Questions about DMP

MaxRuby_2

Evening

I wonder if you lovely people can help me out?

I have been advised by a company to explore a DMP route.

My concerns are that if I entered into a DMP would my mortgage be at risk?!! Can I enter a DMP plan and my mortgage wouldn't be affected and can I enter into a DMP without consulting a third party - ie: can I ask the lenders to freeze interest by letter by myself?

My current outstanding balances on credit cards and loans is £25,000 and my outgoings are much more than my incomings.

Any help would be appreciated.

R's
MR

Edit to add: I have done a SOA with an apparent ' fin. advisior' for the said lender and I can't cut back anymore: ie cancelled Sky etc.

Can someone give any input to this?
Is it possible to enter into a DMP without a 3rd party working on my behalf?
Will my mortgage be affected if I enter into a DMP?

MaxRuby_2

bump - any help?

MaxRuby_2

Sorry to sound navie? Can anyone offer any guidance? What can I do - I am currently in a deficit of £800 per month

OnceUponADream

Hi
Hang in there. i normally lurk here and they are pretty quick in answering questions. good luck

~Beanie~

MaxRuby wrote: »

My concerns are that if I entered into a DMP would my mortgage be at risk?!! Can I enter a DMP plan and my mortgage wouldn't be affected and can I enter into a DMP without consulting a third party - ie: can I ask the lenders to freeze interest by letter by myself?

No, it won't affect your current mortgage. If you are on a fixed rate or similar deal that will end whilst the DMP is in place then you will strugle to get a new deal with another lender. You should be ok getting a new deal from your current lender as they don't usually credit score again.

Yes, you can manage your own DMP, there are quite a few people who post on these boards that do their own. You could also try contacting CCCS or Payplan who will both set you one up for free rather than using a fee-charging company.

The problem as I see it though is that you say you have a deficit of £800 per month and have already cancelled any unecessary expenditure. Is this deficit before paying your creditors or after?

Finally, have you tried posting your SOA on here to see if anyone can offer any advice? You can find the calculator here: http://www.makesenseofcards.com/soacalc.html

MaxRuby_2

Hi
The deficit is £800 after paying my unsecured creditors. I am currently up to date with all payments but basically I have been robbing Peter to pay Paul.

I have tried to get a loan to consolidate the credit cards as the interest is killing me but no one is lending - my credit score is still ok and I am currently trying to reclaim PPI & charges - obiviously if I am successful I wil put any money towards the debt.

I will try and do the SOA as I need to dig out the paperwork for APR's etc. My wage supports myself, wife and 2 kids.

egghead

max im in the same position, hope you get some advice, i am also looking into the payplan route, as there is no light at the end of the tunnel

dancingfairy

Definately post up your SOA - fresh pairs of eyes always help. Egghead if you do the same but on your own thread as well you will both get some reponses. It is the weekend though - it does tend to get a bit quiet on here sometimes during the weekend so don't be afraid to bump up your questions if you haven't had many replies and keep checking back as like I said it can get a bit quiet sometimes.
MaxRuby It really depends on the situation before you are paying the unsecured debts then - if you can post an SOA we will be in a better position to advise you.
You can of course contact the lenders yourself although I think it is nice to have the support of a impartial company behind you and it gives you added weight to ask for interest etc to be suspended.
Also please please please don't go with this financial adviser person - the recommend people are CCCS, CAB, National Debtline etc as they are impartial and free to use - never use a fee charging company who will want to line their own pockets or advisers who are linked to companies you owe money to as they may not be acting in your best interests.
df

Lois_and_CK

No, your mortgage won't be affected. If you're going on a DMP try CCCS or Payplan - neither charge for their services. Whatever you do, don't pay a company to do it for you; there's no need.

If you want to go on a self-managed DMP, then check out National Debtline's website. You can download a hugely helpful pack from there that gives you template letters and tells you how to work out your repayments on a pro-rata basis.

The general advice is to put everything in writing, send everything by recorded delivery, and keep good records. You will find most creditors ignore you for a while, but if you're persistent they will eventually respond. I found speaking to them on the phone got a much faster resolution than writing - do both; phone and back it up in writing. Be honest with them - you can't meet your payments because your circumstances have changed due to xyz situation. On the phone they tend to be more sympathetic than their horrible computer generated letters.

Also check out the 'Anyone organising their own DMP?' thread. This will help you with how to get started. http://forums.moneysavingexpert.com/showthread.html?t=1597891

And finally, do post your SOA. No one will judge you or go "how much :eek:??" We're all in the same boat and you will get some terrific advice and support here.