Morning all,

Feeling a bit more positive this morning. Thought I'd post as my previous posts have all been doom and gloom. I have completed the debt remedy with CCCS and am awaiting my welcome pack from them. I have set up my new bank accounts so that my current bank cannot help themselves to pay off debts I have with them. I have set up another account so that I put money away each month for the road tax/maintenance/mot even dentists and prescriptions charges. For the first time in my life, I feel like I am taking steps in the direction of becoming debt free!!!! Don't get me wrong, I know there's a massive journey ahead of me and I'm still going to have to deal with the creditors calls and letters yet but I know that this is the only way forward if I want to be debt free in this lifetime LOL.

Just wanted to give anyone who is feeling mega stressed (like I was week or 2 ago) a bit of a hint that there is a way forward and although its not all going to be rosy, admitting you are in trouble and seeking help is a step in the right direction. I actually feel a bit like I am getting some control back in my life.......admitting I am in trouble is the hardest but best thing I have done.

Good luck people

Kat x

Hi Katkins

I just remember how horrible I felt and so can understand some of what you're going through. We'd never missed payments either and felt awful and scared.

In actual fact we had a few phone calls but once the DMP kicked in things went very smoothly until my latest hassles from the Natwest and unfortunately they will probably issue a CCJ against me. I'm trying to come to terms that this isn't necessarily anything major to worry about as I don't want credit again as it hasn't worked for us!

Still I feel a bit stigmatised. I'm just trying to focus on the fact that if we can keep up the level of repayments we are currently on then we'll be debt free in 5 years. However, as we're both self-employed we can only hope that business keeps up while we try and find more income streams to cover shortfalls. My husband is the main wage earner now after my salary looked after most things for quite a few years and although it's nice not to have the main earning pressure on me (took redundancy after my daughter became seriously ill = luckily she has recovered now), I now worry about his earnings even more!!

At the end of the day, we're trying to repay our debts as best we can and I'm trying to picture the first day that I can wake up in the morning and know that we don't owe anyone anything...except for making sure we've got enough money for the tax man!!

Keep your chin up

Ron x

Hi Ron,

Well, I've done the CCCS online debt remedy and am in the process of opening a new bank account so hopefully I can set up my DMP soon. Wanted to change the account our wages are paid to as we have an overdraft with our current bank account.....thought they may just help themselves to pay it off once they realise our financial situation. I'm pretty sressed still, we can't afford to pay the credit card minimum this month and probably not the full loan payment either. It will be the first time we have maissed payments but the credit card is maxed now so we are short this month. I'm actually very scared of the consequences, i don't know what to expect.

Thanks for your post, I'm touched.

K x

Hi Katkins

Just wondered how you're getting on?

I WONDER IF THIS WILL HELP,

We like you are almost in the same financial boat.

We found the cccs was the first step for us.

Very helpfull with the information on how to deal with all our creditors, and i must say most of them have been very understanding.

Before we got to the stage of contacting them we tryed to keep everyone happy with the minumum payments and made such a shortfall with our mortgage.a lesson to be learnt to our expence i am sorry to say.

Thanx Pixie for taking the time to reply. I really appreciate it. I am going to call CCCS as soon as I can get all my financial info together.

Take care x

Hi,

I too have been where you are, me and my partner both work and could just cover the bills but literally had nothing left for anything else- we used credit cards for food etc until they got maxed out- i was very stressed!

Now i have contacted CCCS and they have been great. I would say avoid an IVA if possible its a legally binding agreement with little flexibility and is usually only advised if situation is serious. A DMP would probably be a good option for you if youre both working- thats what we have now- its a huge relief, it of course affects your credit rating but anything does!

If youre wary of this why not contact the companies individually and sort out a 3 month or 6 month plan with each (we did this first to see if we could sort ourselves out) usually they freeze interest and reduce your min payments.

Please remember that while it is scary for you personally to be in that situation as you probably (like me) thought i would never happen to you, so many people are in the same or much worse states. All the companies i spoke to had a team to talk about the interest freezing plans (imagine how many calls they take a day!) and the CCCS is so busy i had to wait about 5 weeks after my initial phone call with them (although they do give you immediate help ie a ref number to contact creditors with who then freeze interest etc until your deal with CCCS is completed) until my next appointment.

