Debt management plan

licrogib

Hi, I recently went online to CCCS and completed a debt management plan and posted all info away. I wanted to check something out though - I didn't inlcude overdraft in my bank as my parents are helping me to decrease every month by a small amount - I only included three credit cards but with a balance overall of approx £20k. Is it ok to exclude overdraft as I don't want to have to open new bank account or for bank to take funds out to reduce overdraft if they are included in DMP. Would rather deal with separately. Also, up until recently I had a high credit score with online CreditExpert but it has dropped recently - haven't missed any payments yet but struggling - will my credit score drop significantly if I am on a DMP? Any advice greatly appreciated. Many thanks forum members

mum2one

licrogib wrote: »

Hi, I recently went online to CCCS and completed a debt management plan and posted all info away.

I wanted to check something out though - I didn't inlcude overdraft in my bank as my parents are helping me to decrease every month by a small amount - -your overdraft is a debt, if your going to enter a formal dmp then the overdraft would form part of that, so you would need to get yourself a new bank account, with a bank that you have no debt with, The general one seems to be co-op cashminder


I only included three credit cards - does that mean you have more than 3 cards

but with a balance overall of approx £20k. - this can't be accurate if you have only used 3 credit cards 9if you have more) and not included your overdraft

Is it ok to exclude overdraft as I don't want to have to open new bank account or for bank to take funds out to reduce overdraft if they are included in DMP. - once your on a dmp you pay tthe dmp company and they distribute your funds accordinly, you can not favour one creditor over another


Would rather deal with separately - your not going to have much choice

. Also, up until recently I had a high credit score with online CreditExpert but it has dropped recently - haven't missed any payments yet but struggling - could be a 1001 reasons, maybe your figures aren't dropping fast, if yor just reading water

- will my credit score drop significantly if I am on a DMP? Any advice greatly appreciated. Many thanks forum members

I'm useless at multi-quoting, so have just popped my thoughts in blue, yes once your on a DMP your credit score will drop, but if your not managing your money, then its going to fall anyhow.

If I was you I would get a new account opened then redo the statement of incomings and out goings with cccs and include every debt, and your overdraft, failure to be honest now will only come back and bite you on the bum,

paulmapp8306

You "should" include you OD in your debts - however, it can be done without. Depends on how big the OD is, and how much you use.

If its £3k then yo need to include it. If its nearer £500, and you only use a little when you need to then its fine to leave it off. Ultimately CCCS (or your creditors really) arnt going to be checking if you have an OD so?? If however you get in deep with the OD then cant manage your agreed DMP - questions WILL be asked and the DMP will possible be rejected (either by your creditors - or more importantly CCCS may stop supporting it).

Its personal - but without knowing the level of OD available, how much your using every month, and how quickly your reducing what you ues theres not much esle we can say.

National_Debtline

Hello there, Mum2one is absolutely right. You need to include all creditors within your DMP - this would include any overdrafts. By including all debts you would not be unfairly prejudicing any of your creditors. It's vital to open a new bank account well away from any of your creditors and have that as your current account - we call this having a 'safe' account.

Best wishes,

National Debtline.

Jinx

I did my own DMP and excluded my 1000 quid overdraft. The reason for this was that it was the smallest debt, my wages went into this account and all my direct debits came out of it - I was single and could not afford to drop to a basic account that wouldnt allow DDs for my mortgage etc.