Consequences of having a Debt Management Plan

DS4215

You should include your OD so that you can pay it back. The aim is to be completely debt free, not partly debt free.

You will need a basic bank account, which you should be able to open with any bank (one you do not owe anything to).

ktez

You are of course right in saying I should be aiming to be completely debt free. I suppose it's me trying to hang on to the last bit of debt, as if it's my friend when really I know it's the devil in disguise!!

I hope I can add this onto the paperwork that CCcs send out.

continualdiamond

We've been with payplan for awhile now (recently tempted to move, but not).

Don't really see any consequences, or don't think of it that way as can honestly say it is a great feeling know what you spend is actually real money.

Have a basic bank account, no overdraft is allowed and that is fantastic knowing we've learn't to budget what money we earn.

Just to only each have a debit card is a wonderful feeling.

A good thing about it was that payplan were fantastic when my husband was out of work for 6mths two years ago. We could only give a £1 token payment to each creditor each mth and it definately helped being with payplan.

I definately re think how I spend money and its great looking at things knowing we paid for it without credit.

Mort

Best consequence no debt!

Credit rating was shot before starting the DMP and a number of defaults during it means they will stay on for a good while yet, but I really don’t care.

I got Security Clearance before the end of the DMP, no CCJ and I had informed employer of money trouble.

maxdickinson2003

ktez wrote: »

You are of course right in saying I should be aiming to be completely debt free. I suppose it's me trying to hang on to the last bit of debt, as if it's my friend when really I know it's the devil in disguise!!

I hope I can add this onto the paperwork that CCcs send out.

Just ring them and tell them on the phone and they will add it on. I was like you and wanted to keep my overdraft and existing account but thankfully CCcs have advised against this and I have been accepted by Barclays for a basic bank account so will be switching banks as soon as its all sorted

DVardysShadow

ktez wrote: »

You are of course right in saying I should be aiming to be completely debt free. I suppose it's me trying to hang on to the last bit of debt, as if it's my friend when really I know it's the devil in disguise!!

I hope I can add this onto the paperwork that CCcs send out.

It is a fairly essential part of the discipline to have a basic bank account and always keep that in credit, with the old overdraft ringfenced with the rest of your debt. If you can keep that discipline, you know that going forwards you are living within your means and that all of the debt is historic. If you live with the overdraft in your day to day finances, you will never know if you are keeping yourself straight.

hkr_rosey

Mort wrote: »

Best consequence no debt!

Credit rating was shot before starting the DMP and a number of defaults during it means they will stay on for a good while yet, but I really don’t care.

I got Security Clearance before the end of the DMP, no CCJ and I had informed employer of money trouble.

Hi Mort,
Can I ask about you getting security clearance whilst still in a DMP? What level was it and how difficult was the whole process?

rdchick

I'd quite like to know too as I assume something like this will happen when wanting to join the forces? I have £9k of debt and about to go on to a DMP but want to join the RAF will this hold me back? Xxx

Mort

hkr_rosey wrote: »

Hi Mort,
Can I ask about you getting security clearance whilst still in a DMP? What level was it and how difficult was the whole process?

I have Security Check level. The process was not painful or difficult.

rdchick wrote: »

I'd quite like to know too as I assume something like this will happen when wanting to join the forces? I have £9k of debt and about to go on to a DMP but want to join the RAF will this hold me back? Xxx

Many, many years ago I was with the Brylcreem Boys. I think it was all positive vetting when I joined, referees were approached/interviewed about me. I believe they do the SC check these days. I don't know what their attitude to debt or DMPs are, you could anonymously phone a recruitment office and ask.

hkr_rosey

Mort wrote: »

I have Security Check level. The process was not painful or difficult.




Many, many years ago I was with the Brylcreem Boys. I think it was all positive vetting when I joined, referees were approached/interviewed about me. I believe they do the SC check these days. I don't know what their attitude to debt or DMPs are, you could anonymously phone a recruitment office and ask.

Thanks for that I'm feeling much better now. I've got a second interview today and was worried that I might even have to turn the job down if I get offered it. I've had my DMP for a number of years now and have never missed a payment. I really want the job so would be devestated to think I couldn't take it when in fact my finances are more stable than ever.