Debt and looks like a debt management plan

louisechackett

Over the years as a single parent I have accumulated £14k worth of debt. £12k on credit cards and the rest on catalogue and store cards.

I am just managing to meet minimum payments but as the end of the month comes I am dipping more and more in to my overdraft and cards to cover things. I wanted to get a loan to pay them all in one but I can't.

I contacted stepchange and they advised a debt management plan and I am terrified. Has anyone any words of advice on what to expect or anything? I know some friends who have gone through the same and claim whilst it is hard at first it is best to get it done and break those debt ties.

I have started the process of changing my bank account using a switching service as I have debts with my bank and understand they can take what they like from your bank when you start this kind of thing.

I have anxiety disorder and depression but I am starting to think I am a burden on my ten year old and everyone else and perhaps I just would be better off not here. I then give myself a shake and realise he needs me so I need to do something about all of this.

make_the_change

louisechackett wrote: »

Over the years as a single parent I have accumulated £14k worth of debt. £12k on credit cards and the rest on catalogue and store cards.

I am just managing to meet minimum payments but as the end of the month comes I am dipping more and more in to my overdraft and cards to cover things. I wanted to get a loan to pay them all in one but I can't.

I contacted stepchange and they advised a debt management plan and I am terrified. Has anyone any words of advice on what to expect or anything? I know some friends who have gone through the same and claim whilst it is hard at first it is best to get it done and break those debt ties.

I have started the process of changing my bank account using a switching service as I have debts with my bank and understand they can take what they like from your bank when you start this kind of thing.

I have anxiety disorder and depression but I am starting to think I am a burden on my ten year old and everyone else and perhaps I just would be better off not here. I then give myself a shake and realise he needs me so I need to do something about all of this.

I too am new to the DMP journey and it's terrifying. I struggle to sleep, have suffered PND several times and financial worries have made me very scared. But the DMP thread has been amazing with lots of lovely people with fantastic advice and help. Good luck x

HappyMJ

louisechackett wrote: »

Over the years as a single parent I have accumulated £14k worth of debt. £12k on credit cards and the rest on catalogue and store cards.

I am just managing to meet minimum payments but as the end of the month comes I am dipping more and more in to my overdraft and cards to cover things. I wanted to get a loan to pay them all in one but I can't.

I contacted stepchange and they advised a debt management plan and I am terrified. Has anyone any words of advice on what to expect or anything? I know some friends who have gone through the same and claim whilst it is hard at first it is best to get it done and break those debt ties.

I have started the process of changing my bank account using a switching service as I have debts with my bank and understand they can take what they like from your bank when you start this kind of thing.

I have anxiety disorder and depression but I am starting to think I am a burden on my ten year old and everyone else and perhaps I just would be better off not here. I then give myself a shake and realise he needs me so I need to do something about all of this.

If you arrange a DMP you will have lose access to your overdraft and credit cards due to the defaults that will be registered against you.

There are pros and cons. If you can't afford your debts then you've got to do something. You've either have to increase your income or minimize your expenses. You can reduce debt repayments down to £1 per month which shows you acknowledge you still owe the money which hopefully will prevent the creditor from taking further more serious action.

louisechackett

Thank you x

sourcrates

Owing money can be a real stinker as your mind goes through all kinds of different senarios as to what could happen.

In reality, very little will happen, I've said this to people many times, there public companies, not loan sharks, there not going to "send the boys round" or torch your car if you don't pay.

You acknowledge you need to do something, debt management is a good start, try and budget correctly, be on the best tarif for everything, try not to overspend on things you don't need.

The world will not end because you don't pay your credit card bill.

The more proactive you are about things, the more in control you will feel, have a read of the DMP support group thread, plenty of folk there in the same boat as you.

louisechackett

sourcrates wrote: »

Owing money can be a real stinker as your mind goes through all kinds of different senarios as to what could happen.

In reality, very little will happen, I've said this to people many times, there public companies, not loan sharks, there not going to "send the boys round" or torch your car if you don't pay.

You acknowledge you need to do something, debt management is a good start, try and budget correctly, be on the best tarif for everything, try not to overspend on things you don't need.

The world will not end because you don't pay your credit card bill.

The more proactive you are about things, the more in control you will feel, have a read of the DMP support group thread, plenty of folk there in the same boat as you.

Thank you. I plan on having a good read through the forum. It's been a learned behaviour to live beyond my means and I need to unlearn that but since I met my partner and realised this is a dire situation I have really been cutting down.

I need to ring stepchange on Monday as currently I have just done the online thing and whilst I have forms to send back and things I wonder what I do with the next payments likely to be coming out at the start of next month.

rockabillygirl

Hi louisechackett, just wanted to post to wish you the very best of luck with your journey. I know how emotionally draining and overwhelming debt can be, but you are taking positive steps. Hold close the love for your son as a way to stay focused. Plus there's great support on here x

January2015

louisechackett wrote: »

I need to ring stepchange on Monday as currently I have just done the online thing and whilst I have forms to send back and things I wonder what I do with the next payments likely to be coming out at the start of next month.

Immediately cancel next month's direct debits to non-priority debts such as credit cards.

Phone all non-priority debts and explain you are working with Stepchange to set up a debt management plan. That will immediately put a 30 day hold on fees, charges and phone calls chasing payment. If when you get to the end of 30 days you are not quite ready with Stepchange you can call and extend for a further 30 days. Creditors are quite used to this and to be honest once you tell them you are working with Stepchange they are ok with you.

Good luck - DMP was the best financial decision we ever made

louisechackett

Ah right. Will do that. Thank you.

When_the_going_gets_tough

Op depending on your situation you may want to take advice over a more formal debt solution such as a dro. It would depend on your assets and income but if the dmp would have to run for many years it might be worth thinking about.

fatbelly

You have 14k of debt. If you are not a homeowner and have less than £50 per month to pay your creditors, then a DRO is the way forward.

A DMP is sensible if you can afford at least 200 per month.

Between those figures a DMP starts to drag on a long time and (again if you do not own property) bankruptcy, accepting that you will pay your surplus for 3 years may be a better option.