debt help

fatbelly

All good advice. We can discuss whether everything needs to be paid in full, somewhere down the line. Under a dmp you can in theory get rid of this in 40 months

Cars are the proverbial money pits. If you have one that you know is reliable and know its history I'd be inclined to stick with it unless a relative is giving you theirs, or something like that.

Your insurance is quite reasonable. Road tax is 28 x 12 = 336. Yes, that's expensive but (just checked) only going up £10 per year. You can save fuel by planning to drive less and learning some economy techniques

Joner205

I was thinking of getting something that’s like £30 tax year. And a diesel would be much better for mpg etc as for reliability I am a mechanic so fixing them is ok etc. I hadn’t thought about not having to pay it all back, how did you work out being able to sort it all in 40 months please

fatbelly

Doing your own servicing is a huge cost saver.

As for the maths, £32000 ÷ £800 = 40

Interest stops on a dmp

EssexHebridean

Just be mindful that where you say you are setting money aside ie for car costs, presents etc, that you actually do. Going forwards you aren’t going to be able to just reach for a credit card when those bills come along, so it’s really important that where you budget for stuff, you really DO budget for it. 

Joner205

EssexHebridean said:

Just be mindful that where you say you are setting money aside ie for car costs, presents etc, that you actually do. Going forwards you aren’t going to be able to just reach for a credit card when those bills come along, so it’s really important that where you budget for stuff, you really DO budget for it. 

Have you got any tips for this please?

Joner205

So as an update I’ve cancelled all Direct debits, moved my bank account and moved all house/bills direct debits over. I’ve set up different pots so I can put money into them each month for budgeting and started my emergency fund. I’ve felt very stressed doing this but hoping that will ease off as this the first step in getting rid of my debt.

RAS

Just checking. You opened a new account and set up new DDs for all essential items. Or you used the switching service?

Joner205

Opened a new account and switched myself, did not use switching service as someone else mentioned not to.

Joner205

hi, so an update on this thread, ive saved up a good emergency fund of about 3 months bills etc. ive started to receive letters saying im about default by mid July if an arrangement isn't made. Am I right in ignoring these and waiting for the actual debt to default then deal with the person it's sold to?

thanks 

fatbelly

They won't necessarily be sold on so deal with whoever has it when the default comes through