Don't know what to do.

Zollipops

Hi -

A few months ago I entered into a DMP, I cancelled my bank account - set up a new one, started payments and hoped to become debt free. Unfortunately I was in the position where I was in a very controlling relationship (I'll not get into details, but I was threatened to be thrown out unless I could provide more money) so I borrowed more (stupidly, but at the time I wasn't in a position to argue) - fortunately I am now at a different address, away from the person in question, they are not allowed to contact me, however as all of the debts are in my name, I am responsible. As of a few weeks ago I've been put on anti depressants and am getting counselling for my issues - but am unsure about what to do regarding my DMP, at the moment, the payments, along with my rent and other basic living costs (food etc) are crippling me, I'm very apprehensive about speaking to my debt management company about this as I'm worried they will void my DMP due to taking out more credit.

I've spent all my time over the last month or so looking into other options (IVA etc) - as my debts are probably totalling about £20,000 now - fortunately the one saving grace is that I am in a stable long term employment (7+ years) with a regular monthly wage, all my rent payments and bills are up to date, it's just credit cards and payday loans etc that have got me - I'd just like to stop worrying. I'm not even sure if I can add my new creditors to my DMP, or ask if I can switch to an IVA, or change over my DMP from my current Debt Agency to stepchange or someone similar? I just don't see a way out of this any more.

Grumpelstiltskin

Are you with a fee paying company ? If so cancel it NOW and contact Stepchange.

Zollipops

I am, at the time I was in such a panic that I just went for the first one I could find. I didn't know if I could just "swap over" like that.

patman99

Yes, contact one of the free companies (Stepchange, Payplan, CAP or National Debtline). They will give you good advice and set you up with them.

In the meantime, write to your current fee-paying DMP provider and give them 1 months notice that you are terminating their services. Then, when the month is up, cancel the direct debit so they get no more cash.

These fee-charging firms really are the bottom feeding scum of the debt relief world.

MrsTinks

Of course you can cancel - and you really need to. Contact stepchange or one of the other deb management charities. Otherwise you're paying someone to manage your Direct Debits basically. They send box standard letters and hold on to your cash for a set period (earning interest) and then distribute the money. Oh and if they go under then the money of yours they still hold vanishes despite you having paid it towards your debts, it's not uncommon that they hold a few months worth of your payments before releasing it...

If you are now away from the abusive relationship then I would simply start afresh and be honest with the DMP charity.

you might want to post your SOA up here and we can help give you our views on what solution might actually be best for you. It could simply be that going bankrupt is the best way for you to start afresh or a Debt Relief Order might be suitable.

Zollipops

The only problem is, it's got so out of hand now that I can't remember the exactly amount I borrowed from every creditor - I have a ballpark figure for most of them, but most of my old paperwork was left behind when I moved - all cards etc are now cancelled in any case. I have all of the account numbers from when I set up my current DMP at least.

sourcrates

Zollipops wrote: »

The only problem is, it's got so out of hand now that I can't remember the exactly amount I borrowed from every creditor - I have a ballpark figure for most of them, but most of my old paperwork was left behind when I moved - all cards etc are now cancelled in any case. I have all of the account numbers from when I set up my current DMP at least.

Check all three credit reference agencies, everything that you owe covered by a credit agreement will show on at least one of them.

The balances are not always exactly up to date, but will give you a pretty good idea of what you owe.

I would also urge you to immediately cancel the DMP you currently have, you are simply throwing away money at present, also post up an accurate SOA so we can see what figures you have to play with, there are other options other than a DMP, you mentioned IVA, they are not really that suitable unless you have £30,000 and upwards of debt, because of the fee`s associated with them.

Could be a debt relief order may work for you, but we wont know till we see the SOA.

Link here :

http://www.stoozing.com/calculator/soa.php

Zollipops

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1302
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1302

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 48
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 27
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 36
Holiday................................. 0
Emergency fund.......................... 30
Total monthly expenses.................. 826


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard CC.................4388......72........0
Aqua CC........................284.......15........0
Lloyds CC......................2436......46........0
Safety Net Credit..............260.......60........0
Instant cash loans ............406.......13........0
Myjar..........................732.......120.......0
Wageday advance................320.......320.......0
Sainsburys Loan................1350......42........0
Lloyds Loan....................1852......50........0
Tesco Loan.....................4709......65........0
Lloyds overdraft...............2326......45........0
Vanquis CC.....................734.......25........0
Total unsecured debts..........19797.....873.......-


Monthly Budget Summary
Total monthly income.................... 1,302
Expenses (including HP & secured debts). 826
Available for debt repayments........... 476
Monthly UNsecured debt repayments....... 873
Amount short for making debt repayments. -397

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,797
Net Assets.............................. -19,797

Right - I've had to leave out the interest rates as I'm unsure of all of them, it looks a mess I know - am embarrassed looking at it all - hindsight is a marvellous thing, without these debts I'd be living the high life. I'm very fortunate I now live with a friend in a place where Electricity / water etc is included and they are understanding of my situation - groceries are shared and food / cleaning products / general household stuff i'd say comes to about £150 each a month maybe less occasionally but it's a ballpark figure, and that does breakfast/lunches/everything - the other £50 I've tacked on is for my cats food/litter etc (I have 4) - I had 2 cinema Unlimited cards which I'll be finally out of contract for in December so that will save me about £36 a month once those are up at least.