are debt management plans good? help

reall

I have been approached for dmp plan and looked over the details .it appears that it would take me longer to pay this way.debt is 6,500 total,earning more than minimal wage and full time employed.credit rating non existent with two ccjs one has been paid and is marked satisfied.
Does anyone know or have experience of debt management plans and found it great and why?

HappyMJ

Bad...The fees they charge cause the debt to be paid over a longer period of time. You can use the services of places like CCCS for free and manage it yourself with their assistance.

Hannah_10

Snowballing = The best way to clear debts that have not gone nasty.

Debt Management Plan = The best way to clear debts that have gone nasty.

IVA & Bankruptcy = Options to be considered only when the above 2 have both been ruled out.

Paying for a Debt Management Plan = Insane!

If on consideration (with some truly impartial advice from a charity) a DMP is the right way to go for you personally then they are a great idea. We can show you how to set one up and administer it, it wont take you long, it's basically a SOA and the same letter to each creditor.

Paying a company to do it though, well that's outright counterproductive and self-damaging.

Have a read of this... http://www.moneysavingexpert.com/loans/debt-help-plan#help

Deep_In_Debt

reall wrote: »

I have been approached for dmp plan and looked over the details .it appears that it would take me longer to pay this way.debt is 6,500 total,earning more than minimal wage and full time employed.credit rating non existent with two ccjs one has been paid and is marked satisfied.
Does anyone know or have experience of debt management plans and found it great and why?

Never go with a company who approach you...usually means they are after your money.

I'm on a dmp with CCCS (charity) and it's been a godsend for me. Interest frozen 2.5 years on - originally stated would be 9 years to clear my debt, now got that term down to 3 years...not been easy, but worth the slogging.

If you go with the company who have approached you, charges are they will want a set up fee and a percentage from your monthly payments which could go towards clearing your debts. They prey on the vulnerable.