DMP (again) how bad for a student?

LolStevo

Hiya i have started a dmp with cccs and pay my 1st payment this week but was wondering does it really affect your credit rating and makeit that bad?

Also when applying for a student account i go to uni next year) will i get knocked back because of this? I might cancel the dmp if they are that bad, my debt is only around £3000

Kevicho

Ive read that student loans are pretty much seperate from all other forms of credit, so i cant imagine it would be affected, also student loans are means tested for poor people (like me ) as opposed to anything the high street sells

LolStevo

Thanks! (phew!) i was just wondering, i make my payment 2 cccs on friday but i have not heard yet if my payments have been accepted?do they write 2 me or cccs? x

southernscouser

Are you 100% sure a DMP is the right thing for you Stevo? :think:

In the grand scheme of things £3,000 isn't a great deal. If it's credit card debts and the minimum payments are 3% thats only £90 a month!

I imagine you could have trouble getting a student account. They normally come with 0% overdrafts but you will be a major risk to the lender!

Your credit rating is going to be damaged for 6 years. I don't know your situation so apologies if it is your only option but from an outside point of view it seems a bit extreme.

LolStevo

o i was told that a dmp was my best option! here is my soa please help southernscouser!

Income: around £440 per month

Outgoings:
car insurance £60
phone £30
petrol around £90

debts:
Overdraft £1200 upto limit have to pay around £20 for interest/month
Credit card 1: £800 upto limit have to pay around £20 for interest/month
credit card 2: £200 upto limit interest around £15 per month!!!!
Intrum dca £170: £30 per month
Littlewoods £350(wont accept a payment at the moment!)
Wescot £200: £30 per month
Direct legal £250: £30 per month

Aswell as debts with family members that i want to start paying back £100 per month!

DMP with CCCS was set for £100 per month! I could afford that!!!

southernscouser

Well with your SOA you have £260 a month left over. Obviously this isn't the case!

What are your minimum repayments for all those debts?

Is there any way to increase your income? Take it you work part time and study if you are going to uni? :think:

LolStevo

Yes i am working as much as i can at the moment but dont know where my money goes! I know i can afford all of the minimum payment (see soa before!) but thought it was quicker and easier with a dmp?

I mite cancel the dmp and pay the minimum each month but i wana pay adebt a month aswell, eg writing and offering full and final settlement, ow do i do this?

southernscouser

Well it could be cheaper and quicker with a DMP but only if they stop all interest and charges. Also at £100 a month it will take you 30 months if they do stop interest. More if they don't.

Have a play around with this and see how much it would cost to clear all your debts over a certain time.

LolStevo

Thanks thats brilliant i could be debt free by december 07 just by paying a little more to my debts! Woohoo!!! Something to aim for!