Add 65k debt to mortgage, dmp, or something else?

RAS

Kittymumof4 said:

Thank you so much everyone. I'm in  panic mode at the moment as this will be the first time we're not paying the credit card bills. I know that this needs to happen but it feels alien as we've been so focused on making sure they're paid for so long. 

I won't bother with the PAYG then, I'll just block calls instead. 

Our old bank account has gone into the un-arranged overdraft now by about £80. Should I try to pay some money into this from this month's emergency fund or should I leave it now? If we're not back in the arranged overdraft by lunchtime they will charge. 

If you clear this, is it likely to go back into OD next month? If so, don't bother.

Or clear it and close it immediately.

RAS

P.S. 

Worrying is normal when changes happen. In a few months the "new" situation will be normal.

One of the little oddities of the new requirement that creditors need to ensure that payments are affordable. Some try to ask for an SOA to prove it, some genuinely and some not so. If anyone's income is benefits only, they shouldn't be paying anything.

So it is for you to decide what is affordable, and stick to it.

Kittymumof4

RAS said:

Kittymumof4 said:

Thank you so much everyone. I'm in  panic mode at the moment as this will be the first time we're not paying the credit card bills. I know that this needs to happen but it feels alien as we've been so focused on making sure they're paid for so long. 

I won't bother with the PAYG then, I'll just block calls instead. 

Our old bank account has gone into the un-arranged overdraft now by about £80. Should I try to pay some money into this from this month's emergency fund or should I leave it now? If we're not back in the arranged overdraft by lunchtime they will charge. 

If you clear this, is it likely to go back into OD next month? If so, don't bother.

Or clear it and close it immediately.

It shouldn't go any further now as all other payments will come out of the new bank account. But our arranged overdraft limit is £1500 and we're now at £1580 OD. So if transfer £80 it will bring us out of the un-arranged OD but we will still be at the limit of the arranged OD. 

The fee's for un-arranged OD are much higher than the interest on the arranged OD so I'm not sure if I should try to clear it so we're not into the un-arranged OD at least so fee's don't build up so much. 

RAS

I'd not waste the money then. You're going to need to let it default and engaging just slows that down.

fatbelly

Agreed. It's a nonpriority debt of £1580. Yes they will add a few charges and interest for a few months. Then they will close it and sell it to someone for 10% of the inflated balance.

No point throwing money at it at this stage

Kittymumof4

Okay thank you. I've blocked their number as I've had 4 texts from them so far this morning, and will ignore the account now then.