Feeling a bit low

excited_to_be_free

So my DMP has been running since April 2013 and I have paid off £4020 off my debt :j:j:j (need to update my sig). It has all been going very well. I have stuck to my budget, no extra loans and all going well and then BAM my car goes! Problem is, I need the car for work, it is a requirement. I have a credit union account that I have been saving in for a bit and I applied for a £600 loan to buy a cheap run-a-round and I was declined My own fault for getting in trouble with money I suppose but ARGGHHHH!!!!!!!! I was refused because I have a default registered in August last year and I tried to explain it's because I have not kept up with the creditor's payments and they registered a default, but haven't missed any DMP payments. I did call my DMP company and I have explained my situation, so I am not taking out extra credit without their knowledge, but I thought I could at least get a credit union loan! I will bounce back, but I am feeling very low! I am trying so hard and I have been really good and felt that I learnt my lesson, but someone has more lessons for me to learn I suppose

On a positive I HAVE PAID OFF £4020 OFF :T:j:T:j:T:j

[Deleted User]

if you need the car for work is there anyway your employer could help?

mum2one

Just a thought, dont know who your have your dmp with, but I'm with stepchange and had to change my car last yr, (needed a car being disabled) I brought a cheap one but I was able to take 1 month off my payment due to exceptional circumstances, I managed to scrimp the rest of the money, but ask your dmp company.

My car was £600. xx

excited_to_be_free

Think I will ask work on Monday. Failing that speak to Stepchange. Thank you!

[Deleted User]

I don't wish to sound nasty or patronising (though I appreciate it may come across like that) but, why on earth would you expect someone to loan you money, when you can't maintain the agreed payments, on your existing borrowing?

As to the need to replace the car, could you not withdraw the savings from your Credit Union account, and use that to buy a car?

Karen777

hiya - speak to stepchange. they may be able to let you make reduced payments for a month or so to get a car and use your savings as well. sorry you are in this situation. it sounds stressful.

you are doing well. this is a hiccup but you can still head in the right direction.

sourcrates

excited_to_be_free wrote: »

So my DMP has been running since April 2013 and I have paid off £4020 off my debt `:j:j:j (need to update my sig). It has all been going very well. I have stuck to my budget, no extra loans and all going well and then BAM my car goes! Problem is, I need the car for work, it is a requirement. I have a credit union account that I have been saving in for a bit and I applied for a £600 loan to buy a cheap run-a-round and I was declined My own fault for getting in trouble with money I suppose but ARGGHHHH!!!!!!!! I was refused because I have a default registered in August last year and I tried to explain it's because I have not kept up with the creditor's payments and they registered a default, but haven't missed any DMP payments. I did call my DMP company and I have explained my situation, so I am not taking out extra credit without their knowledge, but I thought I could at least get a credit union loan! I will bounce back, but I am feeling very low! I am trying so hard and I have been really good and felt that I learnt my lesson, but someone has more lessons for me to learn I suppose

On a positive I HAVE PAID OFF £4020 OFF :T:j:T:j:T:j

I`m afraid this is what you will have to get used to while your DMP exists, defaults are registered as you have not kept to the terms of the original agreement, par for the course unfortunately, making the DMP payments ontime will not erase the default.
Can you maybe save from your budget somewere over a few months ?
You are unlikely to be granted more credit.

excited_to_be_free

Bedsit_Bob wrote: »

I don't wish to sound nasty or patronising (though I appreciate it may come across like that) but, why on earth would you expect someone to loan you money, when you can't maintain the agreed payments, on your existing borrowing?

As to the need to replace the car, could you not withdraw the savings from your Credit Union account, and use that to buy a car?

Thanks! Ja, you are right, but I was just having a whinge. I don't expect a loan. I got myself in a situation that was overwhelming and I sought help. I did withdraw all the money in the credit union account and now have a car. But thank you for pointing that out.

excited_to_be_free

Karen777 wrote: »

hiya - speak to stepchange. they may be able to let you make reduced payments for a month or so to get a car and use your savings as well. sorry you are in this situation. it sounds stressful.

you are doing well. this is a hiccup but you can still head in the right direction.

Thanks Karen777, Stepchange did say that to me, but I would rather continue making payments and getting out of the debt quicker. 2 more years left on this, but hopefully I will be able to pay it off sooner if I can get a better paying job and savings

Giraffeseeker

It's great that you have a new car to tide you over but as you have learnt you cannot get credit for a while and as I assume your car is an older, cheaper one you need to make provision for this happening again in 12 months time. Losing my car or having a huge repair bill was my biggest fear for the first year or so of my DMP.

What I have done is set up a car repairs pot - the "target amount" being the total cost of the last 12 months repair bills + 10%. My current target (for an 05 plate Vauxhall) is £480 so I put £40 per month in that pot. It meant when my exhaust went and needed total replacement I could pay it without any worries at all. Ditto two months later when my MOT bill was £200+ (last month, so pot currently quite empty and figure has been reviewed based on last 12 months spend).

I have also been adding £50 per month to an emergency fund which this month has finally hit £500.

I have peace of mind knowing I can repair/replace my car (or other household items) if needed.

I did this buy "forgetting" to tell Stepchange that I have stopped smoking 18 months ago, there is still £100 in my SC budget for cigarettes. It means paying debts of a bit slower but to me it is worth it for that peace of mind.

My target for my emergency fund if £1K but I doubt it will ever get there - things do break! - but if it hovers around the £500 mark I am happy.

StressedSteph

tintingirl wrote: »

It's great that you have a new car to tide you over but as you have learnt you cannot get credit for a while and as I assume your car is an older, cheaper one you need to make provision for this happening again in 12 months time. Losing my car or having a huge repair bill was my biggest fear for the first year or so of my DMP.

What I have done is set up a car repairs pot - the "target amount" being the total cost of the last 12 months repair bills + 10%. My current target (for an 05 plate Vauxhall) is £480 so I put £40 per month in that pot. It meant when my exhaust went and needed total replacement I could pay it without any worries at all. Ditto two months later when my MOT bill was £200+ (last month, so pot currently quite empty and figure has been reviewed based on last 12 months spend).

I have also been adding £50 per month to an emergency fund which this month has finally hit £500.

I have peace of mind knowing I can repair/replace my car (or other household items) if needed.

I did this buy "forgetting" to tell Stepchange that I have stopped smoking 18 months ago, there is still £100 in my SC budget for cigarettes. It means paying debts of a bit slower but to me it is worth it for that peace of mind.

My target for my emergency fund if £1K but I doubt it will ever get there - things do break! - but if it hovers around the £500 mark I am happy.

What tintingirl has said above is so true.


I have tried and failed in the past to combat my debt, and the only thing that is working this time round, is the fact that I am managing to put away some small savings to towards four main categories (Car Repairs/Tax - Emergencies - Birthdays - Christmas)


I only do the birthdays and Christmas because I have children. If I didn't then I wouldn't bother with these savings.


My car and hubby van needs MOT's this June just gone and I had managed to save up £700. MOT & repairs came to just over £700. Without that savings pot, I would have had a total panic and given up debt busting.


I always get into debt at Christmas as well, so I am hoping the Christmas savings pot will prevent that.


It is definitely wise to pay a little less on DMP and allow yourself some small savings pots, otherwise it is very hard to stay away from getting more credit.


Well done for sorting out another car. Just like my favourite Dave Ramsey say "live today like no-one else, so tomorrow you can live like no-one else".


In two years time, you can save up some money and buy yourself a nice car. You will get there. xxxx