Need to rent with existing debt

AimOx

Dear All,

Thank you very much for reading this post - and apologies if I have posted it in the wrong place.

I have been living with my partner in his (owned-outright) house for the last 3.5 years (we have been together 4.5 years). Sadly we have decided to cal lit a day, as we want very different things from life. It's very amicable but also incredibly upsetting. As a result I am looking to rent - I work in Oxford and have a relatively good income (At least I did when I was essentially rent-free).

I am currently in debt the several creditors (mostly pay day loans - I know but we all make mistakes), and am currently paying them all back at £50 per month (agreed privately with them - no DMP etc.), all are due to be cleared by the end of this year, with one unsecured loan (Avant Credit at £210 pcm) still with another three years to run. My total loan repayments are £610 pcm.

My question is this - should I contact a Debt Charity before I move out and start paying approx £900 per month on rent and ask them to put me into a DMP, or do I need to wait until I have moved and am unable to pay/miss payments? I don't know what is the right thing to do! I have been told that I am not eligible to apply for any housing benefit (childless so no help available!), and I am of course looking to rent outside of the main Oxford catchment, hoping to bring prices down (as long as it's commutable it's fine).

I do own a car, but it is a high mileage 2009 Ka worth more to me for getting me to work than it would be selling.

Has anyone got any advice/ideas on what I should do first?

There is no urgency to move (I'm not being kicked out) but obviously it is incredibly hard being in a house with someone I love when we are no longer 'together', we would both like to move on with our lives.

Thank you for any help - feel free to ask questions if I've left something really important out!

Guest101

I cant help with debt questions - try debt-free wannabe section.


But letting agents / landlords wont see your debts.

AimOx

Thank you - I'll post this in that forum instead!

Bob_Bank_Spanker_2

If you're not being kicked out I think the most practical thing to do is stay put and focus all your energies on paying off more than £610 pcm. If you have no rent to pay, and you are on a decent salary you should be able to double that.

Rosemary7391

What is your actual income ? I'd suggest posting a SOA (Statement of Affairs) on the debt free wannabe board - they're good at helping to reduce living costs. I'd also consider a house share - probably not what you want, but if as you say it's just a year until the payday loans are cleared it may be worth it for that time. Whatever you do you need a budget that you can and do stick to.

AimOx

Thanks, I do still have to contribute to running the house/paying the bills, so with paying £610 per month on debts, £375 bills and contributing £100 to food per month, i am left with £240 per month (I am of course also having to save for a deposit in the region of £1800 plus fees if I rent with an agency - though I'm trying to avoid that). This 'excess' covers fuel and incidentals/shopping, which obviously I won't be doing. I could increase this by opting out of my pension, but long term I don't know how wise that is?

AimOx

Thanks Rosemary - I have of coursed considered sharing and am looking into rooms, I would though need an en-suite (I'm not being picky - I have very active Crohn's disease).

I will post a SOA on the other board - I have done one of these for my creditors so it is up to date for my current living situation.

Pixie5740

Find somewhere to live. Then once you've got a handle on your new costs of living you can look at debt solutions. A DMP is an informal agreement between you and your creditors, it doesn't have to be arranged through a debt charity. Since you have already agreed with your creditors to pay £50 a month you already have a DMP.

AimOx

Thank you - I know I'm in an informal agreement, but though using a charity/company carried more clout with it?
I think this may be the best idea - I am also going to speak with family tonight and see if they can either cover my debts (and pay them back later), or help with the deposit so I can increase payments to my creditors.

Thanks again!

Pixie5740

Nope, it makes no difference whether you self-manage a DMP or go through one of the debt charities.

First and foremost you need to move so I wouldn't worry too much about keeping up the repayments to your creditors. Scraping together a deposit, rent and referencing fees is a higher priority. Would your ex be willing to help with the deposit so that you can move out sooner rather than later?

Guest101

Indeed, step change is recommended because companies tend to not argue with them - they can get the best deal for the client.