how long ?

SARAHJANE

:mad:i think i left my last post in the wrong place lol so ill start again . we,ve been getting help form the national debt line , they have adviced use to enter a dmp. but they havent said how long we will be in it for , we have £106 a month spare & 30k of debt :eek:. 106 *12= 1072 omg 30+years :eek: . also my fixed rate morgage ends in 2013 and im worried they will put me on a high rate as they may see us as a risk, can they do that? we had an overdraft with them that included in the dmp .

Tixy

From the information posted it does sound like currently your DMP is predicted to take a very long time (around 23 years not the 30+, as you'd be paying £1272 a year).

Do you expect your finances to improve in the next few years that would mean you could afford to increase your repayments at some point (eg hoping to find better paid employment.reduction in childcare/kids becoming independant etc). If so then obviously at that point your DMP predicted term would reduce. Or if circumstances improve then you could possibly consider an IVA at some point.

Did national debtline suggest alternatives to you other than a DMP? or why other options were not suitable for your situation?

Regarding the mortgage - when a fixed rate deal ends you will revert to whatever their standard variable rate is usually (check the terms of your current mortgage).
They won't put you on a higher rate than that, but you might find it hard to switch to a different mortgage provider, or possibly to get a new fixed rate deal with existing provider.

SARAHJANE

ty tixy no i dont expect our finances to change , my hubby was made redundant & went from 28k a year to 19k , big drop. ndl only really mentioned dmp.

Tixy

Do you have equity in your house?
If so would you consider downsizing? If not have you considered/discussed bankruptcy with any charity?

You could always seek advice from one of the other debt charities to see if they also agree that a DMP is the only realistic option. At a guess though NDL may have discounted bankruptcy as you own a home, and discounted an IVA as the level of repayments you could afford would mean it wouldn't be accepted by your creditors.

Do you not think there is a chance hubby may get a better paid job again in the future?

SARAHJANE

HI TIXY spoke to a lady this am at ndl who sais that they were passing our paperwork onto cccs, and that they would contact us soon. we do own our home , but selling is not an option as it wouldnt be feesable to as we would have gett a large morgage to buy elsewhere. as for getting a higher payed job theres none out there .

SARAHJANE

this all so worrying :-(

eyeopener2

Hi Sarah Jane

The main thing is your trying to sort it out. It's awful I know but things will get better once your in some sort of control. Yes 23 years is a long time but you never know whats going to happen in that time do you?

One question though...........have you considered selling up and renting? I know it's a horrible thought but i'm sure the Debt charities will ask you the same so it's worth considering and either forgetting or pursuing.

As for everything else, it tends to take care of itself so when your up and running with your DMP its just part of life.

Good luck.

E2

meer53

SARAHJANE wrote: »

HI TIXY spoke to a lady this am at ndl who sais that they were passing our paperwork onto cccs, and that they would contact us soon. we do own our home , but selling is not an option as it wouldnt be feesable to as we would have gett a large morgage to buy elsewhere. as for getting a higher payed job theres none out there .

You don't have to get another mortgage. You could sell, if there's any equity in your house, pay off your debts, then rent somewhere.

If you're struggling now, you might find it difficult to get another mortgage anyway.

You need to speak to CCCS really, but saying you need to buy another house and that your husband can't get a higher paid job because there aren't any is a bit negative. I'm not having a go at you, i understand it's difficult, but this is just how you come across.

eyeopener2

I think shes probably in shock still, so give her a bit of leeway.

This will be sorted if we all help her.

theoretica

As said above 23 years is a long time, but it might be worth starting anyway.

Firstly you will hopefully get some peace from your creditos not hounding you and knowing that your debt is not going up. That seems worthwhile for the time being. Secondly if you or your husband can make some extra money (and this financial climate is unlikely to last 23 years!) you can shorten it considerably. Could you for instance take in a lodger?

chevalier

http://www.makesenseofcards.com/soacalc.html

Fill this in and see if anything obvious jumps out at you to cut back on. If you wish to post it on here, then we can offer suggestions of where you can cut back.

Do you work? Can you find anything temp or permanent to help out?

What about selling on ebay, or doing surveys to help?

good luck. I know it is a shock, but this climate will last maybe 5 years and then hopefully get better. Even the great depression only lasted 10 or so years (on the other hand though it ended because of WW2!)
chev