Best way to use this money

lizzy23

getmeouttahere wrote: »

But I don't get the mentality that it's better to pay £1 per month while the interest increases by £60+ per month than to try and come to an arrangement with creditors to freeze interest (which so far StepChange haven't mentioned).

They may not carry on adding it,, they are not forced to freeze interest even if you come to some arrangement,,, the bottom line is you haven't enough money to service your debts,, you could try doing self managed , but again they may not freeze interest,, looking at your SOA its not saveable,, i don't get the mentality that you'd rather pay your creditors and feed you and your wife on £20 per week, does this include cleaning products etc,

Tixy

You've only filled in the debt remedy so far, which is just a starting guide. You need to speak to them and discuss your finances in more detail and you can choose to put a lower amount in groceries etc in the final budget they help you produce. And then decide what debt solution could be right for you and for your wife (which may not be the same).

Also when paying token payments or on a DMP then often creditors will agree to freeze interest, if they see you are paying what you can afford.

Is your wife definitely getting all the benefits she is entitled to? it seems very low, especially as your income isn't particularly high either.

leicestersq

But I don't get the mentality that it's better to pay £1 per month while the interest increases by £60+ per month than to try and come to an arrangement with creditors to freeze interest (which so far StepChange haven't mentioned).


You need a plan that enables you to live on your income as objective A, and if possible repay some of what you owe from any income that isnt necessary for Objective A. Also, you ultimately need a route back to being debt free, Objective B.

If your plan doesnt include Object A and Objective B, then it isnt a plan.

Angry_Bear

If you do token £1 payments most creditors will freeze interest (I believe). However, they're not obliged to, which is why Stepchange won't mention it - they don't want to give false hopes.

IMHO, you'd be better off doing £1 token payments for a couple of months then using the money to negotiate reduced Full and Final Settlements. It's not unusual to agree to settle at less than 50% of the debt owed so you could clear much more than you might think.

getmeouttahere

Thanks for all the advice so far. So, if I am going to make token payments, do I cancel all direct debits and stop making normal payments right away?

retepetsir

Is bankruptcy an option? That is a great deal of debt and interest for the income.

You're best paying back the higher interest loans first, so things like Very. Your Barclaycard loan looks to be one of the cheapest!

Use the Snowball calculator

getmeouttahere

retepetsir wrote: »

Is bankruptcy an option? That is a great deal of debt and interest for the income.

You're best paying back the higher interest loans first, so things like Very. Your Barclaycard loan looks to be one of the cheapest!

Use the Snowball calculator

No bankrupty isn't an option. What would be the advantage of becoming bankrupt when all of the debt is unsecured and I am able to keep paying my mortgage?

rockm87

give Step Change a call today.

getmeouttahere

Thanks for all the advice so far. So, if I am going to make token payments, do I cancel all direct debits and stop making normal payments right away?

National_Debtline

getmeouttahere wrote: »

No bankrupty isn't an option. What would be the advantage of becoming bankrupt when all of the debt is unsecured and I am able to keep paying my mortgage?

More to the point, OP's home would be at risk if they went bankrupt so they are quite right to say it is not an option.

Regards

Dennis
Twitter: @natdebtline