Dmp

cobalt59

I have filled in my SOA on the CCCS website. The result is they advise setting up a DMP. This path seems very frightening to me although I seem to have no choice. Does a DMP ruin your credit rating? And what are the pitfalls. I have not yet proceeded to stage 2 of the form yet.

goingforward_3

Well i am very new to DMP's mine has just been set up.

Yes it will ruin your credit rating but tbh i'm not fussed about that as a) i dont want any credit and b) late payments werent helping my credit rating anyway.

It is scary but it so far hasnt been as bad as i thought. And i really wish i had taken this step 18 months ago instead of struggling on because we have paid about £20k in that time and only about £3k of that has been off the actual debts !

craigp_2

The best thing is the bloody phone calls stopping :j I had no trouble setting mine up with payplan they done pretty much everything for me after my initial contact :money:

Ellieseleven

Hi There, just wanted to say that Yes it is very scary to start with but I'm about 7 weeks into my DMP with CCCS and I now feel as though a huge weight has been lifted from my shoulders.

It does ruin your credit rating but do you really want any more credit?

I totally agree with goingforward, we too should have done this over 12 months ago as we have thrown a lot of money at our debt in that time but it has hardly touched it!!

I've just logged onto CCCS and although our debtfree date is a long way off at least we can see an end to it all and we have money in our bank account:)

Good luck
Ellie xx

Deep_In_Debt

Hi

I've been with CCCS for over 2 years now. At first, it was a bit of a roller coaster will calls, letters etc but you just need to ride the storm for a few months and it generally settles down. I've not had a call from a creditor since October 08 and the majority of my creditors, especially the largest ones, have still kept interest frozen, nearly 3 years on so I'm making serious headway into my debts.

That said, a dmp is not legally binding on either party so creditors do not have to accept and they can go via the courts. Likewise, you can stop it at any time. However, court action is usually just a threat as courts tend to favour the debtor as they will see that you are doing all you can to pay your debts in a way that is fair to your other creditors and affordable to you. I had all sorts of court threats when I started my dmp and challenged my creditors to take me to court, not one of them did and then went quiet and accepted my dmp!

Your credit rating will be trashed for the duration of your dmp and for 6 years after your last payment.

The good peeps on here will help and support all the way, so do keep posting.

You've done the right thing and good luck!

saltnvinegar

Hi Cobalt

If your creditors accept your DMP they will most likely default you which will go on your credit file and essentially 'trash' it.

But as you said yourself you have little choice. But a DMP is a rather life changing event, the stress you may be under will disappear and you will realise you should have done it some time ago.

Rather than give you a lengthy response take a look at my light bulb moment and first DFW post (link is in my signature) which is my whole experience of debt and taking out a DMP.

You have made the right choice though and are taking the first best step towards a debt free life so well done!

SnV

cobalt59

I'd like to thank you all for your advice. My wife doesn't want me to enter a DMP. I'm at my wits end. I'll have to mull things over. This is a scary part of my life. At 51 I should be relaxed and enoying things. I'll carry on viewing this site and taking in all the advice.
When you all say my credit rating will be trashed does this stop things like paying house and car insurance on amonthly basis?

Deep_In_Debt

You can still do car insurance and house insurance on a monthly basis.

I wish I'd done my dmp sooner and I'm enjoying life more now than before I started my dmp as at least I'm sleeping now and not stressing about my debts.

Good luck.

lyndsey80

Sorry to butt in on this thread... I have just set my DMP up too, and feel so much better for it. I was wondering though about my mortgage. If I wanted to move would getting another mortgage be effected? Also, it's a shared ownership so if I wanted to buy the other half of my house, would that be effected too?

goingforward_3

cobalt59 wrote: »

I'd like to thank you all for your advice. My wife doesn't want me to enter a DMP. I'm at my wits end. I'll have to mull things over. This is a scary part of my life. At 51 I should be relaxed and enoying things. I'll carry on viewing this site and taking in all the advice.
When you all say my credit rating will be trashed does this stop things like paying house and car insurance on amonthly basis?

My husband didnt want to do the DMP when we first discussed last feb (09).. instead we've struggled on for 18 mths robbing peter to pay paul and generally having no money at all and us being stressed out.

He now conceeds that i was right (how could he doubt me lol) and we should have done it back then as we would now be 18 mths into the plan .

DMP's arent right for everyone, but for us it will allow us to live again whilst repaying every penny we owe... which is important to us.. we spent it we'll pay it all back .

Good luck with whatever you decide.