Debt Management Plan

[SuperSeagull]

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.

[Tixy]

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).

[Time to face the music]

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

[katy_ann]

Im with CCCS, now Stepchange and they have been amazing towards me, there advice and good will is priceless and invaluable

[SuperSeagull]

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]

Originally Posted by SuperSeagull

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.

[Deep In Debt]

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.

[Better_Off_1983]

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.

[SuperSeagull]

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]

Originally Posted by SuperSeagull

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

[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.

[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.

[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

[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/

[KirstyO]

Originally Posted by !!!!!!!!!!2012

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.