First Time Buyer
AIP 18/02/2020 - Full Application 25/02/2020 - Valuation - 16/03/2020
17/03/2020 - Mortgage Offer Issued
23/03/2020 - LOCKDOWN
19/06/2020 - Exchange of Contracts
07/08/2020 - Officially Homeowners
Relieved but scared
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lastchance17
Posts: 6 Forumite
Hello ,
Yesterday morning I decided to stop burying my head in the sand . My husband entered a DMP 2 years ago but as i am self employed ( no debts with business) I was advised at the time I could not do a DMP ( now know this was wrong information . ANYWAY. i decided to consolidate adn took a very large loan but stupidly used my cared cards again....long story short is 2 days ago had a major meltdown...I will add i have never missed a payment but reality hit me that paying minimum payment could mean me still paying cards in 25 or 30 years !!
Doesnt matter what I used the cards for, i used them and I needed to sort it . I know i could still keep paying them but at minimum and it was never going to end .....yesterday i started to take steps.
My problem was self employed and in nireland so Stepchange could not help me, there site directed me to a local organisation but i stupidly googled and got the company I thought i needed , turned out this was actually a company that was going to charge me fees, did not mention this to me but when looking through their webesite I realised this . As i had already decided I wanted to start dealing with things here is a run down of yeaterday
9am, contacted a friend in tears and said i was going to deal with things after christmas , she encouraged me to do it now
10.00am Spoke to first company and this spured me on to coat up exactly what i owed £42k
10.30am started to ring my creditors, more tears but they ALL put 30 day hold on accounts and were actually ok to speak to, yes it was terrifying , yes it took me hours as waited in queue upon queue on phone but by 2.30pm had spoke to them all ( 6 in total ) when i spoke to MBNA and mentioned I thought i had a company to use but had realised they would charge fees they directed me to Payplan.
3.00pm rang Payplan and 3 advisors later had a DMP proposal in my email to sign and send back. Was a bit touch and go as they suggest hubby and me do a join on , not saying we wont but for the minute doing 2 single ones , 2 companies just to get things up and running , his has been going 2 years and ends same time as our mortgage . mine will take a lot longer but once mortage and hubbys DMP paid off that money can go to mine and we should be totally debt free in 8.5 years ( at the minute looks like mine will be 18 years but wont once his paid)
I paid off a CC i had with my bank a few days ago but clearing savings I had , so now at £0 but if DMP accepted will soon be able to get some savings together again for emergency . Please not judgement or saying the SMP is to long, as i explained above it wont be and the fact i will be paying £200 per month rather than the £1k a month paying now will be such a relief. I know this is all subject to creditors accepting this so fingers crossed they do.....they may ask for budget to be adjusted so they can get more per month and if they do we will deal with that.
Purpose of this post is if you are drowning like i was/am financially and mentally please speak to someone ,
Yesterday morning I decided to stop burying my head in the sand . My husband entered a DMP 2 years ago but as i am self employed ( no debts with business) I was advised at the time I could not do a DMP ( now know this was wrong information . ANYWAY. i decided to consolidate adn took a very large loan but stupidly used my cared cards again....long story short is 2 days ago had a major meltdown...I will add i have never missed a payment but reality hit me that paying minimum payment could mean me still paying cards in 25 or 30 years !!
Doesnt matter what I used the cards for, i used them and I needed to sort it . I know i could still keep paying them but at minimum and it was never going to end .....yesterday i started to take steps.
My problem was self employed and in nireland so Stepchange could not help me, there site directed me to a local organisation but i stupidly googled and got the company I thought i needed , turned out this was actually a company that was going to charge me fees, did not mention this to me but when looking through their webesite I realised this . As i had already decided I wanted to start dealing with things here is a run down of yeaterday
9am, contacted a friend in tears and said i was going to deal with things after christmas , she encouraged me to do it now
10.00am Spoke to first company and this spured me on to coat up exactly what i owed £42k
10.30am started to ring my creditors, more tears but they ALL put 30 day hold on accounts and were actually ok to speak to, yes it was terrifying , yes it took me hours as waited in queue upon queue on phone but by 2.30pm had spoke to them all ( 6 in total ) when i spoke to MBNA and mentioned I thought i had a company to use but had realised they would charge fees they directed me to Payplan.
