DMP & Mutual Support Thread - Part 11

SuperMario3

Hi guys, first time poster but long time reader! I'm currently in debt with credit cards (4) and 1 loan totaling over £30k. After everything is paid off per month, i'm left with around £200 to live on. I've recently heard of StepChange and have applied. I just wonder if people can talk me through what I am to expect if I go the StepChange route. I've always made payments and have never missed anything so that has me a little worried. Also, I live with family. Will my credit rating changes have any affect to them?

KID77

Hi Cat
I personally would clear your debts first since you are not in any kind of dmp and that will keep your credit file in shape.
Can you tell us what that would leave profit wise from house sale and amount of your partners outstanding debt? You may be able to offer partial settlements on his debts.
I am no expert so this is just my thoughts and someone else may offer different advice.

Good luck
xx

Brogden

cat1978 wrote: »

Good Afternoon,

I've been lurking for a few months, trying to get my head around things. My partner is on a dmp with SC, and has a debt free date of 2056 :eek::eek: no it's not a mistake. Basically we were told that this would be ok because we were doing his house up to sell so that we could clear his debts (which his ex wife agreed with). During this time we have increased my debt as I have funded the house renovations, SC said this was ok as I would have to be paid back before any other debt, and the house value increase would cover this. Fastforward to present day, the ex wife has done a number on him and claimed £12,000 of the house profit from when it sold, plus the £2k in legal fees it has cost us to get to this stage. We now do not have enough money to clear our debts.

My head is spinning from thinking about all this, and I'm not sure on our best path forward. Do we pay off part of his dmp? Or clear my debt and see what's left at the end to put towards his dmp? etc etc.

I know you can't give me answers, but any suggestions would be gratefully received

Thanks

Cat

Look at clearing the debts where you can get best value for your money! If your partner's have defaulted and (hopefully) been sold on then it is realistic to expect a substantial discount on final settlement figures.

Having said that if your debts are accruing interest (his presumably aren't) then without knowing figures it is very difficult to say what to clear first.

To help you to work this out you could try some offers to your partner's creditors to help to get a picture. This could be very good news for you when you do know........:)

Time_to_face_the_music

make_the_change wrote: »

Hi,

Can you claim back charges for being in your overdraft? I am interested in this as been making token payments for a while now, overdraft maxed out and has been for a while and interest is massive x

Hi make_the_change :hello:

Check out this Martin Lewis article for information on claiming back bank charges when in financial hardship:

http://www.moneysavingexpert.com/reclaim/bank-charges

TTFTM x

System

Hi guys, need a bit of advice again. The DMP was going along nicely and then when I got made redundant we reduced to token payments for 3 months until I got sorted in a new job. Well the new job didn't work out and I now only have something a few hours a week, but I have just also managed to get some casual work, but because it is casual there is no guarantee of how much I will get each month ( if any at all sometimes). WE have been paying £670 a month originally and then reduced to £80 for the 3 months. Well I have just worked out that we can only afford £250 a month, based on my guaranteed wage but may be able to offer extra some months with the casual work.
So question is, would it be ok to explain this to SC and ask if we can pay extra some months? Has anybody had any experience of this at all?

cat1978

Sorry, I only gave you half the information you needed yesterday.

My debt:
Loan - £6500 - interest charged
CC - £3000 - interest charged
CC - £4000 - no interest - due to end sept
CC - £2500 - no interest - not sure when it ends

OH debt on dmp: £31000
Can't remember the breakdown, but there's a loan, 2 credit cards, 2 bank accounts and a utilities bill (I think that's it off the top of my head).

We haven't got the money from the solicitors yet, but think it should be approximately £28000.

I had also thought he should try and claim back bank charges, because I know things kept bouncing and he couldn't keep up minimum payments on his cc, so that will have charges on as well.

Thanks

Cat

make_the_change

Time_to_face_the_music wrote: »

Hi make_the_change :hello:

Check out this Martin Lewis article for information on claiming back bank charges when in financial hardship:

http://www.moneysavingexpert.com/reclaim/bank-charges

TTFTM x

Thank you x

FunBrum

Hi folks.
Just to recap. I was four years into a DMP that wasn't managing my account properly and charging me just to rub salt into the wound! :mad:
Thanks to the advice on here, I cancelled my direct debit with them. Cancelled my plan with them and contacted StepChange.
They have advised me to go down the 'Pay £1 token payment' route, as my income is so low.
They were great and so I'm just waiting for the paperwork to come through.:T

I just want o thank all the guys on here especially Sourcrates, puzzcat and many more fore all their advice and endless support. :T

I'm sure I'm going to have a fight on my hands but I'm stronger thanks to the support on here and will no doubt be asking more questions as things transpire.:)
Thanks again :A

KID77

Hi Cat

I personally would pay all of your debt off from the sale proceeds as you say your debt was incurred from house renovations if I remember correctly.

This would leave just over £10k to pay your partners DMP so just over 30%. I would offer all creditors 20% but dont tell them where the funds came from. Probably unlikely to accept but you never know. Some may come back with a counter offer and you can decide which to accept and pay off. I dont imagine you will clear all his debt but hopefully you can get rid of alot of it i.e. £20k for £10k if that makes sense. Then he can just continue to pay his dmp and the date should be alot sooner. Read the full and final settlement help thread and that should hopefully give some guidance.

xx

Sazzie23

cat1978 wrote: »

Sorry, I only gave you half the information you needed yesterday.

My debt:
Loan - £6500 - interest charged
CC - £3000 - interest charged
CC - £4000 - no interest - due to end sept
CC - £2500 - no interest - not sure when it ends

OH debt on dmp: £31000
Can't remember the breakdown, but there's a loan, 2 credit cards, 2 bank accounts and a utilities bill (I think that's it off the top of my head).

We haven't got the money from the solicitors yet, but think it should be approximately £28000.

I had also thought he should try and claim back bank charges, because I know things kept bouncing and he couldn't keep up minimum payments on his cc, so that will have charges on as well.

Thanks

Cat

Hi Cat

Yes to claiming PPP, bank charges and anything else you can think of.

Regards the proceeds of house sale, where are you planning to live, will you need anything for deposits/fees etc ?

Saz