Please talk to me about Debt Management Plans

MoneysTooTightToMention

Im currently saving to go bankrupt but in the meantime have taken lots of advice from National Debtline and Business debt line and have been advised to set up a DMP in the meantime. I am a sole trader running a small childrens party planning company but business has been dire hence my financial situation.

Would anyone mind sharing their experiences on DMP's with me?

lvm

DMPs are fairly simple and to be honest, all they do is correspond with your creditors on your behalf, asking them to freeze interest/stop charges and arrange to pay what you can afford to each creditor every month (with the assumption that you would eventually be debt free).

I'm not at all clued up with bankrupty so can't advise at all however I'm not sure why you would even bother setting up a DMP if your intention was to go bankrupt anyway. Suppose it really depends on if you have already defaulted, had late payments etc

Have you considered doing a DMP to clear your debts rather than bankrupty? Obviously can't comment as I don't know how much debt there is but bankrupty is a very big life changing thing to do...

MoneysTooTightToMention

Thanks, Yes Ill be honest and say that if it goes ok, I would rather continue the DMP than go bankrupt as there are so many implications to going bankrupt, which is I guess why I wanted some more info. I have defaulted on payments already . I have been advised that at the current payment I can offer which is £109 a month that it will take approx 13 years to pay off my debt of around £20k

sickasachip13

We have found going on a DMP a godsend to be honest. Almost all of our creditors accepted the payments (£194 on £34k of debts). Obviously our debt fee day is an awful long way off but we're not focussed on that, instead we're looking at how to improve our income and that fact that our creditors are currently quiet and content with the payment they are getting. After the initial set-up, things have been very quiet indeed. I would say that initially it is a bit hectic but, for us, it's been well worth it.

MoneysTooTightToMention

sickasachip13 wrote: »

We have found going on a DMP a godsend to be honest. Almost all of our creditors accepted the payments (£194 on £34k of debts). Obviously our debt fee day is an awful long way off but we're not focussed on that, instead we're looking at how to improve our income and that fact that our creditors are currently quiet and content with the payment they are getting. After the initial set-up, things have been very quiet indeed. I would say that initially it is a bit hectic but, for us, it's been well worth it.

Thank you.Do you mind if I ask who you went with? I have been referred to Payplan

suze72

I am almost 2 years into my DMP and it has really turned out well for me, I just wish I had done it earlier.

In reality the first few months can be stressful as creditors will try to pressure you into paying more by using all manner of scare tactics, however this does settle in the end.

Of course your credit rating will be shot to pieces for a few years but better than going bankrupt (having said that OH was made BR last year and doesn't regret it either).

CCCS are managing my DMP and they have been excellent, even helping us through the bankruptcy process for OH so can't fault them at all and of course they are a non fee charging company.

Good luck
Suze

sickasachip13

Hi MTTM

We went with CCCS. The response from the creditors to this has been positive. I also have found CCCS to be very pleasant and easy to deal with particularly at the beginning when it was pretty complicated and I was finding facing up the enormity of it all quite difficult.

I also like that I can access my CCCS account online and can contact them by phone and email. Being able to email updates on my account through is really useful - I do it every couple of weeks (just stuff like X has accepted DMP, Y has defaulted me etc etc).

I don't know anything about Payplan so they may well be equally as good but I have to say I can't fault CCCS.

MoneysTooTightToMention

suze72 wrote: »

I am almost 2 years into my DMP and it has really turned out well for me, I just wish I had done it earlier.

In reality the first few months can be stressful as creditors will try to pressure you into paying more by using all manner of scare tactics, however this does settle in the end.

Of course your credit rating will be shot to pieces for a few years but better than going bankrupt (having said that OH was made BR last year and doesn't regret it either).

CCCS are managing my DMP and they have been excellent, even helping us through the bankruptcy process for OH so can't fault them at all and of course they are a non fee charging company.

Good luck
Suze

Think my credit rating is shot anyway!:rotfl: Thanks for the positive words.

MoneysTooTightToMention

sickasachip13 wrote: »

Hi MTTM

We went with CCCS. The response from the creditors to this has been positive. I also have found CCCS to be very pleasant and easy to deal with particularly at the beginning when it was pretty complicated and I was finding facing up the enormity of it all quite difficult.

I also like that I can access my CCCS account online and can contact them by phone and email. Being able to email updates on my account through is really useful - I do it every couple of weeks (just stuff like X has accepted DMP, Y has defaulted me etc etc).

I don't know anything about Payplan so they may well be equally as good but I have to say I can't fault CCCS.

Hope I have the same experience with Payplan;)