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  • FIRST POST
    • Clouds88
    • By Clouds88 16th May 18, 7:06 PM
    • 57Posts
    • 25Thanks
    Clouds88
    What would you do?
    • #1
    • 16th May 18, 7:06 PM
    What would you do? 16th May 18 at 7:06 PM
    Eugh so, I had previously posted in DRO forum as thought thatís what I would end up doing. Turns out basically all of my tax credit award for last year I shouldnít have had so this takes me £1118 over the 20 k threshold.

    Maybe bankruptcy would be a viable option now but obviously fees are £680, should I just to raise funds to pay my creditors pro Rata £11180 to get me below the threshold? Our household income will increase in approx a year from my husband completing university- so we could token pay but with his debt too it totals £29-30,000. It seems like itís now or never.

    I havenít gone into the full SOA, we donít have too much left over each month £50-80 ish, renters, cars both 10 years old.
Page 1
    • JayRitchie
    • By JayRitchie 16th May 18, 7:57 PM
    • 43 Posts
    • 50 Thanks
    JayRitchie
    • #2
    • 16th May 18, 7:57 PM
    • #2
    • 16th May 18, 7:57 PM
    If your husband is only a year away from graduating can't you try making minimal/ token payments until then and pay off the debt when he starts work? Won't that give a huge increase in income?
    • Clouds88
    • By Clouds88 16th May 18, 8:16 PM
    • 57 Posts
    • 25 Thanks
    Clouds88
    • #3
    • 16th May 18, 8:16 PM
    • #3
    • 16th May 18, 8:16 PM
    Thanks, not a Ďhugeí increase. He earns £600 wages and £450 ish student loan for the next year. So when he qualifies heíll probsbly earn an extra £700 a month. So if we aim to save £500 of that towards our debt a month then itíll still take us 5 ish years to pay off the debt. Leaving a few hundred left over but then weíll need to change cars in that time and our 2 bed house isnít really big enough for us moving forward/ possible rent increases if we stay here as itís stayed the same for last 4 years anyway- but then weíll be scrimping for the next 6 years which seems like such a long time...
    • enthusiasticsaver
    • By enthusiasticsaver 16th May 18, 8:35 PM
    • 7,098 Posts
    • 15,355 Thanks
    enthusiasticsaver
    • #4
    • 16th May 18, 8:35 PM
    • #4
    • 16th May 18, 8:35 PM
    Bankruptcy is such a major problem, it could affect you renting, obviously no new borrowing and it could be an issue with some jobs that I would hesitate to advise this when you could be clear in 5 years. Have you contacted step change to see what they advise and pay nominal payments for now?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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