debt help please

Meatloaf1981

What Satchmo said.

dancingfairy

Hi, just to reiterate you have at least 3 options (obviously an IVA or bankruptcy are options as well):
1) a dmp
2) a DAS
3) try and get more shifts at work and donwnsize your expenses.

I think you should do a list and weigh up the pros and cons of each of them. Obviously getting more shifts and downsizing will mean that you are paying more in interest and paying your debts off over a longer period of time but won't impact your credit rating as much (and there is the pride thing as well). No-one will judge you whatever option you choose. I've seen people on here that are so single minded and have dug themselves out the hard way and I've seen people do dmp's. We don't tend to get that many people north of the border on here so can't really comment on how many DAS's have been done. Any of the options will work for you but you should discuss it with your family and do what is right for you.
In terms of buying a house, well at the moment it doesn't appear that you can afford to buy another house. Defaults should come off your credit file after 6 years I believe. Bankrupts have been able to get mortgages and rebuild their credit files so I don't see why dmp/DAS should stop you. You will have to tidy your credit file though and make sure all the defaults are correctly recorded and are removed promptly though and may have to use products to rebuild your credit file. On the other side of the coin though you might also have problems getting a mortgage/remortgaging if you have a lot of debt anyway.
In terms of buying your son a car. Is there any help for him? Is he entitled to benefit/will he get benefits in his own name when he turns 16/18? You can research this, although bear in mind that the government may well change things around in the next few years (as they are prone to do). Also bear in mind that if you do a dmp that you can vary your payments if there is a problem (I'm not sure if you can do this in a DAS though). You may be able to take a break/reduce payments in order to afford a mobility vehicle. This is worth discussing with a debt counsellor at CAB/ money advice service.
If you do decide to go with a dmp/DAS then make sure you give yourself a realistic budget to live off. You need to strike a realistic balance between paying off your debts but also not leaving things so tight that you are tempted by more credit or fail to make the payments each month. I know you are able to take a break in a dmp if there is an emergency but the more realistic budget you can come up with to start with, the better. If in doubt, allow yourself a little more. You can also have yearly (or more often if things change) reviews in a dmp (I don't know about a DAS).
If you do decide to do a dmp or DAS don't be afraid to ask questions and understand what you are signing up to. The better informed you are the better.
Regards
df
edit: the debt camel website is very useful, this page in particular seems relevant to your situation:http://debtcamel.co.uk/hard-choices/skinny-snowball-vs-comfy-dmp/

coolcait

dancingfairy wrote: »

Hi, just to reiterate you have at least 3 options (obviously an IVA or bankruptcy are options as well):
1) a dmp
2) a DAS
3) try and get more shifts at work and donwnsize your expenses.

I think you should do a list and weigh up the pros and cons of each of them. Obviously getting more shifts and downsizing will mean that you are paying more in interest and paying your debts off over a longer period of time but won't impact your credit rating as much (and there is the pride thing as well). No-one will judge you whatever option you choose. I've seen people on here that are so single minded and have dug themselves out the hard way and I've seen people do dmp's. We don't tend to get that many people north of the border on here so can't really comment on how many DAS's have been done. Any of the options will work for you but you should discuss it with your family and do what is right for you.
In terms of buying a house, well at the moment it doesn't appear that you can afford to buy another house. Defaults should come off your credit file after 6 years I believe. Bankrupts have been able to get mortgages and rebuild their credit files so I don't see why dmp/DAS should stop you. You will have to tidy your credit file though and make sure all the defaults are correctly recorded and are removed promptly though and may have to use products to rebuild your credit file. On the other side of the coin though you might also have problems getting a mortgage/remortgaging if you have a lot of debt anyway.
In terms of buying your son a car. Is there any help for him? Is he entitled to benefit/will he get benefits in his own name when he turns 16/18? You can research this, although bear in mind that the government may well change things around in the next few years (as they are prone to do). Also bear in mind that if you do a dmp that you can vary your payments if there is a problem (I'm not sure if you can do this in a DAS though). You may be able to take a break/reduce payments in order to afford a mobility vehicle. This is worth discussing with a debt counsellor at CAB/ money advice service.
If you do decide to go with a dmp/DAS then make sure you give yourself a realistic budget to live off. You need to strike a realistic balance between paying off your debts but also not leaving things so tight that you are tempted by more credit or fail to make the payments each month. I know you are able to take a break in a dmp if there is an emergency but the more realistic budget you can come up with to start with, the better. If in doubt, allow yourself a little more. You can also have yearly (or more often if things change) reviews in a dmp (I don't know about a DAS).
If you do decide to do a dmp or DAS don't be afraid to ask questions and understand what you are signing up to. The better informed you are the better.
Regards
df
edit: the debt camel website is very useful, this page in particular seems relevant to your situation:http://debtcamel.co.uk/hard-choices/skinny-snowball-vs-comfy-dmp/

Everything you say about DMPs applies to DAS too.

