My debt management scheme, am I doing it the right way??

HardupMummy

Hi there, I am a complete newby to this, so please go easy on me!

Over the last 7 years, my hubby and I have raked up just over £30k of debts on various loans and credit cards. It got to the point when we were paying out more than we were bringing in each month so we decided to set up a debt management scheme with a company called Payplan. We paid them a mere £311 a month and all the creditors were happy.
Since then however, I fell pregnant and went from a nice London salary to £108 per week, so we contacted Payplan and they sugguested £65 a month until we get back on our feet. In the meentime, my boss has said that I can't come back part time so I have handed my notice in and am looking for a job locally for less hours.

Although Payplan have said that £65 a month is ok, I have had 2 charging orders on my property, and 3 CCJ and 1 court date that I have to attend.

The way we are going now, the mortgage will be paid off before this debt and I was wondering if it would be better to get a £30k loan and clear it?
It is not an IVA, just an agreement.
Is there a way of realising equity in your house without selling? There must at least £30k there.

I really hope we have done the right thing, I don't want my liitle girl growing up and having nothing.

Please any sugguestions would be great.

Thank you .

Sorry to go on!

HUM

rayday2

I wouldnt be patient the rate of borrowing with your credit rating will be horrendous!

Why don't you if you have some cash start an ISA up so that when it gets to about 50% or more of your debts you can offer a settlement.

That way you receive interest instead of paying it on a loan and you reduce the number of years you have to pay out.

rayday2

Arggh just read further on in your post please don't touch the equity in your house! You can budget and give your daughter all she will need we have three daughters and they are not impacted at all they learn they can't have computer games at a drop of a hat but that makes birthdays, special occasions and rewards even better.

Just think if you keep the equity in your house you can offer your daughter a secure home which is far more important also with you having charges on your property that could impact the availability but why pay a mortgage all these years to let a company come along and own some or all your property?

Kevicho

Welcome to the board, first thing to do is check out the first time posters post, so you can post an SOA (Statement of affairs) which will give us a list of your income and outgoings, then we can help you find ways to save money which you can use to pay off the debt quicker.

Best wishes

Kev