Advice starting a DMP

Becky222

Hello everyone,

Myself and my husband have spent the last couple of days properly facing up to our finances and have decided we have to go for a DMP. I just wondered if people could offer advice of which organisation they have found really helpful and if it is better to try and deal with creditors yourself or use an organisation to manage your payments to them. I am not really sure who to go with to manage our payments to creditors.

Also - how likely is it for creditors to freeze or reduce interest? And are they less likely to do this is I deal with them direct? They are all credit cards, overdraft and an unsecured loan.
I owe £26,000 but have never missed a payment (don't really know how!) and am just completing my degree so after my teacher training next year should be able to pay off much more than I can offer now and wondered if that will make any difference? My DMP shows that I only have £110 money to put towards debts each month at the moment.

Finally, I have a contract mobile phone - will I be able to get out of this and add it to my debt or am I stuck with it and include it in my outgoings?

Thanks in advance and thanks for all the inspiring threads and posts!

Becky

Deep_In_Debt

Hi

Try CCCS, Payplan, CAB or National Debtline who do not charge for their services and will offer advice in your interests and not theirs as they are non profit organisations.

You can do it yourself if you wish but it may be worth starting with one of the above so they can do the inital legwork and then you can go it alone. Up to you.

Creditors are not legally obliged to freeze interest but most will even if it's for a short period of time.

That said, if you've not missed a payment, they may not help as if you've been managing up until now, they will probably expect you to continue to do so. Worth a try though.

grazyme

Hi Becky
I found national debtline very helpful,my husband and i were on a dmp with a fee paying company who went insolvent lol. so I phoned national debtline and with their self help pack and advice on the phone we are now self administering the plan and so far most creditors have accepted this although afew insisted we went through national debtlines cashflow process which is easy to do.Most creditors will usually be reasonable and freeze interest although their are a few who will string things out and be abit awkward to start with but usally come on board in the end.If you have quite afew creditors and don't feel confident about doing a dmp yourself national debline aswell as CAB and CCCS , Payplan will all do it for you.Good luck