feeling pretty stupid

Tigsmom

I've posted a couple of times recently about DMP and SOA and have some great advice (Thank you).

It has made me realise that although I thought I was keeping an eye on our financies I really wasn't. I missed lots of occasional payments like hairdressers and MOT off the SOA (13 in total!) and couldn't understand where the money was going every month. I'd based my calculations on the DDs on our bank statements and not thought about cash/credit card usage. I've been confused about budgeting for things that I may not actually need money for like car repairs/dental treatment etc. Apart from actual bill payments the only other things we put money aside for was road tax and Christmas and we've only been doing that for a year. I feel quite stupid that I could be so naive with financies.

Living on the borderline every month, we have looked into transferring credit cards to 0% but have realised that it wouldn't get the minimum payment down but just reduce the amount of time we had the debt. So we looked at getting a loan but to reduce the amount of money going out it would have to be over at least 5 years and as we are already 6 years into a 10 year loan I don't think I could cope with that. We have reduced utility bills (last winter was unbearably cold in our house) and food. We're running out of options. A few people have advised to go for a DMP but as we are borderline a few others have offered ideas to try and save a bit more.

I'm not really sure what to do. We don't like the idea of being 'blacklisted' but feel as though we have been struggling for years with a poor quality of life. I worry about my children because by the time we have cleared our debts paying a little here and cutting down further there they will be too old to benefit from us being debt-free and will have had megre childhood. Going for the DMP would give us our life (and spirit) again but at what cost? What are the bad points? I'd like to know before we take the leap.

sistafromanothermista

:wave: Scary isn't it. I went through exactly the same thing! i'm not sure about the DMP thing but i'm sure you'll get some great advice.
As you can see i'm in a similar situation ....

lizzy23

i am in the process of setting up my DMP, fWIW i have always managed to service my debts, have never missed a payment etc etc, However i woke up the other day and thought sod this i am going to work for god knows how many hrs a week to pay interest and ending up even further in debt. Its been interesting getting my statements together over the last couple of days the online ones give you your minimum payment for next month, and despite paying the amount required, each card has estimated another couple of quid on the minimum payment next month another couple of quid you don't notice, till it pushes you to the point that you can't pay ,i'm forever worrying that i'll have enough in the bank to get me to the end of the month, and using the CC to buy things, and for what to keep a credit rating that is slowly going down anyway because of the amount of debt i have (last checked at 556) yes the thought of having nothing to fall back on is scaring the !!!! out of me, and the thought of not being able to pick up the phone and get instant credit is also scary, but i actually feel liberated, i have lived my whole adult life on credit, buying now and paying later, but never actually paying it off, its time to get a grip and admit that i'm crap with money, i'm crap at saying no to myself, so if the only option is to take the option for credit away then in the long run thats better, from now on if i can't afford i don't have, a big culture shock, but simples really

Tigsmom

Yep, very scary. Lizzy you have hit the nail on the head. I feel as though I've been trying to keep my head above water forever but every time I get up for air something increases and pulls me under again! I'm so very tired and bordering depressed (but fighting that) and the DMP does look like a lifeline. I don't want any more credit. I just want us to be able to breathe again and have an option in an emergency. I know that in 2 years our income will improve because we won't be paying child maintenance anymore. (I don't begrudge paying something but my husbands ex gets more money for their one child than I have left for our two). Hopefully then we can resume full payments and clear some debts.

rdchick

Hiya

I am about to embark on the big DMP. I have been struggling to fight fire with fire and getting no where so it's time to stop and get it sorted.

If you can live without credit ie: a new mortgage etc for the next 6 years then go for a DMP, it means you have money for food, warmth, clothes for the kids and savings for things like MOT without it all being swindled away by the banks!

I have yet to miss a payment on things like my overdraft and loan but this month is the month it's gonna change. No more 40% interests and buy now pay laters... It's all about cash! I was in less debt last year than I am this year and I planned to be debt free by the end of the year! Not gonna happen! CCCS say 2.8 years... I can live with that if it means I have a few more pennies in my pocket each month

Let's be in this debt busting thing together! Xxx

Tigsmom

When do they tell you how long it will take? I've got papers to sign with monthly amount but didnt notice a term.

rdchick

It's in the first report thing you have to read before they send you the agreement xxx

PaulB79

I've been on a DMP for the past 3 years. Its hard work but its good to know your clearing your debts.

The major downside is that you default on your credit agreements (usually) and you have to deal with a budget on a monthly basis and cant get more credit, but the positives mean your clearing your debt and you finally know someday your be debt free.. the first months are the hardest but it feels good to know your sorting it!

All the best!

Tigsmom

It's got two dates - 14years and 2.5yrs! I'd prefer 2.5! I will have to speak to them.

Does anyone know how much you need to owe before the creditors think it's worth taking you to court/sending baliffs? Our biggest debt is 8k and our smallest £350 and we are hoping that they will class us as 'smallfry' and just accept our reduced payments without getting aggressive!

lizzy23

Tigsmom wrote: »

It's got two dates - 14years and 2.5yrs! I'd prefer 2.5! I will have to speak to them.

Does anyone know how much you need to owe before the creditors think it's worth taking you to court/sending baliffs? Our biggest debt is 8k and our smallest £350 and we are hoping that they will class us as 'smallfry' and just accept our reduced payments without getting aggressive!

i don't if i'm honest, but at the end of the day, i can no longer live like this, as far as i'm aware its unlikely that bailiffs will be sent, and you'll be taken to court as the court is more likely to find in your favour as you are paying your debts, not as quickly and not making as much money for the banks as they would like, but you're paying it.

personally i don't care if i never have another credit card in my life, i also don't care if its going to cost me a lot more to get a loan for a car in the future, at the end of the day easy credit as got me in this mess, its now up to me to get out of it and not go down this road again

Tigsmom

I know where you're coming from Lizzy and we feel pretty much the same.:( I'd just like to know what could happen and be ready for it. I don't want my kids answering the door to baliffs :eek: and I don't want them to witness us not opening the door to them and talking through the letterbox. We don't really have much for them to take anyway, the tv isn't even paid for yet and everything else is falling apart. If we had anything of value we would have sold it ourselves.

I was just wondering how much it costs for the creditors to take us to court and would it be worth the while for a few thousand? It must cost them to send the baliffs around.