Dmp? New to this help needed..

mrsjonesjuly2010

Hi all,
Ok I've been lurking on this site for ages now but think the time has come to face facts.. Me & hubby are in debt that is just goin no where....

Right we currently have 20k of unsecured debt made up of the following :
Halifax cc - £5500 -hubbys
Halifax cc - £600 - mine
Halifax overdraft £600 mine -paying £50 a month for this..
Lloyds cc - £3300 hubbys
Santander cc £500 - mine
Mbna cc £6000 hubbys
Mbna cc £450 mine
Capital one cc £500 mine
Barclays cc £600 mine
Barclays cc £2000 mine..
Wow I'm shocked at how many cards are there.
We currently own our house on mortgage all payments up to date.
We are on fixed rate with Halifax until 2014.

My question really is I've been looking at entering a dmp agreement as I want the debt cleared & just keep thinking it's goin to take years to clear it.. I have missed payments on cards as well as hubby so credit ratings are shot to pieces..

Any advice if a dmp would be the way forward ? I do not want to risk losing my house .. ?? Nor sure if this is the case as read about charging orders ??

I have looked on Cccs an it says we could pay all debts in 4 years..
Anybody used these?

Also we have cars only each worth £1000 would we have to sell these?

Sorry if questions seem stupid but I want to make sure this is the right thing to do..

Also I pay my step dad £500 every month for a loan he took out to pay my credit cards off 18 months ago.. Would I stil be able to pay this on a dmp? As it has to be paid to him.. I currently pay a standing order so have proof I pay this ...

Replies appreciated

Thanks..





I have already missed payments on cards so as hubby so our credit rating is shot to pieces already

gizmo111

is the £500 on top of what you owe entered above - if so how much do you owe dad?
you need to do a proper SOA so you cna see what money you ave to play with,
Cars are not a problem re the Dmp but do you really need the expense of 2 cars

Nivea_2

Hi, I am repaying a loan to family at £296 a month and CCCS were fine with this as were my creditors so it shouldn't be a problem. I know some creditors get funny about it but my view is I am not allowing my mum to get into credit problems because I can't pay back the monthly payment on a loan she took out for me to help me out, so if they had complained it would have been tough luck, once my loan is paid off via mum I will put that £296 straing back into my DMP anyway as I don't miss the money.

mrsjonesjuly2010

Thanks for replys.

Is it a really strict budget you have to stick to on dmp. obviously I know you have the debt as quick as you can, however I would srill like to be able to live.

925pws

Hi there

Congratulations on taking the first step to deal with your debts.

I have just started on a dmp with CCCS as of 1st June. You can fill in a budget online, be realistic as to what you can live on. There are some things they recommend an amount for, i.e. sky. They suggest £23 or something like that so if you have the full movie package then these are things you have to cut back on.

I guess the first thing would be to fill in an SOA (Statement of Affairs), this will allow you to list all your income and expenditure. The lovely people on here will then recommend where you could cut your costs.

I guess the main thing is that while you are on a dmp, belts do need to be pulled in so that debts can be paid off. But you will get the best support available from the lovely people on here.

Good luck with your debt free journey.

bargainbetty

mrsjonesjuly2010 wrote: »

Halifax cc - £600 - mine
Halifax overdraft £600 mine -paying £50 a month for this..
Santander cc £500 - mine
Mbna cc £450 mine
Capital one cc £500 mine
Barclays cc £600 mine
Barclays cc £2000 mine..

Is there anyway you could consolidate your credit cards a bit and possibly get some 0% deals? Not a loan, just a bit of shuffling/tarting.

You have personally got several relatively small sums on lots of cards. Could you contact each lender, find out your total available credit limit and current interest rates, and if they offer balance transfer deals.

It would take a bit of faffing around, but if you could transfer the balance of the MBNA cards to the others, clearing it, and then get a low-life-of balance or 0% deal on it so you can fill it back up off the highest interest rate card, you would find that your repayments would be cutting your debt rather than paying interest. Do that to each until the interest rates on all of them are as low as possible.

Naughtily, if you could do this in one month, you would be able to class the movements as 'payments' meaning you could throw the actual payments at your highest interest debt, or that overdraft.

You say that you still want to be able to live - perhaps you should also try doing a statement of affairs to see where you are spending money, and how you can cut back. Lots of people get into the rut of 'we have to have that (Sky Movies etc), it's our 'only' luxury. I know you want to be able to live, but you have to realise that you can't carry on living the way you were.

Good luck x

Debt_Free_Chick

bargainbetty wrote: »

Is there anyway you could consolidate your credit cards a bit and possibly get some 0% deals? Not a loan, just a bit of shuffling/tarting.

According to OP credit record is "shot to pieces" due to missed payments. Not sure they'd get a good deal with lenders tightening up the eligibility criteria ..?