting back now and waiting for the fall out! Have set up DMP through National Debtline, who are referring me to PayPlan. Tried (and failed) to keep going, but finally had to deal with the fact that I can't cope. Haven't missed any payments on anything to date, so I think my creditors won't be expecting this. In a nutshell, I was left in an absolutely huge amount of debt after divorce, unfortunately always gave in when my husband had tantrums then he left me to pay all the bills on my own for 18 months before the house was sold. so, to shock you all, my current (unsecured) debts are £64,995 :eek: Have worked out will take me around 16 years to pay off...

I wasn't sure if I was doing the right thing with a DMP, but didn't want to go down the IVA route for fear of losing my new (and much smaller, cheaper to run house). I have to admit, I do actually feel a sense of relief by getting the ball rolling. Feeling really positive about the whole thing actually. It's all very well me having someone to blame, but I'm the one who's accountable after all. I'm also a bit scared of receiving the phone calls, letters etc...

Would be nice to hear from anyone going through the same things. (by the way, must just point out that said ex husband now has over 80K debts and counting with his new wife:rolleyes:

itswhat

well it sounds like the most important thing was getting rid of the ex!

well done on getting started, as you will see from my sig and many others we are all the same boat.
Not a lot to say really except, welcome and good luck!

IW

Bestthingsinlifearefree

Hi FP,

welcome to MSE !! :beer:

Could you post an SOA ? As that will help people advise you.

Have a look at this thread as a guide to getting you started.

http://forums.moneysavingexpert.com/showthread.html?t=107280

I wish you well.

Best,

sheraz2

Well done. A probem recognised is a problem halved. Hopefully you will become a mad maverick money saving expert and be halving the debts in no time

lynzpower

hey loads of sympathetic advice, support and unbelievable amount of moneysaving tips here! Youve come to the right place

Yep as best says stick up your SOA and we cna have a look how much extra money we can save you on your outgoings!

taplady

Hi just wanted to say its great that you're trying to sort things out.:T theres lots of help available here as like itswas said we're nearly all in the same boat!;)

Psykicpup

Just wanted to say Hello & welcome!

tee_pee_2

Hello Furrypaws welcome to MSE. You hvae made a giant step already and now 2007 can only get better than this year.

Lots and lots of luck
Best wishes
Tee Pee
x

taxi73

Just wanted to say hi and welcome to MSE and add that posting your SOA will help...good luck

furrypaws_2

Hi Everyone - thanks for your responses... I'm so glad I found this site - it really helps to know that I'm not alone... My SOA is as follows;

Income 1469

Mortgage 637
Council Tax 79
Water rates 10
Gas 32
Electricity 15
life insurance 8.30
car insurance 24
pet insurance 25
petrol 100
road tax 10
food etc 140
mobile 19 (on contract until Aug 07 then going to pay as you go)
NTL 30 (Broadband, tv and landline)

leaves about £300 for creditors...

I don't think I can reduce my outgoings any further....:rolleyes:

CLAPTON

before its really possible to say whether DMP. IVA or bankruptcy are appropriate, the best possible budget is needed.
the budget has to be one that you can realistically live on not just for a single month but for several years....so it must include all the yearly and one off costs too (although you divide the yearly costs by 12 and add to the monthly budget).

so e.g. you quite correctly have car tax/insurance but you have nothing in for MOT/servicing/repairs... you will not be able to put (say) a new exhaust on the credit card anymore... you will need to have saved an amount each month so that when you need it you have it already saved.

similarly you have nothing down for clothes...even if you have no immediate need for them, over the next year/5 years you must budget (and save ) each month...similarly for odd present/xmas, even a modest holiday.
you also need something in for optical/dental/medical expenses, and nothing for socialising.

anyway you get the idea ..this budget has to be lived on for years without a credit card.

when you have done this, unfortunately there won't be 300 a month for the debt repayment.

is it possible to increase you income... say let a room?

how much is your house worth and how much the mortgage...honestly looking at your current income and expenses, in reality you really need to consider whether bankruptcy is appropriate... a DMP would take 20 years and even an until you revise the budget, i'ld doubt whether an IVA would be viable.