What a mess

WhiteBunny

I'm in a hole. I went into a self managed DMP with 8 creditors last year and things were chugging along. I've now had to drop a day at work so only work four days a week which is impacting my income. I'm also a carer for a family member, I had to do something to get a bit of headspace back, hence dropping a day. I'm sick of having no money even when working full time. I've borrowed money on the promise of 'pay you back on pay day'. I've got £25k worth of debt and it's going nowhere fast. I guess I need to renegotiate with creditors but I'm drained by everything. I'm paying about £300 a month to the DMP.  I've only just been paid and yet have little to nothing left so now have to drag myself through another miserable month.   I also started a diary in here but stopped posting to it as I was getting more and more depressed and couldn't be bothered. Anything else you can suggest to help me get back into the light? Thank you.

Brie

First thing I'd suggest is to write to the creditors and tell that due to a change in circumstances you are cutting the payments in half.  Or even less.  Choose an amount that allows you to have a bit of a life.  

Have you tried talking to a debt advice agency?  Stepchange, NationalDebtline, Community Money Advice (CMA) or Christians Against Poverty (CAP) are all very good.  They could help you review your DMP and maybe your budget as well.  Maybe they will suggest a different solution for you.

And have you tried posting a statement of accounts here?  The template is on one of the top stickies and when you post it back people might be able to suggest ways to tweak your budget.

Try to stay strong - it can be a tough battle but it will be worth it in the end. 

ManyWays

Could you post a Statement of Affairs https://www.stoozing.com/soa.php here with your new lower wages? It sounds like it may be really tough to save up money to make settlement offers, so its possible a debt relief order may be your best option unless the caring responsibilities are just temporary? 

sourcrates

There are other options, depending on your circumstances obviously.

You might qualify for a DRO if you meet the criteria, or you could just stop paying, and only deal with those who take action through the courts against you if things are getting you down that much.

You can play this any way you see fit, if monthly payments are too high, then stop paying, and re-assess the situation.

WhiteBunny

Thank you all for your responses. I'll go back to the budget and take another look.

tigergambit

I think that maybe if it's all getting too much you should consider stopping payments and speaking to StepChange with a view to getting them to manage the DMP for you for a while. Obviously don't tell them it's only for a while and make sure that you are realistic and generous to yourself when discussing your SoA with them. (Tip - draft with National Debtline first).

There's nothing to prevent you from going back to self-management later. 

WhiteBunny

Thank you for responding tigergambit - sounds like the best approach.

Andyjflet

Good Luck, I hope the way you are feeling is just a blip. I don't think you are alone, I work full time and paid my debt off a couple of years ago, but I still feel vulnerable, I'm back and forth to hospital for my stepfather, always paying bills and even when I save it doesn't feel like enough. Job situation is dodgy too so I don't sleep well and worry constantly.

But as humans we are meant to be tested and we usually respond well, learning all the time. Get some breathing space on the DMP and re-evaluate. 

WhiteBunny

Thank you Andyjflet - was so down about it the night before last I was up all night applying for extortionate pay day loans. Feels so desperate sometimes. I will stop payments and redo the budget. Thank you for your uplifting words.

MayDogsandCoffee

Please also talk to Carer's Uk who can give financial advice - there may be some benefits or discounts you can get,  remember dropping a day also means less tax and NI.  You do need time for yourself.

WhiteBunny

Oh yes, I hadn't thought of that. Thank you.