Brief intoduction - Just over 3 years ago I realised my personal debts had got out of control, owed approx £40k in unsecured debts.
Approx £15k was an unsecured loan relating to a Northern Rock 125% mortgage (the house was sold years ago), and £25k on various credit cards. When the government took over Northern Rock, despite all my best efforts, they went for a CCJ, repeatedly saying they wanted to secure the debt before stopping interest, despite it being an unsecured loan. Anyway to cut a long story short the judge agreed with my £76 a month repayment (about 60% of contractual amount).
I have been in a DMP with the CCCS for over three years, my current payment is £488 a month and the total credit card debt is now down to about £12k, and the NR debt about £12k, so I have repaid about £20k in total, mainly off the credit cards. Only Barclaycard continue to charge interest at 12.9%, so in effect I am paying roughly £400 a month off my debts.
Here is my quandry.....
After three years of REALLY having to work hard to keep up these levels of repayment in my DMP, I am now actually paying much more per month than the minimum payments would be if I was repaying them normally.
I would like to get my life back and enjoy it a little more, I have had no holiday for three years, and am considering coming out of the DMP to go back to the "normal" way of repaying.
I obviously realise that my creditors might want to start charging interest again, and I planned to ask the credit card companies to keep it to a minimum (i.e. under 10%), however it is the CCJ fixed at £76 which causes me the most concern. Are they likely to continue to accept this, or will they try and go for a higher repayment. Also has anyone been in a similar situation, and how did the card companies react??? or more importantly how did you word your letter, did you simply say you wanted to manage your own DMP or return to the contractual payments??
I realise staying in the DMP is the sensible thing to do, but I can see light at the end of the tunnel, and would really love to have the security of a little extra cash in MY pocket for contingencies/rainy days/actually having a life.
Thank you for reading my longer than anticipated post, any advice gratefully received.