DMP query

pc10

Hi - just had my sister here for a few hours - in tears telling me about her financial situation which is bad

She is a single parent living with her youngest child (her daughter is 22 and working - gives her mum £100 per week out her of £200 per week earnings)

My sister works full time and earns £1500 net per month.

She has a mortgage on her house of £130000 and has her house up for sale hoping to get around £180000. mortgage is £780 per month repayment type.

She has cc debts of about £25000 and pays minimum payments of £700 per month - some of these are over 20% APR.

A personal loan of 5 years still to run at £280 per month - still £16000 owing.

Its got to the point now where she is desperate and wondering how she can afford to pay the bills - she has never missed a payment.

She has tried to get a consolidation loan but that was turned down.

We live in NI - so would Payplan still be able to help her?

So that I can try to convince her that this is a way that can help her, could someone please clarify - if she is able to pay her mortgage and bills (excluding credit cards and personal loan) and has eg £100 left over per month, in the best case senario, would PayPlan arrange with the card company and loan company, to accept total of £100 per month, which would obviously go on for as long as it would take to repay the debt?

What if she is able to sell her house once the DMP is in place - would she then just be able to increase the payments or pay off whatever debts she can with any profit from the house sale?

I hope someone can help me to help her - she hasn't ever told anyone about how bad things were so I do want to help.

She has no internet access so has no way to research it all herself.

Thanks in advance

Standingtall

A DMP sounds feasible but I am not knowledgable about NI. Do you have the CAB over there, if not surely and equivalent. I would strongly suggest your sister goes there to seek professional advice. She will feel so much better once she is referred to one of the free debt advice organisations and is taking actiion. Well done for supporting her.

pc10

Thanks for the reply. There is no CAB near my sister but there is an advice centre. There is a long waiting time for an appt though according to the local paper.
I looked at CCCS site and it says it covers NI anyway so I will try to convince her to give them a call.

Feel so sorry for her and wish I could bail her out but unfortunately thats not possible.