Finally going to solve this debt once and for all

abaka

I have many times, and I see the benefit of scorching my credit rating for 6 years to completely reset my reliance on debt. Unfortunately my wife is not keen on the idea for various reasons. As it would also have a detrimental impact on her such as switching bank accounts for joint banks etc, and impact on her credit file. The other reason to go against is the Credit Unions aren't usually easy to deal with. I know I could self manage and keep those loans as they are.

My other reason. In the last 15 years of having some sort of debt - I've not really paid much interest apart from a loan in 2020 which I cleared in 2024 and then the 3 loans I have out now. I've never once paid a penny in interest on credit cards longer than one month. If I looked at a DMP, if interest was reinsated on the £15k I currently owe on cards and missed payment fees. That 15k worth of debt could be substantially worth a lot more.

I am however well aware that if my circimstances change, and even if I was forced to start paying interest on any of my current debts, I'd be forced to seriously consider a DMP, but at this moment, I'm comfortably paying way more than my minimum payments and expect to be able to do that even when I have an extra child in daycare. So I'd be just racking up a lot more debt in interest/missed payments fees etc if I went for a DMP at this point.

daisy_1571

Your last 2 posts don't make a lot of financial sense (to me). You are depressed by paying for these loans another 6 years then you say your 'savings/emergency fund' is going to take a battering as its your wife's birthday???

I presume she is on the same page as you with regard to trying to pay off the debt ? I would have thought that a takeaway or favourite home cooked meal with a cheap bottle of wine/schloer /coke as appropriate would be plenty of birthday present required for a family with £55k of debt ?? Even if that saved you £50 (and the way you typed 'battering 'suggests you intend spending more) and suddenly your virgin account is only £900 rather than £950 ?

I haven't got a full grip of how you got so far in debt but it appears to me, only from the few posts I've read so forgive me if I'm way wrong here, but it appears you both haven't yet had your light bulb moments yet. Stopping extra spending but still doing nice things together or for each other can help so much in this next 6 years when it will feel like a slog. Potentially those promise token things will be more appreciated than just chucking money at presents? Think what she would enjoy - massage, hoovering, cooking, stopping doing that thing about the house that she always sighs and says for example didn't I say wring the cloth out before putting it back or please don't squeeze the toothpaste from the middle 😂, walk together somewhere local, picnic somewhere she likes, it will be autumn soon so a lovely walk in the woods seeing the colours is amazing. Get creative but spend no money is the idea.

Try to think how many presents that you've previously bought each other years ago are you paying for with this months loan payment?

Just a suggestion, I might be way off here

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/82128612#Comment_82128612

If you enter into a DMP, no more interest will be added. This was the main reason for us doing it, then after a few years with Step Change, we self managed it and it is so much better. My credit score is currently much higher than it ever was.

Makingabobor2

Have to say I agree with @daisy_1571 .

abaka

https://forums.moneysavingexpert.com/discussion/comment/82128652#Comment_82128652

I get what you’re saying. However part of my savings was because I saved a fair bit towards my wife’s birthday. It’s her 40th and we’ve had a really bad year because of my actions and I want this to be special to her.

The savings will dip below 4k because of the birthday spend but also because of car repairs that are due.

I will then replenish those back ip again and once the savings settle at 4k again, I will focus on putting the extra cash into my debts.

None of my debts on loan are due to gifts I’ve always been good at paying for those outright. It’s been crap or fads I’ve went through which has increased the debt.

The Virgin was originally 949, but I mistakenly made a payment on it for £25 which I said in a previous post. Because of the difference in the pence, it has went to 950, but I will be paying more off this at months end. I don’t know if I ever said it was 900 but may have used 900 as a figure same way I would refer to my nationwide loan as 15k!

I do get what you’re saying and I think it’s beneficial to be challenged on these things to make me more accountable.

Unfortunately over the next few months for a few things needing done. Mt savings will be taking a beating but I am adamant that my credit card balances will not go up! (Unless my Santander app goes through and I have a balance transfer fee)!

abaka

https://forums.moneysavingexpert.com/discussion/comment/82128656#Comment_82128656

I had read that until an account defaults then you will continue to get interest applied each month. Likewise, credit unions will not be likely to accept my DMP and will move to a CCJ which I can’t have.

So a self managed DMP would be my way forward but using only the credit cards and the Nationwide loan. But I’m paying well above the minimum payments on those and I think my SoA would show I could comfortably pay the minimum on the Nationwide loan.

I also should clarify I have a potential to be Bipolar so my thoughts and decision making can be questionable. These ramblings and posts might be more evidence to that!

But I do believe that what I’m doing is the right thing for me. A DMP is likely to cause more stress/anxiety and I don’t believe I need it now.

daisy_1571

Gotcha, that all seems reasonable how you say it but its still worth trying to give her a special time without spending a lot. 😁

Even though you have always paid off etc it doesn't take much to rock that particular boat and suddenly you are in a very different position. After all if you didn't have the debt you'd currently be saving £415 a month on the loans alone. Thats 4grand in the bank every year, 6 years is 24grand in your bank account not paid to loans for things you bought many years ago. Add in the credit cards and you can see how its stopping up you getting ahead, 6 years of payments just to stand still.

(It was me that suggested whatever you 'save' against whatever you were planning on spending might be diverted over to that smallest credit card bringing the balance down a bit)

Makingabobor2

Its strange how we all look at DMPs in a different light then isn't it? The day we sorted ours out, was the first night I slept properly for months. It was like a huge weight was lifted from our shoulders. I can't comment on Credit Union though as I know nothing about it, all our debts were CCs and OD's.

abaka

I guess that kinda show's my crap situation. I've got Personal loans from Bank, loans from Credit Unions, and then credit cards. But yeah in my research, a Credit Union is 100% likely to pursue formal court action…and I'd say they'd deffo do it for 24k worth of debt!!!

So today had an email from Santander - Asking me to upload my Passport again, not sure why as that's just going to show the wrong name - Not sure if this is just an automated request and the application is still in a queue to be manually checked. I've been checking things online and if they do reject my application I'm going to request that they remove the hard search from my credit rating which I believe I have a right to do if they automatically reject my application due to the "naming error".

Makingabobor2

Surely your passport must be in your correct name?