DMP (debt management plan)- your experience.

Kazonline

I'd love to hear from anyone on/has been on/about to go onto a DMP (debt management plan).

What made you decide to go onto the plan? Had you run out of credit so couldn't 'rob peter to pay paul' or was it realising that the debt was increasing because you had to rely on credit to pay each month - or maybe something totally different?

What were your initial concerns? Were they justified?

What scarey threats did the companies use before it all settled?

What was the worst thing that actually happened?

What is the best thing to come from it?

Are you glad you chose this route?

Did you ever find yourself in a situation where you couldn't meet the DMP payment, and what happened?

How long were you supposed to be on the plan and have you/did you reduce this?

What advice would you give anyone considering this option?

Some other questions asked further in this thread by JBSplit

Is there a difference between an IVA and a DMP..?

Does anyone have experiance with loan companys and dmp's(N'rock)

How do companys treat you with 'new debt' i mean if i do a balance transfer in month one and them go for a DMP in month two. is that bad/worse than a long standing account.??

One thing that concerns me is that once started can you stop.? by that i mean if i go down the route of a dmp and the creditors demand the sale of the house can i say no and stop the dmp.can you 'test the water' to see what would happen or will it ring alarm bells with them.

Kevster 1009

What are the chance of losing your house on a DMP? Most of my £42k debt, about £32k of it, is with Lloyds and so is my mortgage.

I_Was_A_Fool

I would also be interested to hear from those who have been on a dmp for a number of years & how creditors behave as the time goes on?

While I'm asking these questions for my own benefit I hope that perhaps any answers received will help anyone considering this option in the future or perhaps is already lurking (hence the title - should show up for anyone who uses the search) So please, if there's anything else you feel should be mentioned about DMP's then please do post it.
Kaz
PS - I've edited this post to include some of the questions others have posted further in the thread just to let anyone who is willing to share their experiences see in one place what the general questions are. It also seems that another big question is which lenders react well/badly - but I'm guessing this can vary acording to how easy you are to get on the phone and who you speak to on any given day! I'm really gratefull to everyone that shares their experience as for those of you who have faced it will know it's a big step to take and at a time that you'd rather bury your head - so all advice/information and support is very welcome.
For anyone who reads the replies and finds any information/comfort in what the poster has said please do consider pressing their thanks button- they have taken the time to post in the hope it'll help and it's nice to see that you've helped someone/been appreciated. I hope I don't cause any offence in asking this - I'm only suggesting it as in my pre- posting days I didn't notice the thanks button:o

Broken_hearted

Hmmm lots of questions. Why did we do a DMP, well the money ran out and we couldn't meet the min payments. Yes we could have got more credit but how would that have helped.
Initial concerns were/are still keeping the house and trying to make sure the kids arn't effected by all this.
Threats recieved. so many it would take too long to list them.
Worst thing that happened. Constant phone calls from Halifax.
Best thing. We will be debt free in three years, interest frozen on most accounts.
Glad. Hell yeah
We have always paid on time apart from Halifax who were refusing to accept our payment. They sent us to a DCA which was much better for us.
Advice= It's not as scary as it seems, accept when you are in trouble and make sure you talk to all parties concerned.

SUFC

Contact the consumer credit counselling service(CCCS). They are the best!

Kazonline

Thanks for your reply Broken hearted - your post is very reassuring.
Did all the companies eventually freeze the interest?
Halifax - I've read a few postst that say Halifax, MBNA and HSBC are amongst the worst..... guess who I've got my debts with, lol.

SUFC - I'm with you r.e. CCCS, they have been so good whenever I've phoned with questions - always do their best to answer. A lot of my questions unfortunately can't be answered - especially whether I should go ahead with the DMP or whether I should keep juggling everything.

My biggest worry is that as the current forecast is to pay off in 40 years (15k of debt, but limited income and restricted on earning ability) a Judge might see fit to force me to sell the house or that the companies will continue to charge interest and all I'll have achieved is ruining my credit score for life!

kevster1009

What are the chance of losing your house on a DMP? Most of my £42k debt, about £32k of it, is with Lloyds and so is my mortgage. Im not on a DMP yet but thinking of it and what is stopping me is the above fact. I have just built this house and thats what has put me here and DO NOT want to sell it.


Any help would be appreciated!

kevster1009

bump...anyone?

I_was_a_fool

Kevster, can you move your mortgage to someone else? I would advise that you do so if you can before entering a dmp & at the best rate you can find. When on a dmp your mortgage is classed as a priority creditor & is not part of the plan, but paid as usual by you. If you are with a provider that you do not owe any other money to, you should not get any hassle from them.

My mortgage is with my bank, who I also owe around £20000 to in unsecured debt & they did threaten to repossess, although they backed down later. As Im on a dmp now & my credit rating is shot for 6 or more years, I cannot now move my mortgage & this worries me!

I have been on a dmp for two months & most of my creditors have accepted the dmp, froze interest & charges etc. A few have not, I guess everyone has a different experience so it is hard to predict what will happen. MBNA did suggest I sell my house to pay them, but I told them there was no equity in the house, so they gave up on that idea.

No-one has threatened to take me to court as yet.....I would also be interested to hear from those who have been on a dmp for a number of years & how creditors behave as the time goes on?

kevster1009

Im on a 5yr Fixed and just 1 year into it soi I cant move it. I owe £32k to Lloyds, £8k to loveley MBNA and £1k a piece to John Lewis and Capital One. IOt all has to do with building the house and there is probably only about £4kish equity in it anyway. Its my only worry they can force a Sale, but I am not in arrears with them yet so what do people think?

sgx.saint

Some good advice there from I_was_a_fool regarding your mortgage. I would follow it.

In relation to a DMP, your first decision is to decide whether you want to manage, maintain and run your own DMP and deal with your creditors directly. Or allow a free and reputable company such as CCCS or PayPlan do it for you.

If your choose the second option, then I would suuggest giving them a call or taking a look at their websites. They will run through most things with you over the telephone including assessing your income and expenditure and then provide you with some advice and in time they will act as a third party who will deal with your creditors directly.

If you however want to explore the first option then let me know and I would be happy to provide more advice.

kevster1009

Well I would love to do it myself if I could. Lloyds actually gave me the number of CCCS when I explained my situation and went into budget details with them on fone. My debt with them is £15k Odraft and £15k Credit Cards, one of my Wife's and for £12k and my own for £3k

I_was_a_fool

If you cannot move your mortgage, can you move the other debt? At the very least, get yourself another bank account if your current one is with Lloyds or anyone else you owe money to(dont close the old one yet) as a safety net account. My bank turned nasty very quickly & I only just avoided getting my entire wages snaffled by them! Definately contact CCCS, you can fill out their online form & they will email you advice, or you can phone them.

It is unlikely that they will force a sale of your house, especially if you tell them there is no equity & if you continue to make the payments as per your dmp, should you choose that route.