A 12 year DMP?

lookingforthelight

Hi all,

I'm new to this and find it a fantastic forum - loads of help.

I guess I'm like most people - looking for a compromise of clearing debts as quick as possible in the most harmless way. Any thoughts on course of action?

I am 65K in unsecured debt and only have £500 surplus p/m after essentials.

I have been recommeded a 12 year DMP - this sounds a heck of a long time. Wouldn't it be better to have a 5 year IVA to get it over and done with and with an almost same impact to my credit file?

Is it very uncomfortable living on a DMP or IVA? - I'm not a party animal but I like to have a small meal out every 2 or 3 months and a week in Cornwall once a year.

Also, is it worth starting a DMP to see if I can make decent headway with the occasional overpayment and switch to an IVA if I don't? Is it difficult or frowned upon to switch from DMP to IVA or do creditors actually prefer it?

Many thanks

gonzo127

have you contacted one of the debt charities ie CCCS CAB, national debt line or payplan, they would be able to go through the options with you and the consiquences of each option

as far as i know IVA's are suitable for only a very small amount of people due to all the terms attached to them

with a DMP what you have to take into account that you are able to up the payment if you get a payrise to shorten the term, or lower it if something unforseen happens (redundency), which is great to have that sort of flexibility, you also have the ability to save a small amount (if possible) and make full and final offers to your creditors whilst on a DMP which then if accepted clears that debt and frees up extra money for the remaining ones therefore shortening the term

debtstressed

Hi

12 year DMP sounds ridiculous especially with the non-binding nature of DMPs. Who reccommended that to you? Bankruptcy or even an IVA (I don't get them) would last a shorter time but they have their own drawbacks. Do you own your home? Are you likely to get a payrise or other income? I just spoke to NationalDebtline this morning and they explored all the options. Maybe give them a call.

Someone who knows more should be along soon to help you.

Regardless....12 years on a DMP.....that's just crazy!

lookingforthelight

Hi.

It was an automated recommendation. I'll try to talk to a real person at Natl Debtline or CCCS.

I guess with your credit file shot to pieces no matter what, it boils down to picking the solution that lasts the shortest time.

Thx

gonzo127

well a DMP will do less damage in the long term as you still have to declare if you have ever been bankrupt in a lot of instances, it also effects other areas of your life such as insurance quotes and mobile phone contracts, the silly every day things

all the effects of a DMP will drop of your file after 6 years of the default going on although the effects on your money will last longer, as i was trying to point out although a DMP of 12 years seems massive, in reality it could be a lot shorter as it has a lot of flexibility in it due to the informal part of it,

but you should try and speak to someone who knows the consquences of each option