Finally admitting we have a debt problem

trainergirl

krisdorey wrote: »

Hi,

Read your posts and just wanted to say well done and don't be embarrassed, Its just money.

Tixy has offered excellent advice (as usual) and you seem to be taking it onboard so please keep us updated and post if you need some encouragement or advice.

Watching threads on these forums you quickly work out those who are genuinely trying to seek help with their debts and those trying to avoid them (through whatever means necessary).

I wish you all the best, just remember there is nothing to be embarrassed about in your situation as you are actively dealing with your debt.

Hi

Just wanted to emphasise what others have said, there's nothing to be embarrassed about. You've acknowledged there's a problem and now you're working on fixing it - that in itself is a MASSIVE step - well done!

I think you need to need to contact one of the debt management charities out there - CCCS is the one I contacted when I had my light bulb moment, and they have been fantastic. They're really helpful and supportive. They'll take you through the options available to you, and you'll see that there is a way out of this.

Finally my last piece of advice is to keep posting and reading posts on here. There's loads of help, advice and support on here from people who are going through the same thing. Personally speaking the help I've been given on the forum has kept me sane the last few weeks!

Good luck and keep us all posted on what happens xx

DVardysShadow

tiredmumof2 wrote: »

Tried to post it via the link but it wouldn't work - hope it makes sense. Thoughts please??????

Difficult to read. You seem to have used the http://www.makesenseofcards.co.uk/soacalc.html link.

For this, press 'calculate', then 'format for MSE'. The you get a popup window. Press 'highlight text' and copy everything including format codes into your own post.

dancingfairy

I think there might be a bit at the bottom though that says produced by makesenseofcards which is actually a link and as a new user you can't post a link so the OP may wish to delete that bit.
In terms of the SOA can you reduce the mobiles at all? You should be able to manage on 2 for 25 each i would have thought? can you get better tariffs at all on these?
df

Frozenace

I just saw that you have listed an overdraft balance of 600 with 0% APR. Is that correct?

tiredmumof2

Frozenace wrote: »

I just saw that you have listed an overdraft balance of 600 with 0% APR. Is that correct?

No, not correct - I didn't put any of the APR's in as I'm not sure what they are! Ignorant, I know....:(

tiredmumof2

Well, I've done it.

Spoke to CCSC and they're going to set us up on a DMP for £300 a month. Now the worrying part:

I need to set up a new bank account for me and DH but most of the ones I've been on this morning (that aren't linked to our unsecured debts) and most ask for good credit rating and details of your previous account! Now, am I being ignorant as I've not opened a new account in over 20 years, what happens if I get refused for a new bank account?

I feel like some weight has been moved off my shoulders but another one has been out back on!

And to make matters worse - DH come home from work and been to Docs - diagnosed with depression!

Gimpsdad

£300 is not a bad figure, but assuming interest freeze, then you are looking at 11.3 years. Not too bad either, but much longer than a 5 or 6 year IVA. An IVA may be of no use to you if your house value is as you say, but most IP's would recommened that you look at a forced sale valuation to get an accurate reflection of its value if you were made bankrupt. It is also fair to say that most people do still over value their property when thinking about its value.

If that valuation is significantly less than what you have put you should give it some thought, but if not, and your equity outstrips your liabilities, then what you have now is not too bad, and it is worth taking an hour or two out to sort out a new account for the long term benefits it will bring.

tiredmumof2

Gimpsdad wrote: »

£300 is not a bad figure, but assuming interest freeze, then you are looking at 11.3 years. Not too bad either, but much longer than a 5 or 6 year IVA. An IVA may be of no use to you if your house value is as you say, but most IP's would recommened that you look at a forced sale valuation to get an accurate reflection of its value if you were made bankrupt. It is also fair to say that most people do still over value their property when thinking about its value.

If that valuation is significantly less than what you have put you should give it some thought, but if not, and your equity outstrips your liabilities, then what you have now is not too bad, and it is worth taking an hour or two out to sort out a new account for the long term benefits it will bring.

Thanks for the reply, really appreciate everyone's comments so far!

I spoke to the CCSC and they said they'll go for £300 at first but we could increase to £500 if we make the changes we spoke about. This would be a much better prospect and looks like we would finish in 7.5yrs. I can always pay more (which I like) when we have the money and it's part of the review.

I think I'll give the DMP a go as the first point of call and see what happens. If it doesn't work out then we'll look to move over to an IVA.

What do you think? I know everyones circumstances are different but Initial thoughts from you wonderful people?

Gimpsdad

Not a bad plan in reality, but I would still double check as to the equity, the only thing wrong with DMP's is that they carry no guarantees, and of course neither does life itself. If you are really confident that a larger payment is achievable and sustainable then I am inclined to agree that DMP to start with and then re-assess if it doesn't work is probably about right.

mogsi80

tiredmumof2 wrote: »

Well, I've done it.

Spoke to CCSC and they're going to set us up on a DMP for £300 a month. Now the worrying part:

I need to set up a new bank account for me and DH but most of the ones I've been on this morning (that aren't linked to our unsecured debts) and most ask for good credit rating and details of your previous account! Now, am I being ignorant as I've not opened a new account in over 20 years, what happens if I get refused for a new bank account?

I feel like some weight has been moved off my shoulders but another one has been out back on!

And to make matters worse - DH come home from work and been to Docs - diagnosed with depression!

Hi tmo2

Well done you, just to reiterate what everyone else has said there isn't anything to be embarassed about - but I know how you feel, was there myself 1yr ago.

With regards to the bank account, you probably wont get one with a chq book, overdraft etc... but you would get a basic account.

We went to Nationwide for our account, when we started our DMP, and we've managed the account so well (now that we have learned our lessons! ) and the upgraded the account to a lovely shiny current account - obviously we kindly declined the offer of the overdraft facility!!

Another one is Co-op from what others say on here.

Take care
x