Confused about what to include in unsecured debt - please help

Worriedaboutmoney_2

I am looking for some advice. I have approx £15k of unsecured debt spread between catalogue, credit cards and overdraft.

I have used the stepchange calculator to work out my best plan of action and initially recommended a DMP. However looking at the figures of my "spare" monthly money I realised it was incorrect.

I have a rather expensive vehicle which I lease - not hire purchase so the asset will never be mine unless I were to pay the final payment at the end of the lease. I am 4 months into a 4 year agreement so it's unlikely I can ge out of this deal without hefty penalty fees.

I know to many it may seem a stupid thing to do but I was already tied into a finance deal from same company. I was 2years into a 4 year deal and due to a massive change in circumstances my hubby had to give up our family car (was also leased but was at end of agreement so just handed back) to buy a van suitable for his business. Therefore my small vehicle was not suitable for us and 2 children (the van only seats 3). I have to have a car for work as work 15 miles from home and work shifts so public transport not an option. Therefore the finance company brokered me a new deal on a larger car.

My question is can this be excluded from the DMP as when I input the details of the lease it suggested and IVA which I am keen to avoid.

We are also considering a joint DMP as my hubby actually has more debt than me but as he is self employed we can't used the online calculator so I am hoping he will make the call to stepchange working the next day or so.

Any advice please?

sourcrates

Hi,

A debt management plan is an unregulated, unofficial arrangement between you and your creditors, you can pretty much run it as you see fit.

The car payment would be seen as an essential expense, so you would factor that into your budget.

I would say it would be best if you were both on board with this, solve the whole problem then.

Former_StepChange_Richard

Worriedaboutmoney wrote: »

I am looking for some advice. I have approx £15k of unsecured debt spread between catalogue, credit cards and overdraft.

I have used the stepchange calculator to work out my best plan of action and initially recommended a DMP. However looking at the figures of my "spare" monthly money I realised it was incorrect.

I have a rather expensive vehicle which I lease - not hire purchase so the asset will never be mine unless I were to pay the final payment at the end of the lease. I am 4 months into a 4 year agreement so it's unlikely I can ge out of this deal without hefty penalty fees.

I know to many it may seem a stupid thing to do but I was already tied into a finance deal from same company. I was 2years into a 4 year deal and due to a massive change in circumstances my hubby had to give up our family car (was also leased but was at end of agreement so just handed back) to buy a van suitable for his business. Therefore my small vehicle was not suitable for us and 2 children (the van only seats 3). I have to have a car for work as work 15 miles from home and work shifts so public transport not an option. Therefore the finance company brokered me a new deal on a larger car.

My question is can this be excluded from the DMP as when I input the details of the lease it suggested and IVA which I am keen to avoid.

We are also considering a joint DMP as my hubby actually has more debt than me but as he is self employed we can't used the online calculator so I am hoping he will make the call to stepchange working the next day or so.

Any advice please?

Hi there

I spotted your post and thought I'd let you know how we can help with this.

Your car payment would be excluded from the DMP as you suggest as paying it is a priority for you. It still needs to be factored into the budget to make sure you can keep paying it each month.

The budget you have made needs to be altered slighty to allow you to do this. Either you or your partner can call and speak to one of our debt advisors who can do this for you. We can then make sure the website is offering the right solutions for your debts.

Your partner can use the calculator even if he is self employed. The advisors can explain how to do this too.

All our contact details are available here. You can also click the 'Need help' button from your budget to have an online chat with one of our advisors if you prefer.

I hope this helps.

Richard.