Newbie with help needed

Cornucopia

Is the credit card maxed-out? (At £500, seems unlikely).

You could potentially use that instead of a loan, depending on rates, etc. It would take discipline and you would need to track the figures carefully.

Stiffler_2

Cornucopia wrote: »

Is the credit card maxed-out? (At £500, seems unlikely).

You could potentially use that instead of a loan, depending on rates, etc. It would take discipline and you would need to track the figures carefully.

Yeah they are maxed out unfortunately one with a £100 limit other £400 limit. The rate on them isn't good either 30/40%. My credit score I checked last night is bad but the report looks not too bad.

Cornucopia

In which case, it doesn't look like there are any options for reshuffling your finances to resolve the problem.

You're going to need the help of Stepchange. and you're going to need the payday loans to be frozen.

Stiffler_2

Will the dmp effect my ability to get a new mortgage? It's just that we're planning on moving very soon (well putting the house up for sale) I do have good equity in it but will a decent deposit get me a good mortgage even if I have dmp?

ladybez

As far as I understand things, if you are in a DMP one of the conditions that Stepchange, payplan (and even firms who charge and are therefore to be avoided) is that you do not take out any further credit whilst the plan is in place. I would presume that would include a mortgage.

Stiffler_2

Ok thanks for that. Looks like dmp isn't going to help in that case. Would I be able to take just part of my debt to them say the pd loans?

gardenlady_2

That doesn't include a mortgage!!! Statments like that can really frighten people when they are worried anyway. You are allowed to have a mortgage on DMP, it is a secured, rather than unsecured loan. The only problem is getting one, as a DMP does mean that your credit file is awful. This person already has a mortgage.

OP, it will be difficult to get a remortgage whilst on a DMP. It will show on your credit reference that you have made arrangements to pay with your creditors, and this would not look good to a mortgage provider. Have a look at your credit rating now though- is it good? The fact that you are in financial difficulties may already be showing on your credit file, in which case you would find it very difficult to remortgage anyway. Your current mortgage would not be impacted by being on a DMP however.

If you credit file is clean at the moment, and you are desperate to move, I would arrange the mortgage first and only when you have moved and the mortgage is in place go on a DMP.

asparagus1968

Hi, hows it going?

Have you made a start yet?

my suggestions-

Stop applying for more loans-every search is detrimental to your credit record.

Sort out new bank account ASAP and contact a debt --charity--

tell your wife

cancel sky-luxuries will have to go for a while

can you explain the 3 cars? and get rid of some?

buildings and contents insurance can be bought cheaper, look at a "compare insurance site"

reduce mobile phone usage, ring and tell them you are struggling and could the reduce the tariff please, or if you are out of contract, look at GIFFGAFF.

also try and get cheaper gas and electric, both seem high?

Re-do SOA- include wifes wage, family allowance (child benefit),grocery shop,"house keeping"??

you need to account for all your spends-record all spending daily for a month-you will be amazed! ( wife has to do this too!)

Hope you have made a start,you will get there, good luck, keep posting!

Cornucopia

Stiffler wrote: »

Ok thanks for that. Looks like dmp isn't going to help in that case. Would I be able to take just part of my debt to them say the pd loans?

Yes. DMP is far from being the only option.

Given that your finances appear sound overall, you probably would want to avoid it anyway. But even if you did go down that route, you should be able to get on top of the problem within 6-12 months.

heartbreak_star

You probably won't get a loan to be fair - the bank has no way of knowing you will actually consolidate. Sorry to be the bearer of bad news

Please explain the 3 cars - there are only 2 of you? Selling at least 1, cancelling Sky and cutting your mobile use down could make a good dent in all of this.

HBS x