Large debts

[purplepenny500]

I’m on a debt management plan which has helped with our family financial troubles, although my repayment amount is minimal and it will take a long time to pay off. My husband has large debts that average around £700-800 per month. We simply don’t earn enough money to pay everything off every month. His mum helps out but I feel her money could be put to better use rather than just paying off debts with high interest every month. We rent, I can’t ever see us getting a mortgage at this rate. His debts are too large to get a consolidation loan. Where do we go from here? Has anyone been in a situation where both partners have been on a debt management plan?

Sorry that you are in this situation. It sounds like your husband’s payments aren’t very manageable at the moment.
i think you need to explore what the debt is actually costing you in terms of interest. Is it better to suck up large payments over a short term to clear the debt faster? I’m not sure what the interest is on your debt management plan but maybe that is cheaper overall than a loan or credit card interest for the same amount of borrowing?

I would also think about how the the debt was accrued in the first place. If you both choose a debt management plan, will this free up more money per month? Will it cause unnecessary spending or encourage more debt?

Another thing to consider is how important a mortgage is to you as a goal? Having debt management plans over long periods may mean it taking a long time to build credit and a deposit to get onto that ladder. I don’t think credit card debt for example is an issue with mortgage lenders, so long as it’s affordable and you don’t miss payments. If you’ve had a debt management plan, does that affect future borrowing?

sorry probably more questions than answers, there are lots of people managing debts and balancing families on social media that are very inspirational. You might find a good community to help keep you focused on your goals.

If you rent and a DMP would take a long time to pay off, one or both of you might be eligible for a Debt Relief Order.

But the first thing you must do is put together a sustainable budget that covers all essentials including annual/irregular, an emergency fund and a modest amount for non essentials because if you've had years of robbing Peter to pay Paul, you're probably spending less than you should be on things like food, adult clothes, household items like towels and bedding etc.

Moneysaving Expert will walk you through the whole process of dealing with debt.

www.moneysavingexpert.com/loans/debt-help-plan/

Hi, Sorry to hear about this.

Citizens advice might be a good place to start as they have trained advisers who maybe able to help.

Depending on your circumstances', you might be able to make a claim if you have Overdrafts , credit cards or Store cards as these providers have a duty of care to consumers to only lend if you have the means to repay it.
I found a useful website www.theclaimsexperts.co.uk which tells you all you need to know and you may be able to get the debts partially or fully written off depending on the circumstances.