3.00pm rang Payplan and 3 advisors later had a DMP proposal in my email to sign and send back. Was a bit touch and go as they suggest hubby and me do a join on , not saying we wont but for the minute doing 2 single ones , 2 companies just to get things up and running , his has been going 2 years and ends same time as our mortgage . mine will take a lot longer but once mortage and hubbys DMP paid off that money can go to mine and we should be totally debt free in 8.5 years ( at the minute looks like mine will be 18 years but wont once his paid)
I paid off a CC i had with my bank a few days ago but clearing savings I had , so now at £0 but if DMP accepted will soon be able to get some savings together again for emergency . Please not judgement or saying the SMP is to long, as i explained above it wont be and the fact i will be paying £200 per month rather than the £1k a month paying now will be such a relief. I know this is all subject to creditors accepting this so fingers crossed they do.....they may ask for budget to be adjusted so they can get more per month and if they do we will deal with that.
Purpose of this post is if you are drowning like i was/am financially and mentally please speak to someone ,
0
Comments
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Well done!
You have taken the first, and hardest step by acknowledging you were in trouble financially and contacted the companies you needed to to get the ball rolling.
Two years ago, myself and DH were in a bit of a mess with our finances and wasting so much of our disposable income and had nothing to show for it. We had several unsatisfied CCJ's and defaults because we had burried our heads in the sand.
We took charge and after 1 year, all of our debts were paid off and now, 2 years later, we have a nice chunk of money in savings and are planning on buying our first home next year.
Never in a million years did I think that we would be in such a good position as we are in now and if someone had told me that we would be as we are now 2 years ago, I would have laughed at them.
Good luck for the future x0 -
thanks for reply, as long as i can see an end in site even if 8.5 years down the road better than paying £1k a month until i go to my grave lol . just a waiting game now to see if creditors accept. around round of calls on monday now to let them know who i have contacted and let them know when first payment is0
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Don`t worry about the creditors accepting your proposal or not, that doesent matter, you still pay them what you have said you would regardless.
Also you are best contacting creditors in writing only.
If they don`t like it, they will simply sell on the debt, or pass to a debt collector, either of whom will be happy with whatever you pay them, so don`t worry on that score, thats how the system works.
Also don`t be suprised if some creditors sell on there liabilities, or instruct debt collectors, its perfectly normal, you still pay the same, just to whoever writes to you, instead of the original creditor.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The hardest part was recognising you can't go on and then getting help.
It will get easier and as you say, when your OHs is paid off and the mortgage cleared, yours will get more money paid off
Mortgage started 2020, aiming to clear it in 2026.0 -
thanks guys , just now need to get my life organised0
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Quick update, have spoken to creditors again to give them all and update with reference number so now can relax....isnt it amazing how making those call as so hard but actually every company was ok to deal with. Now to just work out budget for weekly living and get some saving as per first post totally spent them all to pay of CC with my own bank , fingers crossed now no emergencies arise0
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sourcrates wrote: »Don`t worry about the creditors accepting your proposal or not, that doesent matter, you still pay them what you have said you would regardless.
Also you are best contacting creditors in writing only.
If they don`t like it, they will simply sell on the debt, or pass to a debt collector, either of whom will be happy with whatever you pay them, so don`t worry on that score, thats how the system works.
Also don`t be suprised if some creditors sell on there liabilities, or instruct debt collectors, its perfectly normal, you still pay the same, just to whoever writes to you, instead of the original creditor.
Thank so much for your reply as i wos worried creditors would "reject" DMP as want more but thanks to your post and an email form my DMP case worker I know now not to worry . thanks again0
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