Desperately need help

nigrub94

Hi all. Once again I just want to say thank you to everyone for their replies and help. I know it may sound silly as we're just strangers behind a screen, but your reassuring and kind messages have helped untold amounts. It's helped me come to terms that whilst this is, mildly putting it, a crap situation - its not forever!

I went the CAB on Friday, who agreed that a DMP would be best. I've filled in the online form with Stepchange and they've advised of a DMP as well. I'm in the process of contacting my creditors to let them know the situation (been so busy with uni that I've just not been able to).

I have a question though. My aunt works in a call centre for a credit card company, in the collections department, and I've briefly told her my situation. As the debt is all unsecured, there's not too much the creditors can do in the short term. She told me it may be a good idea to tell the creditors the situation and offer £5 to each creditor until everything defaults as my credit rating is ruined anyway. If I went onto a DMP now everything would default in 6-9 months, and at least this way it may happen sooner rather than later. Plus, for the next 6 months save the extra ~£100 per month a small emergency fund. Also, within the next 6 months I should pretty much know what I'll be doing for work after university and can budget more accordingly. Is this the route to go down? Or go onto a DMP now?

sourcrates

Best bet is to stop paying now, let everything default, save an emergency fund, then start a DMP in 6 months or so.

Token payments are a waste of time in my opinion, but you can make them if it makes you feel better.

Any creditor that wants to start court action prior to the DMP, you will have to deal with on a case by case basis, it’s unlikkey to happen, but it’s still a possibility.

enthusiasticsaver

I agree with your aunt that advising your creditors now that you are experiencing financial hardship and letting the debts default sounds like the best option. It will ruin your credit rating but no other option really. Save an emergency fund as you will have no recourse to credit once you have defaulted and gone onto a DMP.

You will need a basic bank account ideally not linked to any of your creditors. I think co op does one.

Sarastro

You said your sister is turning 18 soon; you need to get on with finding out what she's entitled to benefit wise. You need to be go for everything you can right now.

Take comfort in the fact that completely strangers on her admire you and wish you well. You are a good person. Stick around.

elliemet23

I have been in a DMP with Stepchange myself, they are an incredible organisation and had me debt free (from £4k to £0) in 10 months!

If you ever need someone to talk/rant to, feel free to message me.

Good luck!
xxx

pennystretcher

Sorry to hear about your situation, but you have made a great start on getting things sorted.
Just one idea that popped into my head: How big is your mum's house? Could she sublet one of the bedrooms to get some extra income?

Also you mention £400 rent, is this for your mum?