HP on a DMP

Bargin_Betty79

I'm in urgent need of a car to get to work as my old one has finally given up!
I'm currently dealing with my debt and have a DMP in place with Payplan which leaves little money to live on and almost none to save.
I called Payplan last night to explain my situation and they have told me that it would be okay to get a new car on HP as I need it to get to work. My worry is that I'd always thought the only companies that would give HP to someone with a terrible credit background were the companies that charge stupid amounts of interest, if this is so why are Payplan recommending it!

It would be great to hear from anyone who's been in a similar situation as I've reached a bit of a deadend and don't really want to take out HP if its going to make my situation worse, I've only just managed to get it under control!

boredofbeingathome

I don't know whether you can do this Betty, but i have heard in emergencies that you can suspend payments to the DMP and use that instead. Would that be enough to tide you over as in buy a cheap second hand car for the moment?
It is essential that you get to work, so i would have thought they could do so. I agree about the horrendous rates and it may just make your situation worse if you then cannot afford the credit..

Bargin_Betty79

Payplan did state I could make reduced payments if I submitted the bill for a new car to them,they could then pass it on to the creditors explaining the reduced payments and the need for my car, but I'd still need to get the money for it from somewhere and I haven't got anyone I can ask to borrow it from.

halight

Hi

i know somone that got hp while on a DMP.
But its was at a very high intrest!!!!!!!!!!!!!!!!!!!!!!
And he ended up paying more than twice back what he paid for the car.

You are relly going to have to thionk about this before you go and try..
I think it was yes car credit he when with.

Good luck and all the best

boredofbeingathome

what would it cost to fix your existing car?

boredofbeingathome

halight wrote: »

Hi

i know somone that got hp while on a DMP.
But its was at a very high intrest!!!!!!!!!!!!!!!!!!!!!!
And he ended up paying more than twice back what he paid for the car.

You are relly going to have to thionk about this before you go and try..
I think it was yes car credit he when with.

Good luck and all the best

One of my friends was really done with them, wouldn't touch them with a sticky end..

Bargin_Betty79

About £800, more than the cars worth and I've had a similar quote from another garage.
I'm just feeling a bit down at the moment so don't want to make any rash decisions about taking out silly credit just to get out of the situation, typical that when you think things are finally sorted something else goes wrong and it always seems to be near Christmas.

piptom&AndyPandy

Hi
Do you know any private mechanics? I know my hubby does a lot of private work cheap for friends and friends of friends who are struggling it normally costs so much because of 100% mark up on parts plus labour.

If you're nr me I could ask him how much it should cost you for parts, then maybe you could look in free ads see if there's a cheap mechanic to just charge labour?

Pip

xx

tealady

Hi Have you looked into any car sharing schemes, with things being so tight these days you may be able to organise lifts. Or how about a scooter?

sam89

Hi Betty,

I don't have any good news for you I'm afraid. We were in this situation in April when OHs car was written off in an accident.

We couldn't get credit at all, not even from the company who we were paying every month for the written off car and had never missed or been late with a payment , DMP means they don't want to know. We were lucky to have the option of a company car and went with that.

I think holding back a couple of months DMP payments and paying cash for a car is probably your only option. There are some reasonable cars for about £1000.

Good luck with it all,
Sam,
x.

Deep_In_Debt

Hi
I agree with others - probably best not to go down the HP route whilst on a dmp as the interest rates will be astronomical and that's if you can get HP. As others have said, probably best to suspend your dmp payments for a couple of months and buy a cheaper car to tide you over for a while.