Debt assistance

fatbelly

Good. You can focus on getting debt-free. Though the downside of a dmp is that you will have defaults on file in 4 years and you will have to work hard to clear the debt in 40 months.

Gives you something to aim at, though, and with your income that is do-able

Loanranger

No one has yet mentioned increasing your income. You may not want to but getting a second job for a temporary period, say 6 to 12 months, would help you knock those debts down. I was in dire straits many years ago and I got a second job. I was working 57 .5 hours a week every week. The bonus was that I had no time to spend any of my income. My first, main, occupation was a professional role where I worked hard. But the second job was very different and had little or no responsibilities. It worked for me.

onthefencepost

fatbelly wrote: »

Good. You can focus on getting debt-free. Though the downside of a dmp is that you will have defaults on file in 4 years and you will have to work hard to clear the debt in 40 months.

Gives you something to aim at, though, and with your income that is do-able

I hope so!
I have a question - I spoke to Step Change and after completing their budget calculator tool I have X amount left towards my debts. Now don't get me wrong I do want to pay my debts however I much rather pay more towards the house - the adviser said it not possible as the house isn't mine.

I'm probably crossing a line here - what "if" i declared my expenditure was a little higher so I can pass money to the mortgage company?

Also one of my credit cards has a small balance Im looking to pay that off and keep it for a rainy day. Only has a small credit limit on. Can I do this with a DMP?

Also the chap said that savings are not aloud under a DMP. I put money towards my pension every month and save around £30 in my life ISA.

Thank you

Willing2Learn

onthefencepost wrote: »

… i'm worried about nationwide demanding overdraft repayment. I have another bank account I can use which i will request my wages to go in. is this a good idea or am i being over paranoid?

This is definitely a good idea, as it ring-fences your income, protecting you from potential risk. You are not being paranoid.

onthefencepost wrote: »

… I spoke to Step Change and after completing their budget calculator tool I have X amount left towards my debts. Now don't get me wrong I do want to pay my debts however I much rather pay more towards the house - the adviser said it not possible as the house isn't mine.

I'm probably crossing a line here - what "if" i declared my expenditure was a little higher so I can pass money to the mortgage company?

Also one of my credit cards has a small balance Im looking to pay that off and keep it for a rainy day. Only has a small credit limit on. Can I do this with a DMP?...

The only real way you can do this is by taking control and self-managing your own DMP. Have a look at the NEDCAB website linked below. It is a invaluable resource to anyone considering self-managing. Have a good read, as then you will be more able to make an informed decision on the exact way forward on your debt-busting journey.

https://nedcab.cabmoney.org.uk/

onthefencepost

Loanranger wrote: »

No one has yet mentioned increasing your income. You may not want to but getting a second job for a temporary period, say 6 to 12 months, would help you knock those debts down. I was in dire straits many years ago and I got a second job. I was working 57 .5 hours a week every week. The bonus was that I had no time to spend any of my income. My first, main, occupation was a professional role where I worked hard. But the second job was very different and had little or no responsibilities. It worked for me.

Hi it was mentioned above.

I'm working on online business idea at the moment, wont go live for a few months.
However I do agree if I can find a weekend job somewhere i did used to have one a few years ago - its something I may go back to.

My aim is to get in to settled position financially and pay of the mortgage and my debts.Once I know whats what a second job will be most welcomed. I want to work smarter and get my finances smarter!

onthefencepost

Willing2Learn wrote: »

This is definitely a good idea, as it ring-fences your income, protecting you from potential risk. You are not being paranoid.


The only real way you can do this is by taking control and self-managing your own DMP. Have a look at the NEDCAB website linked below. It is a invaluable resource to anyone considering self-managing. Have a good read, as then you will be more able to make an informed decision on the exact way forward on your debt-busting journey.

https://nedcab.cabmoney.org.uk/

I've requested a new debit card and pin number for my dormant account which should arrive in a few days plenty of time for payroll to get my wages in their and moving essential direct debits over.

I would like to do my DMP but I can see it being quite stressful. I will see what Step Change can do first.

Will my accounts go into defaults even if the creditors accept my DMP?

Willing2Learn

onthefencepost wrote: »

I would like to do my DMP but I can see it being quite stressful. I will see what Step Change can do first.

Will my accounts go into defaults even if the creditors accept my DMP?

Your accounts are very likely to all be defaulted as you will breaking the terms of your original agreements. But a default is a good thing as means the interest and fees will be frozen. You ideally want them to be defaulted. It also means your credit file gets cleaned up years earlier than if you entered into an Arranged Payment (AP) plan. Everyone who gets an AP instead of defaults ends up complaining because of the longer term damage it does to their credit files.

fatbelly

onthefencepost wrote: »

I hope so!
I have a question - I spoke to Step Change and after completing their budget calculator tool I have X amount left towards my debts. Now don't get me wrong I do want to pay my debts however I much rather pay more towards the house - the adviser said it not possible as the house isn't mine.

I'm probably crossing a line here - what "if" i declared my expenditure was a little higher so I can pass money to the mortgage company?

Also one of my credit cards has a small balance Im looking to pay that off and keep it for a rainy day. Only has a small credit limit on. Can I do this with a DMP?

Also the chap said that savings are not aloud under a DMP. I put money towards my pension every month and save around £30 in my life ISA.

Thank you

You've had good advice from W2L. There should be a lot of flexibility with a dmp - if stepchange won't allow that then use the NEDCAB/ self-manage route.

If you can be disciplined to pay it off each month, then having one card for routine payments is a good idea.

I would like to see you save on the side - and be contributing to a pension. Towards the end of the dmp it is often a good idea to try full & final settlement, if you can.

onthefencepost

Thanks Fatbelly.

I'm working on my budget calculator tool.
My loan company have been very helpful and have put the loan on hold for month whilst I sort out getting my DMP in place with Step Change.

In order for me to have a fund for emergencies or savings I'm going to need to inflate my expenses. How closely do Stepchange / Creditors monitor this? Step change don't support my thinking behind having savings / emergency fund. Lets be honest my expenses will vary month to month especially with my car.

I travel up-to 14K a year and I must have some spare cash to repair the car and money for fuel - yes i get mileage back but i need money up front. The travel can vary, I just feel uncomfortable doing a rigid DMP

I ideally need to put aside additional £350 a month more towards the mortgage - this is priority!

Thank you

onthefencepost

Hi all,

Serious decision making HELP required!

Ive completed my income and expenditure as part of Step Changes process.
I rang them yesterday and one of the recommendations (1st recommendation) was to go Bankurpt!
I didn't even consider that as an option and kind of hung my head in shame after the phone call - is it that bad that I will go Bankrupt!

Option 2 is a debt management plan but its the level of debt I have with the amount I will have left every month isn't going to shift it - maybe this is the reason Step Change recommended this.

*please note i did inflate my outgoing to ensure I can have a little more money left every month for savings / house payments* - its critical I do this to have spare cash for savings/ mortgagee payments otherwise the house of cards will fall!

Now as you know we have a solution on the house and fingers crossed were going to collectively brother and sister will contribute to the house. However one of my concerns is that if we dont clear the amount a loan/ mortgage will have to be taken more than likely by me and going bankrupt wont allow me to get credit!

Anyhow i'd appreciate anyhelp / input! heres me ecomising and being tight in spending my money and paying off my monthly's drowning in debt only to be told going Bankurpt is the best solution!

By the way i opened a Monzo account and card arrived yesterday so my wages etc will be paid into there end of this month. Thanks for the recommendation!