timeforaction

timeforaction_2

Im so sick of worrying about money I have cc debt of almost £20000 I have a bank loan of £14000 I am married and self employed none of the debts are secured to our property I am managing to pay everything but am sinking further and further I was wondering would a dmp help ? we have a mortgage would they make me sell the house

ellesbellesxxx

You would definitely not have to sell your house - a DMP is a way to pay back your debt manageably. However, you will trash your credit rating in the meantime as you will have to default on your debts first.

Some people like to do a Statement of Affairs (http://www.stoozing.com/calculator/soa.php) to show their incomings and outgoings - you are very welcome to share this for advice otherwise it will help inform your decision.
Good luck!

timeforaction_2

Thank you so much for your advice have been so worried ellesbellesxxx

sourcrates

I think your confusing a DMP with an IVA (Individual voluntary Arrangement).
A DMP is not a regulated debt solution, its entirely at your own discretion how much you pay your creditors, were as a regulated solution is a lawfully binding agreement like an IVA or Bankruptcy where the property may be at risk.
It will trash your credit file that's for sure, you may be better off stopping payments altogether for a few months, this will allow defaults to be registered, and possibly debts sold on, its more beneficial to you in the long run to have defaults registered as early as possible, then the 6 years clock begins to them falling off your file.
You may also find DCA`s will accept lower payments than original creditors, as they can afford to be more flexible.
You can get good advice at stepchange, or you can self manage your DMP, don't ever use a fee taking debt management company to administer it for you, its just a waste of money, and they can disappear overnight with your cash without paying a penny to your creditors.
Lots to think about, good luck with it.

timeforaction_2

Hi Sourcrates if I stop payments altogether im scared that I will get bailiffs coming and I will lose my home

timeforaction_2

Hi Sourcrates I don't understand what a DCA is .are they not Bailiffs ? sorry if I appear stupid

patman99

DCA's are Debt Collection Agencies.
They can either be 'in-house' (basically just another dept. in the lender's organization, but with a different name), or independent (in which case, they purchase the debt for a fraction of the cost, then you pay them).

DCA can also refer to Debt Collection Agent - a person employed to collect the debt. They are usually large bald-headed geezers whose purpose is to intimidate you into paying. You can easily stop these toothless in-breads by sending their employer a letter withdrawing their implied right to access your property.

A Debt Collection Agent is not an Enforcement Officer (the new name for a bailiff) and they do not have the legal right to enter your property of to seize your goods.

sourcrates

timeforaction wrote: »

Hi Sourcrates I don't understand what a DCA is .are they not Bailiffs ? sorry if I appear stupid

A DCA is a Debt collection agency, basically a 3rd party company engaged by a creditor to reclaim debts on there behalf.
They are not Bailiffs, they have no power at all, and cant enter your home (or sell it !!) anymore than I could.


Only a court can appoint or instruct a Bailiff.
A creditor can take you to court for non payment, but that is many months down the line, and only if you don't cooperate with them.
You need to understand the debt collection process, Google is your friend here, do a little searching around on the "debt collection process", its not that scary Honest.

timeforaction_2

Thanks Again so is it possible I could be debt free in 6/7 years I have been so worried im not bothered about my credit rating being trashed I just want to see a light at the end of a long dark tunnel

timeforaction_2

Step 1 was coming on here
Step 2 I have just opened a new bank account online ,I feel so scared

runforlife

Don't be scared. You have not committed a crime, just messed up a bit with money like so many do. Look at me!

Here's something that you can do today that may help. Stepchange debt charity which os one of a few charities that administer DMPs without charge have a form you can complete today and send off. It's also, if you want it to be, totally anonymous.

Get yourself a cuppa, all your bank/credit card statements, loans etc and click here.

http://www.stepchange.org

Use the Debt Remedy Tool to the right of the page.

Good luck