DMP advice please

wannabedebtfree_2

I have read on this site several people who have self managed DMP's, and just wondered how do you go about it?

If I was to ring all my creditors, and say that I am struggling (have worked out my budget and I CANNOT pay all of my bills, even with the extra I am earning though Avon etc) and can I sort something out, what would happen? How badly would it affect my credit rating etc ( I don't want more credit, I just don't want to scupper my chances of ever having a mortgage) Is this better than going through a debt management company, am I considered less of a risk if I sort it out myself?

I know if I go into my Natwest branch they will persuade me to get another loan, they have already tried this on several occassions, but I worked out with their loan I have already paid all of the interest for the whole term, so it would be pointless to start all over again.

I know people on here don't necessarily agree with consolidation loans, but I am really worried now, no matter how I work it out I do not have enough to meet my monthly payments for everything, so what do I do now? I could increase my Egg loan, but that would mean spreading my debt over about 4 more years to make it more managable in the short term, I don't know what to do, and I know I'm rambling, I just have so much in my head, I don't know where to turn!!

I thought I was ticking along fine, but when I look at it realistically I am paying of as much as I can, then having to use my credit cards to buy food/petrol etc, which means although my loans are deceasing the credit card balances are staying fairly static.

The only other choices I have are my last last last resorts, and something I have been considering for a while, but not really wanted to do, and that is one of two things......go to debt management via cccs/payplan......or use some of my kids savings to cut about £2-2.5k of my debt, and then pay them back when my loans finish...............but that would make me feel soooooo bad, I really am quite stuck now!!

Sorry for the essay length post, but the reality of it all is really hitting me hard now, and I just feel like crying all day! I think my lightbulb has brightened..........and is on its way to blowing out!

clayts

Ring CCCS and sort out an appointment - they really are incredibly sympathetic (and I suspect Payplan are the same) and completely non-judgmental. Don't blow your kid's savings.

Yes, it may well result in default notices but you have to ask yourself how much longer you want to live like this, in perpetual debt.

I had to face up to my debts and did so with CCCS. Okay, I had to forego all the things that were 'comfortable' : a bank account with a cheque guarantee card and overdraft was the first thing to go. Now I deal with real money (ie cash) and it's actually rather refreshing. Once all my outgoings have been paid, and CCCS have taken what they need (and calculated to the penny as to the most I can afford to pay) everything else is mine for the month.

The amount of relief I got from facing my debt demons was incredible, and felt like a huge weight had been lifted from me

Jules

I agree with clayts,
Give the CCCS a ring and get an appointment. There are a fantastic bunch of people and will help you every step of the way.

Don't take out any more loans as you have already said you are struggling now this won't really help solve the problem. So what if you end up with a default or two, I have had 4 or so to date and don't worry about them now, at least everyone gets paid and I can afford to feed the family that's more important.

I too feel like a huge weight has been lifted. I have been on a DMP with the CCCS for 2 years now and they are always there at the end of the phone if I need them. Give them a ring today and take it from there, you won't regret it.

caleo

I agree with the above posts. If you are using CCs to pay for general living expenses, what are you going to do when that credit runs out? You are probably spending what you are paying back every month, and the debt won't be decreasing.

Call CCCS/Payplan, and get advice. It is free and you are under no obligation at all!!

There is a waiting list (with CCCS anyway, not sure about Payplan) so call asap.

Hope that helps!
Caleo

isgman

I fully agree with the above, + you could try asking your local CAB as they will be able to give you free advice as to the best way forward, Good Luck

wannabedebtfree_2

Thanks for that guys, I am really confused, I don't really want to go that way (not even sure why, just a mental block I think)

How do people manage without direct debit facilities? I'm just really really really confused!! I feel like I'm on a roller coaster, one minute I think its all fine, and it will all be sorted eventually, then I panic and think my god I've been in debt for 3 years, it crept up quickly, but its going down slowly, but it is going down, crikey if I could just win the lottery it would sort all of this out, I don't know how people cope when they are £20k+ in debt, I feel bad for being worried about £10.5k, but to me its a massive amount of money.

I'm rambling again, and theres lots more I want to say, but will shut up now so I don't get on peoples nerves!!

Wonder_Girl

We ask you to stop using CREDIT not debits

I think a DMP is your best way forward at the moment, although don't look on it as a failure, look at is as a temporary weight off your shoulders and as soon as things are sorted you can close your DMP and take over the payments yourself

dancingfairy

Hey don't be so hard on yourself. It sounds like you're taking steps to slowly reduce your debt. It sounds like the best advice is to ring CCCS and have a chat. Don't be afraid to admit your not coping - pretending everything is fine when it's not will only lead to bigger problems in the future and you don't want to be ill with the worry on top of everything else. Use their help to get back on track and then when things are a bit more under control maybe you can take over yourself. In the meantime I'm sure if you post an SOA some people can give you a bit of advice see if there is anyway at all you could cut back. Also have you checked out the meal planner section yet to save money on food?
Good Luck.

clayts

Re direct debits - you should open a basic bank account (Nationwide and Co-op are probably the pick of the bunch) which will allow you to have direct debits, standing orders etc. You get a cashcard but no cheque book or overdraft.

Just because you are facing up to your debts doesn't mean you have to go without a simple bank account with direct debits - direct debits are essential for saving money on gas, electricity, water etc bills, after all - CCCS will advise you to open a basic bank account for that very reason.

This is what I meant about my living on cash - cash withdrawn from an ATM

Please do accept the advice on here - you'll feel a whole lot better, I promise.