The main difference between a DMP and DAS is that DAS is legally binding. So creditors can't addinterest etc. They can't arrest wages, or make you bankrupt.

desperado88

thanks for all of the above,you guys have all been brilliant ...... going to citizens advice tommorow,did,nt go last week (idiot that iam ),
can anyone tell me that has done a das/dmp going by my SOA how much they will take from me monthly even a rough figure,i dont want to put my family through all this if we are only a couple of pounds a month better off......just a thought.

thecassman86

desperado88 wrote: »

new development,now the wife is talking of leaving me and renting a house somewhere (don't know if serious)as I cannot cope with this debt,if she does where will this leave me debt wise.......

I'm really sorry to hear that your wife is considering such things - i hope you both manage to sort out your differences and continue your life together!

Hopefully you can get it sorted and the repercussions for debt shouldn't be required... But, it really depends on the debts. Any debts that are joint will retain their joint liability - i.e. you'll both still be legally responsible for paying them. Mortgage included... Any debt that is only under one name will stay with that person only, the other party won't be affected by it.

Hopefully though she's just struggling to cope with the idea of debt. It's very much a psychological thing as anything else and it's not very easy to come to terms with. Different people cope in different ways. I think you both need to sit down and decide on how you're going to approach your debts together. Perhaps her reaction is just a knee-jerk panicking one - but once she calms down from it all then it's easier to face them together.

Good luck!!

desperado88

Thanks for that thecassman86 luckily we have descided to try and sort this out together now ..... My wife has just found out she can work up to 16 hours a week earning up to a £100 . I was thinking with this and any agency work i could get we could maybe tackle this strting with the smaller debts first and then attcking that halifax card,what iam really asking is does anyone with some moe money savvy than me think it can be done.i still have the equity in the house but dont want to go there!

satchmo1

If your wife was able to bring in an additional £100 a week that, together with belt-tightening and agency work, will make a significant dent in your debts. It will also mean she feels she is making an equal contribution (additional income plus child-care plus involvement). MSE-ers often find that its only when both of the couple have their light-bulb moments that true progress is made.

desperado88

satchmo1 wrote: »

If your wife was able to bring in an additional £100 a week that, together with belt-tightening and agency work, will make a significant dent in your debts. It will also mean she feels she is making an equal contribution (additional income plus child-care plus involvement). MSE-ers often find that its only when both of the couple have their light-bulb moments that true progress is made.

Thanks , my wife maybe starting some part time hours soon,i have a chance of getting at least another £200 clear a month if i go for it,i guess what i really want is for someone who is really savvy with money to tell me looking at my finances that i can do it ,i seem to have lost a lot of confidence in myself these days and cant think straight with all this pressure......:(

desperado88

Just a wee update on this thread,we are still chipping away at this debt and doing ok but the reason i am posting is for anybody thinking of going to their local cab for financial advice ..... don t.Everyone can see how much debt i have above and how much i earn,well went into citizens advice with these figures and the female advisor laughed at me saying i am not in a bad situation at all and that people who come in there are a lot worse off than me.She also said that the cab does not offer free financial advice and that i would have to take my chances with a private financial advisor with which she gave me a list but could`nt recommend any particular one.She kept going on about the equity in my house but offered me no solutions what so ever and as for the advisors i told her there i no way i could afford to pay someone £100 an hour to sort out my predicament,especially as there is no guarantee that they could and could end up in an even deeper hole than i am now.She also said that i could in no way apply for a das because of my house?
I don t now what i was expecting when i went there and it took a lot for me to go in there as although i have been pretty stupid with money iam also very proud,that advisor has basically made me realize i am well and truly on my own...but i am more determined than ever to sort this out.

sourcrates

desperado88 wrote: »

Just a wee update on this thread,we are still chipping away at this debt and doing ok but the reason i am posting is for anybody thinking of going to their local cab for financial advice ..... don t.Everyone can see how much debt i have above and how much i earn,well went into citizens advice with these figures and the female advisor laughed at me saying i am not in a bad situation at all and that people who come in there are a lot worse off than me.She also said that the cab does not offer free financial advice and that i would have to take my chances with a private financial advisor with which she gave me a list but could`nt recommend any particular one.She kept going on about the equity in my house but offered me no solutions what so ever and as for the advisors i told her there i no way i could afford to pay someone £100 an hour to sort out my predicament,especially as there is no guarantee that they could and could end up in an even deeper hole than i am now.She also said that i could in no way apply for a das because of my house?
I don t now what i was expecting when i went there and it took a lot for me to go in there as although i have been pretty stupid with money iam also very proud,that advisor has basically made me realize i am well and truly on my own...but i am more determined than ever to sort this out.

Hi,
We had a similar experience with CA when we went there for help, many years ago.
The problem with them, is there "advisers" are all volunteers, who may not necessarily be "up to speed" and they are always very busy, they don't have the time or resources to go into very much depth with there clients, particularly is your case is anything but simple.

A better bet would be National Debtline or stepchange, they do know there stuff, apologies as i have not read the full thread, i will do so now.