Beginning my journey...

daisy_jean · 23 March 2018 at 9:16PM

Also, could this thread be moved to the Debt Free Diaries section - I feel I may be visiting here frequently!

enthusiasticsaver · 23 March 2018 at 10:09PM

Moved to diaries section.

As Susie says you need to cancel the CPAs the payday loans will have on your bank account. This means they cannot continue to collect payments from you and once the plan is set up they will get what will be allocated. The sooner you default on the debts the sooner the defaults will fall off your record (in 6 years time). The usual advice is to build up an emergency savings account as you will have no access to credit from now.

enthusiasticsaver · 23 March 2018 at 10:13PM

daisy_jean wrote: »

The only joint thing I have with the husband is a joint account (literally used for the rent and council tax... not sure why we bother with it!) with a minor overdraft (interest is like, £1 a month on it!). I might just casually suggest closing it for it's lack of use though...

The question is what I do next... You're saying CPA's, but won't that cause major issues before the plan is started? Admittedly my credit rating is shot to pieces so missed payments probably won't impact that much, but so far I've never missed one. Should I cancel, but make token payments until the DMP is set up and in place? What about credit card/store card direct debits - do I do the same for them?

Definitely close the joint bank account to stop this damaging your husbands credit history.

Cancelling the CPAs wont cause any issues although the payday loans companies wont like it.

You need the defaults to happen quickly so the 6 years it takes for them all to fall off your record starts asap.

I would inform all your creditors, cancel all direct debits. I would not bother with token payments. Just save in an emergency savings account.

daisy_jean · 23 March 2018 at 10:36PM

enthusiasticsaver wrote: »

Definitely close the joint bank account to stop this damaging your husbands credit history.

Cancelling the CPAs wont cause any issues although the payday loans companies wont like it.

You need the defaults to happen quickly so the 6 years it takes for them all to fall off your record starts asap.

I would inform all your creditors, cancel all direct debits. I would not bother with token payments. Just save in an emergency savings account.

Thank you, these will be tomorrow's jobs then. I will contact my bank to cancel the CPA's and email each creditor regarding their payments and my movement towards a DMP with PayPlan.

Should have a decent emergency fund within a couple of months given how much I pay out each month. Well, enough to replace an appliance should they break anyways (washer dryer is on it's last legs, although it is insured!).

Tempted to go down and open a credit union account for the emergency fund - ours has such weird opening hours I'd never get there to withdraw the funds unless completely desperate!

daisy_jean · 26 March 2018 at 9:32PM

So a few minor updates.. S^&t is starting to feel/get real.

PayPlan rang me to go through I&E's on Saturday - the lady was insistent that I included hubby in this, and refused to do a solo one. I am not including him in this - these are MY debts, and I will pay them, not him.

So I moved onto StepChange - did all the I&E online, and got a plan emailed through which estimates I have £750 a month to throw at the DMP. I also realised my total debt is more like £23k rather than the original £19k I thought. But subject to creditors accepting the DMP, and the £750 a month, it estimated I would be debt free in 2 years, 7 months. Which sounds amazing!

I got the DMP forms emailed through, and am now going to delay this by a couple of months for the emergency fund growth. I have also put in affordability complaints with MyJar, Pounds to Pocket and Mr Lender. I plan to submit to a couple of others too.

I emailed all creditors with CPA's on Saturday evening to cancel these (after HSBC proved most unhelpful). Two have replied and agreed, waiting to hear from the others. Payments are due out on Thursday so if the others don't respond tomorrow I'll cancel the bank card to prevent payments being taken.

And tonight I cancelled all creditor direct debits. Not going to lie, I was shaking as I did it. But it's done. Now, to email them all to explain the situation.

Fun times!

UncannyScot · 26 March 2018 at 10:45PM

Excellent progress made so far.

Stay positive, keep thinking that what you are doing is taking positive steps towards a debt free future.

Join in the community here and read and post on other folks diaries.

If you need any info or advice on things you know that all you need to do is post up about it and someone will come along and answer / comment. Mutual support is what we are about here

daisy_jean · 26 March 2018 at 11:06PM

Thank you! It’s overwhelming to start with but getting there, and the support here is great!

I’ve worked out if I can delay the DMP to start in June, I’ll be able to save about a £2000 emergency fund. (Which shows how much I’ve been paying out monthly). Household wise, we rent so repairs are sorted there but at least if the washer or fridge blow then we can replace easily.

daisy_jean · 27 March 2018 at 8:24AM

So, after cancelling those DDs last night and beginning to contact creditors, I did not sleep a wink. Today is going to be a looooooong day!:o

VadersDad · 27 March 2018 at 9:51AM

Good luck with your journey, you will get there i'm sure.

WannabeFree · 27 March 2018 at 12:49PM

Good luck you've made the hardest step.. It will get easier and things will look more positive.

x

Beginning my journey...

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