Hours cut at work - please give advice for temporary situation

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by robbie85 » Sat Jan 06, 2018 11:13 am
My hours have been cut at work.
I'm looking for another job and plan to increase my income back to what it was within a year.
For now I don't have enough to cover payments on what I owe.

I googled what to do and have been learning about IVAs and DMPs and token payments.
Some places say lenders are more lenient if you contact them directly, some places say do it through Citizen's Advice.

I want to be a first-time buyer within the next 4-5 years so I don't want to damage my rating.
With my old income I was on track to pay off everything in 3 years.

What's the best way forward?

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by Foggy » Sat Jan 06, 2018 11:31 am
Everything will depend on the whole set of circumstances and we can't give specific advice without knowing the full picture. However, from what you have said you could negotiate a short term DMP. Whether you do it yourself or get a comapny to do it for you depends on the amount of work you are willing to put in and the number of creditors we are talking about.

If you opt for a firm I would suggest either Stepchange or Payplan, as they are both funded by the banks for DMPs and do not take fees from your payments --- they are also well known to most lenders.

A chat with either will only cost a phone call.
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by kallis3 » Sat Jan 06, 2018 11:44 am
Agree with Foggy. Just to mention that if you do an arrangement, your credit rating will be ruined for six years. so a mortgage in 4-5 years will be a no-no
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by Ryan » Mon Jan 08, 2018 10:50 am

As Kallis says if you enter an IVA you would be looking at a minimum 6 years before you could look to obtain a High Street Mortgage. If you enter a DMP it may be even longer than 6 years as under a DMP a default doesn't get recorded at the start of the Plan which can lead to issues later on.

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