Horrified. Minimum payments for life or DMP

sourcrates

Callister0405 said:

Ok thank you for all the advice. So I should stop payments and hope that they default BEFORE starting DMP? 

All unsecured debts must be included? I will read plenty about it beforehand. 

Yes, I used to be so good with budgeting and having various savings accounts for different things I cannot believe the mess I am in now. And it’s scary how quickly it has happened and that I thought I was managing it until 3/4 months ago. 

As I’ll lose all access to credit is it advisable to increase what I’ll save per month? Or do they have a set amount that you can’t go over when entering a DMP? 

If you go with one of the free debt charities, they will expect you to treat all creditors equally, and abide by their rules, they will regulate your budget etc etc.

If, on the other hand you go self-managed, then you are in charge, you decide what goes into your EF, and what payment your creditors get, and when, it`s your arrangement to run as you please, much more preferable to my mind.

fatbelly

born_again said:

Speak to someone like

https://changesindebt.co.uk/

Debt charity. 

IVA pusher. Avoid

You don't need an IVA. You have no asset to protect and can clear your debts by a dmp in a shorter period

Callister0405

Thanks sourcrates. I think I would prefer that, to be in control. Is it advised to not pay until they have defaulted or do I request them to default the accounts?

I’d  be worried about it going to court If I just sit and do nothing - my anxiety would be through the roof

Callister0405

IVA pusher. Avoid

You don't need an IVA. You have no asset to protect and can clear your debts by a dmp in a shorter period

Thank you. I did go on but when it asked for my phone and email details I thought it was a bit odd so I closed it and went onto stepchange.

Brie

I'm focusing on these

• Mobile phone............................ 85
• TV Licence.............................. 14
• Satellite/Cable TV...................... 21
• Internet Services....................... 48

You say the mobile costs include that for your daughter which is sensible - unless she can find a way to pay for it herself - part time job??  Anything else there that can be trimmed.  Buy a cheap phone and get a PAYG sim or a lesser plan for a tenner each?

Get yourself a small amount of breathing space perhaps by stop paying for the TV license.  If you're more than 6 months into the year you'll get a refund and won't have to pay for the balance.  Of course you'll have to start paying again when the new license year starts but you may have cleared some stuff by then.

Internet - £48?  Look at changing this.  You should be able to get a deal combining satellite and internet under £40 total.  Even cheaper if you can get freesat.

Stop paying your dad.  Sorry but he won't take you to court and can't call the bailiffs.  (at least I hope he'll understand)

After that people say look at the card with the highest interest and hit that the hardest.  And I would agree but I think for an initial boost why not chuck as much as possible against one of the smaller balances.  Capital One has 31% interest but is only £522.  With a bit of overtime and maybe selling a few things etc you could be rid of that in a couple of months and that would be one less worry for you.

Best of luck.  fyi - my SOA a few years back looked much worse than yours.  It takes time but it's possible.

sourcrates

Callister0405 said:

Thanks sourcrates. 

I’d  be worried about it going to court If I just sit and do nothing - my anxiety would be through the roof

As with everything in life, there is a process they must follow, in conjunction with the civil procedure rules, which basically means they must first write to you proposing legal action, by sending an LBA (Letter before action) which gives you plenty of time to avoid the matter going to court.

This is rarely an issue with original creditors, its normally reserved for debt purchasing companies much further down the line, creditors just refer your account to debt collection instead.

Callister0405

Yes In hindsight getting her a new phone as a well done and keep in touch was daft but I’m stuck with the contract at the moment. Once it is finished she will hopefully have found her feet by then and she is starting a small weekend job whilst at uni - she is doing nursing and won’t have as much free time as others when on placement etc. 

I am checking mine and partners contracts to see exact finish dates and I may as Vodafone if we could switch to sim only as some are quite cheap. 

I have been looking at the TV license as actually, we don’t watch live TV and we don’t record it. We just watch the apps I think I could cancel TV license and do without BBC app…

Yes dad would be happy for me to never repay him. I think it’s just the shame of admitting I’m financially unstable in my mid 30s with my own family. He totally won’t mind me not giving him it back for the time being though.

Thank you for all the advice.

RobM99

@Callister0405 Your original post was doom and gloom. Now you're getting a grip of things. YAY!

fatbelly

Callister0405 said:

IVA pusher. Avoid

You don't need an IVA. You have no asset to protect and can clear your debts by a dmp in a shorter period

Thank you. I did go on but when it asked for my phone and email details I thought it was a bit odd so I closed it and went onto stepchange.

Good move

fatbelly

Callister0405 said:

I have been looking at the TV license as actually, we don’t watch live TV and we don’t record it. We just watch the apps I think I could cancel TV license and do without BBC app…

You can do this online at 

https://www.tvlicensing.co.uk/check-if-you-need-one/topics/telling-us-you-dont-need-a-tv-licence