Self Managed DMP

boblardo

Hi All

Just wanted some feedback really, currently I am the only wage earner in the house hold and currently paying £358 to CCCS for our DMP, apparently it will take around 16 years to clear the debt

However, my wife has just been offered employment which will increase the income to the household. While we could send this extra money to the CCCS to pay we worked it out that we could clear 9 of our 11 creditors within 5 months by maintaining our current DMP payment and then paying off the smaller creditors 1 or 2 at a time.

Obviously we would start to self manage our DMP but what are peoples thoughts on this approach? We would clear off around £7000 in this short time leaving just the 2 larger debts to pay off and after this 5 month period the payments to those creditors will be increased significantly reducing the length of our DMP to around 7/8 years.

fatbelly

In this sort of situation it's more efficient to keep the dmp going, save on the side and hit them with full & final settlement offers.

Sounds like you have nearly 70k of debt in the dmp.

Bankruptcy not an option???

boblardo

We have taken advice on all the available options. The latest advice was to start an IVA, as we have around £418 available. However, with the wife starting work they have hinted that her entire salary will be sucked up by the IVA.

Besides, i am due a large bonus over the next couple of years that will allow me to reduce the debt significantly.

Now with the wife working again we can meet all the contracted payments so not sure if we are insolvent!!

Thanks for the reply