I'm new and embarrassed!

Mclaren4022

Hello - I am new to this forum. I have been speaking to someone regarding a debt management plan - and I don't know what to do. I am up to date on all my bills but I know that my debt is not going to be manageable for long . I work full time but am searching for extra part time work in evenings and I also have a craft thing I do selling cards and craft sundries - so should I go for the plan or make contact with the credit card companies and ask for a couple of months breathing space whilst I get a second job?
I feel mortified that I am in this position - due to wages being reduced and helping out family members but worried about a poor credit report.

It is comforting to see how you are all coping and would really appreciate your thoughts / comments...

beanielou

Just wanted to say hi & welcome.

Bismarck

welcome and stick around!

There are loads of experts on DMPs so someone'll be a long soon...

cheers!

seaskye

Hi, I'm in a DMP and it's the best thing I've done to reduce the debt and still feel like I have a life.
Okay I have to stick to the budget but the CCCS do allow for entertainment, even if I have to save it up til I have a decent amount to have a day out with, but at least I can then do it guilt-free! I'd say go for it, you are still in charge and they have more power than the individual when it comes to getting companies to stop charges and interest.
Good luck, you've taken that hardest first step by posting on here, it will get easier now.

Merlot

Hi and welcome to the board.

Firstly, have a glass of something:beer: , then get your SOA up here, and then we can see if we can help you reduce your outgoings. List your debts also, including APR's. Have you been reduced credit in the past few weeks? Do you own your own home? (I'm not suggesting for one moment consolidation, it rarely works).

I look forward to seeing your SOA.

Merlot.x.

Mclaren4022

Sorry - what's an SOA? I have been through a list of income / outgoings etc with debtwizard and they didn't like the fact that I only put £70 a month for food - I live on my own - what do they think I eat!!! I do own my own home and have not been refused credit - yet! My main problem is meeting the minimum amount for my credit cards. I am going to try the reclaim having read the advice there.
Is it worth contacting the companies direct? I have seen a few people who have done DIY debt plans with the companies for short term - just not sure of my options - other than I cannot trim anymore - I don't smoke, drink or go out. I don't buy clothes, make up, hairdressing etc (god I sound a sight!!)...mobile is on pay as you go (for card business) and barely use £5 pe month on texts.

poppyg_2

a SOA is similar to what you will have put on debtwizard, i.e. it's your incomings and outgoings. Might be good to put one on here.

There's no reason why you can't contact creditors direct with an SOA and an offer of a reduced payment, or asking them to freeze interest. Are any of the debts you have with the company you have your main bank account with?

Horace

Maclaren - welcome to the forum. An SOA is a statement of affairs.

£70 for food for someone who lives on their own isnt bad but you could perhaps save here too - see the OldStyle Moneysaving forum - they have lots of useful tips. I too live on my own and have managed to get my monthly shopping bill down to £50 per month.

Someone will come along soon with lots more advice but it would help if we knew your incomings and outgoings.

Mclaren4022

Thank you, I agree £70 is a lot for food - I originally said £45 and they upped it! Yes poppy - one of the cards is with my bank - HSBC and two other cards are also part of the HSBC group apparently - does that make a difference?

Tigert

Hi and Welcome,

Firstly don't feel embarassed. There are lot's of us here in DMP's. I'm sure we'd all rather not be, but at least we're all dealing with our problems.

SOA is a Statement of Affairs and is the same as Income / Expenditure. There is a link somewhere that you can use to format it for this forum if you want to. (I'm sure someone could post the link, I'm not sure where it is).

I was in the same position 3 months ago in that I hadn't missed a payment, but knew that it wouldn't be long before it happened. For me a DMP has proved to be a good option. Which company have you been talking to? I'm with Payplan who have been excellent so far but lot's are with CCCs who seem pretty good aswell.

A DMP is going to affect your credit report though. However by going onto a DMP you shouldn't be taking out any further credit anyway so for lot of us this isn't an issue.

Anyway you've come to the right place - everyone here is so helpful.

Merlot

http://forums.moneysavingexpert.com/showthread.html?t=107280

Heres the link to show you how to post your SOA and how it should look.

Sorry I didn't explain myself properly earlier on.
Merlot.x.