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Feeling so stupid

I have started a debt management scheme and my partner is trying to pick holes in it. I am doing it with debt free helpline which i am happy with i just need to know i am doing the right thing i am trying to manage the debt that he was unaware we are in he does now but i just need to know that debt management plans are a good idea. please help
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Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Debt management plans can work very well for people who cannot afford there minimum repayments. However you need to be aware that it will have a serious impact on your credit years for at least the next 6years. If you have any joint financial products with your partner (even if they are not in the DMP) then you being in a DMP will also affect their credit rating so you both need to be aware of the implications.

    I assume debt free helpline are charging you a set percentage of your monthly repayment? You could switch to one of these charity/free organisations who won't charge you and will therefore mean more money is repaying your debt and you wil be debt free sooner - http://forums.moneysavingexpert.com/showthread.html?t=2077631
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Agreed, you should use a free DMP like National debtline, Payplan, CCCS etc.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
  • the debt we have would last for six years, i have been advised it will not affect or morgage which i am happy with. I was going to ring paypal i really want to do the debt management plan and cant see any other way out of it. i am just scared
  • Just to second or third the above, please use one of the non-fee charging companies - you'll clear your debts a lot more quickly that way as ALL your money will be going to pay your debts and not to sharks lining their pockets out of your misery. I've found that creditors are more likely to accept and freeze interest with a free organisation as the creditors know they are getting all the money.

    I'm on a dmp with CCCS and have been for nearly 2 years and it's the best thing I've done. I won't say it's easy...it's not and can be a hard slog but it will be worth it in the end and will make you realise that debt is just not worth it...and a lesson learnt.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • I was told that my debt would take 9 years to clear when I started and 2 years later, I've reduced that term to 3.5 years. I've been lucky and had payrises and bonuses at work which I've just thrown at my debts and lived below the budgets that CCCS have given me and saved the difference which allowed me to make F&F's on my smaller debts. You'll start to get quite "savvy" with your money and spot bargains and not go without. I actually enjoy it!

    BTW, my dmp has not affected my mortgage either.

    Good luck with it. Hope Payplan can help you.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • did anyone get ccjs or baliffs coming round thats the part that scares me i have not defaulted on any payments yet and my hubby is going mad about them maybe coming round
  • Bailiffs can only come round if you default on a court order. DCA's will threaten them but they won't be bailiffs as you have to go to court. If they do send someone round, they will be employees or field agents who have no legal rights and you can tell them to s*d off or call the police.

    One of my creditors sent a "moron" round to me. I'm female and live on my own and soon saw the pillock off my property...ok the police helped as he refused to go after 20 mins of standing in the rain outside my house whilst I was having my tea.

    If you get a CCJ and it's unlikely if you keep paying what you can afford then they can't send bailiffs...simple as.

    If you did go to court, then the judge is likely to look favourably on you as you are paying what you can afford and taking steps to pay your debts and creditors know this.

    Creditors and DCA's are full of hot air...
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • right so what your saying is ccjs are unlikely if i keep to my plan whoever it be with. Baliffs come round if there is ccjs in force, and the pre baliffs come to try and muscle more money from you to show you can afford more than your agreed amount. God i really cant see the light my hubby is so really not happy with me at all i have even suggested me moving out so its not attached to the house in any way
  • Ames
    Ames Posts: 18,459 Forumite
    A DCA might send someone round, but it's very, very rare. Even if they do, you can just tell them to get lost, or ignore them altogether. To get a bailiff visit, you have to be taken to court and get a CCJ against you. Then you have to default on the payment they set (probably what you're already paying). Then they have to go back to court. Bailiffs for consumer debt are very rare, I can't think of an example on here at all, all the cases I've read have been for fines or council tax.

    DCA's are more likely to keep phoning you to get money, just ignore them, refuse to answer their security questions and hang up. Then send a letter from here saying to stop harrassing you or you'll report them and all communication has to be in writing.

    It's really not as scary as you think.
    Unless I say otherwise 'you' means the general you not you specifically.
  • If you have a CCJ and don't default then bailiffs won't come.

    They are not pre-bailiffs...they are just employees or agents employed as doorstep collectors who have no legal rights whatsoever and you don't even have to answer the door to them. It's rare that this happens as it costs creditors money to send them with no guarantee of getting anything...guess I was just unlucky...or maybe they knew that I lived on my own and thought they would have a good chance with me. Sadly for them...I gave back what they gave...

    Sorry, I didn't mean to scare you...I'm just sharing my experiences and what MAY happen. Since all this, May 2008, I've not heard a peep out of any of my creditors (apart from the odd letter which just gets filed in the shredder).

    As long as you make sure your priority debts are paid - mortgage, rent, utilities etc then the creditors have what's left after your essentials.

    I had 27k of unsecured debt and not one of my creditors has threatened court action in 2 years and I have equity in my property.

    Creditors will threaten all sorts, typical bully boy tactics.

    Please don't let me put you off...I felt like you did 2 years ago and in just over 3 years I'll be debt free...it's been an experience and not an easy ride at times but worth it.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
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