DMP - really that good?

brownie_scuffed

I am in a DMP but i really don't see any light at the end of the tunnel or any major benifits from being in one.
Ok i know i'm paying lower repayments to my creditors but i'm also paying them a cut to do this for me. Surely there is some other way of paying my debts off quicker and at less an expense?

Any help and advice would be much appreciated

worried_jim

Increase the amount you pay to them ? There should be no expense paying it thru a debt charity such as cccs.

brownie_scuffed

I would increase the payment if i could.
They charge me (i think without looking) around £20 per month to deal with my creditors and pay them

Charco_2

As the poster above you says, the CCCS wont charge a fee. You must be using a "fee earning grrrrrr :mad:" company! :rolleyes:

These forums absolutely hump the leg off the CCCS however taken on face value you'd have to say that a DMP through the CCCS does make better sense... They run your DMP and all the money you pay in goes to your creditors, unlike a fee earning company who take a 15% cut off all your payments. Your creditors pay the CCCS a 12% cut of all monies recovered or something like that.

I have noticed a number of posts over the months on here saying that the CCCS have not managed to freeze interest and charges - which is done only at the creditor's discretion - whereas perhaps another company might have managed to have interest and charges frozen... who knows!?

So it's your choice. You pay the DMP Company, or the banks pay them using your unfrozen interest... tis up to you!

If you go to the CCCS then keep on top of your creditors also and make sure your interest and charges get frozen (similarly with a fee earning company)... If the interest and charges are not frozen then you may as well be !!!!ing in the wind!

brownie_scuffed

Thanks for that advice Charco.
I was thinking about moving but then its if my creditors don't want to freeze my interest with a new dmp company like you said.
I'm looking into bankruptcy more and more now as i feel this is an 'easy' way out and less hassle, should i be thinking like this? The only thing is i have a joint mortgage and don't want my house touching.

Charco_2

Bankruptcy is certainly not an easy option... but then, debt aint easy!

Defintiely go lurk on the Bankruptcy board and see what they say about it... the struggles, the exasperation and frustration, the reliefs!

End of the day only YOU can make the decision as to what's best for you.

If you have equity in your property it may be worth looking into how that will affect you. House prices are way down and you only own half of the equity so you might find it has little impact - negative equity would be great! You'd be able to buy back the OR's interest in your home quite cheaply you'd hope!

Look into the options! If it turns out you do have sizable equity it might be worth looking at your IVA options to protect you home... five year IVA compared to hundred years in a DMP? Again though, it's no walk in the park! (Would do no harm to look in on the bankruptcy board and also have a think about your realistic equity)

CCCS_Sarah

A debt management plan is an informal agreement between yourself and the creditors, so this with regards interest and charges this would be at the creditors discretion. The creditors are not legally bound to stop them whether you are with a free or fee charging organisation

If you are on a dmp and have been for a while and the creditors are still refusing to stop the interest and charges and as a result the debt is not going down, then you need to speak to your DMP provider and insist on a review to have a look at other options.