DMP further Queries

danuk

I'm still debating on the DMP process or whether i can juggle my debt (on CC's) 23k at present on to lower rates between the cards i have to allow me to clear the debt rather than pay huge monthly amounts to just cover interest payments however after payment currently have very little money left for general day to day requirements.... (this is not the issue or query at this stage as its DMP or CC's shuffle)

If my DMP is put through and agreed i have 5 cc's and 1 loan with that total debt however how would things like mobile phone contracts (that i have) and monthly car/life insurance agreements that are paid by direct debit stand......

I.e does being on a DMP have issue with monthly DD's for car, home is paying monthly DD's like this possible while being in a DMP.

While all these monthly payments are not due for renewal if they can continue how will renewal of these be while on a DMP? My questions is because they are seen as finance agreements aren't they?

**confuzzled**

When we started our DMP we only put the things we were having problems with on it. We put 1 loan and 3 cc's on the DMP but kept the car loan and hubbys mobile seperately which has never been a problem. Neither has renewing/changing the household direct debits and hubbys new mobile contract, a DMP states you cannot take on any NEW credit, doesn't say anything about replacing existing credit which is what insurances etc would come under and as they're essential there's not much you can do....but the budget form when we started the DMP does take this into account anyway:) Have you spoken to anyone from the debt charities?? We're with CCCS as they were the most helpful company we spoke to and have been fab:T

NorthernLas

A DMP is an informal arrangement and is used to pay back credit card debt / loans where you cannot meet the minimum repayment each month.

It has no effect on any other DD payments.

Have a look at the factsheet from National Debtline http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan

danuk

Thanks to you both. Yes i have breifly spoken to CCCS however i was hoping to not put the loan in the ' debt pot' so to speak as this was manageable but was told it MUST be included otherwise other creditors would not look favourable on this. Are you saying that there is an option to not include the loan? My loan was for five years with just under 2 years left but is manageable if only i could resolve the creditcard debts... also re: insurance or mobile phone renewals do you mention about a DMP to anyone??

Do you see a DMP as being able to control the debt repayment for say 5 years as possible?

Thanks for the link will read more too....


The other problems is i have been meeting minmum payments but only recently had one or two LATE payments. MY issue is having sufficient creditcard 'space' to shuffle to better lower interest rates if i could reduce the interest rates and bring the debt on to less cards i think i could manage the payments but would still have limited left until i can sort out pay increase or increased earnings ....but with the high high rates its going backwards.... i have a card that i hope to try to shuffle with in the next few days if this works then i would free up another card to try to get a existing low rate and this would be a good position..... i just think DMP is a way to control it better on reduce interest with an end in site rather than a lot of what if's......

**confuzzled**

danuk wrote: »

Thanks to you both. Yes i have breifly spoken to CCCS however i was hoping to not put the loan in the ' debt pot' so to speak as this was manageable but was told it MUST be included otherwise other creditors would not look favourable on this. Are you saying that there is an option to not include the loan? My loan was for five years with just under 2 years left but is manageable if only i could resolve the creditcard debts... also re: insurance or mobile phone renewals do you mention about a DMP to anyone??
We started our DMP for the same reason as you, just couldn't juggle the cards and rates anymore:o when we applied for the DMP we told CCCS about our 5yr car loan(3 years into it) but as we were managing it we asked for it not to be put on as it means that when it's paid off(they know when it finishes) then the extra money will go to them for our other debts. Have you explained its pointless adding it on as it'd lengthen the term of that 1 debt and once its done the extra money will go to them anyway?? Thus reducing the term of the DMP.

The only people who know about our DMP are the companies in it, nobody else needs to know!

Do you see a DMP as being able to control the debt repayment for say 5 years as possible?
Short answer is YES:) but the term of it depends on how much you can afford to pay on a monthly basis and if/how much your creditors will reduce the interest by...not all companies will lower or get rid of interest as I don't think they're legally obliged to, a DMP is more like a formal gentlemans agreement so to speak:) However we found creditors more likely to reduce interest this way than doing a self-managed DMP

i just think DMP is a way to control it better on reduce interest with an end in site rather than a lot of what if's......

I agree, there are a lot of what if's! Took us approx 3 months to decide which was the best route for us, this included a lot of stress and questions and what if this and what if that.... finally we took the plunge.....going on a DMP has given us our lives back:o:), it's definitely helped us to progress in life and expand our little family to more than just the 1 cat;) We're now 1 year into it...have a social life, baby on the way and are still managing to save money so we can give CCCS a lump sum early next year to pay off the shortfall we'll incur when our 6 monthly review comes up as we'll have to reduce the monthly payment til we've adjusted to the costs of a new baby:)

davidjwest

Can you post your SOA? There may be a way to avoid a DMP.

I'm not saying you definitely shouldn't go on a DMP but it shouldn't be taken lightly as for a start your credit rating will be badly affected for 6 years.

The may be other options open to you, don't rush into anything.