My journey to a debt free life

Sun_Addict

Suggesting bankruptcy seems rather harsh bearing in mind you don’t owe that much at under £12k. I don’t know much about this but I’ve read on quite a few diaries where people have had their debts written off or offered an amount to the creditors to settle up for a smaller amount. Is this something you’ve explored or could look into?

Onebrokelady

Sun_Addict said:

Suggesting bankruptcy seems rather harsh bearing in mind you don’t owe that much at under £12k. I don’t know much about this but I’ve read on quite a few diaries where people have had their debts written off or offered an amount to the creditors to settle up for a smaller amount. Is this something you’ve explored or could look into?

I haven't looked into have the debt written off but I will. Im definitely not going down the bankruptcy route that's for sure 

Onebrokelady

According to the info DC sent me the receiver will want me to sell my house especially if I have a lot of equity which I do. I will have a look at the bankruptcy board and I've also posted on Debt Free Wannabe 

enthusiasticsaver

I get why they suggested bankruptcy if you  are only able to make small payments now on the DMP but bankruptcy doesn't sound like the right call either.  I would be approaching your creditors advising that your health has meant you dropping hours and as you are pretty close to retirement (assuming you are?) there is little likelihood of your income increasing.  No harm in trying anyway. Otherwise I would go self managed. 

milann

That sounds scary. I’m not surprised you want to self manage. Hope you get something sorted.

lillypoo

Gosh! That must be really upsetting to hear. I am new to all this but I think those who have suggested above, trying a different free dmp advisor and or going self managed are the options I'd be looking  at.

Will be following closely.  Good luck.

Onebrokelady

enthusiasticsaver said:

I get why they suggested bankruptcy if you  are only able to make small payments now on the DMP but bankruptcy doesn't sound like the right call either.  I would be approaching your creditors advising that your health has meant you dropping hours and as you are pretty close to retirement (assuming you are?) there is little likelihood of your income increasing.  No harm in trying anyway. Otherwise I would go self managed. 

It makes sense that they have suggested it because at the current rate it would take me over 24 years to pay it off but it's just not the best solution for my circumstances. I am 60 in four weeks and have just told my managers that I want to take my pension but return to work for two days a week. This takes 6 months to sort out so Ive given them November the 2nd as my semi retirement date. I will get a lump sum that I'm going to pay off the last of my mortgage with ( this will be under £8000) I was also planning on using some of it to finally do the work that needs doing on my house to get it into a fit state to sell( this will be at a bare minimum a new bathroom and outside work to fascias and guttering ) then anything left can go towards debt plus I would have no mortgage to pay so would have. that money to put towards it as well. I am going to speak to them on Tuesday and tell them my current position will be for the next 6 months then I will review it with them then. I'm going to go self managed in the meantime because I think this will give me more flexibility to make odd payments should I have spare money at any time 

Onebrokelady

milann said:

That sounds scary. I’m not surprised you want to self manage. Hope you get something sorted.

I'm surprisingly calm about it. I've been reading the forums and basically they can't have what I haven't got. I'm quite willing to work with them and pay £40 a month for now which I can review in 6 months and maybe able to increase. We are now getting our pay rise which although not massive will help. I also had an email this week telling us the band 2 HCAs that have additional clinical skills are being rebanded to band 3 so that will increase my wages again. It won't be a massive amount but it will help.  

Cherryfudge

That sounds as though you have it all sorted out!

My employer makes people take a month's break between retirement and bank work, but I don't know how this works in the NHS. It may be that you can draw the pension without a break.

I have a feeling this may be have been discussed already, but could you Air BNB your daughter's bedroom when she's not visiting you?

Onebrokelady

lillypoo said:

Gosh! That must be really upsetting to hear. I am new to all this but I think those who have suggested above, trying a different free dmp advisor and or going self managed are the options I'd be looking  at.

Will be following closely.  Good luck.

I was a bit shocked at first but having been at this for nearly 6 years I've learned not to panic. No one could have predicted a worldwide pandemic followed by a broken economy and a war and its these circumstances that have had a knock on effect on my ability to pay my debts. If the energy prices hadn't gone up I would be ok but I just cant afford the debt and to pay for my current gas and electric and I suspect it's a story my creditors will be very familiar with. I'm paying them every month so they should accept that to be honest