where to start

zenshi

fishfinger1 wrote: »

So in the letter do I put my suggested monthly payments and ask them to freeze interest on the account. Also do I need to make my payments to an amount that will see the balance paid off within the 6 year period. Or should I just be offering what I think I can comfortably afford

Until you decide exactly how you're going to proceed in DMP etc then I would offer a token payment. Write to each creditor TELLING not suggesting, that this is the amount you can afford to pay at present. In the letter ask for all interest and charges to be stopped.

Set up standing order for the token payments, lest you forget one month. Do not do direct debit which most of them will ask for

KirstyO

fishfinger1 wrote: »

Will bankruptcy put an end to any hope of ever being able to get a mortgage in the future

As others have said - not necessarily.


From personal experience of being in a DMP I have been able to get a mortgage less than a year after finishing DMP and less than 4 years into the 6 years of a default.


I don't imagine everyone in my situation would be offered the same product, as my circumstances have dramatically changed since I first went into DMP. It may take longer with a bankruptcy. I don't have experience but I imagine you would need to be beyond the 6th year so that it was off your file. This all depends of course what you were planning and hoping for the next 6 years. If you're in this much debt, I would hope you have no savings (and if you do they NEED to be thrown at this debt asap) which means it will probably take you a good length of time to be in a position to have a deposit and fees ready anyway.


If you're looking beyond 6 years and you're happy to accept that certain products/companies will always reject bankruptcy whether it is old or recent then go for it. There are some companies who won't accept anyone who has ever had a ccj or anyone who has a default on their record. It's an impossible game to know who offers what and to whom, but most importantly it is your life and your decision. if a DMP is going to be longer than 6 years and doesn't seem to you financially possible then go down bankruptcy route after April when the changes are announced.


Bear in mind that whatever decision you make it will have repercussions including any kind of contract or credit agreement including paying for insurance by instalments, mobile phone contracts, and apparently getting a contactless debit/credit card seems to be affected by credit-worthiness too!

fishfinger1

KirstyO wrote: »

As others have said - not necessarily.


From personal experience of being in a DMP I have been able to get a mortgage less than a year after finishing DMP and less than 4 years into the 6 years of a default.


I don't imagine everyone in my situation would be offered the same product, as my circumstances have dramatically changed since I first went into DMP. It may take longer with a bankruptcy. I don't have experience but I imagine you would need to be beyond the 6th year so that it was off your file. This all depends of course what you were planning and hoping for the next 6 years. If you're in this much debt, I would hope you have no savings (and if you do they NEED to be thrown at this debt asap) which means it will probably take you a good length of time to be in a position to have a deposit and fees ready anyway.


If you're looking beyond 6 years and you're happy to accept that certain products/companies will always reject bankruptcy whether it is old or recent then go for it. There are some companies who won't accept anyone who has ever had a ccj or anyone who has a default on their record. It's an impossible game to know who offers what and to whom, but most importantly it is your life and your decision. if a DMP is going to be longer than 6 years and doesn't seem to you financially possible then go down bankruptcy route after April when the changes are announced.


Bear in mind that whatever decision you make it will have repercussions including any kind of contract or credit agreement including paying for insurance by instalments, mobile phone contracts, and apparently getting a contactless debit/credit card seems to be affected by credit-worthiness too!

I have absolutely zero savings. But sometime within the next 10 years I will be getting some inheritance. But the last thing I want to do with that is use it to pay off debts. I would obviously like to use it as a nice deposit on a house. If I go down the Dmp route I reckon it will take me at least 8 years to get it all paid off

fishfinger1

Well here goes finally ringing stepchange

KirstyO

How did you get on fish?

fishfinger1

KirstyO wrote: »

How did you get on fish?

Good afternoon. I spoke to an advisor in depth for about an hour and a half. They went thru all the budget with me are a going to post me out their findings and solutions I think I need to do my budget again tho as it didn't quite work out right. It was showing I had minus £10 every month before and credit card payments are made. Think I got a little confused. My pay is £629 every 2 weeks but every month I pay out £600 rent £136 council tax and £80 on mobile phones and £80 on energy bills. They are my only direct debits. Which leaves me approx £450 but obviously I contribute to other things within the houshold like food petrol etc. So I'm a little confused how much I have spare for bill repayments

fishfinger1

Good morning just an update on my situation. Thanks for all your help and assistance im now feeling much more positive. Having spoken to stepchange I now have some clarity and really can see that bankruptcy is my best option. Just waiting for April now so I can apply online

KirstyO

At least you have had advice now, and know what your best option is. There will be plenty of people on here who can hold your hand and give you encouragement and reassurance. I haven't been down that road to offer advice, but I wish you well, and look forward to hearing the day when you're finally sorted and can stop worrying about it all


Good luck fish!

fishfinger1

KirstyO wrote: »

At least you have had advice now, and know what your best option is. There will be plenty of people on here who can hold your hand and give you encouragement and reassurance. I haven't been down that road to offer advice, but I wish you well, and look forward to hearing the day when you're finally sorted and can stop worrying about it all


Good luck fish!

If only everybody with money problems knew about this forum. I cant tell you how pleased I am that I stumbled across it. I will definitely keep you posted