Lots of debt helo needed please

poppasmurf_bewdley

sourcrates wrote: »

Good pick up pops.


I thought about a DRO, but the OP has assets, ie, a car, which on paper, looks like its worth more than a grand unfortunately.

Oops, missed that. I just looked at the assets column which read 0,0,0,0,0,0.

Hopefully, the OP can clear up what the worth of the car is. It may even be to their benefit if they lose the car.

nkkingston

Maximum debts for a DRO are £20k. It may depend if they're split between the couple - some are in one name and some in the other - but if they're all in one or there's joint liability it may not be possible. Also, you list a car but it's neither an asset nor appearing as being on HP etc. If it's worth over £1000 that would scupper a DRO too.

For water saving, check out savewatersavemoney to see if your local water company offers any water saving kits for free. You can get fittings for taps and showers to reduce the amount of water you use there, too.

Debtfreewannabe55

Thanks all for your advise. Just been on step change and done their online form which indicates a DMP would be the best option not a DRO, IVA or bankruptcy.
I'm just looking at what a DMP is and what the implications are etc.
The car, we have a car loan which ends in 2 years so didn't think that was an asset because we don't actually own it?

cms-help

Debtfreewannabe55 wrote: »

Thanks all for your advise. Just been on step change and done their online form which indicates a DMP would be the best option not a DRO, IVA or bankruptcy.
I'm just looking at what a DMP is and what the implications are etc.
The car, we have a car loan which ends in 2 years so didn't think that was an asset because we don't actually own it?

Any of the debt solutions will damage your credit rating, which you said you didn't want to do. It's fine if you accept that will happen and credit will be a thing of the past for at least 6 years. A DMP would give you the breathing room you don't currently have and you should get some interest frozen to stop the debts increasing.

Do you keep the car once the loan is repaid? If so it's an asset whilst you're repaying the loan.

Debtfreewannabe55

Thank you for clarifying for me. I really don't want to go to a debt solution I'm just checking the options I guess.
Yes we get to keep the car once loan is paid off

sourcrates

Debtfreewannabe55 wrote: »

I really don't want to go to a debt solution I'm just checking the options I guess.

And it is admirable that you are doing so, but, and its a big but, unless you can drastically reduce your outgoings, and at the same time, increase your earnings, you will not reduce the debt very quickly, simply because of the interest been charged.


I have seen a lot of similar situations, most attempt to pay off what they owe by making cuts to budgets, and/or, increasing earnings, some succeed, others don't.


I wish you luck, but the figures don't lie.

enthusiasticsaver

£7k of your debt, mainly payday loans are unsustainable due to interest rates (these really are criminally high) so I can only see that a dmp or moving in with parents are realistic options. You can try to manage a dmp yourself or go to step change. Moving in with parents gives you at least £800 per month extra to throw at debts even if you give your parents your bill and groceries money for food, etc. Difficult with a child though. I would not worry too much about your credit rating at this stage unless you are able to still get any 0% deals to pay off payday loans.

The only thing on your soa I can see you can cut down on are presents and cable. I suspect it is not that accurate though and assume most of the debt accrued due to living beyond your means when on maternity leave and after having your daughter?

fatbelly

Debt Camel has released an interesting article today on 'borderline dmp'

http://debtcamel.co.uk/borderline-dmp/

fatbelly

poppasmurf_bewdley wrote: »

Why not look at a Debt Relief Order for both of you. If you can divide the debts between you, and you can meet all the other requirements, it may be the ideal solution to giving you a fresh start..

sourcrates wrote: »

I thought about a DRO, however the OP has assets, ie, a car, which they haven't listed as an asset, but still have in excess of 4k to pay on it.
.

Guys, the OP has produced a SOA showing £1,145 available income per month. The limit is £50. I'm good at squeezing people into a DRO but I think this would be a non-starter. I don't see insolvency options as major options here.

cms-help

Interesting when you put the Sunny figures into that calculator as you are paying £126 back per month but then it generates almost £105 in interest so you're only repaying £21 a month. By month 6 then your repayment is 50% capital and 50% interest.

Quite shocking when you look at it like that.

OP, any chance you can shift the Sunny loan ASAP?