Help required with debt issues please

Baldybear

Full update on my dfw diary but been advised to post this here too.

Money wise have tried to be pro-active this morning.

I have opened a new Monzo account, just transferred £10 so far but at least its all set up. I want to change a few DD's across to this too so will do soon but the first hurdle is crossed.

I have also applied for breathing space which has been accepted so 60 days of no calls, of which I have started a few. I have done this via stepchange so the 3 cc's now have their details too.

I have also changed my budget a bit to take into approx of what DH gives me and stepchange agreed to put me into a DMP, so have filled all that out and hopefully that will be set up soon. Its a payment of £168 a month which I will make somehow, it says will take just over 19yrs, I will be nearly retirement age (am 47 in a few months time!) but hopefully will be able to pay this off a lot sooner.

Baldybear

Bad news is looks like issue with stepchange amd wont be able to go ahead with dmp. Reason be as on mix of benefits ans self employment income. They only take people either employed or on benefits not on self employed 😔 so been referred to a different business debtline so will try and give them a call on monday. Just so frustrating and feels like another knock down. If not will have to maybe go self managed or try someone else, just trying to get that motivation to try and deal with it rather than just wanting to run away from it all.

Has anyone been in this situation?  I am not registered self employer at hnrc, dont earn enough to pay any tac but i can do if needed, benefits office are aware of my earnings though so do declare what i do manage to earn?

ayupmeduck

Can't you do a self managed DMP

Baldybear

ayupmeduck said:

Can't you do a self managed DMP

I could so just never been there before so its all new to me, is there a section on how to go about this?  Thank you

ManyWays

If you want to use a DMP firm, talk to Payplan, who handle self employed. They tend to be more pushy than StepChange, dont let them talk you into an IVA!

BUT your situation really doesnt look stable enough for a DMP, how can you commit to regular monthly payments?. Talking to your creditors and offering a small, token payment while things sort themselves out is probably a good idea. Token payments are not long term debt solutions, but they are good for very unstable situations, especially were you have only a few large debts and a house with a very large amount of equity.

Baldybear

ManyWays said:

If you want to use a DMP firm, talk to Payplan, who handle self employed. They tend to be more pushy than StepChange, dont let them talk you into an IVA!

BUT your situation really doesnt look stable enough for a DMP, how can you commit to regular monthly payments?. Talking to your creditors and offering a small, token payment while things sort themselves out is probably a good idea. Token payments are not long term debt solutions, but they are good for very unstable situations, especially were you have only a few large debts and a house with a very large amount of equity.

Thank you i will give payplan a call, noted re iva.

I have done the 60 days so have a while to sort out a plan, need really an idea an dla and then that will give me a clearer picture going forward and a more stable situation.

sourcrates

@Baldybear

There`s nothing difficult about debt management, its three easy steps:

(1) work out a budget, and decide on your disposable income
(2) work out what you can pay to each non priority creditor
(3) make payment

That`s essentially it, most debts end up with debt collectors or debt purchasing companies, you make regular payments on their websites, or you can set up a standing order, whatever you prefer.

You do need a stable income though, but if token payments are all you can afford, then do that for the time being.

Look again at your situation in 6 months.

The only difference a debt charity makes is that they process the payments for you.

EssexHebridean

If you go through with the DMP or token payments then you have longer than the 60 days remember - as it will take a while for defaults to come through. In the interim though make sure you save every penny you have spare while you’re not paying to the debts into an emergency fund - this needs to be in an account that only you, not your husband, can access.