Advice please!

enthusiasticsaver

Stressedmummy wrote: »

Thank you, so I should write to them before starting the DRO? Would I need to include a budget in the first letter?

I would not as they all have their own soa. Some may ask to see it but if you use stepchange they may liaise with them all for you. Contact them first and see what they suggest.

enthusiasticsaver

https://www.stepchange.org/how-we-help/debt-relief-order.aspx

I would put £50 in the emergency savings, £50 in car maintenance as you do high mileage and the car is low value then split the remaining £57 between presents, haircuts, entertainment.

enthusiasticsaver

What about insurances? Do you have life assurance within an occupational insurance as you have a child. Contents insurance is cheap and a must have.

enthusiasticsaver

How old is your child? Can you work more hours as I guess that £690 is a part time wage? The savings from not making credit card payments etc can pay the DRO fee and start off emergency fund. You will soon feel less stressed. Good luck.

fatbelly

Stressedmummy wrote: »

So I've looked up the value of my car and it's saying £1,495.....

So looks like the DMP may have to be the way to go. So do I start with letters to them all? My vanquis payment was due to leave my account today but I cancelled the direct debit because last month it left me short... (minimum payment £167) Feeling very nervous now.

Really? Parkers Guide Poor Condition?

You have maybe 3 options:

1. Wait till depreciation brings the value under £1k. Then do a DRO. I estimate that will take just over a year. In the meantime I would stop paying non-priority creditors and start an emergency fund (you can enter a DRO with savings of up to £1000, separately from a £1k car)

2. Sell the car and buy a cheaper one. You must sell at market price, though. Then do a DRO.

3. Find a garage that will give you a written valuation of £990. Then do a DRO.

Stressedmummy

fatbelly wrote: »

Really? Parkers Guide Poor Condition?

You have maybe 3 options:

1. Wait till depreciation brings the value under £1k. Then do a DRO. I estimate that will take just over a year. In the meantime I would stop paying non-priority creditors and start an emergency fund (you can enter a DRO with savings of up to £1000, separately from a £1k car)

2. Sell the car and buy a cheaper one. You must sell at market price, though. Then do a DRO.

3. Find a garage that will give you a written valuation of £990. Then do a DRO.

What happens if I just stop paying for the time being? I am going to get the letters printed out today that you previously linked to. I'm just feeling very nervous right now, hate not paying things on time :eek:
Ahh also, I completed the "debt remedy tool" on stepchange, and the only solution they gave me was bankruptcy, with an activation fee of over £500 :undecided

Stressedmummy

enthusiasticsaver wrote: »

Make sure you open a basic account with no overdraft with a bank which is not Halifax.

A couple of people have said that now, what's wrong with Halifax? :embarasse

Stressedmummy

enthusiasticsaver wrote: »

How old is your child? Can you work more hours as I guess that £690 is a part time wage? The savings from not making credit card payments etc can pay the DRO fee and start off emergency fund. You will soon feel less stressed. Good luck.

Thank you.
My daughter will be starting senior school this september. It's quite far and not on a bus route though so I will still be dropping her off for the time being. I'm looking for something closer to home with more hours. That's my other niggle about the DRO, what happens if I do find a job that earns more which is closer to home, my fuel cost will go down and I will earn more (which is obviously what I want!) but would that affect a DRO that is already active??

DMP_Tiger

Stressedmummy wrote: »

A couple of people have said that now, what's wrong with Halifax? :embarasse

You owe Halifax money on a credit card so they can use their right to offset and take any money that is paid into your current account.

I'm beginning a DMP at this moment and had to move my current account away from Barclays for exactly that same reason.

Stressedmummy

DMP_Tiger wrote: »

You owe Halifax money on a credit card so they can use their right to offset and take any money that is paid into your current account.

I'm beginning a DMP at this moment and had to move my current account away from Barclays for exactly that same reason.

Ohh I see, :doh: