DMP someone please advise.....

kaley6989

ok, so here goes....

im thinking about going into a debt management plan, as i have loans, overdraft and catalogues that are just going out of control. before anyone says anything, i KNOW i got myself into this situation, but i really need some advise on which company to go to, as ive done some research and found that some are really bad,and i just want a company that pays all my creditors a decent amount each month not just a few pounds then keep rest themselves (i am aware they do take some money though).

my debts add up to a total of £6000, and only getting higher, i have a total of 6 creditors. any advise anyone can give would be great, with details of how long it takes to make the plan and for it to get into action..... thank you....

sharp82

Stepchange, Payplan or the Citizens Advice all offer free DMPs.

Every penny you pay to them, they pay to your creditors.

Personally i'm with Payplan, and cant rate them enough

~Beanie~

Have look here: http://www.stepchange.org/

They will not keep ANY of your money for themselves, it all goes towards paying off your debts.

kaley6989

sharp82 wrote: »

Stepchange, Payplan or the Citizens Advice all offer free DMPs.

Every penny you pay to them, they pay to your creditors.

Personally i'm with Payplan, and cant rate them enough

how long did it all take to set up the plan and for it to be in place? no worried about it as i wanted to get a mortgage next year as a relative has money aside for a deposit but will be blacklisted for 7 years is that right?

nicp60

kaley6989 wrote: »

how long did it all take to set up the plan and for it to be in place? no worried about it as i wanted to get a mortgage next year as a relative has money aside for a deposit but will be blacklisted for 7 years is that right?

It will probably take at least 4-6 weeks for the plan to go through. It is likely though that you will default on many (if not all) of your credit agreements, which will trash your credit file for the next 6 years.
If you're looking at a DMP, then I'm afraid the chances of a mortgage are slim to none. You can boost your chances by having a higher deposit, but most lenders won't look at you if you've had defaults within the last 3 years.

I have 2 defaults from over 5 years ago, a 20% deposit and needed 1.75 times my salary for a mortgage and was turned down by pretty much everyone. I'm just going to wait it out, save more for a deposit and then apply when the defaults have come off my report.

kaley6989

nicp60 wrote: »

It will probably take at least 4-6 weeks for the plan to go through. It is likely though that you will default on many (if not all) of your credit agreements, which will trash your credit file for the next 6 years.
If you're looking at a DMP, then I'm afraid the chances of a mortgage are slim to none. You can boost your chances by having a higher deposit, but most lenders won't look at you if you've had defaults within the last 3 years.

I have 2 defaults from over 5 years ago, a 20% deposit and needed 1.75 times my salary for a mortgage and was turned down by pretty much everyone. I'm just going to wait it out, save more for a deposit and then apply when the defaults have come off my report.

ouch!! that hurt!!

sharp82

Yep, my plan took 6 weeks to set up. Its only been completed recently, and so far all is quiet on the creditor front. I imagine next month when they receive the lower payments for the 2nd month running is when they will start defaulting my agreements.

I dont mean to put you off, but to be honest I dont think i'll even apply for a mortgage until the defaults have dropped off my file and i've had 2/3 years of 'good credit'

Realistically thats going to be 10 years times. Its a little depressing when I look at it like that. Oh well, it could be worse!

nicp60

kaley6989 wrote: »

ouch!! that hurt!!

Oh goodness, sorry!!! I didn't mean to sound harsh! Lenders these days are so much stricter and pickier than they used to be. Didn't want you to go into this with false hope though!

Sorry!:o

kaley6989

sharp82 wrote: »

Yep, my plan took 6 weeks to set up. Its only been completed recently, and so far all is quiet on the creditor front. I imagine next month when they receive the lower payments for the 2nd month running is when they will start defaulting my agreements.

I dont mean to put you off, but to be honest I dont think i'll even apply for a mortgage until the defaults have dropped off my file and i've had 2/3 years of 'good credit'

Realistically thats going to be 10 years times. Its a little depressing when I look at it like that. Oh well, it could be worse!

Really sucks. i wish i could just get a 6000 loan and do it that way but no-one will touch me.. thanks for advise was really helpful, still not sure what to do though

nicp60

Why don't you post a statement of affairs - it details your income and expenditure and debts etc. The link is here: http://www.stoozing.com/calculator/soa.php

People will have a look and advise where you can cut back. A DMP might not be necessary with the right tweaks to your budget.

There's also some excellent advice here: http://www.moneysavingexpert.com/loans/debt-help-plan

Hope this helps.

bargainbetty

If you are on a DMP, you are not allowed to get more credit for the duration of the plan. That is how it works. If your relative is saving money for your deposit, you might want to consider coming to a fixed loan arrangement with them, and sticking to it, to rebuild the deposit.

It's the only way you will avoid the defaults and wreckage of your credit file for six years.

Best of luck