Horrified. Minimum payments for life or DMP

Callister0405

I’m definitely going to cancel our Virgin TV part, no idea why we even have it I think as we took our internet with them back then we took the TV thing too but the box isn’t even connected as husband uses a firestick - think that is what it’s called, that is what the apps would be on which are Netflix, Disney plus, channel 4 app not sure if anything else on it. 

Anyway every little will help right now so I will sort those tomorrow.

Grumpy_chap

Callister0405 said:

I’m definitely going to cancel our Virgin TV part, no idea why we even have it I think as we took our internet with them

Oddly, these packages are sometimes cheaper if you have the whole lot than only part of it.
Note you have Sky as well.
Can you get cheaper by changing entirely to a more basic internet provision?  And no TV service from anyone?

Callister0405

x_raphael_xx said:

Callister0405 said:

Internet Services....................... 48 - Are you in contract? I pay £28.50 for phone & internet with Sky (We don't watch TV)

Clothing................................ 35 - Do you spend this monthly? Could you cut back?

Medical (prescriptions, dentist etc).... 50 - Do you spend this monthly?

Presents (birthday, christmas etc)...... 50 - Cut back on this, could you make gifts?

Haircuts................................ 10 - Could you cut at home?

Emergency fund.......................... 25 - Personally...I would pay this towards the CC, so you're bringing down the balance. Then use the CC if and when an emergency arose.

Don't panic, take a deep breath & deal with things one step at a time

Hi Raphael - we are out of contract and I am going to chase this up tomorrow and try to find a better deal - cancelling the TV part and changing internet provider. We are currently with virgin. 

The clothing is more for our youngest daughter who is still at home but I could cut it back it’s just coming to the time she will need a good winter coat and a change in footwear etc. it’s difficult to average it out for the year on a monthly basis but I have started to steer away from next & M&S and trying Asda George and primark for her. 

I’m going to look at handmade gifts or something for this Xmas or may just be honest and tell people we can’t afford it this year and not to get us. Grandparents/aunts spoil the youngest so she won’t miss out. 

The medical cost I wasn’t sure what to put, all our local dentists including my own appear to have moved towards private, I can’t find any who are taking on NHS patients at the moment and I need a lot of dental work, I paid £185 last month for part of my treatment but it is going to be ongoing as I’ve 2 more fillings required and may possibly need a bridge, but with the price tag I could live without the bridge for a few years. 

I wasn’t sure regarding emergency fund. I don’t tend to save anything at the moment,  it was just to get an idea if I was going DMP route what I should try to save. 

Callister0405

It feels bizzare thinking of not making repayments for a period of time. Should I go ahead with usual payments for this month then start contacting card company’s etc following this? 

Do people tend to pick a date of when they will just stop paying or do you stop and pay some
of the smaller debts off while waiting for the larger ones to default? Or is the general idea to save as much as poss before it all starts in DMP? 

I am having a read through others posts to get an idea but thought I could ask here as so many seem to have a lot of knowledge 

Grumpy_chap

Callister0405 said:

Regarding the car that is true I could get a reliable one which would be more cost effective I’ve just never had to think about it before… I need to look over my agreement as I think it is a lease… I tend to take them for 3/4 years then I have the option to purchase making a large end of agreement payment, hand back and walk away or transfer to new car.

As I have previously never had any money issues I have just always changed it around the 2 year mark (early). 

You seem to have described a PCP rather than a lease.  For many cases, the difference is not important, but it becomes so if considering an early change.
I also assumed that the following were both linked to the car - if not, what are these?

Callister0405 said:

Secured/HP loan repayments.............. 218

Hire Purchase (HP) debt ...... 9362.....(218)......12[b]

Good luck with making the journey - the first step is the hardest one

born_again

sourcrates said:

born_again said:

Speak to someone like

https://changesindebt.co.uk/

https://www.stepchange.org/

Debt charity. 

I wouldn`t use this company for debt advice, its initial advice may be sort for free, but it smells of being a lead generator for certain fee charging debt management companies, which you should really try to avoid.

Quite right too..

My error (post edited) should have been stepchange. For some reason google gave that link as them... 

Apologies. 👍

Callister0405

Grumpy_chap said:

Callister0405 said:

Regarding the car that is true I could get a reliable one which would be more cost effective I’ve just never had to think about it before… I need to look over my agreement as I think it is a lease… I tend to take them for 3/4 years then I have the option to purchase making a large end of agreement payment, hand back and walk away or transfer to new car.

As I have previously never had any money issues I have just always changed it around the 2 year mark (early). 

You seem to have described a PCP rather than a lease.  For many cases, the difference is not important, but it becomes so if considering an early change.
I also assumed that the following were both linked to the car - if not, what are these?

Callister0405 said:

Secured/HP loan repayments.............. 218

Hire Purchase (HP) debt ...... 9362.....(218)......12[b]

Good luck with making the journey - the first step is the hardest one

Hi. Yes these are both the car it’s £218 a month. So have I entered that twice by doing that? 

Grumpy_chap

Callister0405 said:

Grumpy_chap said:

Callister0405 said:

Regarding the car that is true I could get a reliable one which would be more cost effective I’ve just never had to think about it before… I need to look over my agreement as I think it is a lease… I tend to take them for 3/4 years then I have the option to purchase making a large end of agreement payment, hand back and walk away or transfer to new car.

As I have previously never had any money issues I have just always changed it around the 2 year mark (early). 

You seem to have described a PCP rather than a lease.  For many cases, the difference is not important, but it becomes so if considering an early change.
I also assumed that the following were both linked to the car - if not, what are these?

Callister0405 said:

Secured/HP loan repayments.............. 218

Hire Purchase (HP) debt ...... 9362.....(218)......12[b]

Good luck with making the journey - the first step is the hardest one

Hi. Yes these are both the car it’s £218 a month. So have I entered that twice by doing that? 

I don't think you had entered twice, once was a statement of the payment and the other the statement of the amount owing.

That seems to confirm the car is a PCP, which is better (more flexible) than a lease.  So that you can assess your options with regard to the car, the first thing is to request a settlement figure from the finance company.  Second, obtain quotes to sell the car - use WBAC for the first indication of value.  You will then know how much equity (or not) is in the car.

Callister0405

So I checked my Volkswagen online and it gave option for early settlement figure £9365. Webuyanycar values it £12.220. I notice they say valuation based on assumptions etc. also notice it says “we settle finance” do people do this? As in end their finance using webuyanycar ? I have always heard the adverts but honestly thought it was some form of scam (excuse my ignorance!)

madaboutspots

I used WBAC to sell 2 cars last year and was very surprised how easy they were to deal with. 

The first was a diesel which we’d put a note in the window for over a week and got 1 call for - WBAC gave us more that our note had said!
Because we were so impressed with price and ease of dealing we took my old very scruffy car in and had a bet between us on how much we’d get. Highest guess was £100 - actually got £350. 

Money goes in your account in 3 working days though you can pay to have it quicker but why would you!? 

You’ve genuinely nothing to loose other than 1/2 hour by making an appointment and going to see what they say.
Get all the paperwork together - everything you can find as the more history helps your final price - as does things like the locking wheel nut. Get the price and take a view.