Good luck x

Thanks once again for your reply, and thanks for your words of wisdom. I am starting to realise that this is the only way forward. Its very scary but I know we have to do something.

Take care

Katkins x

Hi Katkins

You're situation sounds so similar to the one we had. We ended up living off the credit cards to supplement income (I had been made redundant but found work part-time as have 3 kids and my husbands business wasn't bringing enough in) and eventually it just catches up. My husband although very supportive didn't really take part in looking at the money situation although he knew it wasn't good so I felt quite alone at times. In the end I couldn't bear to live like it anymore, the feeling of being a failure and thinking that nobody can be in as much trouble as ourselves. I couldn't talk about it to friends as I thought they'd be really judgmental and again it's that feeling of failure. Plus not getting enough sleep etc.

I bit the bullet and rang the CCCS and once there was a plan there seemed to be a bit of light at the end of the tunnel. Life isn't all rosy though, I still constantly worry about money but at least we're not getting ourselves further into debt and we are paying something to everyone. My dream isn't about winning the lottery, just to be able to have no debt and to live to our means and if everything goes to plan then that should happen within the next few years which although can sound a long time, at least I can see an end to it rather than before when I couldn't.

All I can advise is to ring the CCCS or Payplan and at least talk to them and you'll soon find out that they there's not judgment, just ways to help out of a situation that unfortunately seems to be quite common.

Hope that helps x

Thanx all for your replies, its really good to know there are people out there who are willing to take the time to reply and not judge. I have looked at all ways to save money on our outgoings, I have already moved all of our insurances, utilities etc to the best deals I could find. I have tried to increase our mortgage to pay off the debts at a lower rate but due to the drop in house prices, we do not have any equity left in the house.....hence why I feel so desperate, we recently had a payment break on the mortgage too so don't have that as an option either.

In a nutshell, our incomings do cover our bills and credit repayments but little else. We then tend to end up using the credit card for food, petrol and any other necessities (clothes for the kids etc). Its like a vicious circle, we are using the credit card every month just to be able to pay the bills, this is really the only reason we have managed to keep up repayments up to now and I know this is not the answer, the credit card is nearing its limit now too.

The loan is an unsecured one, we've been paying it for just over a year and have almost 6 yrs left on it. The repayments are £275 per month. The credit card minimum payment is £290 per month. We just cannot manage this minimum payment this month and I am really quite scared of the consequences.

I have been looking for a second job with no luck up to now. I am limited to when I could work extra hours as I have 2 young children and my hubby is working 50 hours + at the moment trying to keep our heads above water. The last thing I want is for my children to suffer as a result of our stupidity.

Sorry if I sound so negative, its kind of good to get it all off my chest, my hubby does tend to be a bit of an emu at times with his head in the sand!

Thanks again for your relpies

Katkins

Hi, we were in a similar position last year, unfortunately with a significantly higher level of debt. We approached the CCCS and it was a big relief to be honest and everything has been going fine until recently - I've just posted about my problems with Natwest.

I have to say that all of our other creditors have been great and have accepted the repayments and most have stopped the interest. This didn't cost us anything unlike some of the companies out there and as we could repay a reasonable amount then the CCCS recommended a DMP for us as an IVA sounds OK in principle but there is still a lump sum to be paid back at the end of the 5 years and it is a further step than a DMP, but obviously it all depends on the circumstances.

I totally understand how you're feeling and how stressful it is and I hope that you can get something sorted soon, it certainly lifted a big weight off my shoulders when I started the whole process.

Good luck!

hi Katkins,

First of all well done on keeping up payments! This is the hardest thing to do when your income takes a big hit and you've done the right thing by reaching out here for help.

I think you'll need to give people more information on your situation, and before you go to either of these companies you should take a long hard look at your income and expenditure (I'm sure you have, but you'll have to document this anyway).

Do you have a mortgage / rent? How much is it every month? Can you reduce this? - Go interest only / Ask the landlord for a rent reduction especially if you have been there a while.

If you pay your energy bills by direct debit, have you checked the meter readings to see if you have been overpaying. Can you do anything to cut down on your bills? Are there any outgoings / bills that you could cut out?

On the debts that you have mentioned:

- 17K personal loan (unsecured / secured?) how much is this a month, and how long have you been paying it? What was the original amount? What is the interest rate? Is it Fixed?

