DMP & Mutual Support Thread - Part 11

January2015

wigglykoala wrote: »

Hey Guys,

I've read through about 5 of these forum pages to try and get my head out of a wobble and to make a decision on my money problems.

I'm female, 31, body clock a-ticking and living in a shared house with my boyfriend (it's one of his mother's houses -- so not so bad but not really a home as such!)

So 30k of debt: 9k on a loan, 3.5k on an overdraft and the rest on credit cards. Had this debt for waaaayyy too long, not only is it not going down but it's the only tie to a rubbish relationship I left over 5 years ago now, and I want it gone to be properly free from the bad times etc.

I started looking at PayPlan they first recommended bankruptcy and that scared me a lot so I started looking at a DMP with them or going DIY.

I firstly got scared of the bankruptcy because well one day in the next 5 years I'd like to chuck the housemates out and move a baby in... and reducing my hours at work to pop one of them out and being bankrupt seemed too much of a risk.

But now that I'm thinking about it more maybe it is the right move? Or maybe DIY DMP (maybe it's a control thing - maybe I think I can do this better myself...)

My head is kinda all over the place right now and this seemed like a good place to turn to ask for advice.

I won't be popping any babies out until this debt is gone! -- which also scares me!

Any words of wisdom or a slap back into reality would be greatly appreciated!

Justine

How long would a DMP take? For me a DMP is forecast to take far longer than an IVA would. I couldn't go down the IVA route as it would have a serious negative impact on my employment. If it hadn't I would have preferred to have a far shorter timescale.

Try the Stepchange debt remedy tool and see what they recommend as well. You don't have to go with either payplan or stepchange, but using their tools gives you a good idea of where to start.

If you are thinking of going down the self-managed route you must be sure you really have had your lightbulb moment (LBM) and you will be able to control your spending, live within a set budget and make agreed monthly payments to creditors - aka predators;)

For us, we started with Stepchange last March and are just moving to self-managed. We felt we needed that time to get our heads around the reality of our situation and to have some focus on clearing debts instead of running them up. We now feel confident enough to move to self managed.

You will find masses of support on this forum. All I can say, is definitely stay committed to visiting the DFW forum everyday. You don't have to post everyday if you don't want, but the motivation, inspiration and best of all the support from others who either have been, or still are, in a very similar situation to you is awesome.

Good luck with whatever you decide....others will be along to give you far more practical and better advice than me very soon :beer:

sourcrates

wigglykoala wrote: »

I started looking at PayPlan they first recommended bankruptcy and that scared me a lot so I started looking at a DMP with them or going DIY.

I firstly got scared of the bankruptcy because well one day in the next 5 years I'd like to chuck the housemates out and move a baby in... and reducing my hours at work to pop one of them out and being bankrupt seemed too much of a risk.

Hi Justine,

Well the average Bankruptcy lasts 12 months, after which you are discharged.
You may have to make payments towards it for up to 3 years, it all depends on your personal circumstances.

Certainly in 5 years time it would be over, and off your credit file another 12 months later.

It can be daunting deciding which choice to make, Januarys advice about checking out the stepchange "debt remedy tool" is good, basically a DMP would likely take you a long time to complete, an IVA would be 6 years, Bankruptcy (normally) a lot less than that, again, you make your decision according to your personal circumstances.

Sazzie23

wigglykoala wrote: »

Hey Guys,

I've read through about 5 of these forum pages to try and get my head out of a wobble and to make a decision on my money problems.

I'm female, 31, body clock a-ticking and living in a shared house with my boyfriend (it's one of his mother's houses -- so not so bad but not really a home as such!)

So 30k of debt: 9k on a loan, 3.5k on an overdraft and the rest on credit cards. Had this debt for waaaayyy too long, not only is it not going down but it's the only tie to a rubbish relationship I left over 5 years ago now, and I want it gone to be properly free from the bad times etc.

I started looking at PayPlan they first recommended bankruptcy and that scared me a lot so I started looking at a DMP with them or going DIY.

I firstly got scared of the bankruptcy because well one day in the next 5 years I'd like to chuck the housemates out and move a baby in... and reducing my hours at work to pop one of them out and being bankrupt seemed too much of a risk.

But now that I'm thinking about it more maybe it is the right move? Or maybe DIY DMP (maybe it's a control thing - maybe I think I can do this better myself...)

My head is kinda all over the place right now and this seemed like a good place to turn to ask for advice.

I won't be popping any babies out until this debt is gone! -- which also scares me!

Any words of wisdom or a slap back into reality would be greatly appreciated!

Justine

Hi Justine,

Well done for realising debt is a problem to deal with not just to live with. Making life changing decisions like this are tough, in your case you have time to think about it. Bankruptcies and IVAs are pretty much irreversible as far as I know, more of a shorter sharp pain, whereas for those with high debts a DMP is a slower solution, more of a long lasting ache.

I can't really give a balanced view of the alternatives as I don't have personal experience, but I can tell you that for most people a DMP screws your credit, possibly for a long time, but if you have a partner or someone else how can get credit for a mortgage or car if you needed it, might not be so bad. Also living on a DMP budget for a long time, is certainly not fun, but it does challenge your thoughts of what you want or need. Many going into DMP though have struggled for a long time making the repayments so actually the DMP budget gives them more freedom.

I'd also recommend the stepchange debt remedy - on line, free,, anonymous and no strings, but I'd also say, look at the snowballer, and possibly post your Soa on the main DFW page and consider putting yourself on a DMP budget see how it feels, if you can live with it, then decide?

Good luck.

wigglykoala

Sazzie23 wrote: »

Hi Justine,
...consider putting yourself on a DMP budget see how it feels...

