Huge debts...it never rains but it ours!

gillespie684

Hi

My husband's wages got reduced by almost £400 a month and I went on maternity leave reducing my wages by over £600 a month, we already had huge debt and we were living off our cards because the min payment was so high. I have now finally managed to get ourselves on a DMP and have been paying this for the past 3 months although it says it will take about 28 years to pay off my debt!

Does anyone know how long roughly creditors allow you to make reduced payments before they come after you again? I have defaults put on most of my accounts, is it only ever one default or do they keep putting them on your credit file?

Has anyone ever managed to move house and get a mortgage whilst on a DMP? I am living in a not very nice area and I have just had a baby and I am keen to move to a better and nearer my family for scholls etc

I wish i had won the euromillions, that would def solve all my problems!

Does everyone do the daily spend diary? Is it a good idea? Cause quite frankly my DMP says I should have an excess of about £400 every month and I can't see how I manage to spend this, i spend half my time hanging around supermarkets trying to get reduced food for meals!

Looking forward to hearing from anyone

:jGillespie684

Hovel_lady

Hello!
Yes, I do a daily spend diary and it's really helpful. I keep mine on my diary here but a notebook works well too. Whatever suits you best. Just make sure you include everything!
Can't help with the DMP as I've never had one but am sure someone will be along soon who has.
Good luck xx

Pollycat

I keep a note of everything I spend that's not included in my budget.

You'll be gob-smacked at how much just disappears out of your purse each day.

It might be buying a birthday card and stamp, having a cup of coffee in a cafe, paying the windowcleaner, a new lippy as you pass through Boots, popping to the shops for a pint of milk etc etc.

Sorry I can't help with your other questions.

Good luck.

Tixy

Hi gilliespie.

Good news that you have managed to get a DMP sorted. I think doing a spending diary, especially at the start of a DMP is a really good idea. It will help you get used to living on less and if you find that you are struggling you can compare your statement of affairs used in the DMP to what you are actually spending and see what areas you are overspending and then work on tackling that.

If you are struggling with groceries particularly maybe have a look at the oldstyle board for some ideas and you could consider doing the grocery challenge for a couple of months whilst you get used to your new budget.

Once an account has a default notice issued the default stays at one point in time - and this remains on your credit file for 6years from the date of default. They will keep updating your credit files to show the balances etc but the default date doesn't change (even if your debt is sold on to a debt collector).

Usually on your DMP CCCS (i think you are with CCCS) will do a 6monthly review and see if your circumstances have changed and if your monthly payment needs to increase or decrease. They then send a revised statement of affairs to your creditors. Some creditors you might hardly ever hear from, once every 6months or an annual statement etc. With others they might ring and ask if you can increase your payments. Always refer them straight to CCCS and never pay them any extra amounts. If anyone is calling very frequently there is a template you can write to insist all communication is in writing.

Regarding the mortgage it is sometimes possible to get a mortgage whilst on a DMP, usually once your defaults are a couple of years old or so, but not from the high street banks, it tends to be through a mortgage broker and a subprime mortgage lender - and these will be more expensive in terms of the interest rate and being expected to have a larger deposit than someone with a clean file.
I presume you already own a house/have a mortgage? - if so then if you were reducing the size of your mortgage and buying a cheaper property then it is possible that your current mortgage provider might be willing to provide a mortgage for the new property.

gillespie684

Thanks everyone for your helpful responses, I am away to get a diary to start my daily spend diary as of next wednesday when I get paid.
x

27col

I do my money diary on a simple spreadsheet that I wrote. But you might be better off with a paper notebook so that you can jot it down as it is spent. It is quite remarkable how a diary shows up your spending habits.