Hi i'm after some advice if possible

lostlight80

Hi all, i've just come across this site after trying to find some info on sorting out my debts. I'm currently looking into debt managment. I'm currently claiming incapcity benefit/income support so i'm having to face up to the fact that i can't keep up with the minimum payments for much longer.

I owe approx £4000 spread over Credit cards, store cards and catolgues. The catologue debt which amounts to approx £410 is currently being paid by my mum, who has very kindly agreed to do until the debts are settled. My question is, if i enter into a DMP do I have to include these catologue debts as they are still being honoured? Also as i haven't missed a payment to any creditor yet would they still consider reduced payments?

Thanks

sparklymessygirl

Hi Lostlight - welcome to the boards. Sorry I can't help you much with DMP but I saw this was already on page 2 of the boards so wanted to give it a bump...but I do suggest that you look at the resources bar at the top of the page and contact one of the free debt counselling organisations rather than pay anyone like the ones they advertise on tv.
I wonder why you want your mum to continue paying the catalogue? Why not default on that too and include it in the plan? I think that you are meant to include all your debts and default on all of them so that all creditors are treated equally.

Hope you get some specific advice from someone more clued up than me

Sparkly

chop595

Hi, I'm not sure where you would stand with a dmp and leaving out some of the debts but i'm sure someone will be able to help you soon. I've been reading this forum for the past few weeks and i'm in a similar situation to you, so i'll keep an eye on the thread. Have you tried CAD? they're pretty helpful and maybe able to help you with the debts.

rayday2

If you manage your own DMP you can include who you want. The national debt helpline has a payment calculator, debt pack and template letters and really is fairly easy. You will have to accept not all companies will be happy and there will be a lot of letters but several of us on here manage one so always someone who can help. Also I have rung national debthelpline once for support and they were fantastic could not fault them.

RAS

Hi
Weel done for addressing the issu now rather than once things got really hairy.

This is the link that you need for the debt charities.

http://www.moneysavingexpert.com/loans/debt-help-plan#help

trying-very-trying

Hi, and welcome. You have definitely come tom the right place for advice and support!
I would just like to agree with everyone above, make sure you use one of the charitable organisations in you are using anyone to manage your debt payment plan. I would also agree that you should add the catalogue payments to your plan. If you don't include these catalogue debts the temptation will always be there to run them up again. It's scarey, I know, but it can be done. Good luck.

debt_doctor

Hi , if your on income support, then you are in receipt of the minimum amount of money that the law says you need to live on.

Put a financial statement together, disposing of all your income, and include it with a letter along the lines of......

name


address

a/c no.


Dear Sir,

I am writing to inform you that I am suffering severe financial hardship at the present time, and can no longer afford my contractual payments.

I am relying on state benefits which just cover my basic needs, but would like to offer you a payment of £ 1.00 per month which I feel is realistic in my circumstances.

I would ask that you suspend all interest and charges on the account, and would be grateful if you could provide a paying in book, which I can use at a bank or post office at no extra charge.

Yours....................


If you tell me your income and family members I will do your fin. stat. for you .

Best wishes

lostlight80

Hi sorry i haven't replied sooner, i went to hide in bed for a few days. I did manage to phone my local cab office though and i have an appointment with a debt adviser on the 13th of next month. I'm still a bit undecided about the catalogues though, I Think it might be a good idea to include them but my main concern is that i stupidly used one of them recently. So i'm worried they may get a bit funny about it. Another thing that concerns me about entering into a dmp is that at the moment i have sky tv with the free broadband, i can cancel the sky as the contract is up at the end of october but the broadband isn't up until Jan so i'm not sure how this would work out. I don't really want to give up the internet access as i don't go out much and spend alot of time on the internet.

Thank you all for your advice, and kind words, it certainly made me feel alot better!

firesidemaid

glad you came back!

good for your for making your appointment with the CAB, i think you will come out of there feeling a lot better.

i know it is difficult, but try to stop/reduce the spending that created the debt in the first place. your recent catalogue purchase - did you really need it?

martin's mantra is great to say to yourself every time you are tempted - can i afford it? do i need it? can i get it cheaper anywhere else?

as you spend time on these boards you will see how to reduce your spending eg. on food on the old style board, on xmas presents on the xmas threads and general bargains for the times that you do really need to make a purchase.

good luck x

lostlight80

Thanks sazzacat, I've already made a start on reducing my outgoing's. I was making quite good progress on reducing my debt until a few months ago, it was around £9000, but I managed to pay off the student overdraft and a credit card. Then i had to quit work last december and unfortuanaly the boyfriend lost his job a few months ago. So we were only managing to pay the min off each debt. He's just been given early entry into a new deal scheme that will hopefully help him retrain, and get a better job. This lasts for about 13 to 26 weeks, I think, so that gave me the kick up the back side i needed to start sorting stuff out and living within our budget, as theres no chance of a job in the near future.

Sorry for babbling on, and thanks again for all the advice! I'll def have a look at the xmas pressie thread, my list seems to keep growing every year with friends and relatives having kids all the time. (selfish people lol)

Takecare lostlight80