My debts.... I've got to try something

Purplewurple

Hello all, for my own sanity I've decided I have to tackle this problem. Being skint and having nothing left from my wages every month is really depressing me.

I've contacted the CCCS and set up a DMP and I've also opened a basic account with the Co-operative bank. The final straw was receiving a notice seeking possession from my landlord today for £689 rent arrears. I've stupidly been trying to juggle all of these bills even though they are killing me with interest so the balance never changes.

My debts as of today consist of:

RBS Loan - £13000+interest
RBS Overdraft - £300+interest
Santander - £500+interest
Capital One - £2600+interest
Vanquis - £2000+interest

Rent arrears £689 so obviously thats the first priority.

Does anyone have any experience of a DMP? are the creditors likely to stop the interest to help us pay them back?

pat1976

Hi, very well done for taking the bull by the horns.

Have our creditors accepted the DMP or has it just been proposed? How are you feeling about the budget you have in place now?

Paying off rent arrears is indeed your top priority, will you still be able to do it while making the promised payments to your creditors?

Anyway - sorry for not answering your question. Some freeze interest, some don't. None will freeze interest forever. A DMP is a short term solution - for someone who has lost their job and is looking for a new one, or who needs breathing space whilst they sell their house to pay the debt, etc, it's not really a solution for £20kish of debt.

What rate will you be paying the debts off at? Assuming they freeze interest, how long will it take? Are you expecting your circumstances to change so that you can start 'proper' payments again?

I'm not trying to rain on your parade here, you've bought yourself some time to think and get a plan together. But if you can't pay these debts off in (say) 3 years you will need to keep thinking.

Again, well done for starting on a journey to a debt free life.

sarah1111

Hi Purplewurple!

Just wondering what with your RBS loan/overdraft whether you are resident in Scotland. Its just that you can apply for a DAS which is basically what I have done via the CAB. It means your creditors have to freeze all interest charges etc and cannot persue you personally regarding your credit, they have to go via your money advisor.

They look at your income and how much free income you have after priority debts (ie council tax, gas/electricity etc and shopping) then they look at whats left and allow you to work out a term over which to payback your creditors, check out the link for more info

www.dasscotland.gov.uk

lozzam

Sorry but have to disagree with Pat. Depending on your circumstances a dmp can be used to pay off debts over 10 or 15 years if needed. Interest may be frozen for none, part or all of that period depending on the creditor.

The aim is to get to a place where you are making big inroads into your debt, so definitely post an SOA an let others give you advice on where you can cut back.

Delree

A notice of seeking possession at £689 that's high, you're lucky you didn't get one sooner.
If you are in social housing contact them and make a payment plan, they will probably accept a small offer then you must budget that amount in week after week. Possession proceedings are stressful and it's your home, nip this in the bud.

Learning2Budget

Sorry i don't agree with Pat either, when we took out our dmp with CCCS, our creditors froze interest and it looked like we would be paying over at least 12 if not 15 years.
We've now got qpprox 7 years left as we've upped our payments now as we can afford a little extra, interest is still frozen.
Anyway, jusy wanted to say good luck with your lightbulb moment,, and someone will be along soon that can answer your questions.x

dancingfairy

I'd double check with the CCCS but you might want to send a holding letter to the creditors with just 1 pound for the moment to allow you start making significant progress with thoe rent arrears.
What sort of notice have you got? 2 months notice to quit or a court date or what?
I might be tempted to draw up the budget with CCCS and allow 1 pound per month for the other debts and prioritise rent arrears and possibly consider showing it to your landlord to show you are serious about getting on top of the rent arrears and hope that they are lenient with you and then make sure you stick to it.
Best of Luck
df

mitzy2010

Hi i had a dmp, im my opinion it was good for me, until i had the knowledge and strength to deal with the debt myself. It takes the pressure off you and stops all the call etc.

All creditors froze interest and its still frozen 5 years on.

Hope this helps

Purplewurple

Firstly, thank you all for your responses :beer:
I've been a busy bee today setting up direct debits for my priority debts, the DMP direct debit and arranging for my wages to go in to the new bank account.

I also bit the bullet and phoned my landlord or the 'income management officer' as she was called on the letter. Surprisingly she wasn't as horrible as I thought she would be. She awknowledged I am only one month behind (and a bit) and that she didnt realise I pay my rent at the end of the month before sending the letter out. She thought there was no payment coming next week when I get paid. She said as long as I keep making payments to reduce it the notice seeking possession will just lie in the file. After 12 months it will be destroyed and should anything arise in the future a new one would be issued.

It feel a lot more positive this evening than I did yesterday looking at all my bills and the letter from her :T