Newbie

allietro

Hi We are currently paying down debts each month so far after 8 months we have paid off roughly £6,300 .whilst this is a huge amount I stil feel we could budget better.i keep reading about DMPs and wondered if we would benefit although at the current rate we hope to be debt free by Dec 2013. We have £27500 still to pay.a couple of cc are at 27.9% I have tried to negotiate this but to no avail. Any suggestions would be greatly received


Allie

thatsean

A DMP cannot guarentee to reduce interest, although many lenders do play ball with the likes of CCCS or Payplan. How important is your credit rating to you? Are you likely to need to refinance your home or renew a car lease etc? I ask as a DMP will almost certainly trash your credit, as your lenders will be entitled to register defaults if you reschedule existing debts. If your credit has already taken a hit, then you may have nothing to lose. Given that you DFD is pretty soon though, could you look into saving lump sums and making full and final offers instead?

Tixy

A DMP is only an option for people who cannot afford to mmet their minimum repayments on their debts each month.

If you can afford your minimums then a DMP is not appropriate for you. If you cannot afford repayments after basic living costs and without reusing credit then a DMP may be an option.