DMP with CCCS

ampafc

Hi all,

I have finally decided to put a concrete plan in place to deal with my debts. I know I want to set up a DMP - but should I do this by myself, or go with CCCS?

My debts are as follows:

Virgin Credit Card £2200
Halifax Credit Card £4200
Clydesdale Bank Credit card £2500

Natwest overdraft £900
Alliance and Leicester £300
Clydesdale bank Current Account £900

I also have a joint current account and mortgage with my partner with Clydesdale bank. Neither of these are in arrears.

Will going into a DMP have a big effect on my partner's credit rating, given that we are linked with the joint account and mortgage? Neither will be included in the DMP. Also, will going into a DMP affect my relationship with the Clydesdale Bank, and in particular have any negative effects on our mortgage, which we have paid every month without fail?

As for going with my own DMP vs CCCS - does anyone have advice here? My wage per month is about £1600, so I can afford to make payments without the DMP, but I doubt any of the interest will be frozen if I go it alone.

Finally, what will going on a DMP with CCCS do to my credit rating? I accept that my rating is currently very low. But will it get much worse? I hope that in the long term my rating can actually improve.

Thanks for looking.

sickasachip13

I can't answer some of your more specific questions but, speaking generally, going on a DMP with CCCS was absolutely the best thing I believe we could have done. They have been great to deal with, everything is clear and well explained and, in our case, the creditors accepted it and we're on 0% with pretty much all of them.

Some of your other more specific questions I suspect may well have been covered within the DMP Mutual Support Thread - Part 7. I would also suggest you might want to repost some of them in that thread as there are seasoned DMPers with a wealth of experience lurk around there.

Best of luck.

topcat9

Hi ampafc,

I agree with the previous poster that a DMP can be a great solution if you are struggling to make your minimum payments each month, however it will almost certainly trash your credit record for the next six years so shouldn't be gone into lightly.

From the wording of your post though, I wonder if you are still able to make minimum payments or thereabouts? If so, maybe you should start by posting your SOA and looking for ways to save money elsewhere. You may find you can live reasonably well and still throw more money at your debts to get them paid off quicker rather than take the DMP route.

If a DMP really is the best option, then it is very likely that at least some of your creditors will default you before they even consider reducing the interest. You will need to move your current accounts too or Clydesdale may well offset money from there to pay your credit card bill. Can't say whether it will affect your mortgage or not - we were with RBS for current account, secured loan and mortgage when we went into our DMP - we moved the current account, kept up payments on loan and mortgage and they have left us in peace.

ampafc

Helpful replies folks - thank you very much.