DMP right for me?

wuffelwilkinfon

Hi all,

Need some advice on getting out of the real hole I've put myself in.

Through living beyond my means I've found myself with the following:
£587 overdue debt with Wonga.com,
£900 due with QuickQuid (2 payments, first one of £150 due end of the month)
£1000 behind on council tax (still agreeing figure)
£800 with MBNA (paying £20 a month on a DMP)
£200 with Provident (£40 a month currently)
£400 with barclaycard 9£40 a month whilst trying to service the rest)
£100 with capital one (£20 a month)
£120 next account

Monthly outgoings as follows:
£231 rent
£180 bills
£100 commuting
£80 mobile and internet

Income of £1093 a month

Bear in mind my credit rating is shot to hell, consolidating in one loan isn't doable. No car, rented accommodation on my own, only real possessions are the pc i'm typing on and a ps3 given as a gift.

I'm being crippled by the cost of servicing the payday loans and considering the DMP as a way of managing the outgoings, would a DMP be the best solution? I want to get out of a hole once and for all!

Thanks all

sickasachip13

Hi Wuffell,

Have a little look at this thread from a couple of days back, it may help you think things through:

https://forums.moneysavingexpert.com/discussion/3830341

FWIW, the DMP, for many people is a godsend but you do need to remember that it will trash your credit record. Certainly if the creditors freeze the % and charges then it makes a huge difference as people are actually making a dent in the debt.

The other thing to think about is that the debt does go up initially, as charges etc are applied. It is a bit of a rollercoaster - have a look at the DMP Mutual Support Thread and you'll see there various people discussing the ups and downs of it all.

If you do want to go the way of the DMP, please DO NOT go with a fee-charging company, not matter how rosy they make it soundm go with CCCS or Payplan - both are totally legit and provide the DMP service free.

SAAC

wuffelwilkinfon

Thanks for that, to be honest my credit rating is totally trashed as it is but I'd like to think I can be clear within 5 years considering the (relative to others who have embarked on DMPs) low level of debt.

sickasachip13

Hi,

Do CCCS's debt remedy thing - it's an online tool, and that will set out options based on your specific circs. I also did a little blog about going on a DMP, if you google the info in my sig you'll find it.

SAAC