advice needed on debt management plans

ljm21

I have got myslef into a mess with debt including pay day loans and it looks like a debt management plan is my best option.

Following the good advice on the forum I have only looked at CCCS and payplan. Whilst I realise that things will be tight and I will need to stick to a budget I am worried that I will have no funds available for socialising. what are other peoples experiences?

also has anyone managed to remortage their property whilst on a debt management plan?

and what are my chances of getting credit when this nightmare is over?

thanks for the help

lisa

Happytogetdebtfree

Hi and welcome, I don't know much about dmp, it might be wise to post a statement o affairs so people can see your budget an advise, I don't know how the budget works re socialising and I don't k ow how it will affect a remortgage, it may influence the amount you can remortgage as a dmp is when you can't meet agreed amounts, it's something others can offer advice on. Well done for posting x

loupoppins

I think it really depnds how much debt you have, and how much you can afford each month.
When setting up a DMP you will have to submit a list of all your income and then a carefully filled in outgoings/budget sheet to all your creditors before they agree to it. If they think you are allowing yourself too much money for socialising they will likelynot accept your suggestion. I'm not surewhat the ammount is they might consider reasonable,maybe ask CCCS?
For us, after food,petrol and kids clothes/needs are met we have absolutely nothing left for entertainment/socialising. Cant remember last time we went out LOL But then we're older with 6 kids and a huge debt LOL
Try filling out a SOA as it will give you a clearer idea of where your money is going and what you can afford.

gonzo127

well from my knowledge the CCCS do allow some areas of your budget to be a bit more generous than in all reality you need - although it takes time to adjust which is probably why it is generous. a big one is groceries, i think just yesterday someone said they where allowed £190 a month for groceries for one person! now when you consider i get the groceries for a family of 5 on £300 a month (only 50% higher budget for 4 more people) you can see that if you are good with your groceries that can free up some budgetted money for your socialising

as to a re-mortgage well i am unsure i would expect it would be more difficult but not impossible

and this might seem harsh and i really do not mean to upset you however i think you do need to think about it,

why the hell do you want to get more credit once this 'nightmare' is finished? getting credit is what has gotten you in this situation in the first place! you need to look at your mindset with this and try to realise it is so much better to save to buy things than to buy it on credit

so try to use this 'nightmare' as a lesson about how to manage your finances and not just a nessesary evil to get you over the next few years till you can start racking up those credit cards again to get the latest must have item as soon as it comes out

ljm21

thanks for the reply. I have learnt fromn this and don't want to get more crefit but I do want to know the implications of what I'm doing.

dreamywings1

The implications are :- YOUR GETTING OUT OF DEBT!!! no financial burden dragging you down, a clean slate, fresh start for you to do whatever you want to do (within reason and without getting yourself into more debt)

Numpty_Monkey

Part of being on a DMP is that you agree to not get any more credit, I guess a remortgage will into that,
even though it's an informal arangement

Your credit rating will be trashed anyway so you probably wouldn't able to get a descent rate, but if you are struggling to meet minimum repayments or not paying you will get issued with defaults anway.

It's not really advisable to turn unsecured debts into secured debts

There is a bit of wobble roo in the CCCS budget, I think(from memory) I put down £5 for dry cleaning, I've never had anything dry cleaned;), it's things like that :cool:

loupoppins

oh yes...good points. I know I will NEVER take out any form of credit again LOL
(only exception possibly mobile phone contract in a few years!)

babyroo

I've a Dmp with payplan been with them since Aug 2007, still got away to go till i clear my debt completly, but i'm getting there much more savvy with my money now and feel proud of myself that i'm doing something about it.

:T:T:T:T:T