Debt Advice

[littlemissminor]

Hi all,

Just looking for some advice really - as I have nowhere else to turn!

I am in debt (along with thousands of other people!), Not a huge amount to some people (around £6000), but enough to keep me up at night.

I am a single mum, working, DD is 15 months. The debt has come from a reduced income after having DD and a financially controlling ExDP - it has't gone on flash purchases, just living expenses for DD and I.

I am paying all I can, but after monthly expenses, I am not even covering minimum payment, and starting to panic massively.

Does anyone have any advice? Does a DMP or IVA work? Are they sustainable or a bad idea?

This is not a beg at all, just after some genuine advice!

Thanks :)

I didn't know what a DMP or IVA were, so had a google and found this

How is an IVA different to a DMP?

which in part says that the lower limit for an IVA is about 15k.

In the long run you have to find a way to increase your income (exdp?) or reduce your expenses. The DMP or IVA is just a one shot thing.

Good luck.

Call national debt line 0808 808 4000 and hopefully they can give you the facts you need. Its a free advice line.

Good luck

Do you have any assets? If not then an IVA would be completely inappropriate.

A DMP is good, but sometimes creditors won’t agree to it. A debt relief order might be more suitable - its a formal insolvency procedure like bankruptcy but for those with smaller debts and no assets - it gives you the opportunity to start afresh.

I would give StepChange a call or chat to them online. Completely free and impartial. They can advise you on what's best for your circumstances. If it's a debt management plan they will set it up and manage it for you completely free of charge

What kind of debt is it? I have a £6k loan and don't even think about it, it just ticks away in the background. It's not a huge amount. If it is on card, can you do the standing order method where it clears super quick as your payments stay the same each month?

Depending on what the debt is, a DRO may be suitable if there is going to be years of struggle paying this back.

However, a DRO qualifying pathway is that you have to have £50 or less of disposable income after paying out your commitments.

A DRO will stay on your file for six years, however, after a year, your debts will be written off. Speak to a CAB advisor on this option.

If, you're at risk of default, then it's worth contacting the creditor.

It depends on what the £6k is made up of. Is it one or more creditors, OP?

I know it's horrible and if it's affecting your wellbeing then it doesn't matter what the amount is.

Also, mse forums for debt free wannabes is excellent for support.

My example of DRO is a last resort and a suggestion only. But my step daughter has just done it as her exp ran up huge debts in both their names. She's able to breathe now. Hers was £18k.

Are you claiming all the benefits you’re entitled to?

Is it on credit card? Can you change to a 0%interest account?

Is it one debt or several? Do you know how to snowball?

Others have already pointed you in the direction of stepchange and debtline - give them a ring

Another vote for StepChange

try CAP. Christians Against Poverty. They can get you on managable repayment plan.