Is a DMP the way forward?

Startledbylife

Hi, I could really use some advice. I have £29k debt, and stepchange have recommended a DMP. I've been really reluctant as so far as i know it will show on my credit score for 6 years and i worry about needing to get a new mortgage deal or change the car in the near future.
I've not missed any payments so far, and I was hanging on as I was due a 30k divorce settlement at the end of the month, which i would use to pay off the debt, but the house (ex's) sale has fallen through and I've now got no idea how long it will be before it sells again.
I'm a single mum, 3 kids
Earn £2k /month main job
£200/month child benefit
Just started a 2nd job which gives an extra £500/month.
My outgoing on priority bills and normal spending are about equivalent to my income
Monthly debt payments =£800
I've been budgeting really tightly and wont be able to keep up the credit card payments for much longer, im exhausted with the extra work and have no money for anything or time for my kids. 
Are there any other options or should I go for the dmp?
I have 80k equity in my house but don't think I could remortgage as my credit rating is so low at the minute due to all the debt.

RAS

Hi, you are actually doing really well considering the situation.

Don't re-mortgage to pay off consumer debt

If your mortgage deal runs out, you should just be able to choose one from your current provider without a credit check, so a DMP won't scupper that part of the equation.

Is your ex paying any child support?

Ktaylor86

Have you spoken to your creditors and explained the situation, particularly that you intend to pay off the full amount within a few months? 

They may be able to offer payment holidays or temporary lower payments given the circumstances and the fact that hopefully you will have your settlement to pay off the full balance once the ex does sell the house. 

At least then it would show as 'missed' payment markers rather than a full default, my understanding is this would be better. 

When you spoke to Stepchange did they understand that you might pay off in full soon (when the house sale goes through?)

On the other hand if the debt defaults and gets passed on you may be able to settle for less (a full and final settlement) than the full amount when the time comes. 

Startledbylife

RAS said:

Hi, you are actually doing really well considering the situation.

Don't re-mortgage to pay off consumer debt

If your mortgage deal runs out, you should just be able to choose one from your current provider without a credit check, so a DMP won't scupper that part of the equation.

Is your ex paying any child support?

Thanks, the only way I've managed so long is that I've been selling everything I can, doing market research, surveys, free food apps, I'm really scraping the barrell! I do get £100 a month child maintenance, no hope of claiming any more as he is self employed and will hide his earnings.

Thats reassuring about the DMP not affecting a new mortgage deal.

Startledbylife

Ktaylor86 said:

Have you spoken to your creditors and explained the situation, particularly that you intend to pay off the full amount within a few months? 

They may be able to offer payment holidays or temporary lower payments given the circumstances and the fact that hopefully you will have your settlement to pay off the full balance once the ex does sell the house. 

At least then it would show as 'missed' payment markers rather than a full default, my understanding is this would be better. 

When you spoke to Stepchange did they understand that you might pay off in full soon (when the house sale goes through?)

On the other hand if the debt defaults and gets passed on you may be able to settle for less (a full and final settlement) than the full amount when the time comes. 

I spoke to 1 creditor after the house sale fell through the 1st time. They said I could pay a token £1 a month. But I changed my mind and got another job to keep paying because i didnt want to have a missed payment.
Stepchange did understand the situation but it didn't seem to make any difference to the plan they suggested.

I did wonder if it might be better to let the debt default, but then I've heard that can take a while, and I'm hoping this will be solved within 12months. I do worry about my credit rating, especially as im on my own and no one to help out if theres any major expense. It's just so frustrating that I thought I'd have the money by now. I have equity in the house but it would take just as long to sell mine. I  seem to have run out of options

RAS

Have your considered asking the ex for a bit of money upfront, given the house sale has fallen through?

Startledbylife

RAS said:

Have your considered asking the ex for a bit of money upfront, given the house sale has fallen through?

Yes! Tried that, but he can't or won't (I think the latter) 
Meanwhile he's just booked his 2 weeks abroad. He has no debt as he just asks his parents if he's stuck, but that's another story!!