Taking the DMP Plunge?

woodybuzz

We are considering starting a DMP (prpobably with CCCS) but are considering doing our own and would be grateful if anyone could provide info on the following...

1) How badly does a DMP affect your chance of picking up a mortgage deal (our fixed rate runs out in 3 yrs, but any huge increase could push us over the edge)?

2) If we did our own DMP, would reducing our overdraft by say £25 a month be considered as paying our creditor? (our only debt to our bank is an overdraft)

3) Can we "register" with CCCS and then run our own DMP - only using them when we need advice or help?

4) Can the bank get at our kids accounts?

5) Will a DMP affect our kids mortgage / credit chances in the future? (they are "only" 15 at the moment - so have plenty time and dont want them to get credit anyway) - DFD is probabaly 4 yrs.

6) I have an interview for promotion in a week or so - if successful - will any pay rise be swallowed up by the DMP?

Any advice is greatly appreciated

woodybuzz

Anyone help please?

GirlRacer_2

You may be better posting this on the DMP Mutual SUpport thread. There are some really knowledgable folk on there who'll be happy to help you out. I know Rayday manages her own DMP and has lots of advice to offer.

southernscouser

woodybuzz wrote: »

We are considering starting a DMP (prpobably with CCCS) but are considering doing our own and would be grateful if anyone could provide info on the following...

1) How badly does a DMP affect your chance of picking up a mortgage deal (our fixed rate runs out in 3 yrs, but any huge increase could push us over the edge)?

2) If we did our own DMP, would reducing our overdraft by say £25 a month be considered as paying our creditor? (our only debt to our bank is an overdraft)

3) Can we "register" with CCCS and then run our own DMP - only using them when we need advice or help?

4) Can the bank get at our kids accounts?

5) Will a DMP affect our kids mortgage / credit chances in the future? (they are "only" 15 at the moment - so have plenty time and dont want them to get credit anyway) - DFD is probabaly 4 yrs.

6) I have an interview for promotion in a week or so - if successful - will any pay rise be swallowed up by the DMP?

Any advice is greatly appreciated

Hi woody.

OK.

1) Your creditors will issue defaults to you which means they will remain on your credit file for 6 years from the date of issue. This will seriously affect your ability to remortgage.

2) What you would need to do is open another basic bank account with a bank to whom you owe no money. Then nget all wages/credits paid in to this account and transfer over all direct debits. You can then reduce your overdraft by whatever amount you intend to. If you don't changew your accounts the bank could take all your pay to service your debt to them leaving you with nothing.

3) You can phone CCCS and get an info pack. I'm not sure they would be help you with specifics unless you're a client with them.

4) No

5) No. Credit files are now specific to individuals rather than addresses.

6) Potentialy. The CCCS have set allowances to enable you to live. The remainder of your money goes to servicing your debts. The allowances are pretty generous so as you don't get into more debt. Obviously the more you on the more likelyyour payments will go up. However this does mean you will clear your debts quicker.

woodybuzz

Thanks scouser - its what I thought on the mortgage front, that we would probably end upon the banks standard rate. Good news about the kids accounts and future etc.

Using the CCCs web thingy, I calculate we would be paying about 75% of the minimum amounts to our creditors - is this good or bad? Good in the sense that its not far off what we (struggle) to pay now (and therefore more likely to be accepted?) or Bad in that we are not that far off and so our creditors think we could (or should) start paying interest again. If we really struggle for 2/3 years - two loans finish which would possibly sort us out but it would be really really tough!

I think what I'm trying to get across is that if we took a DMP we would be better off for 4 years or so - compared to now. But looking long term what with mortgages and a poor credit history - is it really worth it?

I know no one can answer that apart from us but - its really doing my head in!

MrsTinks

Not being funny Woodybuzz but have you posted an SOA on here to see if we can find areas to save you money on to maybe avoid a DMP? Sure ti might mean tightening the belt but you'd be amazed where we can find pennies to be saved sometimes