What to do…

HenryMSingh85

Sounds like you are facing a cash flow crisis. Here are a few things that could help:

1) Try negotiating with Creditors (before you consider a DMP) - you can write to creditors (Barclaycard, Virgin, Lloyds) to freeze interest and lower minimum payments - some may agree
2) Complete your SOA so you can understand a) what you CAN afford on your loan repayments and b) whether there are any areas of spending you can cut down 
3) Consider a DMP - this could help in that your interest payments could be frozen or reduced and could stop the debt from spiralling further. You might also be able to land on a monthly affordable payment avoiding potential drastic measures like bankruptcy or an IVA. The cons to this is that this could potentially impact your credit report and if your employer runs credit checks for promotions or roles, it could be an issue (its rare though unless you're in financial services or a position handling company funds)

Regarding the car lease - some possible options to consider 1) Start looking into cheaper lease options early or 2) Consider a PCP car finance where you can return the car at the end but keep the lower payments 

EssexHebridean

HenryMSingh85 said:

Sounds like you are facing a cash flow crisis. Here are a few things that could help:

1) Try negotiating with Creditors (before you consider a DMP) - you can write to creditors (Barclaycard, Virgin, Lloyds) to freeze interest and lower minimum payments - some may agree
2) Complete your SOA so you can understand a) what you CAN afford on your loan repayments and b) whether there are any areas of spending you can cut down 
3) Consider a DMP - this could help in that your interest payments could be frozen or reduced and could stop the debt from spiralling further. You might also be able to land on a monthly affordable payment avoiding potential drastic measures like bankruptcy or an IVA. The cons to this is that this could potentially impact your credit report and if your employer runs credit checks for promotions or roles, it could be an issue (its rare though unless you're in financial services or a position handling company funds)

Regarding the car lease - some possible options to consider 1) Start looking into cheaper lease options early or 2) Consider a PCP car finance where you can return the car at the end but keep the lower payments 

A warning on point 1 above - yes, some may agree - but they may also put AP markers on your credit file which will then stay in place until 6 years after the debt is cleared. 
Look at it this way - you negotiate, AP markers get added, it takes you 10 years to clear the debt, the debt stays on your credit file until 2041.
You default, default markers get added to your file, it takes you 10 years to clear the debt but regardless, it will have fallen off your file in 2031.
See the difference? 

Contacting creditors then realising later that in fact you do need a DMP could leave you at a real disadvantage. 

Point 3 - Yes a DMP will affect your credit file, but as show above, it can affect it for less time than trying to avoid a DMP could.  It is also incredibly rare that a DMP will affect anyone from an employment perspective - that is more inclined to be an issue with bankruptcy or an IVA. once a debt defaults, the interest stops - this is why we always say default first, then enter a DMP.

As for the car, I would strongly advise anyone who is already with struggling with debt not to consider any further finance arrangements.

archer2016

Thanks for advice.

I’m resigned to dmp. I’d need all of my creditors to agree to more than half of monthly payment to consider anything else. 

Re the car not sure what the plan will be, ultimately I need a car for work so will have to figure something out.

RAS

So you need now to open a car fund now. When does the lease end? Work out what you'll need and make provision to put enough aside each month to buy a small car when the time comes. Not ideal, but can your partner help towards that? If you know you've got a year or two, then use a fixed term savings account, otherwise the best interest rate easy access you can find.

archer2016

Thanks in ends in March next year. 

archer2016

When stopping oaying do I just cancel direct debits on the apps / websites and also with my own bank? 

Don’t need to write a letter and make token payment  or is it better to do that? 

fatbelly

archer2016 said:

I have an ISA with plum, it says the funds are held with Llyods or Citibank, presumably that means I should move this money so they can’t oik it off? 

Can't see that on the soa. How much do you have in savings?

archer2016

Technically nothing it’s money I put away from my dividends to pay my tax bill. 

archer2016

Is there a chance any of these firms could ring me at work? 

My work mob is registered with them all, as I also use it for personal. I have use of another number which I have began to update on the apps etc however some of these asked for work details when I signed up.

Is there a chance they could use the info on sign up or from my voicemail / LinkedIn / whatever and ring me at work?

sourcrates

Yes, debt collectors can use any number you had registered with the original creditor, back in the day (20 years ago now) they would constantly ring me at work.

Nowadays we have GDPR, where by you can specify how a company can contact you.

Of course its best practice not to give them a number (that works) in the first place, I dislike sales calls period.

Best option is for contact in writing only, send request in the post to all concerned if its likely to be an issue for you.