Dmp

sammyjo_3

Sorry this has probably been asked a million times but do they affect your credit rating?

Thinking it might be a solution for my husband and I, although at the moment we never miss any payments or anything its just a hard slog to meet them.

Does anyone have any advice?

Thanks

lou_lou_skinty_poos

yes they do as soon as you stop paying your credit card, loans etc what you should be they will default on your credit agreements and these defaults will last for 6 years on your credit file even if the debt is paid once you have defaulted you cannot go back. im on a dmp and although my credit score is in the toilet its still the best thing i ever done they hound you for the first few months but then it settles down when they realise they wont get any more money out of you good luck im with payplan there a charity and free the same goes for cccs.

CLAPTON

why not post a Statement of affairs (SoA) showing details of income, spending and full debt details (debt amount, monthly payments and APRs)
read for more details
http://forums.moneysavingexpert.com/showthread.html?t=107280

DMP (or an IVA) will trash your credit rating because you are defaulting on your debts, but better to post a SoA and see whether people can make some useful suggestions for you.

sammyjo_3

Monthly Incomings:

Partners salary - £945
My salary - £1030
Total - £1975.00

Joint Monthly Outgoings:

Mortgage/Rent - £495
Council Tax - £110
Electric - £35.00
TV License - £11.98
Phone - £23.00
Food - £130
House Insurance - £22.00
Broadband - £12.99
Water - £24.00
Dixons - £4.59

Total: £869.06

Husbands outgoings:

Into Joint account - £320
Loan @ 10.9% - £435
Credit Cards - £110 (5.9 for life of balance) (which is about £2000)
Dell - £33.31
Petrol - £30.00
Savings - £40

Total: £929.33

Overdraft - £1200, normally at least £950 overdrawn 9.9%

My outgoings:

Into Joint account - £560
Credit cards - £150 (6.9 for life of balance) (which is about £4200)
Savings - £100
Car insurance - £21.00
Petrol - £30

total £861.00

Overdraft of £1000 at least always £950 overdrawn at 9.9%

CLAPTON

can you clarify the debts situation

details needed

amount of each debt, MINIMUN required each month, APR

you seem to be over paying on the life of balance cards which presumably have low APRs but running up a OD at 9.9%

basically, pay the minimum amount on each debt except for the one with the highest APR..on that pay as much as you can afford. this is the quickest way of repaying debts and means you pay the least amount of interest.
also you say you save 100+40 ...how much do you have saved up and why are you saving? normally it makes no sense to save if you are paying debts at a higher rate of interest.


your spending:
i a bit unclear about the car situation..do you one or two...in any event i can't see anything for car tax, mot, servicng, RAC/AA, repairs fund (estimate these and divide by 12 and add to the spending )

also there is nothing for going out, presents, haircuts, xmas, holidays, etc (for yearly or one offs divide by 12 and add to the spending), dental/optical/medical
You need to do this and include everything you will spend over the next 12 months otherwise its not possible to see if on average you have a small surplus or actually spend more than your income.