Debt Management Plan

Phoebe-

Hi everyone

Just looking for some advice really. My brother has been really really stupid, and got himself into a lot of trouble with debt, that is spiralling out of control at the moment.

I have heard about debt management plans, and think this may be the best way forward for him, so I was just wondering if anyone could advise the best companies to use please?

Thank you

DCFC79

How much is the debt ?

Get him to cmplete a SOA and post it on here.

sparklefrog

You don't need to use a company but if you prefer too, then payplan are free.(there are many DMP companies out there but they take amonthly payment and then pay the left over to creditors so he would be losing money to them instead of putting it off his debt

I did my own DMP many many years ago with some template letters that CAB provided me with and I dealt with contacting all the creditors involved. Most accepted my offers with a proviso that they would be reviewed every 12 months incase financial circumstances improved.

It does take a bit of effort but its not impossible.

Phoebe-

There's no point in doing that tbh, cos he earns £400 per month, and his only outgoings are £250 which goes on car insurance & petrol.
He has no other outgoings, hence a SOA being pointless :P and owes about £4.5k

Grumpelstiltskin

Phoebe Can you get him to read this?

https://forums.moneysavingexpert.com/discussion/2077631


Whatever he does tell him not to even think about speaking to a fee charging company.

They are vultures preying on people in debt, they will promise him the earth - which they can't deliver and tell porkies about the free debt charities who are the people to go to if he needs a debt management plan.

Also tell him not to even think about a consolidation loan, it isn't the way.

What he needs to do is write down all his income and outgoings, an SOA,
put it up on here and he will get all the help he needs to start on the debt free journey.

byjimini

Phoebe- wrote: »

There's no point in doing that tbh, cos he earns £400 per month, and his only outgoings are £250 which goes on car insurance & petrol.
He has no other outgoings, hence a SOA being pointless :P and owes about £4.5k

What's his job? I take it he's young with such low earnings and high car insurance. He needs to take on full time employment/get another part time job.

DCFC79

Phoebe- wrote: »

There's no point in doing that tbh, cos he earns £400 per month, and his only outgoings are £250 which goes on car insurance & petrol.
He has no other outgoings, hence a SOA being pointless :P and owes about £4.5k

Its a small amount so getting a second job would go some way to paying the debt off.

Grumpelstiltskin

Phoebe Why does he only earn £400 a month and yet think he can afford to run a car?

Phoebe-

He is looking for a fulltime job, but is also on a shortlist to try and get into college part-time too for an apprenticeship starting in September, so would obviously keep this job.
He runs a car on only £400 cos it is -literally- the only way he can get to work, as with the shifts that he does, the buses don't run at those hours, and it would take 3 hours to walk there, walking down unlit country lanes in the dark.

Grumpelstiltskin

Phoebe- wrote: »

He is looking for a fulltime job, but is also on a shortlist to try and get into college part-time too for an apprenticeship starting in September, so would obviously keep this job.
He runs a car on only £400 cos it is -literally- the only way he can get to work, as with the shifts that he does, the buses don't run at those hours, and it would take 3 hours to walk there, walking down unlit country lanes in the dark.

Thought about a Moped?

DCFC79

Grumpelstiltskin wrote: »

Thought about a Moped?

Be cheaper to run and i imagine cheaper to insure, by selling the car it might ( once the moped is bought, taxed, insured )leave him with some extra cash to start saving with or to use towards what he owes.