I need help - Debt Management Plan

DarkConvict

If payments on the car are missed it can be repossessed, whether or not it can be included in a DMP i don't know as it is a secured debt.

RAS

Secured debt cannot be included in a DMP, which is why you must find the paperwork and talk to your DMp provider.

We cannot see your paperwork and it simply is not safe for us to advise you on this.

mikon

If the car is secured finance then would it be classed as an essential debt and therefore it must be paid and not form part of the DMP. Sorry for labouring this point but I need to clarify everything before I proceed.

RAS

mikon wrote: »

If the car is secured finance then would it be classed as an essential debt and therefore it must be paid and not form part of the DMP. Sorry for labouring this point but I need to clarify everything before I proceed.

Exactly. it is the same a mortgage of debt secured on a house.

mikon

RAS wrote: »

You cannot put a car on hire purchase into a DMP as it does not belong to you, it belongs to the HP company.

You need to look at the paperwork and find out if the finance is secured on the car or not and then talk to your DMP provider.

Ras I have hunted out the paperwork it appears to be a fixed loan from the Cooperative Bank not secured. The terms of the loan state

"missing a payment may incur a demand for immediate payment of the loan and terminate the loan. I cannot see anything that mentions repossession. It also states that I will be liable for all expenses and legal costs incurred on our behalf in recovery of any overdue payments. You may also have to pay default interest on unpaid sums"

I do want to pay for the car just cannot afford the existing monthly payments of £195.

Regards

RAS

So actually you just have a loan, like any other loan. Your could have spent the money on a holiday or house improvements?

It sounds as if just goes in the DMP and since the car is not a secured debt, it cannot be repossessed, but please check that out.

mikon

RAS I will check it out with the Debt Helpline just could not face loosing the car. My only concern is on the loan application I would have put purchase of vehicle, but I do understand where your coming from ie holiday etc. If I am not being to cheeky have you ever had a DMP? and if so how did it affect you. I am worried and scared but do not have an alternative I only want to do best for my family.

RAS

I am heading off but have a read here http://forums.moneysavingexpert.com/showthread.html?t=1735087

Numpty_Monkey

I have been on a DMP (my circumstances have changed ) with CCCS
It was the second best thing I did
Best thing was joining MSE:A

We were all worried and scared when we joined here, the words of wisdom, the help, the support,the point in the right direction :A:T

Be honest with NationalDebtLine, they will take a hell of a lot of strain off you

PS
I think when I took my loan out I had new furniture,car and holiday as why I wanted it:think:

happyhaddock_2

Hi Mikon, well done for posting and getting the help you need:T
Whilst I cannot help re-your questions I just wanted to offer a bit of reassurance and support:). I have just started a DMP with CCCS (1/4) and have to say that it has been a big relief and weight off our shoulders. We have gone from being permanently overdrawn and scrimping and scraping to pay all our creditors, until it finally overwhelmed us:o. To having OUR cash in the bank (opened a basic a/c with the Co-op) and being able to budget for everything, it's a very weird feeling actually paying for things cash after using credit for so long:p.

So far I've not had any nasty calls or letters and all of our creditors have now been informed, in fact our previous bank who we owe an o/d, loan and credit cards to have actually been very helpful and encouraging.

So all in all whilst we all have to make our own decisions, I do think it's the best thing we've done (wished we'd done it years ago:o) and in 6 years we WILL be debt free. Good luck:A