IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Debt Management Plan
Reply
Views: 862
Thread Tools Search this Thread Display Modes
# 1
SuperSeagull
Old 06-12-2012, 3:57 PM
MoneySaving Convert
 
Join Date: Apr 2008
Posts: 36
Default 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.
SuperSeagull is offline
Reply With Quote Report Post
# 2
Tixy
Old 06-12-2012, 4:07 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jan 2009
Location: somewhere in the middle
Posts: 29,065
Default

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"
Tixy is offline
Reply With Quote Report Post
The Following 5 Users Say Thank You to Tixy For This Useful Post: Show me >>
# 3
Time to face the music
Old 06-12-2012, 4:48 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jan 2012
Posts: 4,275
Default

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 5/2/12: £82344 ~ Month 31: £13442=83.68% paid ~ DFD 31/1/16 ASAP
9/11 unsecured debts down, 2 to go ... Next target Marbles
Mortgage free 3rd July 2014 - Grateful thanks to the 2013/4 MFW threads
“Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt” Henrik Ibsen
Proud to be dealing with our debt and making our money our own
Time to face the music is offline
Reply With Quote Report Post
The Following 7 Users Say Thank You to Time to face the music For This Useful Post: Show me >>
# 4
katy_ann
Old 06-12-2012, 6:48 PM
MoneySaving Stalwart
 
Join Date: Oct 2011
Location: Dorset
Posts: 674
Default

Im with CCCS, now Stepchange and they have been amazing towards me, there advice and good will is priceless and invaluable
Proud to be dealing with my debts
Comping since August 2014

Self Managed DMP since February 2013
Total debt as of 18/06/2014 - £3552.42
Aiming to be Debt Free by June 2015

katy_ann is offline
Reply With Quote Report Post
The Following 3 Users Say Thank You to katy_ann For This Useful Post: Show me >>
# 5
SuperSeagull
Old 06-12-2012, 9:43 PM
MoneySaving Convert
 
Join Date: Apr 2008
Posts: 36
Default

This not looking good I will have to advise him to speak to an impartial adviser within the 14 day cooling off period.
SuperSeagull is offline
Reply With Quote Report Post
# 6
Deep In Debt
Old 06-12-2012, 10:11 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Apr 2008
Location: Surrey
Posts: 6,606
Default

Quote:
Originally Posted by SuperSeagull View Post
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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
Mortgage free.

Deep In Debt is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to Deep In Debt For This Useful Post: Show me >>
# 7
Deep In Debt
Old 06-12-2012, 10:20 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Apr 2008
Location: Surrey
Posts: 6,606
Default

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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
Mortgage free.

Deep In Debt is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to Deep In Debt For This Useful Post: Show me >>
# 8
Better_Off_1983
Old 07-12-2012, 1:41 AM
MoneySaving Stalwart
 
Join Date: Jul 2010
Posts: 380
Default

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!!
Better_Off_1983 is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to Better_Off_1983 For This Useful Post: Show me >>
# 9
SuperSeagull
Old 07-12-2012, 6:24 PM
MoneySaving Convert
 
Join Date: Apr 2008
Posts: 36
Default

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.
SuperSeagull is offline
Reply With Quote Report Post
The Following User Says Thank You to SuperSeagull For This Useful Post: Show me >>
# 10
lizzy23
Old 07-12-2012, 8:16 PM
MoneySaving Convert
 
Join Date: Jun 2012
Posts: 184
Default

Quote:
Originally Posted by SuperSeagull View Post
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
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
lizzy23 is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to lizzy23 For This Useful Post: Show me >>
# 11
Heffi1
Old 07-12-2012, 8:31 PM
Serious MoneySaving Fan
 
Join Date: Nov 2007
Location: North East
Posts: 1,098
Default

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.
'Proud To Be Dealing With My Debts'
Debt at 31st December 2007 £23,100.46, Payments made so far £12,331.00 Payments still to be made £12,349.50
Heffi1 is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to Heffi1 For This Useful Post: Show me >>
# 12
Deep In Debt
Old 07-12-2012, 8:40 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Apr 2008
Location: Surrey
Posts: 6,606
Default

Agree with the 2 posters above, I've been with StepChange since 2008 and they do manage the debts. They will send him a pack with all the info he needs, along with template letters. All he has to do is give them a call when he wants to go ahead with it and they will do the rest and set it all up for him.

He will need to send out the template letters with a token payment to his creditors whilst the dmp is being set up, but apart from the StepChange will do the rest.
Debt free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
Mortgage free.

Deep In Debt is offline
Reply With Quote Report Post
The Following 4 Users Say Thank You to Deep In Debt For This Useful Post: Show me >>
# 13
Freshstart2012
Old 07-12-2012, 8:51 PM
MoneySaving Convert
 
Join Date: Mar 2012
Posts: 70
Default

Hi Guys

Could it be possible that the OP son does not have enough free cash to set up a DMP with StepChange and they want him to self administer. I'm sure that they have a minimum deposit of £100 per month and maybe that is why the private company may have said that it will take 40 years to repay, as they will accept a lower deposit. The free companies prefer a DMP not to last for to long, however with a private company it's the longer the better, more fees for them.

I may be wrong however

Last edited by Freshstart2012; 07-12-2012 at 8:53 PM.
Freshstart2012 is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to Freshstart2012 For This Useful Post: Show me >>
# 14
SuperSeagull
Old 07-12-2012, 9:03 PM
MoneySaving Convert
 
Join Date: Apr 2008
Posts: 36
Default

When the paper work arrives from Step Change I will sit down with him and look at it, as they say 2 heads are better than 1
SuperSeagull is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to SuperSeagull For This Useful Post: Show me >>
# 15
Heffi1
Old 07-12-2012, 9:15 PM
Serious MoneySaving Fan
 
Join Date: Nov 2007
Location: North East
Posts: 1,098
Default

Have a look at their website while you are waiting for the paperwork to come, it might answer a few questions for you.

http://www.stepchange.org/
'Proud To Be Dealing With My Debts'
Debt at 31st December 2007 £23,100.46, Payments made so far £12,331.00 Payments still to be made £12,349.50
Heffi1 is offline
Reply With Quote Report Post
The Following User Says Thank You to Heffi1 For This Useful Post: Show me >>
# 16
KirstyO
Old 09-12-2012, 9:52 AM
MoneySaving Convert
 
Join Date: Dec 2008
Posts: 74
Default

Quote:
Originally Posted by Freshstart2012 View Post
Hi Guys

Could it be possible that the OP son does not have enough free cash to set up a DMP with StepChange and they want him to self administer. I'm sure that they have a minimum deposit of £100 per month
I thought stepchange minimum was £5 per creditor per month? I only pay £44 a month based on my SOA.
Thanks to the inheritance fairy I will be debt free in 2014. Such a small amount but such a BIG difference it will make to my life!
KirstyO is offline
Reply With Quote Report Post
Reply

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 12:38 AM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 17 September 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • THE SCRIPTNO SOUND WITHOUT SILENCE
  • BARBRA STREISANDPARTNERS (DELUXE VERSION)
  • SAM SMITHIN THE LONELY HOUR (DELUXE EDITION)

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.