young and unrealisticlly lived

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  • Kitten868
    Kitten868 Posts: 1,785 Forumite
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    In a DMP your creditors should freeze interest. You'll repay a dmp quicker as your interest rates are so high! Plus your outgoings are higher than your income. Plus you've got a few creditors that want very high sums in just one month.
    What is your debt total? I wouldn't get to focused on mortgages for the time being - I think a payday loan is as bad as a default on your file. I would just focus on getting rid of this and building up savings. I'm not being negative to you I'm trying to be practical for you x
    Loan 1 £5200/£8000
    Loan 2 £300/£5800
    Total £5500/£13800
  • patman99
    patman99 Posts: 8,532 Forumite
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    Aaaron, you definately need to speak with Stepchange. Your creditors may not like it, but that's tough. They will end up either getting nothing if you go for a DRO, or a few £'s a month if you go for a DMP.
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)

    3-6 month EF £0/£3600 (that's 0 days worth)

  • QueenBeruthiel
    QueenBeruthiel Posts: 234 Forumite
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    Some shockingly unrealistic replies here! This young couple haven't got a pot to
    in; the very last thing they need is to pile up student debt on top of the unpayable debts they already have.

    OP, please get all the relevant information together and ring Stepchange for expert and free advice.
  • anna_1977
    anna_1977 Posts: 862 Forumite
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    QueenBeruthiel wrote: »
    Some shockingly unrealistic replies here! This young couple haven't got a pot to
    in; the very last thing they need is to pile up student debt on top of the unpayable debts they already have.

    OP, please get all the relevant information together and ring Stepchange for expert and free advice.

    Yes they do need to talk to Stepchange and sort out the debt.

    I think there is also scope for his partner to get some new qualifications that, in the future will allow her (and them as a family) to have a better life. Student debt isn't seen on credit report and the repayments are so minimal.... If partner is going to be at home for next 3 years looking after kids not working it's the perfect time to study for a new career
  • QueenBeruthiel
    QueenBeruthiel Posts: 234 Forumite
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    I'm all for education, however an OU degree would take 5 or 6 years, and then the young woman would have to gain a teacher training certificate, or whatever will be needed after the government change the rules a few more times.

    As she has a beauty therapy qualification, can't she put that to some use, by working as a mobile hairdresser in an evening perhaps, when the OP can look after the kids.

    Just thinking out loud, here.

    It's now that the family need money. Things should ease up when the kids turn 3, and the 15 hours pw free entitlement kicks in, and then when they go to school.
  • anna_1977
    anna_1977 Posts: 862 Forumite
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    I agree, i think my message was a bit mixed up - I had meant for her to look at short course (10-16) weeks with OU in order to prepare for uni if she chooses that route - opening a few avenues for down the line.

    I do think OP needs to get on a DMP or something...
  • aaronpeirson21
    aaronpeirson21 Posts: 32 Forumite
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    thank you all for your replies may i ask how a dmp works and is there debts you can exclude from the dmp ??
  • aaronpeirson21
    aaronpeirson21 Posts: 32 Forumite
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    also thats what we want to focus on over the next 5 years paying these debts of then seeing about having a future after that as somedays its very hard to see a future
  • anna_1977
    anna_1977 Posts: 862 Forumite
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    DMP can be self managed but I think you're better going via Stepchange.
    They will go through incomes, outgoing and debts and work out a repayment. They may decide you can realistically only afford £150 per month and so they spread that put over the number of creditors you Jane.

    I am sorry but I don't know about excluding debts, I suspect if you mention the family guarantor they will include. Someone more knowledgable will advice but it might be worth you not mentioning the family one but increase your outgoing sim incorporate the repayment - pretend you smoke so something similar?
  • anna_1977
    anna_1977 Posts: 862 Forumite
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    aaronpeirson21 wrote: »
    also thats what we want to focus on over the next 5 years paying these debts of then seeing about having a future after that as somedays its very hard to see a future

    I suspect the debts may be longer than 5 years but they will only show on credit file for 6 - regardless if length of repayment


    It seems a long time but it's not in the bigger scheme of things
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