Do I do a DMP

Wannabehousebuyer

yes i totally understand, thank you! as i say my head is just all over the place. 
how do i stop creditors contacting me by phone, just a simple email? 

no Credit check ?!?! really? even with shared ownership, it requires no credit check? my lender is kent reliance if that helps.

please let me see if i fully understand; i should cancel all my DD today, next 3 months get up to date on mortgage/rent/g&e/water etc, then once they are all up to date, contact all my creditors and then do ........

sorry for all the questions, I am just trying to hatch a plan to get my life on track- i feel like the track is miles away and i'm stranded.

Wannabehousebuyer

Mortgage................................ 650

Secured/HP loan repayments.............. 0

Rent.................................... 454

Do these figures include the extra 50 to each?

You soa as it stands is very tight so even if you cancelled all payments to the non-priorities, you would have very little to pay extra to rent/mortgage.

You also said 'gas and electric is about 400 in arrears as well as about 200 on my water. ' That doesn't appear on your soa. Arguably, gas/electric are also priority debts

 
correct that includes the extra 50 pm. 

TheAble said:

I'd concur with the others that your mortgage and rent are top priority and should be brought up to date as soon as possible. Fall behind on that stuff and in the worst case you could lose your home.

You should have some buildings insurance in place btw if you don't already.

Sorry i should have been clearer, i should have said, my 'rent' payment, includes gr and s/c, which includes buildings insurance 

theoretica said:

I am sorry for your loss - really hard dealing with things on top of each other.

A few thoughts - firstly, being honest with yourself do you know exactly how you got into that debt? Because 33k over 15 months seems likely more than just lost commission payments, unless they were huge.

How large is your property?  Could you take in a lodger for a while to get out of the mortgage and rent backlog?

Why do you have life insurance?  For whose benefit? 

You can get a cheap washing machine for maybe £200 - why is it worth paying £9 a month breakdown cover rather than putting that into emergency savings where it could be used for any appliance that dies?

No buildings insurance?  I am not sure about shared ownership, is this correct?  My mortgage requires me to have this.

i had debt already, but was manageable. usually after student loan and company car, my take home is around 3500, so was manageable, however, my mum lived in spain so when she passed, the rest of my available credit was used on flights, funeral etc etc, so it mounted up quick, as well as day to day expenses. helping out my brother with the same. 

i only have a 1 bed flat unfortuantly so a lodger wouldnt work.  

The life insurances are not 'life insurance' its critical illness and stuff like that for alongside my mortgage. 

the reason I have the cover is my washing machine broke down last month and as you can see i dont have the 200 to buy one, so i am hoping to have the plan in place for a bit before i make a claim. 

Wannabehousebuyer

RAS said:

In addition to sourcrate's and fatbelly's excellent advice:

At present you are getting AP markers on your credit record every month, which isn't making your any more attractive than someone with defaults.

The problem is that the interest is probably still racking up and at 30% APR that's not good.

If you stop paying and get defaults, interest should be halted, so everything you pay (in the future) reduces your debt.

You've barely got enough to cover your essentials, so you need to stop paying non-essential ASAP, and to cut back to repay your essential debts  before SHTF.

That means bye bye to the satellite/cable deal and reduce the food costs. You haven't got anything for clothing but in future it's knickers and docks only.

Ask little bro to pay half the phone until he gets work this summer. Both of you need to look at when the contract ends and replace it by SIM only. 

I'd argue that the washing machine and gas cover would be better put into an emergency fund that you stash into a separate account for emergencies. It's more flexible. How old is the boiler?

thank you for everyones great advice, i'm just trying to get my head around it all. 
i think i am going to go onto my online banking in a sec and cancel my DD and create a plan of action
how do i get out of my sky deal if im in a contract, i didn't realise i could

i will speak to my brother and see if he can contribute anything towards it. 

The flat i have a bought has been problem after problem, with boiler, drainage isssues ( i currently cant flush toilet roll down it as it keeps getting blocked and the BG covers someone to come out and temp fix it) my washing machine has broken so i am waiting to make a claim to get it fixed. for a new washing machine, toilet fixed , its all money I just don't have right now. 

RAS

You write or email your consumer creditors and tell them to communicate in writing only.

You stop paying them today,  reduce your spends to the essentials and get up to speed on your essential bills and then start putting the money you have spare account as an emergency fund. Given you are on commission and a house-owner you ideally need enough to fund short-term unemployment, loss of commission or a large repair. You won't UC support for your mortgage but could get support for the rent component, up to the LHA limit. 

By then many of your creditors will have defaulted you, the interest will be frozen and you set up repayments in proportion to the creditor's share of the debt. 

Wannabehousebuyer

RAS said:

You write or email your consumer creditors and tell them to communicate in writing only.

You stop paying them today,  reduce your spends to the essentials and get up to speed on your essential bills and then start putting the money you have spare account as an emergency fund. Given you are on commission and a house-owner you ideally need enough to fund short-term unemployment, loss of commission or a large repair. You won't UC support for your mortgage but could get support for the rent component, up to the LHA limit. 

By then many of your creditors will have defaulted you, the interest will be frozen and you set up repayments in proportion to the creditor's share of the debt. 

thank you, i will ping off the emails tomorrow

i have gone on to entitledto and i am not entitled to any help

i will change my bank account with work tomorrow. I have cancelled my non essential DD, and I will open a savings acc for emergency fund. 

thank you for your help

sourcrates

Any questions you have, no matter how trivial or silly you think they may be, feel free to ask us, plenty of knowledge on here to help you.

enthusiasticsaver

Your soa shows you cannot afford repayments on that debt so I see no option other than a DMP.  You need to focus on priority debts which are the mortgage, rent and utilities and much as you want to help your brother you cannot afford £100 a month on mobiles. Cancel all non essential direct debits and save for emergencies as you will have no access to credit.  When the mortgage comes up for renewal you can go on to another deal provided you stay with your current lender. 

That is a lot  of debt to accumulate over a few years so I think you need to really start to look at all areas of spending.  £200 seems a lot for groceries for just one person.  

Wannabehousebuyer

sourcrates said:

Any questions you have, no matter how trivial or silly you think they may be, feel free to ask us, plenty of knowledge on here to help you.

thank you so much!

random question, lets just say i need to move when my deal is up, i start earning 'normally' again, and i pay everything up. how hard would a mortgage be? cos surlely my credit will be wrecked?

Wannabehousebuyer

enthusiasticsaver said:

Your soa shows you cannot afford repayments on that debt so I see no option other than a DMP.  You need to focus on priority debts which are the mortgage, rent and utilities and much as you want to help your brother you cannot afford £100 a month on mobiles. Cancel all non essential direct debits and save for emergencies as you will have no access to credit.  When the mortgage comes up for renewal you can go on to another deal provided you stay with your current lender. 

That is a lot  of debt to accumulate over a few years so I think you need to really start to look at all areas of spending.  £200 seems a lot for groceries for just one person.  

 thank you for your advice, I think i am going to. 

How much should 1 person be spending on food shopping? I thought £50 a week was low? Wow thats shocked me 

kimwp

I'm sorry to hear about your loss, it is a hard loss at any age, but you are at a very young age to lose a parent.


On the subject of finances, I think there may be more to go in understanding why you have this debt - which is crucial to avoid being in this situation again - as you were in debt when you were a single person on £3500.