Help I'm scared fo DMP!

Albiebabes

Hi all,

I am new to this forum and have finally come to a lightbulb moment in the last couple of weeks that I must sort my debts out!

After doing the CCCS debt remedy and having an "interview" with Payplan and talking to the National Debt line, I am thinking of a DMP with Payplan. However I'm firstly scared of going into a DMP as I always "used" to have a good credit rating but various factors have contributed to a £28k unsecured debt :eek:.

My creditors are:

Barclays
Barclaycard
Egg
MBNA
Nector Amex

I have read HORROR stories about MBNA and just really worried that a DMP won't work, or if I choose either CCCS or Payplan, whether I make the right choice (i.e. does one have a better relationship with the creditors)...

I am getting married later in the year and me and my OH will live together however his contract ended recently and I cannot bear to rack up more debt in the meantime to try and preserve my credit rating (albeit Experian now says poor?? even though I haven't defaulted on anything, only x1 payment paid 8 days late:().

Should I gamble and hang on if OH gets a job soon he can help with bills and I might be able to keep up my contractual payments. At the moment all my salary goes on mort, bills, car and I have no money left for food or petrol:(

Thanks anyone who can give advice:)

BLT_2

Having read the post I think there are a number of salient statements here

'Used to have a good credit rating'

'Try to preserve my credit rating which experian says is poor'

If your credit rating is your primary aim you already appear to have passed the watershed. That said it would be easier to rebuild your rating if you do not go into debt management.

However, I question how you can continue for the time needed to rebuild your credit rating if you have no money left to defray the capital on your CCs and indeed cannot afford to pay for food. I further question how you are going to support both yourself and your future partner if he is unable to find employment.

DMP clearly has to be the last resort, however you will be making no payments whatsoever if you make yourself sick with stress and worry and have to give up work

Tixy

Hi Alibie and welcome

Whether you choose CCCS or Payplan is usually a personal choice, neither one has a better relationship with creditors generally. A creditor should treat the info given exactly the same regardless of which of the 2 are used. People usually choose on which they feel will have a better relationship between themselves and the DMP organisation.

People often are very scared about taking the step and knowing the huge impact it will have on there credit record. I assume Payplan talked your through the defaults you will get etc and the difficulties you may have remortgaging? And if your mortgage is joint the negative impact it will also have on OHs credit rating (if he is currently good).

From the info you have put it does sound like you cannot carry on as you are (food & petrol as pretty vital) and whilst it would be great if OH does get a job, as you'll know it could take a long while in the current market conditions.

Good luck with whatever you decide. Have you considered putting up a statement of affairs to see if we can help you free up any extra cash? or if not have you been through each item of expenditure to check you have the best deal/cheapest supplier etc?

Good luck

Albiebabes

Thanks and you have some good points. I am basically managing to pay the min contractual payments and using credit to buy food and petrol. This cannot continue so I need to look forward and make a decision but needed a little support from someone who may have been where I am now.

But you have given me some food for thought re the worrying:) I know there are far worse things in life!

Tixy

DMPs often are a good solution for anyone what cannot afford their minimum payments without continuing to use credit. You might want to look at this thread, which is used by a lot of people on DMPs who all support each other (most I think have only recently started their DMPs) - http://forums.moneysavingexpert.com/showthread.html?t=2388003

Albiebabes

Thanx Tixy!
I'm glad to hear that the choice between CCCS and Payplan are more of a debtors choice rather than a creditors choice! This is what I have been concerned about. Payplan have taken a I&E and suggest £152 p/m as this is my surplus income. They have send me an e-mail confirming what the proposed dmp figures are and a couple of leaflets. I have yet to call them to discuss it though and I will do this in the next couple of days. Presumably they will explain the defaults and re-mortgage difficulties I will have then?! I was aware my credit rating will prob be trashed for around 6 years but to be honest, even if I carry on as I am it will still be effected and with my debts I wouldn't want to take a larger mortgage on. My OH lives separetly at the mo and will move in to flat. The Mortgage is in my name. OH doesn't have the best credit rating either from a failed business some years ago. What a pair we are:o)

GeorgeUK

Have you posted up a statement of affairs yet?

Once you see all your expenditure in black and white, you may find some areas where savings can be made or you will may get a better idea of whether a DMP is required.
https://www.makesenseofcards.com/soacalc.html

hopefull1

Hi Albiebabes

I am on a dmp with cccs and I have alll the same creditors as you except for the last one. All mine frozen interest and charges form word go I never get any telephone calls or letters from them. I have been on a dmp for 2 years now so just hope it carries on as it has done so far.

Mbna where great with me and the general rule of thumb with them is if you can pay your debt of with them in 10 years they will keep it in house and stop any charges.

Have you got a mortgaged house if so sometimes they can go for charging orders and then this will have to be paid when you sell the house. Order of sales are very very rare. I have not had any ccjs yet.

Don't worry you are doing your best and trying to pay all your creditors back just over a longer period of time.

Hope this helps

thewad

Tixy

http://forums.moneysavingexpert.com/showthread.html?t=2388003

Which area of the forums is this address.

The Wad

Albiebabes

tedsd wrote: »

Hi Albiebabes, Pure Dead Dopey let us know that Tixy has pointed you in our direction.

Just want to say Hello and please do 'come over to our place' if you want some extra support with some Wacky humour thrown in!:D

Hi tedsd! Hey great thanks guys! How do I get to "your place?" Shall I bring some biscuits:rotfl: (some economy ones of course for any creds watching

pure_dead_dopey

Hi again Ali

We've been moved into diaries for some reason, but if you follow the link that Tixy and the Wad gave you, you should find us. Welocme, we like biscuits particularly Wackos.