Debt out of hand

Monkeyballs

Hi Jason,

I'm willing to put money on your Dad being worried about the future impact the DMP will have on your credit file, he's only trying to look out for you

The good thing with Wonga is that they do actually try to help but they will probably ask you to fill in an Income & Expenditure form. If you cancel CPA with Wonga and your bank then I suspect you'll be able to set p a repayment plan with Wonga which is likely to be spread over 6 months which might give you enough wiggle room to avoid a DMP?

MB

geelamch

I assure you're mum and dad will be great,my kids come to me with ( things 21 and 18 ) they know tell me ,leave me for an hour,give me a beer and we'll sit and sort it ,jees we've all been there in some way ..

Jasonlucas93

Well good news my dads agreed to pay the wonga loan off and I pay him back next month, I've rang up stepchange to cancel the dmp, lucky I've got this second job now, I'm budgeting myself to 160 a month so after all bills and my budget it will leave me £740, I'm just trying to figure out what stuff should I pay off first? The catalogues? Overdraft? Or the loan, and thank you for all the help I've reciveved!

AFK_Matrix

Well there are 2 minds of thought in paying off debt. Some say to go for the debt with the highest interest and snowball the debt. I.e. you pay the minimum to all your debts but for the highest interest one you pay as much as you possibly can and then when this debt is paid off you go for the next highest interest debt and throw everything at it. And then keep doing this working your way down to the lowest interest debt. There are snowball calulators out there so you can see how long this will take.

The second way of deciding is if you have some small amounts of debt then pay these off first no matter what the interest is as this gives you a boost to your confidence and mentally might help you keep going if you see you have paid off some debts. But with this method you will in the long run pay out more interest.

So its up to you and how you think you want to handle the debt. I would make a list of all your debts and their amounts and what the interest is on each one and then sit down and have a think, do you want to save interest or give your self a mental helping hand by paying off some of the smaller debts.

Jasonlucas93

Update:

With my new job i'm now earning 1450 a month after tax which is some good news! so what i'm doing i've calculated after all my bills and my budget which is £100 a month to spend i will have £940 left to my name, which i plan on saving for 3 months and completely wiping off the Amigo loan, by that time the littlewoods Catalogue will be gone, and from there i will get rid of the overdraft and the very catalogue!! things are looking up, if this all goes to plan (with my dad as my 'accountant' lol) i'm hoping to be debt free by the end of the year!

savingmummy

Well done! Sounds like your already on top of things already.


Stick to your plans and dare I say stay clear of anymore debt.
I was debtfree after using catologues very, littlewoods etc and swore I`d never do it again.
I paid it all up, cancelled my accounts and was happy!
THEN I sank again (depression) and those lovely companies made their way back and cheered me up no end!


Big well done to your dad for helping you too :j
Its good to talk for the support and help, never keep problems to yourself over fear of upsetting people sometimes it surprises you how they react.

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Jasonlucas93 wrote: »

Update:

With my new job i'm now earning 1450 a month after tax which is some good news! so what i'm doing i've calculated after all my bills and my budget which is £100 a month to spend i will have £940 left to my name, which i plan on saving for 3 months and completely wiping off the Amigo loan, by that time the littlewoods Catalogue will be gone, and from there i will get rid of the overdraft and the very catalogue!! things are looking up, if this all goes to plan (with my dad as my 'accountant' lol) i'm hoping to be debt free by the end of the year!

Good stuff. Sometimes it takes that light bulb moment to sit down and really work it all out. I'm still plotting my best route of action...