- 13K Credit card debt. How much is this a month, and how long have you been paying it? What was the original amount? What is the interest rate? Is it balance transfer or purchases?

If the interest rates on these debts are high, you may be able to cut your repayments by consolidating these, but it takes careful planning to ensure you transfer these debts and then never use the old debts again.

Can you bring in any extra income with second/third jobs?

If possible you should avoid the IVA, and I'm not sure this is for you anyway as you have both done well to keep repaying.

Also you could try your local Citizens Advice Bureau for help / advise on your debts.

Finally from experience, taking action to reduce your debt is the only way to reduce the stress and you have taken the first step.

Good luck

Sparky

Hi Katkins

Firstly, I would like to say you have definitely done the right thing by seeking help. Far too many people don't, and their situation becomes worse very quickly.

I can see that you have looked into what options are available to you, you are correct in saying that 2 of the Debt Management tools available to you are a Debt Management Programme or an IVA (Individual Voluntary Arrangement).

Before looking at a DMP or an IVA it would be advisable for you to work out your income and expenditure. List all of the income that comes into your household, then list all of the outgoings. You can do this in 4 sections.

Essential Bills - Mortgage/Rent, council tax etc.

Living expenses - Food, Petrol, Utilities etc

Credit commitments - Who do you owe money to, how much and monthly repayments

Luxury items - Sky TV, Nights out etc.

With the items you have listed, it is worthwhile going through them individually to see if there is an area where you can make a saving.

Are you getting yourself the best deal? Check that you are on the correct council tax band (you would be surprised how many people are paying too much), are you paying to much for your utility bills? You can do Gas/electricity comparrisons on Moneysupermarket to see if there is a cheaper deal. Do you have a credit card or loan that can be consolidated into a cheaper deal?

In your post you say that you have never missed a repayment, this is a good achievement and you should NOT sabotage your credit profile.

A lender will accept or reject a proposal for a DMP or IVA based on your ability to repay your debts. This is done via an Income/Expenditure. If this shows that you are genuinely unable to service your debts they can look to accept a reduced monthly payment and even freeze the interest. Missing a repayment will not make them look on this more favourably. Choosing not to repay and being unable to repay are two senarios that are looked at very differently.

Once you enter into a DMP or an IVA your credit rating will be affected, as you are in essence defaulting on your credit agreement. So make sure you have physically done all you can to reduce your outgoings before you enter into one of these.

I would suggest that you speak to the lenders directly to advise them of your situation, most, if not all have departments that deal specifically with customers in your situation. If they are not able to assist you, then you can pursue the options you stated with free guidance.

There are specialist companies that deal with this type of thing for you, but beware there can be monthly and upfront fees involved, so pursue your "free" options first.

Good luck and pleasse don't hesitate to re post should you require anything at all

Hi, I've been reading posts on here for a while now and am finally plucking up the courage to face the music.

My hubby and I are in a significant amount of debt (owe 17k on a personal loan and 13k on a credit card and alsmost 1k in overdrafts). We have no excuses really, just major overspending for many years and have been battering the credit card just to live of late due to a £500 a month reduction in my other halfs salary. We are at a point where we are taking from Peter to pay Paul at the moment and its really getting out of hand. Up to now we have never missed a payment on any bills or re-payments but just don't feel that we can manage this much longer especially as we are continuously using the credit card to survive. I have been reading up on our options and am looking for a bit of advice as to which route to take. From what I can gather, we have 2 choices, a DMP or an IVA. I would be grateful if anyone could give any advice re their experiences on either of these, I know Payplan and CCCS don't charge fees but out of the 2, can anyone recommend which would be best for our situation?

As I mentioned before, up to now we have not defaulted on ANY payments, would this go against us if we chose an IVA or DMP? I'm thinking why would creditors agree to lesser amounts than minimum payments being made to them when up to now we have met all minimum payments.....i guess whtat I am saying is would we stand a better chance of getting help from them if we were to miss a couple of payments? Something which terrifies me I'll admit!

As you have probably guessed I am extremely stressed about our situation, I'm losing sleep, feeling constantly sick at the thought of what we owe and its now putting a massive strain on our marriage. Any advice would be gratefully received.

Thanks in anticipation.

Katkins