Confusion on DMP's and what is really means

gboodie

Hi, here is my SOA to help with a review of my plight.

Mortgage.........................£925.00
NatWest Personal Loan............£298.95
Credit Cards (10 in total).......£1,500.00

Council Tax......................£134.00
Gas..............................£52.00
Electricity......................£50.00
Water............................£50.00
Sky..............................£52.00
Mobile...........................£40.00
TV Licence.......................£12.00
Petrol...........................£200.00
Car Tax..........................£17.92
Car Insurance....................£41.31
HouseKeeping.....................£130.00
Buildings Insurance..............£9.51
Contents Insurance...............£11.66
Life Insurance...................£22.17
Child Maintenance................£400.00
Travel...........................£80.00
BG Boiler Payment Plan...........£43.16
Income Proection Insurance.......£23.98
Washing Machine Protection Plan..£8.65
Home Emergency Cover.............£5.25
Medical Prescriptions............£14.80

Total Expenditure................£4,122.36

Income...........................£3,250.00
Deficit..........................£872.36-

Thanks for any advice, I accept that I cannot go on like this and I need to resolve this now!

Davey123

I am in a similar position to this and I am seriously considering the DMP route with DFH, although I may look into CCCS after reading this thread.

However, I am interested to know just how a DMP will affect my credit score? I read above that it would basically be destroyed for 6 years. Would this mean that a mortgage would not be possible whatsoever or is this simply refering to unsecured debt?

Thanks in advance.

gboodie

Hi Davey123,

Having started down the DFH route, I have come to the conclusion that it is better not to pay someone for manageing your DMP, as the creditors would prefer that money to go to them. I am seriously thinking of going down the CCCS route as it seems the be the way to go.

As for your credit rating, that will be messed up for some time, looking through this forum there is nothing to suggest that you won't be able to get a mortgage, it may just be a bit difficult.

Issuma

As far as I'm aware your credit rating will be affected for 6 years from when your accounts are defaulted and I think this has an effect on any type of credit including a mortgage that you may apply for, this doesn't mean that it would be impossible to get a mortgage as there are 'Bad Credit Mortgages' but these have a much higher rate of interest.

lornz23

Hello and Welcome!

Please don't get stressed about it which is easier said than done (I know I have had a few sleepless nights over it all) but there is light at the end of the tunnel. There is lots of information out there to scare you which is mainly released by the financial bods of these credit companies but believe me CCCS is the way forward!

I have been on a DMP with them for a few years and they have helped me lots along the way. They are ever so nice and friendly and don't make you feel bad for being in your situation. They give great advice and are always fair with budgets - they don't expect you to live off £5 for food for the month or anything like that. I am nearly finished mine and it has made my life so much easier.

I hope you give them a call, you will feel so much better after you have and it is all in place. Good luck

Issuma

Gboodie
Before anyone can comment on your expenditure you would need to give a little more information, is there only you in the household ??
You haven't listed all your credit payments - how much you pay each month and what the outstanding balances are and the % rates.
In your original post you mentioned debts of approx £61K but you have only mention credit cards (10) £1500.00 - is that right ? and a Nat West loan £298.95 which I assume is the monthly payment,it would help if you could re-do your SAO by using the one available on the site, showing exactly where your £61K is then people can give you the best advice.

Help111

Thanks everyone

I watched this forum for ages before contacting cccs, who advised me to have a dmp. I have been on it for 6 months and really glad I faced up to my debts. It is gone very well with all creditors stopping interest. I just wish I had done it a couple of years ago, instead of fooling myself that I was managing.

gboodie

Hi Issuma,

Here is a detailed breakdown of my Credit card details (Creditor, Outstanding Balance, APR):

Barclaycard CB .... £6,192.71 ...... 24.9%
Barclaycard ......... £13,613.13 .... 21.9%
HSBC ................. £7,944.14 ...... 15.9%
Tesco ................. £4,950.97 ...... 15.8%
Sainsbury ........... £3,690.04 ...... 26.9%
MINT .................. £8,667.21 ...... 24.1%
MBNA ................. £3,564.17 ...... 26.5%
Barclaycard EGG .. £3,624.17 ...... 24.9%
Creation ............. £7,349.77 ...... 16.9%
Amex BA ............ £1,538.29 ...... 18.2%

Total Debt .......... £61, 135.16

NatWest Loan ..... £8,649.25 ...... 6.8%

If you need anymore information please ask.

ladysparklexx

We have found so far that the main advantage is that the CCCS have done most of the battling with our creditors for us. Well done on totally up how much you owe this was something we let them do as I couldnt face knowing to start off.

You could phone up the CCCS for a counselling sessions with them, this would enable you to get a fair budget drawn up and a total figure that you would be able to give to your creditors each month. This then gets all email through to you within an hour, you can then at this point decide whether to go with them or do it yourself, this would then mean you can post this budget to your creditors with a monthly offer based on a % of your debt. This would ensure that you are offering a fair amount.

Issuma

Gboodie

Thanks, that shows an overall debt of just over £69K but with a shortfall of over £800 per month even with some drastic cutting back I doubt that you would be able to make a great deal of difference.

I'm assuming that there is only you in the household your Gas & Electricity are quite high, have you had a look on any of the price comparisson sites, you really can't afford Sky at the moment but your biggest outlay which I appreciate you can't change is your child maintenance payments.

I really think you should ring CCCS and have a chat with them even if it's only to get some advice, I did initially, they helped me to put my Income & Expenditure figures together and explained how to work out correct pro rata payments as you must treat all your creditors fairly - you can't be seen to favour one over the other.

For every month that passes your debt can only increase and whilst I appreciate making that first step is scary the lovely people at CCCS will not judge you the longer you take to do this the worse your situation is going to get, as soon as you take the first step you will begin to feel more positive because even though it won't be easy it can be done and it's great to see your debt coming down every month rather than going up.

Keep us posted with how you get on and good luck.