Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    SuperSeagull
    Debt Management Plan
    • #1
    • 6th Dec 12, 3:57 PM
    Debt Management Plan 6th Dec 12 at 3:57 PM
    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.
Page 1
  • Tixy
    • #2
    • 6th Dec 12, 4:07 PM
    • #2
    • 6th Dec 12, 4:07 PM
    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"
    • Time to face the music
    • By Time to face the music 6th Dec 12, 4:48 PM
    • 5,010 Posts
    • 35,829 Thanks
    Time to face the music
    • #3
    • 6th Dec 12, 4:48 PM
    • #3
    • 6th Dec 12, 4:48 PM
    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
    Debt free 17th April 2015
    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
    • #4
    • 6th Dec 12, 6:48 PM
    • #4
    • 6th Dec 12, 6:48 PM
    Im with CCCS, now Stepchange and they have been amazing towards me, there advice and good will is priceless and invaluable
    Official DFW Nerd Club Member #1449 | Proud to be dealing with my debts
    Total debt as of 08/08/2015 - 1703.00 | Aiming to be Debt Free by December 2015 June 2016
  • SuperSeagull
    • #5
    • 6th Dec 12, 9:43 PM
    • #5
    • 6th Dec 12, 9:43 PM
    This not looking good I will have to advise him to speak to an impartial adviser within the 14 day cooling off period.
    • Deep In Debt
    • By Deep In Debt 6th Dec 12, 10:11 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    • #6
    • 6th Dec 12, 10:11 PM
    • #6
    • 6th Dec 12, 10:11 PM
    This not looking good I will have to advise him to speak to an impartial adviser within the 14 day cooling off period.
    Originally posted by SuperSeagull
    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 at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
    • Deep In Debt
    • By Deep In Debt 6th Dec 12, 10:20 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    • #7
    • 6th Dec 12, 10:20 PM
    • #7
    • 6th Dec 12, 10:20 PM
    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 at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
    • Better_Off_1983
    • By Better_Off_1983 7th Dec 12, 1:41 AM
    • 380 Posts
    • 493 Thanks
    Better_Off_1983
    • #8
    • 7th Dec 12, 1:41 AM
    • #8
    • 7th Dec 12, 1:41 AM
    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!!
  • SuperSeagull
    • #9
    • 7th Dec 12, 6:24 PM
    • #9
    • 7th Dec 12, 6:24 PM
    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
    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.
    Originally posted by SuperSeagull

    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
  • Heffi1
    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.
    YNAB has been a revelation and is helping me make my money go further than it ever has before. If you fancy trying it, use my referral link and get 10% off the cost. http://ynab.refr.cc/CD3RJDL
    • Deep In Debt
    • By Deep In Debt 7th Dec 12, 8:40 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    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 at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
  • Freshstart2012
    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.
  • SuperSeagull
    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
  • Heffi1
    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/
    YNAB has been a revelation and is helping me make my money go further than it ever has before. If you fancy trying it, use my referral link and get 10% off the cost. http://ynab.refr.cc/CD3RJDL
    • KirstyO
    • By KirstyO 9th Dec 12, 9:52 AM
    • 198 Posts
    • 277 Thanks
    KirstyO
    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
    Originally posted by Freshstart2012
    I thought stepchange minimum was 5 per creditor per month? I only pay 44 a month based on my SOA.
    Debt free on 2nd January 2015
    House deposit - 8895.49/10000
    Holiday fund - 502.21/1000
    Emergency fund - 125.14/5000
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,264Posts Today

6,741Users online

Martin's Twitter
  • RT @MoneySavingExp: Hi folks - the site will be down from 10pm tonight until 8am tomorrow while we re-charge the batteries with some behind?

  • Uk dominating world long jump.Who'd have thought it. Kathy Cook's British 200m record about to go I think. #Beijing2015

  • RT @MoneySavingExp: If you're affected by the #HSBC payments glitch, here's what you need to do (more to follow, when we get it): http://t.?

  • Follow Martin