Excellent idea. I opened a new bank account yesterday. I'll move my budgeted money into it when I get paid on Friday. I've tried a weekly spend cash-only budget before but found myself tripping up when I bought something online.

Thanks very much for all your help everyone. I've got a friend who loves to negotiate and push at these things so he said he'll sit with me and go through ringing all the creditors this week. I think my problem is that I know I fold too easily so get nervous at the thought of fixing this.

"oh, you can't help me, ok I'll just plod along by myself for a bit longer then!"

I'll be checking in here every day! Gotta keep focussed!

zenshi

F and F letter sent today to the DCA dealing with my H......X CC. It works out that I have offered 40%c. The account defaulted Sep 14 and only token payments are being made

Fingers crossed!

blisteringblue

sourcrates wrote: »

Depends if you ever want credit again really.

I'm 50 this year, and have decided not to keep playing the game anymore.

If I want anything now, I will save for it, not ask a bank to fund my dreams, depends on your age really, you may need a mortgage in the future, so you have to keep playing the game, I have decided the game is not for me, so I won't play anymore.

One day, you will see the game isn't fun anymore, then you won't play the game anymore either !!

January2015 wrote: »

I think I am choosing the bits of the game I want to play and the predators don't want to play. Currently I am playing for 'Bank error in your favour' aka predator can't produce CCA documents

That said, I never want credit ever again - so in that respect I'm not playing that game.

Little_Miss_Sunshine wrote: »

I agree with you sourcates. I'm 50 in a years time. Our mortgage will be paid off when I'm 52. I don't want to play the game anymore either. We're never having credit ever again so it doesn't really matter what happens to our credit file. My plan is to pay the bare minimum only on what's enforceable and then offer F&FS within the next 2 years. The unenforceable we'll fight. I look back and I can't believe how much credit was thrown at us. We were trapped

Can I join this middle age club :beer:

Likewise, it's now all about getting it paid off by paying as little as possible. They've had their pound of flesh. I was the same, £200 Access card at 18 and been downhill ever since.

Please everybody feel absolutely no guilt about defaulting, paying less, playing the game and going unenforceable.

Record low interest rates for almost a decade and credit card rate jacking to 40% is just morally corrupt, whichever way you look at it. Yes the dudley doo rights will say they have done that because of people like us. And do you know what, I care not one iota.

It really is a game, and unfortunately it's taken me 30 years to learn the rules

But my credit rating is surplus to requirements these days now so I really don't need to worry. Although having said that, even mid DMP my noddle account still shows credit cards that I am 66% likely to be accepted for. So it would appear your credit rating really isn't an issue however bad it gets

Boldhoof

zenshi wrote: »

F and F letter sent today to the DCA dealing with my H......X CC. It works out that I have offered 40%c. The account defaulted Sep 14 and only token payments are being made Fingers crossed!

Keep us informed on how you get on. I have another 5 waiting on their responses, hopefully this week.

Brogden

blisteringblue wrote: »

Can I join this middle age club :beer:

Likewise, it's now all about getting it paid off by paying as little as possible. They've had their pound of flesh. I was the same, £200 Access card at 18 and been downhill ever since.

Please everybody feel absolutely no guilt about defaulting, paying less, playing the game and going unenforceable.

Record low interest rates for almost a decade and credit card rate jacking to 40% is just morally corrupt, whichever way you look at it. Yes the dudley doo rights will say they have done that because of people like us. And do you know what, I care not one iota.

It really is a game, and unfortunately it's taken me 30 years to learn the rules

But my credit rating is surplus to requirements these days now so I really don't need to worry. Although having said that, even mid DMP my noddle account still shows credit cards that I am 66% likely to be accepted for. So it would appear your credit rating really isn't an issue however bad it gets

Interesting thoughts on 'the middle aged club' and 'the game' !! I like these posts a lot.

There are younger people on this thread but for us 'middle aged' ones, I do think everything can look a little different. Whilst I am cursing myself for having a substantial amount of mortgage left (consolidations contained therein )......I do not have any thoughts at all about getting another one or remortgaging and there is great comfort for me there

By the time we get to middle age we have had enough of a lot of 'the games people play' and we've tried them ourselves and probably have the badge and the teeshirt too. We are sick to death of a lot of the cr*p :mad: !!

This is an odd thing to say but I am, in a way glad I that I got into uncontrollable debt and entered a DMP and went through everything I have in the last few years It is a free hobby for one thing :rotfl:. Seriously though........my experiences have caused me to look at everything I do, to evaluate where I stand in the scheme of things and work out how I will make myself and the family OK for life. Middle age.......taking stock.......being realistic .

I do not need a 4x4 with a jetski on the roof, pulling a speedboat. I do not need expensive golf clubs. I do not need to stay in The Ritz. Not only do I not need any of these things, I do not want them. I do not like them. The mention of them makes me sigh and roll my eyes........ The thought that somebody would like to stand in front of me and make themselves look big with these things makes me want to puke :mad:.

Remember we all used to live in caves and wear bearskins and in many ways we were then much better off than we are now in the world of advertising / sponsorship / CREDIT :eek: !!!!!!!!

Middleaged rant over. Have a great day everybody.

January2015

Brogden wrote: »

I do not need a 4x4 with a jetski on the roof, pulling a speedboat.

I don't need the jetski or the speedboat, but please Sir!, can I have the 4x4 if you don't want it

Puzzcat

Well brogs, January wants the 4 x 4, I am having the stay at the Ritz (paid for by payday loan apparently! comment on my diary..) So that leaves the jet ski and boat up for grabs... Any takers?
Love Puzz.x