To DMP or not?

Flower24_2

I have debts of around £9000. I can only afford to pay the minimum payments on everything each month, meaning that I'm never making a dent in these debts. The main debt is a barclaycard with around £3500 owing. The minimum payment for that alone is over £90 a month. Others are credit cards with smaller limits, a £2000 overdraft that I'm never out of and a couple of store cards. I've been trying not to use any of them however I used the barclaycard last month as we had run out of money. I can't really see a way out, I am working 37 hours a week as is my husband, and feel resentful that we don't seem to see any benefit from my hours, I haven't gained anything from working more hours as childcare is more and tax credits dramatically reduced. Just to add some more to the mix we are expecting another baby (we have two older children). My contract at work ends at the end of March due to lack of council funding so I am only eligible for SMP and will not have a job to go back to (not that I think it'd be financially feasible to pay nursery fees and wraparound care fees for my other two children).

So my question is should I go for a DMP? And can I do so without it affecting my husband? Our car is leased and in his name, we need the car.

sourcrates

Hi,


Welcome to MSE.


To quote the lyrics of the Fleetwood mac song, "ya gotta break the chain", otherwise things will never change for you.

Your best bet is to go to the stepchange website, they have an online debt tool, you simply put in all your information, and it recommends a debt solution for you.


Its totally anonymous, give that a go first, then maybe think about posting up a statement of affairs (SOA) so we can see where any potential saving could be made first.

Flower24_2

I guess it's because I know I spend money where I shouldn't, nothing huge, but fast food or trips to coffee shops too often. I've been telling myself we need to keep a lid on it and try and save but I'm struggling. I have anxiety and depression which doesn't help. No holiday for summer, trying to occupy the children without spending money when the weather is bad is nigh on impossible. I don't want everyone to be miserable because of my stupid mistakes.

National_Debtline

Hi

I agree completing a SOA and posting it here is a good place to start. Getting an overview of your finances helps to focus and I’m sure you’ll get help and tips from people on areas you can make your money go further. Allowing some money for emergencies and even doing things with your children is still allowed within reason.

If you can’t realistically afford the minimum contractual payments on your debts then a free DMP could be a good idea. Just make sure you do a free one with Stepchange rather than paying a company a fee. Some people prefer to be more in control and negotiate themselves but a lot of people like only having to make one monthly payment in a DMP.

Although it’s not guaranteed, often Stepchange are able to negotiate frozen interest on credit debts, so that really helps with clearing the balances down.

James
@natdebtline

fatbelly

Any joint accounts or joint debts? If no, then nothing you do will affect your husband's credit file.

It sounds like a dmp to me and then review when you go on to SMP.

If you can post a SoA we'll have a closer look.