going fulltime to partime and not claiming universal credit then DRO application?

sourcrates

I think you are going around in circles right now with all this, taking a step back and doing what is best for both you and your wife, is the way forward here, try not to worry about which debt solution you should have, for now.

I assume the debts are ordinary non essential credit cards/loans etc ?

DMP`s are flexible you know, if income reduces, then so does your payment, you can work it how you see fit.

Sort out your working life, claim what you are entitled too, see how things pan out, and look again at your situation as a whole.

Can you save up an emergency fund to settle these accounts earlier than you normally would ?
Are all the debts enforceable, have you checked by sending CCA requests under section 77/78/79 consumer credit act ?

There are many ways to play this, that don`t involve insolvency.

stu12345_2

sourcrates said:

I think you are going around in circles right now with all this, taking a step back and doing what is best for both you and your wife, is the way forward here, try not to worry about which debt solution you should have, for now.

I assume the debts are ordinary non essential credit cards/loans etc ?

DMP`s are flexible you know, if income reduces, then so does your payment, you can work it how you see fit.

Sort out your working life, claim what you are entitled too, see how things pan out, and look again at your situation as a whole.

Can you save up an emergency fund to settle these accounts earlier than you normally would ?
Are all the debts enforceable, have you checked by sending CCA requests under section 77/78/79 consumer credit act ?

There are many ways to play this, that don`t involve insolvency.

all the debts are consumer debts, eg bank loans or credit cards used over  last 11 yrs, so gradual build up of debt. Yes the dmp  is ok, but it means paying back every penny, unless we win the lottery or inherit £22,500 and make the creditors an offer.I worked out we have 3 yrs 4 months to go, we have done 15 months already,. but if we reduce our hours, we are debt free in 12 months  in a DRO, and we end up doing 50% less hours at work!! we dont care about our credit status, all we want is to get rid of this debt as fast as possible. we wont last another 3 years 4 months in our jobs.
 again, if we do go part time, and we get a DRO, it really seems the best fastest option. cos if we go partime, the DMP would increase to 6 yrs 8 months, which is impracticle. and please do not mention IVA, they are terrible, and if they fail during it,, you owe everything plus around £5000-6000 solicitors fees on top !!!
we also had two newish cars on HP, whcih we sold and got out of it !! we bought an old banger for £1700, last year!!! if we disnt our total debts would have been around £52,000
 

peteuk

stu12345_2 said:

all the debts are consumer debts, eg bank loans or credit cards used over  last 11 yrs, so gradual build up of debt. Yes the dmp  is ok, but it means paying back every penny.
 

On a DMP you wont pay back all you owe, as you should have asked for the balance to be frozen and no further interest applied.

Have you thought about Full and Final settlements? Or snowballing?

Do you have any savings for emergencies?

Have you spoken to Stepchange regarding this?  Seems like you've pushed through the DMP so far,  yes its annoying when you work hard and struggle and watch opportunities pass by, but you've dealt with the debt so far…

stu12345_2

I still got to pay the full capital. and full settlement only works near the end if I come into alot of money. no savings left.hence DRO will clear it all fastest 

stu12345_2

outside work at mo.dreading to go in.applied for a higher paying 40 hours job today.non physical.but it's 17 mies away and I have an old unreliable car.no buses to job.shame I sold my newer £ 11000 car .if I kept it I could have went to jobs miles away.but sold it to reduce debt.nowwalkto work.what a dilemma I'm in.

stu12345_2

only thing I will ever get is a £80000 inheritance.my mum said her home is mines.she is 87 and not the best of health.but she takes every day as it comes.she wishes she could helpnow.but she doesn't know how much debt we have.she offered £200 out her savings.God bless her.

stu12345_2

asked stepchange for a 3 month payment holiday to build up savings they said no.they said the creditors will object and could enforce ccjs etc.

sourcrates

stu12345_2 said:

asked stepchange for a 3 month payment holiday to build up savings they said no,they said the creditors will object and could enforce ccjs etc.

Oh that`s rubbish advice from stepchange, stu, you don`t ask, you just do what you need to do, don`t trust your future wellbeing to some 3rd party debt charity that says no to you, they would say that as they are creditor funded, so want to keep you paying your debts if conceivably possible, I'd ditch them, go self managed, take as long as you need to get yourself sorted.

Write and tell your creditors your having a hard time of things, money is tight, your health is suffering etc, and they will put accounts on hold for 3/6 months or even longer.

Have all your debts been sold on as yet ?

You never pay back the face value in a DMP, debt buyers buy these accounts for as little as 12p in the pound, most of them will offer discounts the longer you hold accounts with them, anywhere between 10% and 70% can be achieved if the right strategy is employed.

That`s the whole idea of a DMP, but going self managed is best, as you are in control of things, not any 3rd party.

stu12345_2

 msot have been sold on, i contacted them for an early settlement, they will take 90%, that is their offer, my fear is say i settle a small debt, worth say £200, somehow, then in the near future i need a DRO, it will be refused cos i did preferential treatment within last 2 yrs to a creditor and a DRO will be refused. Stepchange said if miss 3 payments in a year, they will do a new income/expenditure calculation.. I already missed 2 payments due to having to fly to see my mother being ill, and also my car broke down and needed a large repair.

stu12345_2

i watched a video on how to haggle with creditors , so i tried it with Barclaycard, who never sold the debt on, they basically said, penny every penny sir, excluding interest.
it would be great if i stopped paying all of them for say 14 months, used that payment i was meant to pay saved up, then ask them for a 60% reduction ( as my DMP is to last 3 yrs 4 months), but i think they would take action via courts etc before the 14 months was up.
the debts that have been sold on would only offer 90% full price, they said if i contact them when they are almost paid off, they can offer me a better deal, thats not much help from them.