Sat here sobbing.

ilovekt

thank you all so much

I contacted stepchange and they suggested an IVA. But as I am hoping to start work and DD starts school soon, they have set up a DMP instead.

The DMP will take 21 years :O but our circumstances should improve so it probably won't.

I am not sure how the DMP will affect us? Will our name and address be listed somewhere like it is when you go bankrupt? Will it affect renewing car insurance?

When is the debt wiped clean for re-mortgaging etc?

LannieDuck

Well done on the positive steps forward. I can't help with your specific questions about the DMP, but try not to worry too much about the 21 years figure. That's if nothing changes and you don't pay anything towards the debts apart from the basic figure they suggest. If you stick around on these boards, you'll hopefully manage a whole lot better than that

Firstly, you'll hopefully get some pay increases over the next 20 years or so. Maybe you could pick up a small weekend job to supplement your income (depending on childcare for DD). You can ebay/carboot old possessions, try 'Uping your income' - swagbucks, review sites etc (check out the sub-board on the forums). Head over to the 'Old Style' board to cut your costs as much as you can and put that money saved into the debt.

There's a thread on here entitled something like '100 ways to make 1%' with loads of idea on how to make small little extra bits of income that, when paid against the debt, will make a big difference in interest payments over the years (unless you're able to freeze interest on your debts of course). And many people have a lot of success with Full+Final offers to creditors. If you're able to get together a reasonable pot of money, you may find the creditors will accept partial payment of the debt instead of the hassle of chasing you for the whole lot.

Jemima09

DMPs aren't published anywhere

You'll probably be defaulted by your lenders, so it'll be on your credit report for 6 years. Shouldn't affect car insurance, I went on a DMP with £21k and I've been on monthly car insurance plans the whole time.

Your situation will definitely improve over time, and you'll get used to budgeting and be able to put little extras away, so you'll knock that 21 years down don't worry about it!

Honestly, it's tough at first, but really really worth it, and stepchange are very helpful.

dancingfairy

I'm so glad you managed to speak to someone
In terms of your credit rating, well you will get defaults and these will stay on your credit file for 6 years. Your address will not be blacklisted (address don't get blacklisted) and as it's an informal agreement (As opposed to say an IVA or bankruptcy) then you are not put on any registers or anything like that.
I doubt it will last 21 years. As you are aware things can and will change over that period of time. Normally after a few years the creditors will begin to think about accepting full and final settlement offers. Basically a smallish sum to write off the full balance. Obviously it's a matter of knocking them off one at a time, but for now get the dmp set up and give yourself a bit of breathing space.
Do be aware that it can take some time for things to settle down. Most creditors will eventually accept your dmp. Some will accept immeaditely, others may take 3-6 months to accept, and some may never officially accept but merely stop hassling you.
You will almost certainly get stroppy computer generated letters threatening this that and the other. They will threaten doorstop visits, taking you to court, anything and everything. But it comes down to the old adage of not being able to get blood out of a stone. Do see these letters for what they are. 99% of the time they are purely threats and the creditors don't carry them out at all. If you get any letters you are unsure of them post on here and someone can put your mind at rest. Even if they did bother to take you to court then a judge would see you are doing your best to pay them off and send them packing with a flea in their ear so don't worry about that side of things.
If you get any troubles just post on here and people will help.
all the best.
df

Amyboo

I can only echo what the above have said. I don't regret my debt management plan at all. It's the best thing we've ever done. The relief at the time is overwhelming and we finally managed to get some sleep at night time without worrying about everything. It's learnt us to budget, learnt us to say no to luxurious things and we even have a bit of savings now which before was completely unheard of. If anything broke down it went on a visa to either repair or replace. Christmas is paid by our savings as well.

Circumstances change all the time and you never know you may get the debt off a lot quicker than you think. Good luck xx

sistafromanothermista

I just wanted to add my goodluck vibes to you
Kepp posting so you don't lose motivation, start a diary to keep track and don't be dis-heartened. We're all in the same boat.
x

Seanymph

could you take on some childminding rather than nannying? or work in a nursery or pre-school and take your child with you?

There are lots of jobs working from home if you keep your eyes out.

I'm only focusing on the earning because you have the borrowing under control - and you need a two pronged attack.

sourcrates

You may want to look into an IVA maybe at a later date when things are a little better, you don't want to be on a DMP for 21 years, you can do what they call a "full and final IVA" similar to a normal IVA but differs in that, if you have a lump sum of money you can offer it to your creditors in full and final settlement, so no 5yr payment period, its over there and then, only applies if you can save the cash though, just remember theres always a solution.