DMP Advice please.

david01010

Hi there. :hello:


I'm pretty lost right now. I have debts that are managable (minimun payments) for my income and living expenses. But am considering a DMP because I just want to draw a line under my whole debt and never borrow money off of anybody again.

I have a problem with gambling and have not had any advice. That is the first time I have said it I think.

My debts were run up by being foolish, living on credit, and a gambling habit. ( 70 % of debt )

I owe 25,000 pounds to 4 or 5 banks.

I could easily afford £400-£500 pounds a month to pay those off. But would the interest be stopped?? I don't want to be repaying still 10 years from now!! Currently it is around £600. But minimun payments.

My income is a basic £1150 (net) a month but I get allowances for staying away at work during the week so my take home pay is sometimes £300-£400 more. Would that be an issue with the DMP planner?

I also plan to seek advice and stop gambling. I have been looking into bankruptcy as well.

My debt has built up over a few years and, after failing so badly at each stage of sorting my debt, more loans, credit cards and so on. Am I just gonna end up there anyway so should I just apply for that??

Also should I carry on and use all of my money left over for the month to try and sort things out? Once you start a DMP application do all of your lenders know you are struggling? Do they then start panicing and start asking for all their money back?

In a bad way really.

: )

HappyMJ

You use your basic pay on a DMP. Although on £1,150 per month I don't see how you could have £500 spare to pay towards debts without having anything spare. Do you have someone else paying some of your living costs such as rent and bills? You should make a meaningful contribution to them for that.

You could consider BR. You need to stop paying anybody anything at all and saving every penny you can for the BR fees and expenses in advance. Then get onto the BR board here and post a BR SOA which shows you have nothing to spare. In 12 months the debts can be written off and in 6 years your credit will be clean again.

JustinCredibleGillespie

The thing is though, if you've built these debts up by gambling, you could receive an BRU or BRO ( Bankruptcy Restriction Order or Bankruptcy Restriction Undertaking) This can last between 2-15 years so be very careful.

Don't take the bankruptcy route gently because it could lead you down a very difficult path your not prepared for and they don't take lightly to bankrupts who end up where they are, due to gambling.

Maybe have a look at a DMP

All the best.

JCG

xx

( Google the BRU or BRO and you'll get all the info you need)

sickasachip13

Hi there,

Try not to stress! You've had your LBM (lightbulb moment) and now you need to make some good decisions.

I hope you are going to tackle your gambling issues at the same time. I know it's a lot to take on but if you do go on a DMP you are absolutely not allowed to take out more credit, otherwise it will scupper your plan.

If you do want to go DMP, then speak to CCCS or Payplan. Both provide the dmp service for free - don't be tempted by fee-charging companies, they'll fleece you.

There is a DMP Mutual Support Thread around here, have aread of some of that,. lots of people there on different stages of DMP - at least a couple just started it. It's a great place for support and information.

In my experience - we had 19 creditors, all but two stopped % and those two did reduce the % to a nominal amount only. We've been on a dmp now for about 20 months and it's been pain free. I did do a blog about going on it, for CCCS, which can be found here: http://moneyaware.co.uk/2011/09/my-debt-hell/

Why not have a look at CCCS' website, they have an online debt remedy tool which you can complete - anonymously if you like.

All the best
SAAC

david01010

Yes. I'm living with my parents and paying very low rent. I have had a look at the cccs debt remedy tool and it suggested a dmp.

Thanks sicka. Im glad the creditors didnt try and charge you interest and realised you wanted to pay the money back.... But the interest is so crippling. Just like my situation.

I have heard of the BRO on a brankruptc order and I wouldn't really want to risk that.

I just want it all to go away and reading some of the posts here it's a long process. But hiding it and from it is just making it worse.... Just to have something to look forward to would be a really good thing right now.

It's my own stupid fault but I just can't see a way out.

Whats the worst that can happen if you apply for a DMP?

sickasachip13

Hi,
You're right - you can't hide from it (well, you could but it really would make everything worse!).

I would really strongly advise having a chat to CCCS over the phone, you'll find them non-judgemental and able to give straightforward advice.

The DMP, well yes it is a long process for many of us with large debts. BUT, most people tend to feel so much better and more in control of the debt once the dmp gets started and, tbh, we don't ever think about ours on a day-to-day basis or anything like that - it just ticks away in the background. The relief has ben amazing for us. Also, it took us bloody years of poor financial management, and then bad luck, to get into this pickle, it's going to take a while to dig our way out!

The worst that could happen? Well, the creditors will apply defaults and these will show on your credit record for six years from their application. You'll probably get a few phone calls from creditors in the beginning asking what's going on - just refer them to CCCS. The very worst would be that a creditor doesn't accept the dmp and takes you to court and gets a CCJ against you. But, hey, the debt's there anyway and any of these things could happen as soon as payments are missed - dmp or not.

There are ways out of this, a dmp is one of them. Honestly, getting yourself set up will help as you will be starting to get control and halt the problem - alongside, hopefully, getting some support for your gambling issues.

Chin up.
SAAC