debt management plans

gary50_2

hi new poster and was wondering about this plan.
im thinking of going on this plan through payplan. i dont want to bore you with the details but im 34k in debt and have income monthly income of 1100. through last few years ive managed to survive by CC's and living of what ive paid of so they always maxed out (although never missed monthly payments finding it harder now as unexpected costs arise). my partner is in same levels of debt and income.

now obviously ive realised i cant go on like this and have been doing some research on this, however my problem is that ive just been offered a job as a stockbroker, will this effect this at all? does any one have any experience in working in financial services whilst under one? do they do continuous credit checks throughout your employment so could affect promotions?

also what is the likely hood of myself getting a mortage after the plan?
is there another way (not IVA or bankruptcy) ie is it possible to get a larger mortgage to cover debts?

what happens when your on the plan can you increase / decrease payments as and when?
what happens when theyre are unexpected costs you havnt budgeted for?
or bonus' from work do you have to put all of the bonus in?
how flexible are they?

as i will be renting for the foreseable future will be on the plan affect me getting another place due to the credit checks they do?

or any other advantages and disadvantages you can think of id be very grateful.
thanks

livinginhope

HI Gary,think Payplan is a good idea if you are not getting anywhere trying to sort your debts,they will sort things for you and let you live again.
As regards to the mortgage,I was told by Payplan that a DMP and the defaults that go hand in hand with it,do not actually affect your chances of getting a mortgage as it's a secured debt as opposed to an unsecured one ie.credit card,although some lenders may not like it that is not the case for all.
Get on the phone to Payplan and sort those mounting debts!

sparkle84

You will have to be FSA registered to be a stockbroker - this will be a problem re a DMP, however, if you can hang on get you registration in order perhaps you could do one.

I work for an investment bank and am in a DMP with cccs BUT my job does not require me to be registered. Also they had done their credit checks on me before I ran into trouble, have you got a contract for your job yet? have a read see what it say.

Payplan and CCCS are really really go but they will know nothing about the effects of a DMP on FSA registration so you will have to try and look into this yourself.

mattp_3

hi

it's not the fact that you are entering into a DMP that will affect your future employment, but your credit rating, which will be affected by any missed or reduced payments you have - if you are up to date with repayments your credit rating should be fine, but by making reduced payments through a DMP you will receive default notices at some point and this could affect your ability to obtain the best interest rates from the high street mortgage lenders, but you WILL be able to get a mortgage, its just that the interest rate will be higher.

most employers that carry out credit checks (there aren't that many) only look for CCJ's at worst, most are looking to see if you have been declared bankrupt. this is normally only done on application for the role and not continuously. but its worth checking anonymously with your potential employers HR dept first I'd say.

if your circumstances change (increase/decrease/bonuses) or you have unexpected costs, you need to speak to Payplan and let them know, they will try to restructure your repayments as best as possible but it is in your interests to try and keep a little money to one side each month incase of unexpected problems (not easy on a tight budget I appreciate)

if you earn 1100 per month, i'd guess you only have £200-300pm to pay into the DMP and with £34k to repay it will be at least 10 years, so if you are desperate not to go down the IVA or Bankruptcy route, it would be a massive advantage to increase your income asap. (sorry if my assumptions are wrong!)

i'd say you need to aim for the £500 per month ballpark figure into your DMP, that way you should be debt free in about six years?

Hope that is of some help?

gary50_2

sparkle84 wrote:

You will have to be FSA registered to be a stockbroker - this will be a problem re a DMP, however, if you can hang on get you registration in order perhaps you could do one.
.

sparkle, when would i need to register with FSA? is this before qualified and starting exams? or after when hopefully have passed exams in 3 years time (which would give me enough time to complete the plan to a manageable amounts? and do the FSA do continous checks?

Does being on the plan in the past effect the chances of being registered?


Although my income will only be around 1100 for the first year by sept next year id be on the bonus scheme which averages at 30% of salary which would mean an extra say 5/6k bonus each year. which would give me the following plan:

sept 07 yearly contribution 3600
bonus 5000

sept 08 yearly contribution 3600
bonus 5000

sept 09 yearly contribution 3600
bonus 5000

sept 10 yearly contribution 3600
bonus 5000

total 34,400

yearly contribution working of 300 per month

this is obviously very rough, and also wouldnt take into account pay increases etc. and working on my present 19k income.


would i be able to stop the plan after 3 years if my wages have increased sufficiently enough and would be able to pay the final amounts of myself.

im sl;ightly concerned now though its not possible to go onto this as the bonus' recieved will just be paid into the cards and slowly siphoned out the rest of the year. aswell as the interest i would be making no headway