does my plan make sense

debtfree1day

Panda

I will update SOA tomorrow, it will be theraputic, although will still get challeneged lots

On the mortgage situation is £120k is at low fixed rate until Jul 08 and £35k at low fixed rate (.4% higher) until Mar 09, BOTH automatically revert to SVR, although theoretically I can pay a product fee of about £500 at the time to buy another fixed rate - assuming that iots worth doing.

If I take another £52k, it will be at SVR day 1, but then again I can pay £495 and move to whatever the fixed rate today is......or a product of my choice - its A+L. They have numerous to choose from

Cheers

Lisa

Miss_Skint

Hi Debtfree1day

This is my first post. I have been browsing this amazing site for a couple of months taking in invaluable information but have found this particular thread very interesting.

I am in the process of putting together my own SOA ready for posting in the hope that I too will get the same kind of guidance and support.

However, I noticed that you have mentioned a couple of times about how the cost of your loan repayments are preventing you paying more towards your higher rated interest debts.

I don't know how long you have been paying off your loans, I'm no expert but judging by the amounts you are paying back I would imagine the loans were taken out over short term periods. I was just wondering if there would be any possibility of getting top ups on the loans to incorporate some of the higher rated CC debts? As I said, I am a newbie but couldn't help thinking that this would be an option that I would want to explore ???

Anyway Lisa, congratulations on your progress so far and good luck in getting back on track x

Kaz2904

Hopefully we'll get some answers tomorrow with the new soa.
Ho'w it going with getting the kids on board? Do they know that they will be taking packed lunches in Spetember (or won't they?!). Once we see your new soa then we will be able to recommend the next step.
When are your twins 3? Have you got their names down for preschool yet? Are you going to try and increase your working hours while they are there or do you work evenings and weekends?

sarah0404

Hi, I just wanted to say well done! You've done really well clearing the 10k! :T

Re the debt management plan. I know it sounds scary. I never really liked the idea of one myself. I hated the thought of paying pennies to my debts every month for years and years. But it might not be such a bad thing. A lot of times the creditors will freeze the interest, so it would be just as good as being able to transfer it to a 0% intrest free card. Basically you'd only pay them back the money you owe, without any more interest being added - and in amounts that you could afford.

If you go through CCCS they will give you a very comprehensive budget. You really need to allocate some money every month for shoes, clothes, haircuts, dental treatment, opticians, car tax and car maintenence etc. When I budgeted before I never bothered with those sort of things. But its not realistic to think that you will never need to buy clothes or go to the dentist. My OH just broke a tooth and had to go to the dentist. We are on the waiting list for an NHS dentist, but its 10 months long :rolleyes: Plus you still need to pay something for NHS treatment anyway. He managed to see a private dentist, and it cost him £150!!!! Really I should have budgeted money away for that kind of thing, but my only option was to use the credit card I'd been working so hard to clear to pay the £150.

I found the budget CCCS give you is quite generous. If you don't spend all your food and clothing budgets you can put the money by and have some savings to pay for Christmas and holidays etc. Or you can save it till you have a lump sum and make an offer to your creditors. If you have say £1000 owing on one card, they may accept a lower amount to settle the debt. Then you can afford to pay a slightly higher rate to your remaining debts. Like snowballing in a way. Plus you have lots of savings and bonds which, when they mature can be used to settle debts. So it's not really as awful as it sounds. Good luck with whatever you decide to do.

trying-very-trying

Hi df1d, and I echo what everyone else has said, you've done really well clearing £10k in such a short space of time.

I'm only going to reinforce what sarah has said above, the idea of a lengthy DMP is scary, but when the lady from the CCCS explained to me that legally there is nothing much that the unsecured creditors can do as long as you pay what you can afford through the DMP - well it seemed a whole lot easier than putting the roof above my children's heads at risk.
I would also say that the CCCS budget is comprehensive, and after 6 weeks, I can say that the food budget they have allowed me is actually quite generous, and I can even save a little bit of it for other things.

Making that decision is one of the hardest things that you may ever have to do, but if you can't afford credit why worry about your credit score?

I'd rather lose a few sleepless nights and my own self dignity over a DMP, than try to live my life with the guilt of depriving my family of a home. I really don't have much, but at least I know my kids have a warm dry home, clothes on their backs and enough good food in their bellies and of course they have all our love(although I think they're more interested in having the food in their bellies)
I do hope that whatever decision you choose to make works out well for you.

debtfree1day

all, thanks as always for your considered and supporttive words

Couple of questions I noted

Yep Kids no packed lunches in september. 9 yr old just wanted to know why - and whether he would be getting crisps or chocholate with sarnies (little does he know it will be salad, and pasta and rice!)

15 yr old moaned, but she is a 15 yr old so.....

Kids go to school full time in sept 08

DMP, i am 95% sure thats what we will do

Q1 - Should we create a secret slush fund?

Q2 - Do I need a Basic Bank Account now?

Cheers

Lisa

debtfree1day

and sorry

Q3, have I made a buig mistake with giving my ins and outs to a credit card company. I couldnt sleep last night and keep worrying about the conversation I had

http://forums.moneysavingexpert.com/showthread.html?t=524606

Thanks

Lisa