Debt Management Plan

My son has just agreed a debt management plan with Ashley Park which means he will be paying a weekly amount for the next 40 years.

He has debts which are mainly due to losing an appeal by the DWP against him living with wife before they were married, which he wasnt, and the DWP not paying Housing Benefit when he was off s this year with an injury to his leg. They paid if for June and July but he had his accident at work in May and was taken back on light duties by his company on a greatly reduced wage from the end of July to last week. He is going into hospital to have an operation next week and will be off work for an estimated 28 weeks according to the surgeon. Obviously I am worried that he is doing the right thing by agreeing this debt management plan to repay the DWP, Council tax and accrued Council house rent arrears. Any advise would be appreciated and anybody with any experience of Ashley Park Financial Solutions.
«1

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Suggest to him he speaks to one of the free DMP providers such as those in this listing IMPORTANT - Where to seek professional impartial advice about your debts.

    If a DMP is the right option for him they'll administer it without a monthly fee, if there are other options that may suit him better then they will advise him on these.
    It would be rare that a DMP for 40years would be likely to be the best option for anyone (unless it is believed to be likely that he will be able to substantially increase payments in the future and pay it off much quicker).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Tell your son to contact Ashley Park and cancel it NOW.

    Then speak to StepChange (ex CCCS), Payplan, Christians Against Poverty or the CAB.

    In his position, the last thing he needs to be doing is paying a financial vulture to adminster his debts.

    Good luck and please let us know how he gets on :)
    LBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero
    :staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
    Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day Threads
    Mortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads
    "Debt is normal. Be weird!" Dave Ramsey
    Proud to have dealt with our debt :)
  • katy_ann
    katy_ann Posts: 1,088
    First Anniversary Name Dropper First Post Photogenic
    Forumite
    Im with CCCS, now Stepchange and they have been amazing towards me, there advice and good will is priceless and invaluable :)
    Debt free once - Back again | Current debt: £3002.96 - January 2023 | Currently repaying £50 a month - Estimated DFD Jan 2028 | Make £2023 in 2023 #51 - £33.75/£2023
  • This not looking good I will have to advise him to speak to an impartial adviser within the 14 day cooling off period.
  • This not looking good I will have to advise him to speak to an impartial adviser within the 14 day cooling off period.

    DMP's are generally not legally binding so I don't think there is a 14 day cooling off period...he can cancel at any time during the plan.

    I'm sure someone will correct me if I am wrong.

    No point though in paying fees to a debt managment money when those fees could be going to clearing the debt thus making him debt free sooner.

    Hope it all works out.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • I've just had a quick look at Ashley Park website and they do managed bank accounts which will also cost a monthly fee - more money that they are ripping off! Your son can get a basic bank account with a bank not linked to his creditors for FREE. It will come with a debit card but no overdraft.

    He needs to ditch these sharks who are only out to line their pockets.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • I have just looked at the site as well, if he is on a DMP with them, the minimum amount off fees he could pay is £16,800.00 and the most he could pay is £48,000.00 - on the calculation of the 40 years.

    Do what you can, I hope your son makes the right decision and pulls through.
    DEBTFREE AND PROUD!!
  • He has now spoken with Step Change and they are sending him the papers that he requires to set up his own Debt Management Plan. Apparently as a charity they cannot actually set up the plan but can tell him ow to do it himself and his chat with them seems quite productive.
  • lizzy23
    lizzy23 Posts: 193 Forumite
    He has now spoken with Step Change and they are sending him the papers that he requires to set up his own Debt Management Plan. Apparently as a charity they cannot actually set up the plan but can tell him ow to do it himself and his chat with them seems quite productive.


    Think he's got his wires crossed, there are a lot of us that are on DMP's that Stepchange are managing for us, your son will just need to send his paperwork back and send a letter to his creditors qouting his reference number Step Change will do the rest:D
    LBM 2 and the OH is onboard sept 12, DMP will start on the 1st November, DFD who cares as longs as it comes:)
    1 year down 5 to go and now under 30k and 10% paid off :beer:
  • Heffi1
    Heffi1 Posts: 1,291
    First Post First Anniversary Combo Breaker
    Forumite
    Agree with Lizzy23 I have been with Step Change now for a long time and they manage my DMP for me, I have found them to be very helpful and always patient if I need to call them to ask a question.
    :) Been here for a long time and don't often post
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards