Help please

in Debt-free wannabe
2 replies 867 views
Hi

I wonder if I could seek some advice - after many years of struggling to service my debts along with several days reading through these threads (which have been enormously helpful and I am staggered by the amount of fantastic support offered) I have now plucked up the courage to tackle my debt problems

I currently have £88,155 of debt :mad: made up of:-

Secured loan - Optimum credit (£17,599)

Unsecured loans - Nationwide (£6878), Hitachi (£9768), Hitachi (£7314)

Credit cards - Lloyds (£6331) - Nationwide (£1478) - Halifax (£1354) - Santander (£3987) - Capital One (£1246) - Marbles (£1317) - Barclaycard (£3391) - Aqua (£3011) - Vanquis (£2248)

Overdraft - Santander (£4500)

Loan from parent (£4065)

Loan from ex-partner (£13275)

Store card - Next (£393)

I am self-employed and through the Stepchange website was re-directed to the Business Debt Line service - I've completed the budget which says I have -£419.64 left for debt repayments

I am a homeowner and have approximately £100k equity, but downsizing isn't an option as the properties in my area are staggeringly expensive and I wouldn't be able to purchase another property for less

Bankruptcy is not an option, neither is an IVA or DRO but thought that I would be able to set up a self-managed DMP - the advisor at BDL said that this wasn't possible as my budget did not show that I had enough to pay the minimum of £5.00 per creditor per month, but then suggested that I write to all my creditors and ask for interest and charges to be suspended for 30 days to give me breathing space - I asked what I should do after the 30 days expired, but they couldn't answer me!:mad: they then changed their mind and said that after the 30 days expired I could offer token amounts of say £1.00 per month and then a higher amount - I stated that this was effectively a DMP !

I do not yet have an emergency fund set aside - I have a separate bank account which I can have my income paid into and DDs paid out, as currently all my DDs are taken from my Santander account, but I have an overdraft and credit card with them

Could I please ask for your suggestions on my next step - I was going to write to all creditors bar my unsecured loan (as they have the ability to repossess) and ask for 30 days grace and then attempt to enter into a payment plan with them

My credit file is not good as I have so much credit, but at present I am up to date with all payments, albeit I am only making minimum payments - the interest on the credit cards is my biggest issue

Thank you in advance for your advice, having spent many hours reading your threads I have been extremely moved by the progress you have all made, whilst offering support to others - it's fantastic to know there is support there - I am on my own and although have told a close friend a little of my problems, I have no one else really to discuss the matter with

Thank you

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