Alternative to DMP

alicat_101

Hello

I've got approx £14K debt which I've put in the hands of The Debt Specialists. I pay them £200 a month and they pay off £160 between my creditors and keep £40 for themselves.

At this rate it's gonna take me more than 7 more years to pay it all off.

Does anyone have any ideas how to do this quicker? Are there other agencies who'll do this for free?

I'm obviously gonna have bad credit so if I tried to add the £14K to my mortgage would they consider it??

ghostmadlittlemiss

Yes, there are agencies that manage debts for free. CCCS is popular for Debt Management Plans (DMPs) so I'd advise giving them a call. Also, pop us up your Statement of Affairs (SOA) using this link and we'll see how we can help you cut back. Good luck and let us know how you get on.
Kayleigh

Tixy

Definitely quicker if you use a charity who don't charge a fee, that way all £200 goes to your debts, and you'll be predicted to finish in less than 6years.

See here for a list of charities- IMPORTANT - Where to seek professional impartial advice about your debts.
and the other free DMP provider is Payplan.

How recently did you start your DMP? if you've already started missing payments and if you have defaults registered then very unlikely you'll get it added on to the mortgage. And besides hopefully your creditors will agree to freeze interest so it will be cheaper to do the DMP than add it to the mortgage. And turning unsecured debt into secured debt is never a good idea.

alicat_101

Thanks Kayleigh and Tixy - it's great to get some advice and I'll go check out the charity websites.

I'll also work on the SOA and get it posted asap.

I started the DMP about 4 years ago and have never defaulted on any of the payments or mortgage or anything.

Tixy

When you enter a DMP and pay less than the original contracted amount then your creditors will usually issue a default notice on your credit file or occasionally an arrangement to pay. Even though you are still paying every month because its a reduced payment they are entitled to issue the default. Are you sure none of your creditors have put defaults on your credit file?