Help - What to do next??

callyh26

I was advised a DRO was the best way forward for me however today after speaking to the CCCS, they advised my debt has just gone over 15,100. So i now need to decide what to do next!! They mentioned bankcruptsy but to be honest i don't have 700 to do it (and if i did i'd rather get rid of a debt with it) and i worry how much affect being bankrupt would have on me! At the moment im a full-time mum, and don't live with my partner. But we want to get married next year and i want to return to work! I'd rather pay the debt off ASAP and be able to live with my partner. On a DRO my circumstances had to stay the same for a year after it was granted, How does it work with bankcruptsy? I feel at a complete loss! I worry daily about my debt, and although the biggest amount is a 2500 overdraft the smallest a 69 electric bill, im sick of constant calls etc. Although many of these debts are years old ! The overdraft for example i haven't payed anything on since around 2006/7! Can i organise my own DMP? I dont want to use a company that then takes a percentage of the money in fees id rather organise and do it myself? Do you think the best way forward is to really tighten my belt, pay the smallest debts off in full? Make an offer of payment monthly? How does F+F settlement work? I know a few for example a capital one credit card the balance was 268 they have sent a letter saying they would accept 134 in f+f. Shall i send letters to creditors see what there willing to accept? I just need guidence as to where to go/do next??

mush1989

Hello and Welcome. Sorry to hear about your money troubles, but there is light at the end of the tunnel!

There are DMC that will take a % each month and want upfront fee's, but there are also other companies that do not charge. You mentioned that you have spoken to CCCS - this company does charge you. I spoke to them at the beginning of the year, they suggested my monthly payments, and I put them into place with the companies that I owed money too.

I am not sure but I think DRO and Bankcrupsty are different.

F+F - I have done quite a few of these with companies.

bargainbetty

Start by preparing a statement of affairs - use the sticky on the first page. Take a full and honest look at your finances and see where you can tighten your belt. If you can reduce your expenditure so you can live within your means while paying your debts, then try it for a while.

Sort out your debts by the highest interest charges - those are the ones you pay off first. If you can get full and final settlements, then do it - a letter offering 25% of your debt will help discover what they might want, and be prepared to haggle. lways in writing, and always for a F+F, never accept partial settlements. Never say you have the cash, just ask if they would accept the offer if you could obtain it.

Good advice will follow on batch cooking, frugal living etc from the lovelies on here, which will help make the most of your income.

If you decide to go for a DMP, then CCCS and Payplan are free - see the stickies again. You can set up your own too, but never, never go with a fee-paying company.