Feeling very stressed!

sonny252

So to cut a long story short after a few bad decisions (credit cards, catalogues etc) and my father passing away I've ended up in a bit of a downward spiral debt wise.

I've finally decided to try and pick myself up and contacted Stepchange, they've recommended a DMP which I know a lot of people here have used.

Really not enjoyed having to list down all my debts and how much I actually owe (really think I tried to ignore this)!

Hoping that I won't have to continue with the DMP for too long, the probate for my dad's estate is due to be finished at some point this year (hopefully expecting around £3-4k) so I'm really hoping that this will be a good contribution.

Any more advice would be very gratefully received! Not really sure what to do with myself.

Bonfire_Bride

Just want to wish you good luck and congratulate you on making the first step!

havecourageandbekind

sonny252 wrote: »

So to cut a long story short after a few bad decisions (credit cards, catalogues etc) and my father passing away I've ended up in a bit of a downward spiral debt wise.

I've finally decided to try and pick myself up and contacted Stepchange, they've recommended a DMP which I know a lot of people here have used.

Really not enjoyed having to list down all my debts and how much I actually owe (really think I tried to ignore this)!

Hoping that I won't have to continue with the DMP for too long, the probate for my dad's estate is due to be finished at some point this year (hopefully expecting around £3-4k) so I'm really hoping that this will be a good contribution.

Any more advice would be very gratefully received! Not really sure what to do with myself.

Hi Sonny252,

As someone who has just started a DMP with Stepchange this month, thought I'd pop in and wish you luck on your journey. I can't offer much advice but I found reading the DMP mutual support thread on this forum pretty helpful. Sorry, but I can't post the link as I'm a newbie.

I've also found it useful to set up a budget (I'd never done this before). Mines is pretty basic, I run it on excel, but it looks like it'll be a success as I'm coming to the end of the month without being overdrawn for the first time in years!

I've also found it useful to sign up for a couple of the debt free wannabe challenges, it makes me question where some of my pennies go and reading how well other people are getting on is motivation for me to sort myself out!

Best of luck.

National_Debtline

Hi Sonny

I’m sorry to hear about your father.

Starting the ball rolling and taking advice is the hardest part of dealing with debts for a lot of people so well done.

If you do receive a lump sum of £3k - £4k it may be worth making full and final settlement offers, although that will depend on how much you owe altogether and the rest of your circumstances.

James
@natdebtline

Lungboy

I can't really offer much advice, but I've read on this forum many times that it's good to speak to multiple agencies about your situation, so Stepchange is a good start but also National Debtline, CAB etc. to get a much better informed outlook.

andyfromotley

Sorting things out properly is always stressful. it does get easier, hang in there.

sonny252

Hi Everyone!

Thanks for all your comments, really appreciated.

I'm starting to see the silver lining today! I've opened a new bank account (as worried about Barclays taking money due to my barclaycard). I'm filling in the Debt management plan with all the details needed and I've started budgeting.

There's only a few more weeks to go until I should know the amount I will be receiving through the probate so hopefully that will be slightly positive and should hopefully cover at least half of my debts (the main ones at least).

I've totalled it up that I owe around £7200. Now I've got that figure at least I have something to work towards! I have some photography equipment & musical instruments too which I'm hoping will at least make a slight dent in this amount.

dancingfairy

The debt is not actually any worse than it was. It's only scary as you are looking properly at it and not hiding away from it.
The goods news is that from here it's downwards You'll never see it that high again (well assuming you learn from your past mistakes).
Not too much and you can push it under the 7k barrier, that'll be the first milestone gone.
It's not horrendous, yes, it probably feels horrendous to you right now but it's definitely doable.
df

King_Slayer

Congratulations on taking the steps to manage your debts. It is always best to be transparent so you can get the best assistance possible. Good luck and I hope it all goes well for you.

sxcizme3010

Can I ask, Whats a debt management programme.. Is it the same as an IVA? Is it a formal agreement etc?

sourcrates

sxcizme3010 wrote: »

Can I ask, Whats a debt management programme.. Is it the same as an IVA? Is it a formal agreement etc?

DMP (debt management plan) is an informal arrangement between you and your creditors, you basically divide your available income for debt repayment, equally between your creditors, in return, they will (hopefully) stop adding interest and charges, and allow you to repay your debts at a lower rate than you were originally contracted to.

An IVA is a formal regulated agreement, as you say, with more stringent criteria to follow, whereas a DMP is not.