140k Unsecured debt - advice

enthusiasticsaver

I think that once the AP markers go on they stay on until 6 years after the debt is repaid. This is why defaulting is better as they drop off after 6 years regardless of whether the debt is repaid or not.  AP markers can take way longer to be removed.  I really cannot see any advantage to APs. 

enthusiasticsaver

I would also say that many people with DMPs still  manage to get mortgages with their existing lenders so entering a debt management plan does not mean you cannot move or get another mortgage deal. Token payments are useless really.  You want the interest to stop and an affordable monthly repayment to the debts.  Everything else is secondary. 

ldn83

It’s quite a ridiculous system where you’re effectively encouraged to do the less decent thing and simply not pay. Surely they should be encouraging part payment rather than outright defaults 🤷🏻‍♂️

ChillyP

ldn83 said:

It’s quite a ridiculous system where you’re effectively encouraged to do the less decent thing and simply not pay. Surely they should be encouraging part payment rather than outright defaults 🤷🏻‍♂️

The whole system needs an overhaul. Whilst I do accept personal responsibility, I am horrified at how easy it was for me to rack up high debts. Despite having loads of debts, I literally had credit thrown at me! Updraft couldn't lend me enough money!! It needs to be made much much harder for people to rack up multiple high debts

ldn83

ChillyP said:

ldn83 said:

It’s quite a ridiculous system where you’re effectively encouraged to do the less decent thing and simply not pay. Surely they should be encouraging part payment rather than outright defaults 🤷🏻‍♂️

The whole system needs an overhaul. Whilst I do accept personal responsibility, I am horrified at how easy it was for me to rack up high debts. Despite having loads of debts, I literally had credit thrown at me! Updraft couldn't lend me enough money!! It needs to be made much much harder for people to rack up multiple high debts

Exactly my experience. I even think that with my last 2 loans I could have a case for irresponsible lending.

RAS

EssexHebridean said:

Currently, yes, your debt payments are too high to be affordable with your other expenses. That will change if you take the DMP option though as then you will manage what you pay to the debts. Your household outgoings are well under your monthly income once the debt payments are stopped, so this is certainly a very workable route for you. I would certainly not advise trying to continue as you are on the basis that you “might” move in a year though - and if you are considering selling up, for goodness sake do spend any more on the house! 

Think a little word went missing in predictive text?

Sea_Shell

Sea_Shell said:

One other thing you could try...homework, if you like.

As well as keeping a spending diary, to track every penny...also keep a "didn't spend" diary.

So, every time you stop and think and decide NOT to buy something, you also make a note.

Over the next couple of weeks, try and identify, say, 10 things that you DIDN'T buy or spend on, and then reflect on how you feel about having saved that money and not bought the thing.

How's the homework coming along?  @ldn83

Have you identified any "didn't spends" over the last couple of weeks?

EssexHebridean

RAS said:

EssexHebridean said:

Currently, yes, your debt payments are too high to be affordable with your other expenses. That will change if you take the DMP option though as then you will manage what you pay to the debts. Your household outgoings are well under your monthly income once the debt payments are stopped, so this is certainly a very workable route for you. I would certainly not advise trying to continue as you are on the basis that you “might” move in a year though - and if you are considering selling up, for goodness sake do spend any more on the house! 

Think a little word went missing in predictive text?

Aargh - my flipping iPad has decided that it is a massively funny game currently to autocorrect negatives to positives - very frustrating, and I mostly catch them before posting, but yes, that without question should be DON'T spend any more on the house! 

kimwp

Autocorrect can be so annoying - why does it change real, correctly spelled words into other words?!!

ldn83

Sea_Shell said:

Sea_Shell said:

One other thing you could try...homework, if you like.

As well as keeping a spending diary, to track every penny...also keep a "didn't spend" diary.

So, every time you stop and think and decide NOT to buy something, you also make a note.

Over the next couple of weeks, try and identify, say, 10 things that you DIDN'T buy or spend on, and then reflect on how you feel about having saved that money and not bought the thing.

How's the homework coming along?  @ldn83

Have you identified any "didn't spends" over the last couple of weeks?

Just forming a plan together, definitely can shave a fair bit off our weekly shop and a few other things but a self DMP is the only viable real way of getting on top of things. Just deciding whether to stop paying all unsecured or to save a few (Lloyds who are main bank in particular) and default on the rest. Also my wife may get a big redundancy payout if she’s laid off - announcements happening end of the month, so her situation may change where she can pay down more than half her debt in a lump sum.  She’s already been offered other roles at the competition so she’s just hoping to get the redundancy, then go. We have enough cash atm to last a few months so just figuring out the plan atm.