Newbie, advice on settling debts in and out of a DMP.

Baybeeboo

Good morning all,

I have often came here and read everyones suggestions and words of wisdom, and find it so helpful (And that was before I registered)

So here it is, my credit rating is shocking! (226 I believe) I have had a problem with debt since the day I turned 18! Now nearly 8 years on, they really are out of hand.

Recently I have came out of a long term relationship and have been abandoned with my 2 children, no child maintenance as of yet and have been forced to apply for pay day loans, to my suprise I was accepted by a few, pounds to pockets, Mr Lender, Wage day advance, and Jeremy Lawrence.

So late today I will be receiving a lump sum of £6000. I am currently in a DMP for some other debts (Some are DCA) I have spoken to the people who deal with my DMP and they have advised that they offer a settlement service, but will charge a minimum of £50 or 18% of what they save me. They are going to send the info out to me.

I don't know how to go about settling my debts, I will list what I have on my credit file...

Capital One Balance: £201.08 paying £1.84 a month in DMP
EOS Solutions Balance: £245.79 paying £2.19 a month in DMP
Idem Capital Services Ltd Balance: £2,622.01 paying £23.94 a month in DMP
Moorcroft Debt Recovery Ltd balance: £362.04 paying £3.34 a month in DMP
NCO Europe Ltd balance: £261.18 paying £2.38 a month in DMP
Provident Personal Loans balance £1955.28 paying £12.02 a month in DMP
Reliable Collections balance: £201.58 paying £2.79 a month in DMP

The pay day loans are not in DMP:
Pounds to pockets £548 - in arrears
Wageday advance £209.49 - in arrears (this is the balance as of today)
Mr Lender £328 - Not in arrears but that is the settlement balance as of today
Jeremy Lawrence £150 - not in arrears.

Total: £7084.45

I also have council tax owing for the past 5 years which total £2,200. but i have an attachment on my earnings, so not sure whethere i should worry about this one?
Would also like to pay my water bill, (£150)

With the above totalling: £9434.45.

Over 3 grand I will have! So I have no idea how to prioritise..

I really would appreciate any help or advice!

Flutterby83

My advice would firstly be to get the payday loans cleared off, I have no doubt that you're probably paying an extortionate amount of interest on them and as they're not included in your dmp, charges could escalate quickly for late payment etc.
Paying off the payday loans would leave you £4764.51, then paying off your water bill at £150 will leave you with £4614.51.
I'm afraid I have no experience of a dmp or attachments of earnings so I will leave advice on those to the good people who are more experienced than me, but I would advise that you get rid of the payday loans sharpish if you are in a position to.

Monkeyballs

Hi,

Step one - ditch the company that you are currently paying to manage your DMP.

Step two - write to each creditor to tell them that you are managing your DMP yourself and will continue to make regular payments as per the original agreement.

Step three - make F&F offers to them yourself and save 18% of what they are scamming you out of!!!

Your payments are low, you should be able to get looow settlements (depends on how long you have been on your DMP, the longer the better), I'd suggest starting at 20% of the total debt

Before you do anything though I'd post something on the DMP Mutual Support thread first and run it past others who ay be able to offer more advice

DITCH THE FEE PAYING COMPANY!!!

Good luck

MB x