DMP - 20 years to pay??

giddykipper

Hi there

I wonder if anyone with a bit of knowledge about DMP's could help.

I've been on payplan's website and filled in their budget and they've come up with some pro-rata payments that I could pay my creditors but as my debt stands now and the payments I can afford, it will take 20 years to pay it all off.

Now although this is disappointing - I'm really quite relieved that potentially I could get out of this mess - paying back all that I owe - but still afford to live .... not lose the house ..... and sleep at night.

Thing is, do you think a DMP that could potentially last 20 would be accepted??

Another question ..... could you overpay some months, say I make a good profit on ebay one month - could I put that towards my DMP to shorten the length of time I'd have it?

If my situation changes ie/ I change job and get a better wage, or get a payrise in my present job ..... could I make extra then?

I am actually shaking as I am writing this because there is a tiny glimmer of light at the end of the tunnel - I know 20 yrs is a long long time - but my point it - I can afford to live, eat, clothe myself and keep my house AND pay off my debts! I wont be rich (unless I win the lotto) but I won't be desperate either!!

Thanks

J x


PS/ And what about if I ever wanted to remortgage (for a better deal only, not to add money to existing mortgage) or move house ...... would paying into a DMP hinder this?? I realise that I wouldn't be able to get credit - but then tbh I wouldn't want to ever again ..... its just if I ever moved house, downsized or thought I could get a better deal elsewhere! Ta x

bank_of_slate

hi Giddy,

Welcome to the DFW family, we are all here to help, advise and support you, never to judge you or your circumstances!

If you have extra income, can you save this aside for unexpected extra's or say when there's enough to pay the odd thing off in full.
Payplan will review your circumstances regularly.

I may be concerned that if you overpay things sometimes that company may get back on your case assuming that you are now in a position to pay more. (I'm sure someone else will have more info/experience with this!)
Good luck and keep posting!
...Linda xx

artic_fox_2

hiya

im new here too but just reading through other posts has enlightened me to lots of new ideas, thought id pop in and say hi and goodluck more people will be here soon with lots of better advise and more know how on DMP

You can't get a YES if you don't ask?

giddykipper

hi Linda

Thanks for your reply.

Yep I see where you're coming from ....... and I agree you're probably right.

I have quite a bit of stuff that I could sell on ebay - obviously I wouldn't make fortunes but any that I did make I'd want to try to use wisely to reduce the length of DMP so any way that I could do that would be great! Your idea of saving it up and then paying off something is great - if I stuck it in a high interest savings account I could maybe afford to pay off more in one chunk too!

Mind, this is all if its even accepted in the first place ....... anyone know of anyone who has had one for this length of time accepted?

Cheers

Jo x

giddykipper

.... and thanks for your reply artic fox ....... its good to know that everyone here is so supportive and non-judgemental!

Jo x

moxie_2

Payplan will advise you, but I think bank of slate is correct. They will review your income/expenditure annually and adjust accordingly. So if you get a pay rise they will take that into account. I'm in a DMP, have been for about 18 months. I've had one review so far where my payments went down a bit as I stopped getting child benefit but have to pay uni tuition fees for my daughter. Once daughter finishes uni my payments will go up again, so I hope to end my DMP before 2014 which is the current end date. I sometimes sell things on ebay/Amazon, but haven't told Payplan as it is so irregular. I put any extra money I earn into an ISA to help pay for Xmas.

Broken_hearted

In reality it will most likely take a lot less time to pay off and you could save up settlement figures for the smaller creditors.

madduck

Don't get too disheartened with the prospect of 20 years in a DMP. My DMP was originally expected to last about 12 years. However, over the years I have been able to increase my payments significantly and am now looking at almost half that time. I'm sure that you will be the same.

I_was_a_fool

So long as you have enough to live on and can make a little extra by following the advice on this forum, dont worry about how long it will take. Some of your creditors will not be happy about the length of time, but will then sell your debt on to a debt collection agency, who are often easer to deal with as they pay a fraction of the value to buy the debt.

Stick with this forum and there will be advice to be had in almost every circumstance!

debt23

Hi,

As everyone else is saying - dont worry about the time it will take to pay back. As you can see from my DFD, im paying back over 20 years myself!

Seems like a long time - but I do have a nice amount of money to live on every week so Im happy enough.

For the last 20 years Ive always been paying loans and cridit cards anyway - often at far more than Im paying out now, so really Im far better off.

My DMP is a DIY, and its been going for a couple of years now, and I have not increased my payments to them - they ask every now and then, but I just say that my situation has not changed and carry on sending the same money etc.

Get on the DMP and take a bit of a breather, then think about how you want to proceed in terms of paying it off early etc

All the best

Debt23

debt23

Hi,

As everyone else is saying - dont worry about the time it will take to pay back. As you can see from my DFD, im paying back over 20 years myself!

Seems like a long time - but I do have a nice amount of money to live on every week so Im happy enough.

For the last 20 years Ive always been paying loans and cridit cards anyway - often at far more than Im paying out now, so really Im far better off.

My DMP is a DIY, and its been going for a couple of years now, and I have not increased my payments to them - they ask every now and then, but I just say that my situation has not changed and carry on sending the same money etc.

Get on the DMP and take a bit of a breather, then think about how you want to proceed in terms of paying it off early etc

All the best

Debt23