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Hi everyone, overjoyed I found this site!


I'm 24 and have just learnt the value of money (finally). I'm roughly 10k in debt to around 10 creditors. Yesterday I worked out I should be paying out around £850? a month. I only earn £750 a month. I'd really appreciate some advice on how to tackle this?


Debts are in this order...


Loan with co-op. 6400 total including interest, 2800 left to pay. Up to date with payments.

Credit card with halifax. £2654 total balance. 104 over limit, 2 months behind.

Credit card with Natwest. £2794 total balance. £6 remaining credit. Up to date with payments.

Credit card with Vanquis. £500 total balance. 1p remaining credit. Up to date with payments.

Credit card with Capital one 198 total balance. £2 remaining credit. Up to date with payments.

Payday express loan. 690 including interest. interest frozen. up to date with repayment plan, won't be able to make next payment of 87.

Wonga. 403 total balance. interest frozen. 50 a month repayment plan. up to date.

Mr lender. £150. up to date, been rolling over £33 for 5 months now.

Quick quid. Owed a fair amount, got it down to £160 now. Agreed 160 a month repayment plan, won't be able to make next payment but up to date so far.

Another PDL I can't remember the name of. £150, due on 20th august. won't be able to meet payment.


I don't know how I've managed to keep this up so long but there we go. (actually yes I do, borrowing from elsewhere to pay bills)


Household expenses food etc come to around 60 a week.


I've filled in the CCCS DMP plan. Do you think this would be the right option for me? I'm hoping to pay around 200-300 a month, so I can live without credit.


Thanks so much for the help in advance, much appreciated!

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Hi Joe-,


Very good decision to take control, you did already the first step in the right direction :)


I am not too experienced with dmp. Other people might give better advise about the pro and cons of dmp. To make the decision easier for you I would look at the other options you have available in my opinion:


You have a total debt of 10499 GBP in a mix of bank loan, CC and PDL. Assuming all PDL freezes interest, the interest on the loan and CC must be roughly 160 GBP per month. If you say you have around 200-300 a month available to pay back your debts, in theory this is possible but will take time.


The best option might be to pay off the debts with the highest interest rates first (but keep every creditor "happy"), so you have month after month more money available to actually repay the original loan amounts (and I think a dmp would spread the payments equally over your creditors (but I am not sure of that)), so that would be a disadvantage of a dmp as it will take you longer to get debt-free.


The highest interest rates are Vanquis CC and CapitalOne CC I assume. Then the other CC and the loan. The PDL are not only 0% interest (if they freeze it), but also lowest priority debt, so just repay them enough to keep them quiet for a while.


A possible plan would be:

- Co-op loan: Ask them for a 3-month repayment break, after that ask them to reduce the payments to 50 GBP until your situaton gets better

- Halifax: 45 GBP per month, once Vanquis/CapitalOne are gone increase this. You have to contact them to arrange this as you are already 2 months behind!

- NatWest 50 GBP per month, once Vanquis/CapitalOne are gone increase this

- Vanquis: 80 GBP per month for months 1-3, from month 4 onwards 30 GBP per month

- CapitalOne 50 GBP per month

- Payday Express: 28.50 per month

- Wonga: 16.50 per month

- MrLender 10 GBP per month

- QuickQuid 10 GBP per month

- PDL150? 10 GBP per month


For the PDL: Communicate in writing with them. MrLender has to agree as you already rolled over several times. For QuickQuid they will agree as this is the last rate and you can split this (contact them by email with your offer). Wonga will agree if you complete their I/E form (as with your high loans and CC this will leave them no more than 16.50 per month anyway). PaydayExpress might be difficult. Try to find out what the other PDL (150 GBP) is and let us know.


To compare here is what a dmp would probably "assign":

Co-op 80 GBP

Halifax 76 GBP

NatWest 80 GBP

Vanquis 15 GBP

CapitalOne 6 GBP

PaydayExpress 20 GBP

Wonga 11 GBP

MrLender 4 GBP

QuickQuid 5 GBP

PDL150? 4 GBP


The disadvantage would be that the high interest CC (Vanquis/Capital One) get relatively small amounts, and that some PDL (not all) will not accept this and cause issues.


Let us know if you need more specific advice and how you get on with your creditors (or the dmp)


Hope this helps a bit

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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