DMP Advice needed please.

scarymcflary

Hello,

My fiance has got himself in to a right mess with debt. His current outstanding debt is:

Lloyds - £3400
Welcome - £3800
Various Payday Loans - £3800
Outstanding Council Tax - £1350
Old British Gas bill - £600

He pays £420 per month for these.

In addition, he pays £240 to a friend who took out a loan on his behalf, and £380 a month to me, for a loan I took out for him.

So, in to total over £1000 per month in debt repayment.

I called CCCS on his behalf today, but they wanted to speak to him first (they were very helpful). Anyway, what I wanted to ask was will a DMP take into account the money that he is paying out to me and his friend every month before they calculate what his disposible income is?

He thinks it is not a route he can go down because of these two loans. Is he right? We are getting married in November and I really want to get this sorted before then as it is no way to start married life.

For information, my debt is relatively ok - I have a few thousand on a 0% credit card, and a small loan (£175pcm) with a couple of years left. I am quite pleased as at one point I had nearly £30k of debt!

Anyway, can anyone help point us in the right direction of what he/we should do.

Thanks in advance.

Jenjen

Hi, we are paying my mum back for a credit card she has on our behalf. She opened it to get a good balance transfer rate for us.

We decided not to put it on our CCCS figures and instead we inflated our grocery budget by that amount so that we could still pay my mum without our other creditors knowing about this extra debt. Ours was only £70 a month though so it was a fairly easy amount to work into our budget. It may be harder with bigger figures.

We were advised that if it went on the DMP as a debt, the payment to it would have to be pro rata in order to treat it the same as the other creditors, that would then obviously have affected my mum's credit rating too or she would have had to find the extra money herself and I wasn't prepared to let that happen.

Tixy

I think he is right and he will find these loans make a formal DMP not practical, but its certainly worth him talking to the charity to see if they have any suggestions as to ways around the debt.

E.g - Could you and his friend afford to accept the same pro-rata reduced amounts on the debts as his other creditors and make up the remaining payment yourself? There may be a way he can still manage to pay you both and be in a DMP by slightly manipulating the figures in his DMP to make it work.

In general the charities won't include priority debts such as the council tax and gas in a DMP, but again he needs to talk his full situation through with them to see how they can help.