In over my head

Grumpelstiltskin

If your husband has a DMP why has he got extra Credit Card debt? he should not have been using credit whilst on a DMP. Which utilities are in arrears?

I can assure you you cannot afford a car so forget that.

jelly_legs_88

Who knows, that was when we weren’t together. As far as I’m aware it was a credit builder and had a limit of about £200. He got his electric into arrears. 

Wow ok. Thanks. 

Brie

Did anyone mention that a DRO would mean you wouldn't be paying any creditors for a year and then all the debts would be gone?  Yes it would be obvious on your credit history and getting any credit (including car finance) would be a pig for a few years but it would be on a DMP too.  Or a bankruptcy or an IVA.  

I mention this as I've seen a few people who have been paying small amounts on a DMP for several years without any chance of getting rid of the debts.  It sounds like you are relatively young (guessing!) but if you would like a car in, say, 5 years, a DRO might work better for you.  But that's one of the reasons you should talk to someone directly, who looks at all the details of your situation.  We're happy to help but until one starts looking at bank statements and examining what's on Experian etc we can't be getting the full picture.  (not that you're lying or anything but maybe there's something that would spring out at an expert) 

Again - hopefully it will all get sorted.

jelly_legs_88

I’m not sure what to say. I thought I had it all figured out but clearly I don’t and now feel like I’m back to square one. 

It’s all just such a mess. 

So a DMP is not for us? I’m not sure I understand why but ok. 

I guess I’ll have to talk to the people suggested at the beginning. 

I’m 37 and not driving/getting a car is not an option anymore for various reasons. 

I’m now in such a panic. 

kimwp

It's better to be at square one and be knowledgeable about all your options than feel you at square two, but not taking the best step for you. 

teaselMay

You've managed until now without a car, it's not insurmountable, you said yourself higher up the thread you walk most places.

Cars cost hundreds each month, there are very few in the ball park you're thinking of and those that cost that will cost even more to keep roadworthy. With a difficult credit history you're unlikely to be able to pay monthly for your insurance because that's a credit agreement in itself.

jelly_legs_88

I understand what you’re saying but now we have moved it is surmountable to me being able to work a full time job (which I desperately need to to increase our income) and be able to collect the children from after school club/nursery given then distances involved and the time it takes to walk (buses are a shambles around here). 

Grumpelstiltskin

jelly_legs_88 said:

I understand what you’re saying but now we have moved it is surmountable to me being able to work a full time job (which I desperately need to to increase our income) and be able to collect the children from after school club/nursery given then distances involved and the time it takes to walk (buses are a shambles around here). 

Sorry but it isn't going to happen, do you have a driving test booked? if you fail how long to get a retest and how much more money will it cost?  Then a cheap car, normally cash, do you have someone qualified who could tell you if it  any good? As Kim said do you have the money to pay insurance up front? Do you have £200 average  to get it through its MOT?.

Please think about all these things.

sourcrates

There`s no need to panic, take your time and research all options.

You can of course do a DMP, but to make it work you must have sufficient disposable income with which to make payments, if you have too little disposable income with which to pay your debts, it will take a very long time to complete, if at all.

Insolvency (a DRO) is designed for this particular situation, high levels of debt, and not much to pay them with, if your situation stays the same for 12 months, then a debt relief order will write off all your debts and you won`t have  to pay any of them.

But there are strict criteria you must meet, the main one being the £75 disposable income threshold.

Best to do as much research as possible first.

jelly_legs_88

I’ve got enough hours pre booked and paid for to get me to test. 

If I fail I’d have to cross that bridge when I get to it and reevaluate. 

Yes, our friend is a mechanic. 

I didn’t think the insurance monthly would be an issues as I have seen countless threads on here of people doing DMP’s worried about this and being told it won’t be a problem. 

I’d get a car with 12 months MOT so that wouldn’t be an issue for a year and in that time increased wage, decreased medical expenses and being able to move car saving to car maintenance would cover this. 

I feel like I’m being really dumb now and I hope I don’t come across as being argumentative at all (tone is hard to convey in text sometimes!)

I feel so lost, overwhelmed and don’t know what to do so I think I’ll just contact my creditors and explain and see if they can reduce my payments for a bit or something if a DMP won’t work for me. 

Thanks.