Please Help :-/

katy_ann

Interest free? x

Timetogetfree

Ensure that you agree in writing that they have frozen the interest on the debt as long as you keep up the monthly payments. Check your credit report to ensure the other debts havent marked your credit report if they have you may want to contact them and arrange a token payment each month as this will look better on your credit report. Until you can make larger payments.

sickasachip13

Hi

May be worth considering a Debt Management Plan (DMP) from either Payplan or CCCS (both free). Lots of info around here about them, a whole thread for those of us on DMPs too.

Don't despair, there's definitely ways forward.

SAAC

fatbelly

doc1985 wrote: »

Hi, i have debts of around £12,000 and after speaking with CAP they have recomended a DRO. I really dont want to go down this route. ... What do you all think?

doc1985 wrote: »

I did a SOA with CAP (they are Christians against poverty a charity debt help organisation) and they said i could only afford less than £50 to pay my creditors, hence why they recomended a DRO, but i think i could rejig my budget and maybe push that up to £100.

So your choice is between a DRO (debt free in 12 months for £90) and a DMP (debt free in ten years for £12000)

doc1985 wrote: »

I think i could, this has been hanging over my head for 2-3 years now and i know its going to be hard to pay it. but the option of a DRO i really dont want to take because that is going to effect me in renting properties and getting jobs for the next 6 years.

Both strategies will affect your credit file. The DRO drops off after six years. The effects of a DMP will also drop off after six years if every creditor defaults you instantly and no-one gets a ccj against you.

doc1985

Yes they said that the interest would be frozen and the money would be coming off the £7000, this would be reviewed every 6 months.
The reason i dont want a DRO is because im looking to rent a new house with my partner sometime in the next 12 months and dont want it to be jeopordised by that. Hopefully when i move in with my partner and my circumstances change i can afford a ittle bit more and pay the debt off quicker.

Timetogetfree

doc1985 wrote: »

Yes they said that the interest would be frozen and the money would be coming off the £7000, this would be reviewed every 6 months.
The reason i dont want a DRO is because im looking to rent a new house with my partner sometime in the next 12 months and dont want it to be jeopordised by that. Hopefully when i move in with my partner and my circumstances change i can afford a ittle bit more and pay the debt off quicker.

Well check if there is a default on your credit report and then if you have arranged repayment plan ensure this shows on the debt on the credit report also. If you keep to the payments there wont be any issue getting a place once the payments have been paid at a regular interval as agreed. It may be worth holding off the other smaller debts if they havent contacted you but if they show on your credit record then you need to make contact and arrange even a token payment each month with the plan to increase these once you can.

Thats what i have done and i have increased my credit score from 448 to 678 over the last 6 months just setting up payments with the debts on my credit report. I have just under £11000 worth of debts with 28 companies but only 4 of these show on my credit report so i am paying those off first then once they are paid i can work on my others.

doc1985

Yes all of my debts that i have (around 10 different companies) have all logged a default on my file, all of them around dec 2010/jan 2011. Im going to contact the ones that send me letters (im guessing this will be the other 2 at £1000) and arrange an affordable payment plan. The rest (the other 7 at between £200-£400) ill just sit and hope they dont contact me before Jan 2017 :-/ lol. Ill keep an eye on my credit file and check that the payments im making are being logged, thankyou for the advice. Good luck with yours aswell, you seem to have it all under wraps :-)

Heffi1

doc1985 wrote: »

Yes all of my debts that i have (around 10 different companies) have all logged a default on my file, all of them around dec 2010/jan 2011. Im going to contact the ones that send me letters (im guessing this will be the other 2 at £1000) and arrange an affordable payment plan. The rest (the other 7 at between £200-£400) ill just sit and hope they dont contact me before Jan 2017 :-/ lol. Ill keep an eye on my credit file and check that the payments im making are being logged, thankyou for the advice. Good luck with yours aswell, you seem to have it all under wraps :-)

If you already have defaults on your credit file then your chances of getting credit are already trashed, so a DRO would not negatively affect it at all, they will stay on your credit file for 6 years anyway so it looks like your credit is already ruined, it might be worth rethinking the idea of a DRO now.

doc1985

Yes i agree that my credit file is absolutely shot, i cant even get a blockbuster card lol. But a DRO is classed as an insolvency, this will go on the insolvency register and be on my credit file for 6 years. This will affect me renting properties and getting certain types of jobs, where as if i can come to some sort of payment arrangement with these debtors that chase me, this will not happen. Yes my credit will still be knackered, but i can rent a house with my girlfriend.

Heffi1

But your credit file is already knackered with the defaults and will be for 6 years, how is that going to help you with a credit check for renting?