Newbie and in debt!!

A question about : Newbie and in debt!!

Hello,
Im a newbie here but ive lurked for a while.
Ive been in debt since 2011. Little at first but now its got completely out of hand.
I owe about Ј20,000 on credit cards, catalogues and overdrafts.
But i am starting to do something about it now.
I rang the national debt helpline and enquired about a DMP as that is the only solution i could see to get out of debt. They are sending me some info out this week and said they could set it up within 4 - 6 weeks. Anyone whos had or in a DMP and want to tell me their experiences ill gladly listen.
I cant believe how stupid ive been though, i always thought yeah ill pay the money back one day. But now its caught up with me.
My husband knows, not very happy but at least he is with me still and trying to sort it out.
I suffer from anxiety as well and this is making it worse and i dont feel like ive slept for weeks but hopefully one day (in about 6 and a half years lol) i might be debt free.

Best answers:

• Oh, also meant to say that all payments each month to different creditors are up to date. I always pay the minimum on the credit cards and catalogues so im not behind in any payment. Just it leaves us short for the month ahead so end up using the credit cards again. So do you think a DMP is the right thing to do?
• Welcome, i joined finally today as well.
  As for DMP i have had one in place for the last 4 years
  Its scary at 1st but once its started the weight will lift allot. I have been running my DMP myself for the last 3 years after the company i used originally ironically went bust.
  You need to really look at what you spend before submitting your dmp as its really easy to under estimate what you spend on bills and the dmp will leave your finances tight but still put you in allot better position in the short and long term
• Hi, would it not be better to just clear it with Bankruptcy as this would restrict your credit availability and get rid of it in 12months for Ј700ish. If you could pay approx Ј5k off you could apply for a less restrictive DRO.
• If you decide DMP is the way forward DO NOT rush into setting payments up immediately. Pay your creditors token amounts for a few months, this will allow you to build up an emergency fund which if you are entering into long DMP will be essential. This will also encourage creditors to default/freeze interest. Just explain you are talking with debt charity. You may get some hassle from them but it wil eventually cease. This is really essential if as you say you have been making regular payments.
  Bankruptcy is a good option if you do not have assets to protect like property or will not affect your employment. Quicker fix but you would be made insolvent.
  Good luck with whatever you decide.
• Yes if there is equity in your house now or within a two year period, also car dependant on value and if you can prove a need for it. If you want more specific advice on Bankruptcy it is worth posting on the Bankruptcy board. You would be advised to contact one of the debt charities to talk through your options again, National Debtline also have template letters on their site which are excellent.
  Good luck.
• It would be worth filling in a statement of affairs (link).
  The people here will be able to help with your options once they have a better idea of your situation. A DMP might be the right thing, in which case people can advise whether your outgoings are likely to be considered acceptable by your creditors.
  Alternatively, it could be that people can suggest places to cut back that will mean you can meet the minimum payments and start reducing your debt without a DMP.
• I agree with Angry Bear, you haven't yet defaulted so it may be best to see if you can save yourself from a dmp by cutting back, earning more, selling etc.
• @imsostupid76 good luck! and I hope you can avoid the DMP.