Glimmer of light at the end of a dark tunnel

cornwallpauley

Hi,
Posted some months ago, got great advice from the board and then got Covid and was laid up for several weeks. Long story, but £45K worth of debts across credit cards and 2 personal loans. LBM was when i realised I had no lines of credit left, and my income (after essential and priority bills) did not cover minimum payments. So, decided to see if I could self manage a DMP. Wrote to all creditors offering them around 50% of the agreed payments. All have agreed, interest and charges stopped on all accounts, and over the last 3 months i have reduced balances by £2,400. 
It is going to take me nearly 5 years to clear this debt, and that is assuming that all creditors allow me to stay on this self managed DMP and my circumstances do not change for the worst. However, I do have a plan B if they do not agree. in a little over 12 months, I turn 55, and can access a personal pension from the 80's that currently has about £50K value. 
I know using a personal pension to clear non priority debts seems "extreme", but i have a good teachers pension that has 20 yrs contributions, some on final salary scheme, and intend to continue to teach until I am 60, so will have around 25 ish years of contributions and morgage will be paid off then too.
So, the point of this is to show that there is always a way to deal with debt, it is very hard, and involves difficult lifestyle changes, but it is possible. And not having a credit card is actually quite liberating!

adamj1984

wish you luck in your journey sir

enthusiasticsaver

You have made a good start.  If you decide to go down the pension route (think carefully about this) you can offer F and F which may well cost you a lot less than the £35k which will presumably still be owing in a years time. A lot of people offer 50% or less which they may well accept.