One last problem before i could finaly have a good sleep...

maxkpp

Hi all

I have this particular situation and was hoping if you could give a bit of advice.

At the moment, I am under DMP which almost put me back on track financial wise. However, there is a big chunk of debt (about 6grand – to family member) that for one and other reasons I couldn’t (don’t want to) get it into the plan. I am told by friends that there are charity companies or non profit companies that could provide loans with very small or zero interest.

Being on the DMP and doing something after work, I have a bit more of disposable income that I was thinking to use it as repayment if the above does exist. At the moment, I am fortunate enough to be fully employed. Is this a good idea?

Thank you.

gonzo127

not usually

this is because most DMP's have the clause that you are not to take on any further credit when on one, which is exactly what getting a new loan is, now although they might not find out, if they do a lot of the companies will stop managing your DMP for you, and on top of this some of the creditors will then put interest back on your debt,

you have to remember a DMP is a voluntary informal agreement, no creditor has to agree to them, however a lot do since it is understood that you will live to a set agreed budget and that you will not take on any further credit until they have been paid off and that you will pay them as much as you can afford.

can you agree with your family member to pay them back the 'extra' that you have each month, and maybe say you will pay them a small % in interest to compensate them for not paying them back as a lump sum? do they have to have the money back in a lump sum?

niccatw

You could always open a separate savings account (that you cannot access easily, if it's for a family member) and save what you can from your disposable income there. That way you're slowly building up what you need to to pay it back, but not taking out more credit.

maxkpp

thanks gonzo127, what would you do if you were in my shoes?

maxkpp

niccatw, i forgot to mention that this particular burden need to be paid in one lump sum and asap, it was a long story to be told here,...

gonzo127

now being that it is needed in a lump sum you will have a problem, as i can think of only 2 ways of getting that kind of money together in a short period of time and they are

get a loan - which on a DMP is not a good idea for the reasons stated above

sell some of your things - do you have a new'ish car? could you sell this for around £7000 and then buy a banger to run around in for the remaining £1000? any other items you can sell?

have you actually spoken to your family member to see if they could cope on a lower 'lump sum' and then pay the rest back in installments?

niccatw

Thanks for letting me know. I can't think of anything Gonzo hasn't already suggested, but will let you know if I come up with a master plan!

maxkpp

thanks gonzo, we had a discussion a while ago just before all this financial havoc happened, and it was meant to be one final decision that i suppose to honour. It is always an option to talk through it all again, but i dont know whether that would do any good. As for selling, i do have several items but they will not worth the efforts. At first i thought that charity loan (if that even exist) was a good idea until you mentioned that. Looks like im going to stuck again here,..talking about so close but yet so far....