help needed

[GlobalC]

Hi Guys,

After spending many days and hours reading lots of forums, i think i have decided to try and rum my own dmp. My story is that i am 40k in debt to 3 credit cards, 2loans, and 2 overdrafts. Today i have gone out and set up a new bank acc in readyness for what is ahead of me. Basically i have no idea where to start though, how should i first approach the creditors? If i put an IE together should i prioritise the bigger debts first?
Sorry to sound like a complete muppet but i really need a helping hand, so i dont make my situation worse. I have spoken with cccs and payplan and a few fee paying agencies and dont feel that there right for me.
Please help

Global

[Deepie]

Re: help needed

Can you list your debts & when you took them out & give us a bit more info please. amounts, start dates etc

[LooLoo]

Re: help needed

Hi GC and welcome

I did a DMP for a year - self managed - here is my diary which may help you

http://forums.all-about-debt.co.uk/showthread.php?t=23

If a DMP is the way to go then we can certainly help with letters.

The main thing is work out a payment that is managable for you and one you can cope with.

Ah I see I2D already beat me to it about asking for some more information.

The main thing is to realise you are not alone and we have all been in similar situations.

LL

[GlobalC]

Re: help needed

hi and thanks for your quick response, here is what i have

sainsbury loan £12833 owed , started 0ct2010
sainsbury loan £ 7318 owed, started july2009
virgin credit card £6300, took card out before 2007
Post office CCard £5484 took card out after 2007
Natwest CCard £5000 took out before 2007
Natwest overdraft £2600
Natwest overdraft £800

Wow that looks shocking, hope someone can help

[Deepie]

Re: help needed

Have you considered the unenforceable route ?

[Riz]

Re: help needed

How much in total per month do you anticipate being able to pay towards those?

Do you have a house/property with equity?

Normally with a DMP you would pro rata payments. i.e. if a creditor makes up 20% of your total debt, then you pay them 20% of what you have available each month. Can maybe be tweaked if you want to clear particular ones sooner.

[LooLoo]

Re: help needed

Seriously it is not shocking!!

As I2D says UE could be a possibility - have a read of that section on the site.

After a year of my own DMP i started going down the UE route - although I am still in my own arrangement for my overdraft - which seems **touching wood** ok.

UE is a rollar coster journery but if you do go that route - you will have lots of people holding your hand.

O and keep asking as many questions as you need

[GlobalC]

Re: help needed

Have you considered the unenforceable route ?

I am open to any suggestions really, it is something that i have read others have done, im not sure whether im eligible or not. Basically i have built up this debt and dont mind having to pay it off, but it is impossible with all the interest, i have read some of LouLou's thread but just dont know where to start. IVA or bankrupcy is not an option as i am a home owner and have a rented flat too but hardly any equity

[LooLoo]

Re: help needed

I'm not sure what anyone else might suggest but maybe to get the ball rolling - you could start your own DMP.

are you up to date or do you have any defaults?

[GlobalC]

Re: help needed

[QUOTE=rizzle;106250]How much in total per month do you anticipate being able to pay towards those?

Hi Rizzle, after reviewing everything i think i could manage £350 per month across the debts, my work load should increase over time so that i can up my payments.

[Riz]

Re: help needed

I am open to any suggestions really, it is something that i have read others have done, im not sure whether im eligible or not.

For some of the older accounts it might be worth investigating. Especially if it's inevitable that you are going to default the accounts anyway.

You may be able to take any account found to be UE out of the DMP, or if you're not comfortable with that use it as a lever to negotiate much reduced settlements etc.

[Never-In-Doubt]

Re: help needed

Have you considered the unenforceable route ?

Not worth it on 2 cards valued at £11k.... I'd not suggest this tbh mate.

[GlobalC]

Re: help needed

I'm not sure what anyone else might suggest but maybe to get the ball rolling - you could start your own DMP.

are you up to date or do you have any defaults?

I dont have any defaults yet, only late payments and one missed ( largely part to me just forgetting to pay ) but work has dried up and know cannot pay anymore. I dont mean to sound dumb and have read some blogs, but how do i start the ball rolling? I assume i send a letter explaining my situation with an offer of reduced payments? should i pay more to the bigger debts?, where if any do i find these template letters?

Thanks again

[Riz]

Re: help needed

How much in total per month do you anticipate being able to pay towards those?

Hi Rizzle, after reviewing everything i think i could manage £350 per month across the debts, my work load should increase over time so that i can up my payments.

That's going to be a looooooooooooooong while on a DMP. Even if you can up payments a bit.

You cite the property as the reason you can't consider an IVA/bankruptcy? Can you give some more details on those please? How much equity? Jointly or solely owned?

[GlobalC]

Re: help needed

That's going to be a looooooooooooooong while on a DMP. Even if you can up payments a bit.

yes i know

You cite the property as the reason you can't consider an IVA/bankruptcy? Can you give some more details on those please? How much equity? Jointly or solely owned?

My own house has about 20k equity, and the the rented place is two flats that me and my old business partner converted, strangely enough he couldnt get a mortgage for them so they are both in my name. Legally he has no right over them, but really it is half his. Maybe 15k equity across the two