self manage dmp or use a company advice please ?

timeforaction_2

Our debt is around 54 k we need to do a dmp most of the money is owed to Barclays in the form of loans and cc the rest approx. 10 k is owed to mint and rbs in cc none secured ,I have looked in to an iva and don't want to do it they are our debts and I will pay them all ,its going to be a long time but there you go, we currently bank with Barclays and managing to cover payments by robbing 1 pot to pay another I know I cant go on much longer I have we are self employed and have about 350 disposable income I know its going to be a struggle I have tried the soa but it keeps crashing when I try to post it will have another go thanks everyone in advance

sourcrates

Hi,
You will be repaying a DMP for a very long time at that rate.
How old are your debts ?
Do you know there enforceability status ?
If you bank where you have debts, its advisable to swap to a bank you don't have any debt with, open a new basic bank account, coop springs to mind.
National debt line and step change both give excellent advise on your available options, look on there respective websites or give them a call to discuss.

timeforaction_2

Hi Sourcrates I have not missed a payment yet and have got a new bank account in place just got nowt in it I have applied for my additions fee returning to us , so I don't want to alert bank to anything yet I can prob carry on another couple of months but need to be putting things in place just feel like a headless chicken at the min

sourcrates

timeforaction wrote: »

Hi Sourcrates I have not missed a payment yet and have got a new bank account in place just got nowt in it I have applied for my additions fee returning to us , so I don't want to alert bank to anything yet I can prob carry on another couple of months but need to be putting things in place just feel like a headless chicken at the min

I would really recommend getting some impartial advice, as for your question about DMP providers, do not pay anyone to manage a DMP for you, stepchange are free, and you can self manage for free to.

longtermplanner

Wanting to pay off all your debts is praiseworthy, however in your situation a DMP will last more than 12 years.

This is not sensible unless you have a good reason to expact that things will improve radically for the better in a few years. Obviously if you currently have small children and a stay at home parent who will be returning to a well paid job in a couple of years, then the DMP isn't going to take that long as you will be able to increase your payment.

If not, you need to look at your alternative options. IVAs can be tricky with self employed incomes as they tend to be erratic. If one of you isn't working and has debts of less than 15k, then a Debt Relief Order may work for those, and that would then leave the other partner with a more realistic DMP.

If you have a house, how will the coming mortgage rate rises affect you? If you don't, then you should consider bankruptcy.

National_Debtline

Hello there,

Do consider moving banks from Barclays if you are looking at making reduced offers towards your debts. It's important to safeguard your money as Barclays could reserve the right to take money out of the account to pay towards any arrears that build up. Here is a link to our bank account fact sheet.

In relation to your questions about using a DMP or self-negotiating, there isn't really a right or wrong answer. It's all down to personal preference. The majority of our callers choose to self-negotiate by using the sample letters and guides within our self-help pack 'Dealing with your debts'. Some also use our online system My Money Steps.

If you do get time, please take a look at our website, nationaldebtline.org, as it is packed full of useful information that could be really helpful.

Very best wishes,

David @ National Debtline.

timeforaction_2

we are both in our 50s and my hubby has no idea of the amount of debt we are in we have a mortgage

National_Debtline

If not, you need to look at your alternative options. IVAs can be tricky with self employed incomes as they tend to be erratic.

This is a great point. IVAs are not as flexible as DMPs although they can be modified as time goes by. If the self-employment income fluctuates it could be that an informal arrangement such as self-negotiating or a DMP could be more appropriate.

- David.

Grumpelstiltskin

timeforaction wrote: »

we are both in our 50s and my hubby has no idea of the amount of debt we are in we have a mortgage

Time for action The first thing you must do is tell your husband exactly what the financial position is, you can't do this alone you need him to be fully aware and onside with you. It won't be easy but it must be done.

timeforaction_2

Thanks Grumplestiltskin he is the most loving husband and I feel like I have let him down and at this moment in time I cant do it I got us into this I will get us out of it one way or another

timeforaction_2

Thank you David from debtline I wanted the dmp because im hoping things get better and I can put more money on my debts