Considering a debt managment plan

fozmcfc

I believe you can clear your debt without a DMP and I'm not even sure if you would be eligible for one anyway, as your debt isn't that big.

But, you simply need to control and conquer the underlining problems, drink and gambling, otherwise you will not clear the debt. I know where you are coming from gambling wise as it affected me for 25 years or so.

If I was you, I would

1/ Get a separate basic bank account (no overdraft or debit card) and have all monies paid into it.

2/ Contact Wonga and tell them, you simply can't pay everything back in one go and ask to enter a payment plan with them.

Ask them for confirmation in writing and do not give them new banking details though. Just make sure enough is available in your old account for them to take the agreed repayments.

3/ This should then free up enough money to get the overdraft under control. Once you start to get it under control, ask for a reduced limit.

As for Provident, I'm pretty sure from what I have read, they are very flexible and will agree if you have to miss a payment or two and don't add lots of charges if you miss payments.

Ultimately though you will need your mum to pay off the quickquid loan and for you to sort out the issues that have led to the debt.

With a bit of hard work and determination, I reckon you'll be debt free by next Xmas, if not before.

DCFC79

I personally wouldn't get a dmp for a small amount. Its do able to manage these debts yourself. I would also post up an SOA to start with to see where your money is going, you might be surprised where its going.

[Deleted User]

fozmcfc wrote: »

I believe you can clear your debt without a DMP and I'm not even sure if you would be eligible for one anyway, as your debt isn't that big.

Very good fact - a charity won't setup a DMP where you a, don't have enough incomings in alignment with your outgoings/low wage worker and or b, your debt is actually not high enough for a plan - as sickning as that is, but no doubt no charity can handle the admin burden with DMP'ing such small debts so it really is a catch twenty two and therefore can only supply you with options of dealing with it on your own

OP you can do a DMP by yourself but make sure you leave enough money for you to live on long term? eg. plan for emergencies instead of all this throw every penny at the debt right now, who knows what changes you might have or what other's circumstances might be where they have managed to pay of debt - as long as you stop borrowing you'll be ok whichever way you go x

StephenUK

Hi,

Thanks for your replies all, I guess ill leave the DMP for now and just keep reducing the debt.

Cheers

StephenUK

Hey all!

Great news, for some inexplicable reason (I've been trying for over 3 months, every week on Lloyds TSB online banking) the bank have relented and agreed to convert my overdraft, plus £2000 into a loan (£5000) over 42 months. I am now £400 a month better off (including paying off the loan) as I am out of the payday loan cycle, and I will also be clear of my £100 a month provident loan and my cashflow issue has been completely solved.

The money's in the account already.

I should be able to pay this off much faster than 42 months (I reckon about 2 years)

So happy! Thanks for all the advice you gave me anyway

pineapple123

Stephenuk now please try to tackle drink and gambling or you will be forever in debt, if necessary seek help. Good luck.

antonic

Dont think Lloyds have done this for your benefit, they have most probably done it as they can make money from you (as all banks do).

As Pineappe says get help for your problems or this situation may repeat itself.

StephenUK wrote: »

Hey all!

Great news, for some inexplicable reason (I've been trying for over 3 months, every week on Lloyds TSB online banking) the bank have relented and agreed to convert my overdraft, plus £2000 into a loan (£5000) over 42 months. I am now £400 a month better off (including paying off the loan) as I am out of the payday loan cycle, and I will also be clear of my £100 a month provident loan and my cashflow issue has been completely solved.

The money's in the account already.

I should be able to pay this off much faster than 42 months (I reckon about 2 years)

So happy! Thanks for all the advice you gave me anyway

StephenUK

Hi,

Yeah I know the bank didn't do it for my benefit.

I've just done my new spreadsheet and things are looking much brighter. So even if they are making some money off me, I really don't mind. This is so much more manageable and I've saved a few grand in the long run too.

I will Thanks much.

sickasachip13

Hi Stephen,
I hope you're getting some support with the gambling issue - it be awful for it to come back with a vengeance once you get past the financial crisis...
I'm glad everything's looking bright.
SAAC

theoretica

Have you enthused about this site to your mother? If she is getting you to take out payday loans for her it seems to me that she might benefit from coming here too.