Terrified

cherylclarke

I currently have around £40k of debt (between husband and I). We are in the process of setting up a DMP with CAP, and I am terrified. We have had a budget sent through to us which looks fine (more than we have had to live on lately) and we've been asked to set up a new bank account with another bank which we have done. Surprisingly that went through ok. We are just waiting to receive papers through to sign, then CAP will contact our creditors and we are due to start 1st December.

I have never defaulted on payments, preferring to live on nothing rather than not pay my bills but it has gotten impossible. The debt isn't new territory, I have been hopeless with money for years, but this is the first time I've had to admit I'm having real problems and it feels horrible. I have had depression for years (mostly caused by money) and I'm feeling really ill at the moment with the worry.

What happens if they don't agree to the payments being offered? Can they go after our house? None of the debt is secured, I guess I'm just paranoid and wanting to be sure that can't happen.

Tixy

Most likely your creditors will agree to the DMP payments and may well agree to freeze interest.

On a DMP there is always a small risk a creditor may still decide to take court action against you and obtain a CCJ. And if they do that there is also a small chance that they may then try to apply for a charging order. Even in the unlikely event that happened then you would not be forced to sell your home.

I wouldn't let that very small risk out you off entering a DMP if it is the right solution to your financial situation. Whilst it sounds scary a DMP usually passes straight forward with no court action at all.

StainlessUK

Hello,
Just wanted to chime in here. A DMP is amazing! I called all my creditors after setting up my DMP but before it was active. I just felt like I wanted to say why I'd gone on one. Plot sure if it helped but they all accepted. They where also really nice on the phone.

Thanks

moohound

I owed a similar amount, just on my own and no-one came after my house, they were all OK (eventually) They kick up a fuss at first and have a go at hounding you a bit, though this might be better now since the 'fake solicitors letters' debacle. It then settles down and you just pay it and plod on.

Just have your automated response ready when they ring ' I'm in a DMP with CAP etc.

chelseachris

Good luck Cheryl. Well done for facing up to the debt - sometimes the most terrifying thing is the unknown. Sounds like the worst is behind you. MSE is a great support network.

midlander81

Well done for facing up to your debts! I am in a very similar situation to you. We owed 40kish too at the start however we are not on a formal DMP, we are simply overpaying in an attempt to clear it all by December 2016.


I have had great advice and support from this site. Just a few months ago I was seriously stressed and embarrassed by my debt level and felt overwhelmed by it. You will see lots of people in a similar situation to you or worse so you are not alone!


Have you posted a SOA? It can be really useful to get others perspectives on your budget - It certainly helped me!


I wish you all the very best and remember, 2017 isn't far away

maria3104

Good luck. I find that when I am doing something proactive about any problem I feel less stressed and able to cope.

2017 is no time at all 2015 is only 6 weeks away.

ldhme

StainlessUK wrote: »

Hello,
Just wanted to chime in here. A DMP is amazing! I called all my creditors after setting up my DMP but before it was active. I just felt like I wanted to say why I'd gone on one. Plot sure if it helped but they all accepted. They where also really nice on the phone.

Thanks

I can echo this statement, only I left it til I was 2 months in as I was too scared to call. After 2 months of interest not being frozen on 3 accounts I called them all, even the ones who had frozen interest.
With the exception of HSBC who were completely clueless (not demanding, just clueless) they were all great. Felt very relieved and all phonecalls have stopped as well as the demanding letters.
Only gripes are Barclaycard reduced interest to 3% APR instead of freezing and I have no idea what HSBC are doing as at last check they froze 2 accounts but not the flexiloan. Got no sense out of the lady on the phone and had no contact or confirmation of any sort from them, honestly think they aint even sure themselves of what is going on.

Muhren

I just wanted to say well done for facing up to your problems, I know it must have been very difficult to come on here and admit it to a bunch of strangers.

I had a similar amount of debt when I started my debt free journey, I'm now nearly 2 years down the line and whilst I still have a long way to go I do feel a lot more comfortable about the amount of debt I have. Although it might not seem like it now, things will get easier. Keep posting and you will get some great advise from the knowledgable people on this board.

All the best in your quest to be debt free!

National_Debtline

Hi Cheryl

Glad to hear you are getting some assistance - I would like to think your fears will begin to subside once you can see that someone is actively dealing with creditors on your behalf.

Just one question - as you are based in Scotland, has a Debt Arrangement Scheme not been suggested? It would have the additional benefit of preventing any court action and further interest charges.

Dennis
@natdebtline

cherylclarke

Thanks so much everyone for all your replies and advice. I haven't even heard of a DAS - is that similar to the old Protected Trust Deed? I wasn't keen on that route as I want to pay all of my debts in full rather than have some written off, but open to any advice!

My SOA is below if anyone wants to have a look. I hasten to add that this is after CAP helped us to hammer out some figures -

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1277.02
Partners monthly income after tax....... 2250.63
Benefits................................ 82 (Child Benefit)
Other income............................ 0
Total monthly income.................... 3609.65

Monthly Expense Details
Mortgage................................ 683.6
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 146
Electricity............................. 40
Gas..................................... 64
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 100 (both mine and Husband)
TV Licence.............................. 12.55
Satellite/Cable TV...................... 57 (includes Broadband and Phone)
Internet Services....................... 0
Groceries etc. ......................... 240
Clothing................................ 30
Petrol/diesel........................... 100 (I have to commute by car)
Road tax................................ 13.75
Car Insurance........................... 28
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 64 (Husband's bus pass)
Childcare/nursery....................... 240
Other child related expenses............ 42 (School Lunches)
Medical (prescriptions, dentist etc).... 58.60 (Dentist and Glasses etc)
Pet insurance/vet bills................. 20
Buildings & Contents insurance..................... 19.62
Life assurance ......................... 8.58
Other insurance......................... 63.12 (Mortgage Payment Protection)
Presents (birthday, christmas etc)...... 50
Haircuts................................ 35
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 15
Charitable Giving....................... 10
Savings................................. 40
Union Fees.............................. 11.56
British Gas Homecare.................... 36.9
Total monthly expenses.................. 2304.28


Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 162000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 123000...(683.6)....Not sure of APR but less than 5%
Total secured & HP debts...... 123000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CAP Money......................34000.....1037......0
Laptop Repayments x 2..........302.05....60.41.....Not sure of APR
Loans from family..............7500......150.......0
Total unsecured debts..........41802.05..1247.41...-


Monthly Budget Summary
Total monthly income.................... 3,609.65
Expenses (including HP & secured debts). 2,304.28
Available for debt repayments........... 1,305.37
Monthly UNsecured debt repayments....... 1,247.41
Amount left after debt repayments....... 57.96

Personal Balance Sheet Summary
Total assets (things you own)........... 162,000
Total HP & Secured debt................. -123,000
Total Unsecured debt.................... -41,802.05
Net Assets.............................. -2,802.05