Debt Management - £27000 CCs debt to clear...

doggydavem

I am considering taking a debt management scheme which has told me I can pay off a combined £27000 of credit card debt in under 3yrs at about £400pcm of course this is an extreme measure. I likely cannot increase my mortgage above it's current approx £180K level despite having a house worth £275K. I am at my ceiling, I am pretty certain, taking home approx £2750pcm on average.

Is this route really my last resort? I have missed payments several times of late and made double payments with penalties on the CCs some months being left with no money to get to work even!

The debt management scheme is via 'money expert dot com' and involves the loss of all credit rating for some time, as Martin states on the front of this section on debt this is going outside the system.

It does not, i'm assured, endanger my home ownership. I have never defaulted on my mortgage. It is not secured. It is a negotiated settlement.
Is this that straightforward? A rep is coming on friday so I need to know. I have been advised I can stop paying the CC repayments as of now even since my consultation on the phone this afternoon.

I don't know any other option and i'm not due a windfall or nor do I have anyone who can come onto my mortgage to enable the extra borrowing.

Advice appreciated.

LittleMoog

Hiya,
Although I've not dealt with something like this, most people on this forum would advise you to use one of the free debt charities, who provide free DMP management.

https://forums.moneysavingexpert.com/discussion/2077631

Additionally, if you post up an SOA in MSE format, lots of helpful peeps will advise you where you can cut back, and what's the best repayment strategy for you

http://www.makesenseofcards.com/soacalc.html

Good luck

BigCraigJohn

Have a look at this. Not an instant answer but may mean you can stop paying some of the agreements if just for a while then pay more towards other debts.
Read carefully though as they will screw your credit file but if it makes things manageable and you dont need more credit its something to look at.

https://forums.moneysavingexpert.com/discussion/2305463

Also you should look at reclaiming charges and see if there are any mis sold ppis. If you have had a lot of credit you can write to the companies with Subject Access Request where they have to send copies of everything they have on you.(there are templates on the site somewhere).

You'd be amazed how much can be reclaimed especially where interest added.

Dont know much about DMP though sorry.

Tixy

Hi

If you are going into a debt management scheme make sure you use on of the charities who will act in your interests, give you impartial advice, and critically not charge you any fees - see this list here - https://forums.moneysavingexpert.com/discussion/2077631

Don't use a commercial company for this (payplan is the only exception actually).

You will end up defaulting on your debts and that will affect your credit file for the next few years (and make remortgaging more difficult).

I cannot see how you can repay that much debt at the rate you have described, even if all creditors agreed to freeze interest straight away (and some might but equally they may not) then that would still only be around the £15k mark.

doggydavem

Well that is what the man said "if you can manage £400pcm you could pay these off in 2yrs 11mths"!?

Deep_In_Debt

doggydavem wrote: »

Well that is what the man said "if you can manage £400pcm you could pay these off in 2yrs 11mths"!?

Which dmp company are you thinking of going with?

I had the same amount of unsecured debt, pay £550 pm and told it would take me over 3 years to clear at that rate and that's with CCCS a non fee charging company.

Sounds like whoever they are they might be trying to "hook" you in.

BeautyandtheBeast_3

just becareful - welcome to the 27k+ club....
joking aside - contact CCCS the free service for advice and help - if its not free then they havent got your best interests at heart.

happyhaddock_2

BeautyandtheBeast wrote: »

just becareful - welcome to the 27k+ club....
joking aside - contact CCCS the free service for advice and help - if its not free then they havent got your best interests at heart.

Hi, defo second this, we're with CCCS and they've been brilliant :T(owe £25000:o)

elsie52

Am I missing something???

£400 pc x 12 = £4,800 per year x 3 = £14,400 not £27k.

I have been on a DMP with Payplan for over 2 years, paying £1500 pcm.......and have paid back £40k, and still owe £48k because creditors were still adding interest.

So how will you pay back within 3 years??? Good luck if you can, and I know I am not brilliant at maths (or with money), but the figures don't add up.!!