Hi I am Sandy,
I have decided to come into the 21st century and write a blog about my debt problems in the hope that it will help others and also me along the way.
I am currently in a debt management plan and have been for just over a year now but I have to say I am struggling a bit with it all at the moment. I am a single mum to my gorgeous 12 year old daughter and things just got difficult after her dad left us 5 years ago.
I own our home so that is why I opted for a DMP because I was worried I would lose it and I was told that in a DMP there is no risk of this. I started my DMP owing £32000 and am paying £300 a month but I am not coping with this since last Christmas.
My daughter is at an age now where it’s so important to have what all the other girls have and I am afraid I gave in a bit too much. I ended up taking a couple of payday loans to buy presents and now I am struggling to repay them. I just felt that she should not be punished because of my problems with her dad and the fact that he is not around made me feel like I needed to overcompensate and buy her special things.
I have spoken to my debt management company and they spoke to the payday loan companies but they are telling them that they will not stop adding interest even if they agree to reduce the monthly payments in a DMP so it would take me forever to repay! It would take me nearly 9 years now without added interest. The other creditors stopped adding interest after a few months into my plan.
So now I am wondering if I should look at another debt solution instead but I am not sure if I can actually stop my DMP and change to say an IVA. I think I can as it is informal but I will have to check it out.
I am worried about losing our home, I so desperately want to keep things stable for my daughter, and she has been through so much already. I don’t want to move as I could not afford to rent in the school catchment area and that would mean a change in schools.
I am also worried about my work finding out if I start an IVA, I don’t think it would affect my job but I would be embarrassed if my boss knew. I am hoping to get a promotion in a year or so and don’t want this to jeopardise that!
I am going to get some advice and hopefully next time I speak to you I will have some positive answers.