To DMP or not to DMP ?

worriedegg

Hello All,

Been lurking for a while but struggling so here I am!

I have three outstanding loans from PDL's. Stupid I know but started with one to pay a huge bill and it has spiralled and spiralled and now I am definitely out of control.

Currently I am managing them by rolling some over and using some to pay off others each month. It has become increasingly difficult to manage and I am constantly worrying about them.

I have used step changes online debt tool and it recommends a DMP however I am worried about the affect on my credit rating.

6 years sounds a long time...

Looking for some advice really, if I don't take the DMP I think I may be able to manage juggling the loans but worried as if one declines I will be totally unstuck.

Apologies if this comes across as naive, can anyone currently on a DMP with PDL's advise?

Thanks

getting_my_life_straight

Hi there
I was in the same position as you a few months ago, but with more PDL's. I was constantly paying them and then reloaning, burt more each month with interest etc. Eventually in July, realised I couldn't carry on and started a DMP. Best thing ever.
I am not worried about credit file because guess what - I don't ever want credit again!
I now have just enough to do a proper food shop, pay mortgage and bills.
I would recommend a DMP to anyone struggling with PDL's because they will spiral out of control, you constantly need to borrow more each month because of the interest. Good luck!!

Depth_Charge

worriedegg wrote: »

Hello All,

Been lurking for a while but struggling so here I am!

I have three outstanding loans from PDL's. Stupid I know but started with one to pay a huge bill and it has spiralled and spiralled and now I am definitely out of control.

Currently I am managing them by rolling some over and using some to pay off others each month. It has become increasingly difficult to manage and I am constantly worrying about them.

I have used step changes online debt tool and it recommends a DMP however I am worried about the affect on my credit rating.

6 years sounds a long time...

Looking for some advice really, if I don't take the DMP I think I may be able to manage juggling the loans but worried as if one declines I will be totally unstuck.

Apologies if this comes across as naive, can anyone currently on a DMP with PDL's advise?

Thanks

Hi

Do you have other options other than a DMP?

Not too much to go on from you have put so far

If you can put up your SOA it might help people in guiding you further.

It might also be worth having a look at the Citizens Advice & Mymoneysteps Debt Remedy / Options & Information / DMP tool links below in the meantime.

http://mymoney.nedcab.org.uk/moneyadvice/

http://mymoney.nedcab.org.uk/moneyadvice/remedy_4.asp

https://www.mymoneysteps.org/

Best Wishes

ShopaholicNumber1_2

I had the same worry about taking the leap into a DMP and the effect it would have on my credit file - I lurked and dithered for a good 6 months before I took the plunge. And, to be honest, the first few months when the defaults started coming were a bit scary, but now, over 2 years in and with about 15 months to go, my only regret is not doing it sooner! I have learned to manage my finances properly and don't miss credit one little bit. And I know that once I've finally paid the last penny back (and I started out owing over £45K!!) then I will be able to live quite comfortably without the need for credit cards, loans and overdrafts. Its scary, but well worth it. Good luck!

matttye

Many lenders won't touch you when you've taken out payday loans anyway. I don't think a DMP will make things that much worse, but you'll be less stressed and you'll be able to start paying the debts back rather than drowning in interest.

Juggling these loans is never the best way to deal with them.