Fraught week

Bewildered_Banshee

Hi
First time posting, but have spent most of the last week on here, reading advice, as I come to terms to knowing I can no longer cope with debts and borrowing more is not an option.
Background, is that I had to stop working full time 6 months ago due to a major depression (or what used to be a nervous breakdown). Am working part time in the same job and have managed to keep up until now, but it cannot continue. I went through things with Stepchange, who were also rather nice to me, considering the mess I'm in
So I've got my budget done, and know I'm going down a DMP, but have a few questions for those of you who know more please!


Do creditors give more weight to budgets\reduced payment requests if they are done through the Stepchange? I would like to do it myself but not sure if this is a wise move.


How likely are they to agree? To give some idea my biggest creditors is Ratesetter at £20,000 which I had been paying back at £500, but looking at it £135 is my highest offer, do you think they'll take it?


How soon can I ask creditors to stop charging me interest?


Even doing the budget and confessing all to my husband has been a huge help (husband has some debt which is manageable for him but can't afford to bail me out).


Thanks in advance.

fatbelly

They'll accept whatever is offered and justified by a financial statement, and freezing interest is part of the game

It should make no difference who prepares the statement.

You are proposing a 12-year plan, which is a bit long. Have you looked at the other options?

Bewildered_Banshee

Hi
Thanks for the reply and advice.
I've looked at other things but hoping as my income has dropped due to ill health I'll make it back full time work next year, so it's an interim plan for 12 months.
Is that ok do you think?. I did wonder if Ratesetter would let me have a new loan to transfer the balance but over 12 years - is that a bad idea?
Really appreciate your advice.

sourcrates

Bewildered_Banshee wrote: »

I did wonder if Ratesetter would let me have a new loan to transfer the balance but over 12 years - is that a bad idea?
Really appreciate your advice.

Really bad idea, your just increasing your debt instead of decreasing it, the DMP route may be an option, have you considered an IVA ?

Bewildered_Banshee

Hi - thanks for the message.


Point taken - very bad idea!


Re the IVA - I've considered it but, because of the line of work I do I cannot be insolvent\bankrupt. without a disciplinary hearing of the governing body. My Employer have strict rules on it too, so its nothing something I can really do.

sourcrates

So a DMP it is then, just make sure you have a good emergency fund saved up before you commit to DMP payments.

People usually do this by stopping creditor payments for a few months prior to starting the DMP, and also budget for a figure for this catagory on a monthly basis as well.

We have a dedicated DMP support thread available here :

https://forums.moneysavingexpert.com/discussion/5623951

for any and all daft questions lol !!!

Good luck.

Bewildered_Banshee

Thank you for your help and advice.