We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
DMP - Worried I'll be stuck for 6 years!
gemmacantan1
Posts: 92 Forumite
Hi all,
My debt is currently out of control. I am trying to keep up all my repayments but its hard when I have a young family to support and a mortgage to pay.
I've previously been on a dmp and know how they work. I paid a monthly fee though as wasn't aware of any charities etc.
I need to get in control of my debt because I go a few steps backwards again.
Last time all but one of my creditors defaulted me which left me unable to move for 6 years! This was mainly due to burying my head in the sand for months and they were all passed to debt collectors before I need anything.
If I sort this out now and arrange to pay what I can, will I be defaulted again or will they accept the arrangement.
I have been offered a dmp scheme recently after being declined for a loan but I'm a little worried that I'll spend another 6 years unable to obtain a remortgage!
Any advice would be greatly appreciated.
Gemma
My debt is currently out of control. I am trying to keep up all my repayments but its hard when I have a young family to support and a mortgage to pay.
I've previously been on a dmp and know how they work. I paid a monthly fee though as wasn't aware of any charities etc.
I need to get in control of my debt because I go a few steps backwards again.
Last time all but one of my creditors defaulted me which left me unable to move for 6 years! This was mainly due to burying my head in the sand for months and they were all passed to debt collectors before I need anything.
If I sort this out now and arrange to pay what I can, will I be defaulted again or will they accept the arrangement.
I have been offered a dmp scheme recently after being declined for a loan but I'm a little worried that I'll spend another 6 years unable to obtain a remortgage!
Any advice would be greatly appreciated.
Gemma
Will be debt free by December 2016. Total debt £6207.35 . £188 per month on a DMP with Payplan.
4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
0
Comments
-
When I entered my DMP I hadn't missed any payments but was having to use credit cards for day to day expenses so had maxed everything out.
I have maintained payments and all creditors agreed to the plan. However, with DMPs, as you are not paying the original contractual payment, the creditor still records the arrears as late payments/defaults. In my case, although I have not missed any of my DMP payments, several of my creditors have recently registered defaults on my credit file. These, as you know, will remain for 6 years from the date they were registered.
Basically, a DMP trashes your credit rating. Have you tried posting a current SOA to see if anyone has any advice? If you have any excess after minimum payments you could try snowballing?Allypops
Married with 2 children
SPC5 # 1837- -
DMP started April 2011 34.5% paid [STRIKE]£78800[/STRIKE]
DFD: June 2019 DFW Long hauler #2860 -
Hello Gemma,
Your signature mentions that you have £8375 in savings, is this the case? A lump-sum like this should usually be used for the repayment of debts, and you could consider making an offer to each creditor to clear them via a Full & Final settlement.
You can find our more via our fact sheet:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
Best wishes,
National Debtline.We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards