Hi, little advice for someone new

ChrisMc182

Hi, I'm 25 years old and due to me being nothing short of an idiot when I was younger I currently sit with debt around £4600.

After years of ignoring, I've got to the point where I'm back at my parents and thought of not being able to get my own place with my Girlfriend when the time comes due to my debt and credit is enough to make me feel sick.

I've phoned a debt advice line and from speaking to them I have 2 options a Debt arrangement scheme, or low income low assest bankruptcy.

Straight away my thoughts were with DAS, I'm currently out of work but I've got a start with a job in a few weeks. Initial amounts to be paid is around £101 a month which will be affordable. Hopefully be able to pay much more than that when I'm on my feet.

What I'm here for is just advice, am I doing the right thing with the DAS or would the LILA be the better option? the thought of not being able to get credit for 6 years is a bit off putting.

If anyon has any advice or anything they could offer i'd be very grateful.

sourcrates

ChrisMc182 wrote: »

Hi, I'm 25 years old and due to me being nothing short of an idiot when I was younger I currently sit with debt around £4600.

After years of ignoring, I've got to the point where I'm back at my parents and thought of not being able to get my own place with my Girlfriend when the time comes due to my debt and credit is enough to make me feel sick.

I've phoned a debt advice line and from speaking to them I have 2 options a Debt arrangement scheme, or low income low assest bankruptcy.

Straight away my thoughts were with DAS, I'm currently out of work but I've got a start with a job in a few weeks. Initial amounts to be paid is around £101 a month which will be affordable. Hopefully be able to pay much more than that when I'm on my feet.

What I'm here for is just advice, am I doing the right thing with the DAS or would the LILA be the better option? the thought of not being able to get credit for 6 years is a bit off putting.

If anyon has any advice or anything they could offer i'd be very grateful.

Hi,


I take it you are North of the border yes ?


DAS looks good, anything containing the word "Bankruptcy" not good !!

ChrisMc182

Yes Glasgow :beer:

That was my thoughts when I heard it get mentioned I felt the colour drain from my face as I never thought I would ever be in a situation where it was a possibility.

The DAS is what I will be going for, hopefully paying it off as soon as possible now that I've actually stood up and decided to do something before it was too late.

I'm completely new to this and currently having no credit, I'm assuming I wont be able to even improve that slightly until the debt is paid off in full?

sourcrates

ChrisMc182 wrote: »

.
I'm completely new to this and currently having no credit, I'm assuming I wont be able to even improve that slightly until the debt is paid off in full?

Yes correct, any defaults will be registered for 6 years, or is it 5 in Scotland ?

McKneff

And stop worrying so much, your debt isn't that big compared to some.


6 years will go past soon enough, It doesn't have to be six years, you will be able to get credit 4 or 4 years down the line.
Youre just a young whippersnapper, x




Just pay as much as you can off it. It will go faster than you think.
Good luck with it.

ChrisMc182

Thanks,

I know I've been reading about the forum and can see compared to others my debt isnt as bad as others. Not going to lie it does feel good to know I'm actually doing something about it.

Onwards and upwards :T

antonic

I was £24k in debt.

Paid it all off in 7 1/2 years that were sometimes painful.

I congratulate you on recognizing you have a problem and dealing with it.

McKneff

ChrisMc182 wrote: »

Thanks,

I know I've been reading about the forum and can see compared to others my debt isnt as bad as others. Not going to lie it does feel good to know I'm actually doing something about it.

Onwards and upwards :T

Good for you Chris, stay positive.
Im in the middle of giving up smoking, Im trying hard to be positive too.....

ChrisMc182

I'm obviously wanting to get this paid of as quick as possible is this a sensible way, or am I just complicating it for myself.

My mum has offered her credit union for me to use, I pay the minimum payments required to the DMP and any extra i put in her credit union, the logic being to get a loan big enough to to pay the majority of the loan and get it paid quicker? And just keep paying of the credit union loan with the minimum weekly payments?

Is that a route anyone has gone down or would yous advise on sticking to the DMP? Thanks for the replies.

Trajal

I'm not a fan of getting out of debt by getting into more debt. If it were me I would probably take the DMP because it helps you break the cycle of 'loans'.

ChrisMc182

Yeah I get what you're saying but isnt it better to owe money to a credit union with all payments being on time than being in a DMP?