Where do I even start .... beginning of my journey

debftfreedream

I know it would, but bless him he’s working 60 hour weeks as it is as he’s trying to pay our car hp s off.

I’m going to see how I stand first with selling some of my stuff and contacting step change etc.

My dad knows so he is supporting/advising.

I’ve been in a bit of a circle of debt for about 15 years so I jus need to break the cycle basically forever.

debftfreedream

Hello all - I’m back after a little while away trying to shape up my finances.
I’ve dithered around to be honest and still juggled so not really got far. However, I need advice again please all.

My debts are

£10,791 Lloyd’s loan - repay £343 a month
£899 Halifax cc @ 26% - repay £40 a month
£1918 barclaycard cc @ 22% - repay £55 a month
£2925 rbs cc @ 17% - repay £64 a month
£4745 M&S cc @ 18% - repay £129 a month
£5931 virgin cc @ 19% - repay £134 a month

My lovely dad is giving me £9000 towards my debt.
My question is where would I be best putting that £9k too to make it count?

debftfreedream

Anyone? ��

anna_1977

I think I'd go for the highest APR (what is the loan?).
That would pay off the Halifax CC, Barclaycard CC and Virgin CC giving you £229 a month spare

You need to use the £229 to throw at the other debts, not just spend it as extra cash

One-step-at-a-time

I'd agree with anna_1977 - attack them in order of highest interest rate first and pay off the top three, and start using the freed-up money to increase the payments on the next highest one.

debftfreedream

Thank you all 🙏

Kitten868

Hello there,

I disagree with the previous posters to your recent post and agree with the ones previous to that. Do not borrow any more money from your Dad. That £3k he gave you has already been swallowed up. You need to do a DMP.

I know you don't want to hear it but you cannot afford your debts. If you do a DMP you will default on all of debts which isn't great for your credit file BUT I don't think you're going to get any new credit anyway so it's not an issue. In regards to your mortgage you will be fine to get new deals as long as you stick with the same lender which is fine. The defaults will come off your file after 6 years and before that as the defaults get older your credit score improve anyway. I know you are also anxious about not being able to access credit - this will no longer be a problem as your repayments will be set at a level you can afford. AND all the money you pay off will come off debt - you won't be paying interest anymore. If you want to find out more on the main debt free wannabe part of the forum there is a thread with people talking about their experiences of going through a DMP. I can't promise it's easy but I do know that when you get into it you will sleep again. You will relax.

Best advice for a DMP is to stop payments to your creditors so that firstly they default you quicker (the quicker they default you, the quicker they fall off your file) and also so you can build up an emergency fund. Then after a few months or however long you need to build up enough savings to feel confident going forwards contact step change and start your DMP. You can look at what you'd pay etc on the step change website.

Please please do this. You'll be so glad you did. When you come back in a year's time you'll be so much happier and your debt will be smaller. You could maybe even factor in repaying your Dad into it.

You can definitely do this!!! Xxx

debftfreedream

Thank you for this info. It’s definitely something I need to consider. I don’t fully understand how a dmp works if I’m honest so I will do my research.
I totally get what you’re saying and I know part of it is me and my habits too so the £9k plus dmp need to be part of a bigger plan.
Thank you for spurring me on 😊

a_silver_lining

Hi debtfreedream. Well done for coming back and looking for support

I'm afraid I have to agree with Kitten. Your dad gave you 3k 6 months ago, but your debt has only reduced by under £1800.

Is that down to more spending? Or is it interest?

Will you send the money you save on paying off debts to the debts which are left?

Kitten868

For the record I don't think your debt has increased because you've been overspending. I think you've done well to keep it down given that you don't allow yourself money to eat.

I think maybe ask your Dad to lend you £1k so you've got your emergency fund ready. Don't pay this off of any of your debts - keep it out the way for emergencies and leap straight into the DMP. That's definitely an option to think about. I wouldn't take the £9k. It will just put more pressure on you. Owing your dad £4k and managing the rest is less troubling than £12k and you're still in trouble with interest.

The DMP support thread is https://forums.moneysavingexpert.com/discussion/5897083/dmp-mutual-support-thread-part-13

I also think you need to give up the HP cars and sky but you will get to that later.

You can do this xxxx