Should I go on a DMP?

AngryDog

Hi,

I currently owe approx £40k in debt. I am struggling with it and its causing me alot of sleepless nights etc.
It has been suggested to me to go on a DMP, but I am unsure.
I intend to speak to the CCCS tomorrow to get more information.
I arent a home owner and currently live in a private rented house with my girlfriend.

Im going to call the CCCS regardless, but do you think a DMP is the way forward for me?

Thanks.

HappyMJ

22k salary 40k debt. Maybe and maybe not. I've had a look at one of your old posts SOA. Paying back £350 a month it will take 9.5 years to pay back with no interest charged. That will give you enough money to pay your rent your council tax and the same amount of living allowance as someone on benefits. It's your call.

AngryDog

right now, looking at my current situation, I'd struggle to pay back £350 a month, especially as my mobile phone contact people wont let me drop my tarrif.

AngryDog

Well, i've just filled in an online form with PayPlan as well....

Choo_Choo_4

Angry Dog (I hope this changes to Happy Dog soon:)) ... well you're going to speak to CCCS tomorrow so that's Step 1. Speak to them and see what advice they give you.

£350 per month or £300 per month (I'm guessing your contracted bill isn't more than £50 per month) ... as HappyMJ says will take you 9.5 years to pay back in a DMP if interest and charges are frozen. You're living in rented accommodation with girlfriend so they should also advise you on an IVA (I'm not sure if this is something that you've looked into at all) but you would make the same contribution (whatever your monthly disposable income is) in this over 60 months so:

DMP = £350 x 115 months = £40,250 = DEBT FREE IF ALL CREDITORS STOP INTEREST AND CHARGES

IVA = £350 x 60 months = £21,000 = DEBT FREE

You're worried about the mobile phone company not allowing you to change your tariff - I know that we sign up to 12/18/24 month contracts but in the current climate that's a bit unfair. If you're struggling with this and really want to change tariff then you could firstly try them again and if you still have no luck and you're serious about looking at DMP/IVA then the mobile phone debt would form part of whichever arrangement you'd go for leaving you free then to switch to PAYG and monitor your spending easier.

Shop around Angry Dog just make sure you don't pay for whatever advice you do get... there are plenty of firms out there that give good advice (should be the best advice for YOUR situation - everyone's story is different) - just remember the final decision is yours ... either way it's going to be a long term solution so take your time and think about it .. feel free to come back on here and ask for more advice if you're worried about one thing or another

Good Luk!

AngryDog

Hi Choo Choo,

I've just come off the phone to the CCCS. I have an appointment with a Counsellor on Tuesday.

Thanks, I hope it is Happy Dog too! The only advice they could give me at the moment was to open another account and get my wages paid to that. I already have another account with another bank so I'm going to use that.

I pay approx £100 a month for 2 phones (mine and my gf's).

I dont know if an IVA is for me - I will listen to the advice that the counseller gives me and go from there - All I do know is that I dont want the stress and unhappiness that I have now, but at the same time, I want to deal with it.

I'm going to speak with Orange and explain the situation - hopefully they will play ball.

I have no interest in paying for any service really - I want all the money I pay to go to the people I owe money to. The person I spoke to with the CCCS was very pleasant and not at all condescending or judgemental, which makes me a bit happier.

Hopefully I'll be on the road to "recovery" shortly, and then life will become much more bareable!

Thanks

Choo_Choo_4

Well Angry - are we any happier? Or wiser?
I hope the meeting went well yesterday ...

I'm glad that the person you spoke with on the phone originally was nice - they have no reason not to be and no right to judge you. No-one knows your situation or how you come to find yourself in this situation. They are paid to give advice and try to lift a very heavy load from people's shoulders:)

Whichever solution you go with, be it DMP, IVA or Bankruptcy not ALL the money will go direct to your creditors. Everyone gets a cut somewhere along the way (bankruptcies see creditors getting the least return but sometimes this is the best option for people who simply cannot afford anything else or choose to go bankrupt for other perfectly valid reasons)

In an IVA the IP who presents the IVA to your creditors (and for the next 5 years maintains it) will take a fee. This has to be agreed with creditors too at the creditors meeting - if they are not happy with it they'll reject or impose a modification.

Finally whoever manages your DMP (unless you do it yourself) will also receive a fee for the work that they put in. This option means that you will repay 100% of debts and interest/charges unlikely to be frozen by all creditors (if any)

I hope you have a clearer picture now of which way you'd like to go. Don't be afraid to compare your advice with other professionals or post the outcome and have it analysed by some of us

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