Help me please

loubell

Right after speaking to citizens advice again seriously thinking of doing a DAS or DMP and trying to get a bit of a life again if they leave me enough money.Also would we be best trying to remortgage for a better rate while we can before we do that for the same amount i hasten to add ;?

loveka

You should get a better deal on your mortgage before entering into a DMP, because at that stage nothing will be showing on your credit file.

However, as you are not financially associated by any joint accounts, I would say it is better to do the DMP in your partner's name only, thus leaving your credit rating clear for any future mortgage deals. The DMP would also be based only on his earnings, which again will give you more to play with, i.e. your wages won't have to go toward the debt at all.

This is what we did and it has worked out well. In our case the debts were genuinely just my partners, run up in secret! We are now- exactly 3 years later- debt free. We have lived much more frugally than before, but have still had a holiday every year. Mainly because my income was separate. We also got a 5 year fix on the mortgage before the DMP started.

Please don't secure these debts against your home. A DMP is the answer, honestly. Citizens Advice gave us similar advice, and I know for a fact that we would really be in a dreadful place now had we followed it. Luckily I found this forum instead. Although I could still kill him for running up debts behind my back, which is a whole other story!

loubell

loveka wrote: »

You should get a better deal on your mortgage before entering into a DMP, because at that stage nothing will be showing on your credit file.

However, as you are not financially associated by any joint accounts, I would say it is better to do the DMP in your partner's name only, thus leaving your credit rating clear for any future mortgage deals. The DMP would also be based only on his earnings, which again will give you more to play with, i.e. your wages won't have to go toward the debt at all.

This is what we did and it has worked out well. In our case the debts were genuinely just my partners, run up in secret! We are now- exactly 3 years later- debt free. We have lived much more frugally than before, but have still had a holiday every year. Mainly because my income was separate. We also got a 5 year fix on the mortgage before the DMP started.

Please don't secure these debts against your home. A DMP is the answer, honestly. Citizens Advice gave us similar advice, and I know for a fact that we would really be in a dreadful place now had we followed it. Luckily I found this forum instead. Although I could still kill him for running up debts behind my back, which is a whole other story!

thanks for this i will ask the bank about the remortgage and look into that one person Dmp thing ,i didn't know that could be done although we are in Scotland and would probably be looking at a DAS, i hope the do that in DAS.

loveka

Have you contacted Stepchange or Payplan? They will probably attempt to do the arrangement on a household basis, but if you push it can be put in one name only.

You will have to pay the one debt in your name separately to the DAS though.

loubell

loveka wrote: »

Have you contacted Stepchange or Payplan? They will probably attempt to do the arrangement on a household basis, but if you push it can be put in one name only.

You will have to pay the one debt in your name separately to the DAS though.

Does anyone else know if this is possible that he could do this himself in a DAS ,i cant find any information on this ,we live together but everything is is in his name .....will they take mine and my sons benefits into his in and outgoings.?

loubell

Well you were right people,just wanted to add a couple of credit cards to my mortgage with a lower rate £20000 worth?
Must admit i was very tempted with the thought of getting my monthly outgoings down.

Pixie5740

Tempting but dangerous. Currently that £20k is unsecured and in his name. Not to mention that the interest you will pay on that £20k over the term of your mortgage will be astronomical. It's a quick fix that will bite you in the bum further down the line.

He really needs to speak with one of the debt charities to find out what his options are and what income and expenditure will be taken into account in a DAS. A DMP on the other hand is an informal agreement between him and his creditors so your income could be excluded.

From now on I'd steer clear of CAB if they are just going to push you toward an financial advisor to get you to consolidate.

loubell

Pixie5740 wrote: »

Tempting but dangerous. Currently that £20k is unsecured and in his name. Not to mention that the interest you will pay on that £20k over the term of your mortgage will be astronomical. It's a quick fix that will bite you in the bum further down the line.

He really needs to speak with one of the debt charities to find out what his options are and what income and expenditure will be taken into account in a DAS. A DMP on the other hand is an informal agreement between him and his creditors so your income could be excluded.

From now on I'd steer clear of CAB if they are just going to push you toward an financial advisor to get you to consolidate.

That was two different CAB,s as well.... never thought about the interest,but he has a card that has not went down in years so he already wasted thousands on interest.:(

the mortgage is over eleven years btw.

Pixie5740

I've done some rough calculations based on mortgage interest rates from 2% to 6%. Keep in mind though that at some point during the 11 years interest rates could rise and that if you fail to keep up with your mortgage payments your home may be repossessed.

2% £2,297.20
3% £3,505.94
4% £4,754.41
5% £6,042.25
6% £7,368.97

That's how much interest you would be on the £20k over 11 years.

If he is struggling to make a dent in his card balances that means that either you are still over spending and/or it's time to consider a DMP, DAS or other debt solution, not consolidation though. Consolidation doesn't actually reduce the amount of debt owed.

As other posters have said, it's time to put together a statement of affairs and contact a debt charity. Forget about CAB.

loveka

If he does this in his name they will not take your income or benefits into account, no. It would be just based on his income.

This is the case, honestly, we have done it!

As you have no financial association at all your credit rating will stay clear. But, as I said, fix your mortgage first just in case.

The only negative of a DMP/DAY is his credit rating will be ruined. But as the mortgage is in your name and you don't want any more loans or credit cards that really doesn't matter.