dmp

wighty30

Hi there, apologies, this is my first time, so a bit unsure what I'm doing!
I have a debt of £7500 and am struggling to make payments although I have not yet missed any payments. My bank, whom I have most of the debt with, will turn it all into a loan BUT I was also considering a debt management plan which means I will pay less per month. This obviously is more desirable as I don't have much disposable income per month. I don't know enough about debt management plans though to make a decision on what would be best, can anyone offer any advice please? Thanks

Tixy

Have you had any advice from one of the debt charities yet? if you do go for a DMP then make sure you use a charity who won't charge you fees, not a commercial company who you will pay upfront and each month.

If you cannot meet minimum payment and meet all your basic living costs/priority debts without reusing credit then a DMP may be a good idea.

It will have a big impact on your credit file and there is no guarantee that your creditors will freeze interest, but often many of them will if they see you are paying all you can reasonably afford.

wighty30

Thank you for your reply, no I haven't spoken to anyone like that, I had a call from uswitch after doing a loan search, who then put me through to dfh financial solutions who said they would set up a dmp for about £35 a month (I would be making monthly payments of £100.)
Who is it best to contact?

Deep_In_Debt

£35 is a lot of money to be paying each month and could be going to clear your debts.

Try CCCS who are a charity and offer free dmps as do Payplan who are not a charity but do not charge for dmps either. You could also try CAB and National Debtline who will also offer free advice and help.

Good luck!

wighty30

Thank you Deep In Debt, just visited the pay plan website, gave me lots of information I didn't know, I'm going to visit the cab this morning. Thanks again!

DizzyDizzy

Just wanted to add that if you do go ahead with a DMP it will have a big impact on your credit rating. We are a year into out DMp and all our creditors have given us defaults which will be on our credit file for the next 6 years. This is fine as we certainly don't intend to apply for any credit for a loooong time! But you need to be aware of this fact in case you think about buying / renting a house etc in the future.

Best of luck, personally we are with CCCS whom I can't recomend highly enough, but I know people also rate Payplan highly too!

wighty30

Thanks DizzyDizzy, I too will not being asking for credit again in the foreseeable future but I hadn't even thought about it affecting my ability to rent, something else to consider! Thanks again.