Unsecured Debt Free by 2021

beanielou · 3 March 2018 at 4:07PM

EmergencyNurse wrote: »

Rather than go down the full DMP at this stage, I have decided to contact my credit card suppliers myself and ask if they'll stop adding interest to the outstanding balances.

Worth a try but unlikey unless you are currently in arrears.

EmergencyNurse · 3 March 2018 at 4:21PM

beanielou wrote: »

Worth a try but unlikey unless you are currently in arrears.

Well thats very easily solved!:)

enthusiasticsaver · 3 March 2018 at 5:52PM

That soa does not look sustainable and if you are being charged interest on those debts and just paying minimums it will be a very long hard journey. I cannot see how 50% of your income can go towards debt, you still have a shortfall of £77 and nothing in your budget for emergencies, presents, entertainment, clothing etc and only £50 for food. I am not surprised you are hungry. Food is a priority expense and for your health you must not go hungry to pay unsecured debts. Gas and electric is high. Is it a large house you are heating?

A DMP via stepchange or contacting your creditors yourself would be a good first step I think to see if they will reduce or freeze your interest. Have you defaulted on any payments yet? You can open a new basic bank account with any bank you do not already owe money to.

WannabeFree · 3 March 2018 at 6:24PM

Agree with the others that it doesn't look realistic longer term especially for 3 years.

However you CAN sort it even if it means a different route to what you first thought.

I agree about the DMP even if you do a self managed DMP.

Look forward to following, I've been where you are and I promise it DOES get better

x

EmergencyNurse · 3 March 2018 at 7:31PM

Thank you all for your advice. I'm currently looking at National Debt Line for any solutions.

EmergencyNurse · 4 March 2018 at 1:01PM

National Debt Helpline Budget Completion Advice Please:

I've just completed a National Debt Helpline Budget, just need some confirmation....for amounts owed do you put in the amount you are are supposed to pay each month OR the total amount you owe until the end of a credit agreement.

I struggling to accept the recommended £25 a month outcome to clear a c£26k debt, what happens to the rest of my income? Why would a creditor accept such a plan?

Do I want to live frugally for three more years and clear the debt OR pay this small amount over 10 years with the added interest that would no doubt involve?

I know I'm banging on about it, but I know I can live on £50 a month grocery budget, TBH i've been doing it for a lot less over the past year, and it is sustainable, just eat when you're hungry no more, no less.

All thoughts welcome.

enthusiasticsaver · 4 March 2018 at 1:18PM

The benefit to a DMP usually is the creditors freeze the interest. They will ask for an soa and you will fill it out with the usual recommended amounts. I think for 1 person £100 for food per month is usual. You can put something for emergencies and entertainment, haircuts, presents and clothing. All the categories you currently allow nothing for. You cannot afford the current debt you have. There is a £77 shortfall even without all the gaps in your soa so you must be falling further into debt each month.

Hopefully the end result will be you paying an affordable amount to your debts. If your creditors will reduce or freeze interest without a DMP that would help. Add up all the interest and bank charges you pay each month as an idea of what the debt is costing you. That needs to be added to that shortfall as if you don't cover the cost of servicing the debt and just pay minimums it will never be paid off.

beanielou · 4 March 2018 at 8:32PM

enthusiasticsaver wrote: »

The benefit to a DMP usually is the creditors freeze the interest. They will ask for an soa and you will fill it out with the usual recommended amounts. I think for 1 person £100 for food per month is usual. You can put something for emergencies and entertainment, haircuts, presents and clothing. All the categories you currently allow nothing for. You cannot afford the current debt you have. There is a £77 shortfall even without all the gaps in your soa so you must be falling further into debt each month.

Hopefully the end result will be you paying an affordable amount to your debts. If your creditors will reduce or freeze interest without a DMP that would help. Add up all the interest and bank charges you pay each month as an idea of what the debt is costing you. That needs to be added to that shortfall as if you don't cover the cost of servicing the debt and just pay minimums it will never be paid off.

I agree with this.

kazwookie · 4 March 2018 at 8:39PM

Can you get a second job, agency work, or similar for evenings or weekends?

Can you rent a room out to a lodger?

Do you have any thing you can sell?

You need to question the gas and electric more, if they owe you money, get it back, to help

Mortgage can you get a mortgage 'holiday'

EmergencyNurse · 5 March 2018 at 12:58AM

Sorted:

Sent off my gas and electric meter reading both less than the estimated reading on the current bill.
Applied for a water meter already - i'm definitely paying over the odds.
Asked CC companies to suspend adding interest -like a 0% balance transfer without the transfer!
Carry on with overtime and agency, pay unsecured debts off as planned, whats another three years of overtime, Ive been doing it since 2010.
Reduce hours at work in 2021 - never work a weekend, night, bank holiday or Christmas again.

Sod a DMP for c£77 a month

Unsecured Debt Free by 2021

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