Continue with DMP or try for loan to pay off outstanding debt?

Curlywurls

I am currently half way through my DMP with just under £25k and 4 yrs left to to. I went onto the DMP when my husband's business partnership fell apart. He has recently started work and my annual review is due.

I am not sure what to do as it has been nice to have money in our pocket. Do I declare that my husband is now working and they increase my monthly payment, or do I get them to exclude him from the review as all of the debt is in my name in which case they will increase my monthly payment still as I will have to lower the outgoings to compensate for them excluding his outgoings, or do I try and take out a loan to consolidate all of the debt and come out of the DMP??

I am very aware that the loan option will result in me paying more money in interest but at least I will start to build my credit rating back up and I dont have to worry about keeping 7 different creditors happy.

Ideally I would like to tell them that my husband still isn't working but I am worried that I might be pushing it too much as I have been saying this for the last four years.

Any advice will be greatly appreciated.

Tixy

Hi

I doubt that getting a loan will be possible. And I doubt it would improve your credit file very much quicker - have your creditors issued defaults? if so these will be on file for 6years regardless of if you've paid in full before then, or still have outstanding debt at that time, (they would be marked as settled if you paid up before the 6years but would still look poor on your file).

I wouldn't lie to them about your husband's situation.
I'd probably suggest a review just based on your income and your share of household outgoings and your personal outgoings and if that means a bit of an increase in your payment then at least you'll reduce the length of time you'll be in the DMP.

Hopefully you'll be able to adjust the figures so that you end up with a bit more spare cash than you had at your last review, not so that you end up no better off monthly from him working.

Is your DMP with a free provider? or one charging a monthly fee from your contribution?

mildredalien

I'd second Tixy - don't lie to them, and work it out on your personal earnings/contributions. Yes you'll have less extra money each month if you up your payments, but you should be out of the DMP much sooner! It can be hard going to keep thinking of the long term instead of taking the short term benefits, but I know that's why I got into debt in the first place!

Curlywurls

Thanks for the advice. I suppose deep down thats what I thought I was going to have to do.

Does any one know the allowances for a single person such as food, telephone, medicines etc? I was trying to work out how much extra I would have to pay. All the bills are in my name, would I have to split them or would they accept the full amount?

eyeopener2

Mine is worked out on my personal contribution, although I do pay for all mortgage/council tax/gas/elec/insurances. Everything else, food, travel, entertainment was worked out as a single person.

CCCS will advise you as they did with me (if you are with them of course) and it is a bit of a compromise but if you end up paying more at least your debt free day will come that bit sooner.

Tixy

They'll often work it based on your relative salaries.

If you earn more than him you could be said to pay more than 1/2 the household costs.
If you earn less than him then try to get your DMP provider to agree to put in half the cost of household debts. You can argue that your OH insists you pay half (which does happen for some).