Own debt management

mb1981

Hi, I’m very confused as to how this works I have cancelled my current direct debits and currently on breathing space with my creditors, at what stage do I write to them to offer a small payment for dmp I have had one letter though to say about missed payment do I wait till they sell the debt on don’t know how it all works I currently owe £13500 but have more outgoings than income, I’m up to date with essential house bills it’s credit cards that are my issue? 

pogg000

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps#latest

have a read of this

Grumpelstiltskin

OK Firstly don't rush into making payments. Nothing terrible is going to happen if you don't pay for 6 months.

Read the thread mentioned above, do a SOA and put it up on this thread, then start saving as much as you can into an Emergency fund, you need money in case your washer breaks and you can't use credit to get a new one.

Depending on what your SOA shows we will give you advice on the next step to take.

fatbelly

When you say that you have more outgoings than income, is that including the debt payments?

You have 13.5k debt.How much do you have after essential living costs to be able to pay towards your debts, on a per month basis?

mb1981

After doing a SOA I only have £37 a month left for debts 

fatbelly

Well that's a 30-year plan. I'd only recommend that for a few months. You really need a different strategy

Grumpelstiltskin

mb1981 said:

After doing a SOA I only have £37 a month left for debts 

No problem, put your SOA up and let us look at it.

mb1981

Hi guys so I had a email to say breathing space has ended, I’m currently still off sick so can only afford token payments, my question is do I let the accounts default first or set up a payment with them honestly the most I have is £50 over the 4 creditors spare what’s the best thing to do? I understand these will default eventually. 

RAS

If you let the debt default, you know that it will be removed at the end of 6 years, even if you weren't to pay anything more, unless they go for a CCJ.

If you make token payments, you'll get Arrangement to Pay (AP) markers which remain on your credit record for 6 years after the debt is paid off.

So it's really a matter of how long do you want to damage your credit record?

And whether you've got a good emergency fund behind you? If not, save that £50 into a separate emergency fund until the defaults come in.

sourcrates

No point paying anything, you can`t afford it, write and tell them that if it gives you piece of mind.

Affordability is key these days, they won`t expect payment if you can`t afford it.

They may put your accounts on hold for a period of time, see where you are in 3/6months time.

mb1981

Hi guys so I have managed to sort out most of my debt by doing my own DMP but have a marks and spenders balance transfer card balance is £4100 is it work trying to pay this off before the 0% runs out or also put it in the dmp, my thinking was that if I can get it paid off then at least I will have one in good standing or is there no point?