Temporary Debt Solutions

[MrsCPN]

Hello,

 

I am in a position whereby I am about to arrange either a trust deed or DAS. I haven't signed anything as yet.

 

 

My circumstances are now about to change in that our empty house has finally sold

 

 

so once this exchanges, not only will i be better off financially as I will have no mortgage and insurances to pay

(was paying rent and mortgage which meant we couldn't meet credit card payments), I

will also be able to pay a good chunk off my debt.

 

 

I don't know what the best option is as once the house completes,

I can pay way more than the minimum payments are and finally get things paid off.

 

 

At the moment for the next few months i still have mortgage to pay for and can't afford minimum payments.

Can you enter a DMP for say 4 months? Or is it worth just contacting my creditors to explain the situation

and see if they will allow lower payments until the house exchanges?

 

Just trying to decide what the best option is with the least damage to my credit score.

 

 

I have only just cancelled direct debits for minimum payments and am late with one payment so far.

 

 

I can afford to make some payment towards the minimum payments but not full.

 

Thanks

[unclebulgaria67]

Speak to the mortgage company about this. You won't get any DMP for just a few months.

 

Stepchange are worth speaking to in this situation. Perhaps they have a template letter to send to creditors asking for a temporary suspension of payments or only token payments. There may be rules that apply to mortgage lenders in this situation to act fairly and to not frustrate you selling the house.

[citizenB]

Why not have a word with National Debtline

 

https://www.nationaldebtline.org/s/Pages/default.aspx

 

The link above takes you to National Debtline - Scotland.

 

I would consider making up two budget sheets - one currently (and for the next 4 months) and one that will reflect your situation once the house is sold and everything is done and dusted.

 

You have a couple of options I would think.

 

One where you write to all your creditors and explain the situation, asking them for some forebearance for say the next 6 months when you will be able to return to normal/increased payments.

 

Or you could have a non fee charging DMP do this for you.

 

What concerns me is that your creditors might issue default notices and trash your credit files, if they have not already done this.

 

I have asked a couple of the Site team who are in Scotland and know the way things work up there, to look in on you.

[dx100uk]

might be an idea to list your debts

and whom you are paying them off too?

 

 

do all your debts SHOW on your credit file?

 

 

have any of the debts been defaulted?

 

 

if they have

to be blunt

theres little point in entering into and 'arrangement'

just because you owe money

 

 

your credit file will be shot the day any default was registered

and will be that way until the defaults 6th birthday.

 

 

any DAS or whatever will NOT remove those early

 

 

infact if a debt is not already defaulted

they will be marked as default from the date you enter the DAS etc

 

 

thus you'll still have 6yrs of no mortgage etc.

[MrsCPN]

Thank you for the information and advice

 

The reason we were arranging a DAS was because due to having to pay a mortgage, several insurances, council tax etc... our outgoings we higher than what we have coming in just in bills. We had an extra 800.00 going out per month - this is due to us as we relocated and thought the house would sell faster than it has so we have been using credit cards to cover the excess which have quickly built up.

 

I have a list which was put together with payplan for our budget but now everything has changed. I'll speak to payplan and debtline tomorrow as looking online I could possibly look at a temporary payment arrangement until everything goes through. With regards to mortgage, I understand completely the impact and to be honest i'll use the 6 years to put together a sizeable deposit instead.

[dx100uk]

not as stupid as you thought you were then

great thinking:lol:

have confidence in yourself.