Finally facing up to the debt

s5cyh

I'm finally pulling my head out of the sand and looking at my debts - can anyone help me by telling me what a DMP is? Does my husband have to know about it - all the loans/ cards are in my name. I'm employed and have quite a good wage but more than half goes on paying regular payments. My husband is self employed and work is scarce at the moment so really need to do something. I've never missed any payments on anything.

DanielleNic87

A DMP is a debt management plan. If you go through one of the Debt charities like Stepchange/Paypal then you do not have to pay a fee. They contact your creditors and you can potentially get interest frozen.

A DMP trashes your credit file as you will more than likely receive defaults (which stay on file for 6 years).

As for telling your husband... Well that's up to you, however if you are financially linked e.g mortgage/joint bank acc then it will affect his file too.

I am 2 years into my DMP and have not looked back, I can now sleep at night not worrying how I am going to afford things.

If you go through Stepchange you can do it all online.

Good luck x

Calamity59

Hi there s5cyh I started my DMP in sept last year with stepchange best thing I ever did my hubby didnt know the whole picture about the debt ,first thing to do is speak to stepchange they are lovely non judgemental ,good luck xxx

pleasedelete

What caused you to get into debt? If it was day to day living then you must discuss it with your OH or it will just happen again. Do a SOA/budget showing income and outgoings.

A DMP should be a final option- not a quick fix.

Can he get a job if being self employed isnt paying enough.

How much are you each earning/contributing to the expenses?

Can you sell anything?

Westminster

I suggest you contact one of the free debt advice charities (never pay any money for this kind of thing) - Payplan or Stepchange are good examples.

A DMP is an informal arrangement with your creditors based on a realistic budget of all your income versus your outgoings. It could last several years (mine was originally due to last for 16 years).

Be aware, a DMP is quite a big decision as it will effectively prevent you from obtaining ANY form of credit until up to 6 years FROM THE END of your DMP (depending on how each of your creditors treats you) rather than the start. So forget about getting a mortgage for example.

The upside though is - with impartial advice from one of the charities that it is the right decision for you based on your circumstances - it is quite likely (not guaranteed) that all further interest / charges will be suspended and you will no longer worry about answering the phone as correspondence will generally go via your DMP company.

Dobbibill

Hi s5cyh,

Welcome to the forum,

There is some good advise above but as Westminster pointed out a massive decision, which should be discussed with your OH.

Be aware, a DMP is quite a big decision as it will effectively prevent you from obtaining ANY form of credit until up to 6 years FROM THE END of your DMP (depending on how each of your creditors treats you) rather than the start. So forget about getting a mortgage for example.

Discuss all your options, do a debt remedy on the Stepchange website, link here. Do a SOA, link here, so that everything is written down and you can see the bigger picture. Don't rush in without a thought to the consequences.

I also echo what others have said, Yes it will impact your OH's CR if you are financially linked.

All the best

DB