DMP questions - can anyone advise please?

paula21269

Hi,

You're Defaults will automatically be removed 6 years after the date you defaulted the account, although the balance on the default will be updated to show that it is actually being paid.

I entered a DMP last year and have cancelled it today - reasons;

1 - they are taking £25 a month for their services - I recieved my annual statement yesterday and they will have had about £2000 off me by the end of the term.
2 - I contacted all my creditors and they are willing to accept just a few pound a month more than what my Debt management company are paying them - so my £25 a month fee is being split between them all, plus another £25 of my money which means I'm paid off a year earlier with most, and one debt is paid in 11months as opposed to 3 years 9 months!! (I made sure they were willing to accept arrangements before I Cancelled DMP)
3 - Two of my accounts have remained unpaid without my knowledge for the year - the DM company didn't let me know!!!

Totally unhappy with the service - I'm not saying all are the same, but all the creditors I spoke to were more than happy to receive a couple of quid extra a month and even offered settlement figures - I can't afford that but it's still nice to know that the offer of taking a couple hundred quid off my debts is there - which it wouldn't be through the DMP.

I'm pretty sure Christians against poverty don't charge these fees but take a small donation.

Your credit file is knackered for 6 years and entering a DMP doesn't even prompt companies to put an arrangement to pay on your credit file......I'm not saying you shouldn't do it - just be very careful. Exhaust all avenues with your creditors first and offer them a list of your expenditures and what you can afford to pay them - they can be pushy so always start with a lower payment than you can afford and they might think they've succeeded in just bumping it up a bit and allow you to pay that. If you stay on the DMP, don't assume that your problems have gone away, double check with ALL of your creditors that there is an arrangement in place through your DMP.

Wouldn't like anyone to have the surprise I did yesterday - Good luck - there's always a way xx

plum44_2

Unfortunately a bit of research would have steered you away from a fee paying DMP.
Both CCCS or Payplan are impartial and provide this for free so all your payments go towards your debts. They deal with your creditors and will get interest stopped on your behalf.
Its a shame more people don't realise this before they go to private fee paying Companies.

iwilldoitthistime

thanks for the information. Ive gone with cccs on the great advice of this forum - and hope it is the right thing for us. I really want to get out of this never ending circle of debt, but its a very daunting prospect, not to have any credit!

I will continue to follow the advice of you knowledgeable people out there and hope we can all get to our debtfree day soon!

Growurown

iwilldoitthistime wrote: »

thanks for the information. Ive gone with cccs on the great advice of this forum - and hope it is the right thing for us. I really want to get out of this never ending circle of debt, but its a very daunting prospect, not to have any credit!

I will continue to follow the advice of you knowledgeable people out there and hope we can all get to our debtfree day soon!

I'm with CCCS and so far have been very pleased with their FREE service. Why pay when you can get the same for free and pay your debts off quicker.

It is a daunting prospect but the downward spiral of debt is very hard to get out of. Every month things get harder as you take on more new debt to pay off old debt and try to keep up with the minimum payments. Eventually you get to a point where you are spending more each month to pay off your debt than you actually earn. Obviously this situation isn't sustainable and is incredibly stressful. Even though my credit rating isn't worth a bean now and I have no access to credit anymore (which was scary in the beginning) taking control of my finances and going on the DMP has been a real life saver. No regrets here even though it isn't always plain sailing.

Deep_In_Debt

paula21269 wrote: »

Hi,

You're Defaults will automatically be removed 6 years after the date you defaulted the account, although the balance on the default will be updated to show that it is actually being paid.

I entered a DMP last year and have cancelled it today - reasons;

1 - they are taking £25 a month for their services - I recieved my annual statement yesterday and they will have had about £2000 off me by the end of the term.
2 - I contacted all my creditors and they are willing to accept just a few pound a month more than what my Debt management company are paying them - so my £25 a month fee is being split between them all, plus another £25 of my money which means I'm paid off a year earlier with most, and one debt is paid in 11months as opposed to 3 years 9 months!! (I made sure they were willing to accept arrangements before I Cancelled DMP)
3 - Two of my accounts have remained unpaid without my knowledge for the year - the DM company didn't let me know!!!

Totally unhappy with the service - I'm not saying all are the same, but all the creditors I spoke to were more than happy to receive a couple of quid extra a month and even offered settlement figures - I can't afford that but it's still nice to know that the offer of taking a couple hundred quid off my debts is there - which it wouldn't be through the DMP.

I'm pretty sure Christians against poverty don't charge these fees but take a small donation.

Your credit file is knackered for 6 years and entering a DMP doesn't even prompt companies to put an arrangement to pay on your credit file......I'm not saying you shouldn't do it - just be very careful. Exhaust all avenues with your creditors first and offer them a list of your expenditures and what you can afford to pay them - they can be pushy so always start with a lower payment than you can afford and they might think they've succeeded in just bumping it up a bit and allow you to pay that. If you stay on the DMP, don't assume that your problems have gone away, double check with ALL of your creditors that there is an arrangement in place through your DMP.

Wouldn't like anyone to have the surprise I did yesterday - Good luck - there's always a way xx

Just to reiterate others - CCCS, Payplan, CAB and yes, Christians against Poverty don't charge for a dmp. They will advise in your interests and not theirs.

Well done for going it alone, at least you;ll be debt free a lot sooner now and not lining the pockets of the sharks.

Good luck