Advice on a DMP...

LolStevo

Hiya, i have recently spoken to CCCS who have recommended a dmp for myself but as i done it all online i didnt really understand it.

Now i know i pay them a fixed amount every month and they pay it to my creditors, but does that mean i am defaulting if the payment they receive is less than normal. I know i could pay the minimum on everything at the moment but this seemed a better idea.

firstly, can i not use the accounts in question ie my bank account as i included my overdraft on the dmp. I am within this (just!)
secondly, does this affect my credit rating??
finally when completing the form it said i would pay off my debts in 2 years 5 months, does this mean with the dmp or without? how does it work?

Any help?!!? thanks xLolx:beer:

Xbigman

Hmmm. It sounds like you do not need a DMP at all if you can pay the minimums. Just what did you think a DMP would achieve? If you can pay the minimums your creditors will not freeze interest and you might get defaulted with out actually defaulting on anything!
As for your overdraft, I would normally recommend moving to another bank before starting a DMP but I don't think you need to, and you might not get any debit card facilities you already have.

What you need to do is draw up a budget and live within it. If your credit rating is good you might be able to switch some debts around to save money IE like using 0% credit cards. Once you have cut your budget to the minimum and generated a bit of money on top of the minimum payments, start paying extra off the highest APR debt.

If you want to you could post an SOA (statement of affairs) and we will advise you on cutting back.
Regards



X

System

I am just about on the limit with my minimum payments. If anything the DMP helps because the interest is frozen. I have 13 creditors and I have defaulted on 2 - both egg (loan and CC). The rest are 'agreed payment plans'. I have shave almost 7K off my debt since Apr because the interest is frozen. WIthout the interest being frozen, I was constantly forced to find money - this would usually mean maxing out on CCs with cash because I could no longer get any other 0% deals and when I explained to creditors that I was struggling - none of them agreed to drop or freeze the interest with the exception og capitlal one. So having Payplan act on my behalf has helped me tremendously.