Debt Hell - the Escape Plan

Lilpalf

Like the look of these diaries, so thought I would give one a go.

We are in the process of sorting out a DMP after struggling for 12 months. We sat down at the end of August to sort out the finances and discovered we had more outgoings than incomings due totally to unsecured debt.

After a miserable 48 hours, we did a bit of research and I ended up talking to National Debtline and the process of sorting out a budget and a DMP started.

Where we currently stand - National Debtline referred us to Payplan and we are currently discussing the pros and cons of DMP versus IVA. Payplan are pushing for us to go with a IVA but after a lot of reading we would prefer to do a DMP. Tomorrow, I ring them and tell them this. If I'm still not happy with Payplan response then National Debtline are going to refer me to CCCS.

Already feel that this has dragged on and I just want something up and running now so that we can get on with tightening our budget and improving our day to day life.

I need to send another round of delaying letters with token payments next week but we are away for the weekend, so I'm going to leave that until we get back.

The good news is we managed to get a bank account at the cooperative a couple of months ago and other than my wages all our income has gone into it (mine should go in next week) and Coop are midway to doing the switch of our Direct Debits.

Fingers crossed that the DMP gets accepted with minimal fuss.

Lilpalf

And here we are still in limbo.

Everytime I mention going with the DMP, I get told of another risk with doing the DMP. Spoke to Payplan today and was told that if we got a CCJ while on the DMP, it would have a bigger impact with my husband's job than an IVA. This has thrown all our thinking out and now my husband is justing saying he is screwed either way and I'm confused about whether the advice is really impartial.

I just want to sit and cry. This time last week, we had a clear plan, we had done a budget and had it approved by Payplan and had our fingers crossed for a favourable response from our creditors. Now, we are at a crossroads and I don't know which way we should turn. Should we do the DMP (our first choice), have 8-13 years of debt with potential for CCJs or an IVA that would be complete after 5 years with a small risk to the little bit of equity in our property. What we would like is the smallest risk to my husbands career and the easiest damage to repair to our credit rating but I just don't know.

I feel that I could ruin the rest of our lives by making this one decision, if it is the wrong one

Verbatim

Hi
Don't want to read and run but had you thought of ringing CCCS for a second opinion. I think they phone you back in a few days rather than being able to get straight through though.

If you spell out your situation a bit I'd expect you'd get more of a response. And you could try posting on the ordinary dfw board, but perhaps you have already.

ani*fan

Hi there lilpalf :wave:

Welcome to the boards! You've done well so far in getting things sorted out. Just a few days more and you'll have a plan you can stick to.

Hang in there. It will get better. I know that sounds shallow but really, the situations people have overcome on here are just amazing and there''s no reason you can't too.

Big hugs to you.

AFx

Hightower13

Hi Lilpalf - Just wanted to say Hi! and keep posting