Not sure what is the best way forward

anonymousjohn

Hi all,

Let me start by saying I'm dealing with CAP for my debt issues, and have spoken to StepChange too. I am a student with no income, but this will likely change to around £2k/month in July. My debts are all credit cards/overdrafts with no missed payments until this month, where I am now making token payments of a £1 to each.

The total debt burden is around £19,000 so close to the DRO limit.

My worry is I will get granted a DRO but once my income goes up in future, it's very likely to be revoked - surely this will then mean I need to go into an IVA or something similar, so will have to start the 6 year process from scratch?

Is there a better option for me to consider knowing in advance my income will rise sooner rather than later?

I have considered just continuing with token payments until July or so, then trying to come to a DMP with my creditors instead?

Thanks!

anonymousjohn

I suppose what I'm trying to ask is whether it's best to try and get a plan in place now that means I have defaulted and subsequently wipe off the debt by 6 years from now? Or whether it's best to continue making token payments, risking dragging it out for years to come then they spring a CCJ on me in say 3 years, setting me back 9 years?!

PrettyKittyKat

I would say it is better to wait. I presume you saying you will get £2k a month is based upon your assumption of the job you will get and the net wage. It would be better to wait until summer when you actually start getting paid and understand your exact finances to see what funds you have available for debt repayment. At this stage you will be able to make an informed decision as to which debt solution is best for you. I know it is tempting to try and do one now but you don't want to regret it in six months! You have something in place for the interim. You aren't dragging this out for years, july is only 6 months away! And waiting 6 months to make sure you make the right decision is worth it in my opinion.

anonymousjohn

PrettyKittyKat said:

I would say it is better to wait. I presume you saying you will get £2k a month is based upon your assumption of the job you will get and the net wage. It would be better to wait until summer when you actually start getting paid and understand your exact finances to see what funds you have available for debt repayment. At this stage you will be able to make an informed decision as to which debt solution is best for you. I know it is tempting to try and do one now but you don't want to regret it in six months! You have something in place for the interim. You aren't dragging this out for years, july is only 6 months away! And waiting 6 months to make sure you make the right decision is worth it in my opinion.

Hi! Sorry for my slow response and thanks for your reply.
I have been dealing with CAP since midway through January and am due to hear back from them in then next two weeks about what they think is best to do. I am also going to call StepChange and just make sure they agree with what's best going forward.
I'll continue to make token payments in the meantime - I think from reading around it seems likely that a token payment plan until July is likely, and then enter into some form of debt repayment negotiation when the time comes.

Thanks!