DMP Help please.

System

This discussion was created from comments split from: DMP mutual support thread part 13 !!.

Ripcurl

So I have the following debts:

Virgin credit card: £9646 (interest free period expires next month)

Lloyds credit card: £6464 (paying standard interest rate)

Santander: £5098 (paying standard interest rate)

HSBC: £6198 (interest free period expires next month)

M&S credit card: £ 3143  (period expires 6 months)

Halifax credit card: £2243 (paying std interest rate)

Halifax credit card £2709 (paying std interest rate)

Barclays credit card £1609 (paying std interest rate) 

Shawbrook debt con’ loan £15246 (4 years 5 months outstanding)

All payments up to date apart from one missed one payment 6 months ago to M and S which I completely forgot about. That’s now on my credit file. 

I earn £72K per year, that's only the past 4 months. Taking home £3976 per month. Prior to that £45-53K past 6 years. Live with my second wife who owns where we live. I have no interest in the property. We are financially independent from each other. I pay half off all bills. 

Pay £1076 in child maintenance for 4 children from previous marriage (7,11,11 and 13). Never missed a payment. 

I went through a divorce between 2018 and 2022. Already had £19K debt before divorce.

Divorce took 4 long years, during which time I had to continue paying half the mortgage on the martial home, my own rental, maintenance and legal costs. This crippled me and I’ve never recovered. Marital home eventually sold but I didn’t get half the equity, only 30%, which worked out at £11K. Paid off debt with this. 

Tried use balance transfers to reduce ongoing debt but it hasn’t work.
With interest free period now coming to an end monthly payments are increasing. Currently the above debts I pay £1590 monthly but this will increase to around £1900 next month. Starting to feel it now and getting very worried, especially the impact this may have with my wife. She is aware but I don’t think she fully understands the gravity of my situation. 

I’ve been on Step change with all my debts who have advised me to start a DMP. 

However, from reading other threads it is better to stop payments first, go into default and then start the DMP process? 

If so, do I need to wait until the defaults officially appear on my credit file first?

Any advice, feedback gratefully received as I am worried and don’t know the process at all. Many thanks 🙏 

sourcrates

Moved from the DMP support thread as better traffic in general forum.

Grumpelstiltskin

OP already has a thread here.

Help! £54K debt, DMP process and defaults. - Page 2 — MoneySavingExpert Forum

sourcrates

Thanks Grump, will close this one then.