Debt has spiraled over the last 6 months

mwr789

Hi All,

I am currently very stressed out with my money issues at the moment.

I am on a Debt Management plan and everything was fine until I found my self into arrears with other things such as Gym Membership, Car Insurance, and a multi payment pay day loan sort of thing.

Thinking back i should have added these onto my DMP as soon as i fell into arrears but as i wanted to clear these ASAP and avoid making my DMP longer i didn't however it has now gone really bad.

I was wondering if anyone knows what my options are? If there is anything I can do to try and solve this and make my Debt Manageable. Can I go to my Debt Management company and be honest and tell them i've screwed up and will they help me?

What i dont want to happen is tell them this they then try to sort it out for me and then i am screwed as i get kicked off the plan?

I know i am stupid for how i've done things but i have definitely learned a lesson.

Any advice is really appreciated!!



thanks,

Max

rockm87

That's what they're there for surely, give them a call!

Tixy

Do you know why you fell in to arrears on other items?
Was your initial budget to live on not realistic?

Who is your DMP with? I would contact them and explain and ask if you can rejig your finances with the additional debts.

If they do decide to cancel your DMP (they may well not but the charity DMP providers just might) then you can always switch to different free provider.

mwr789

Tixy wrote: »

Do you know why you fell in to arrears on other items?
Was your initial budget to live on not realistic?

Who is your DMP with? I would contact them and explain and ask if you can rejig your finances with the additional debts.

If they do decide to cancel your DMP (they may well not but the charity DMP providers just might) then you can always switch to different free provider.

I Moved house (for cheaper rent) however the transition period was very tight. I believe it may not of been. I am with DFH. What I am worried about is telling my debt management company about it all and then them seeing what the can do but then my creditors already on the plan refuse to do anything and i end up in court and being made bankrupt or worse still bailiffs turning up at the house.

What would you recommend?

ShirePiskie

DFH are a charging company aren't they? (I just quickly googled them)

Speak to National Debtline (is that what it's called), Stepchange, Christians Against Poverty or similar who DON'T charge you and may be able to get you started again.

Regardless of the fact you're struggling, you should do this anyway.

All the very best.

mwr789

ShirePiskie wrote: »

DFH are a charging company aren't they? (I just quickly googled them)

Speak to National Debtline (is that what it's called), Stepchange, Christians Against Poverty or similar who DON'T charge you and may be able to get you started again.

Regardless of the fact you're struggling, you should do this anyway.

All the very best.

Yes they are a charging company. If i decide to change my provider to a free service and start fresh can i end up in court or any serious action?

Tixy

I'd cancel your DMP with them.
Speak to one of the free providers and set up a new DMP with all your debts in it.
As part of what you pay each month will no longer be going on a fee then you may find that the existing creditors are not getting much less each a month.

See here -IMPORTANT - Where to seek professional impartial advice about your debts.

EDIT
On any DMP it is in theory always possible that a creditor may take court action against you, but if you are with a charitable DMP provider then your creditor will know you are paying all you can afford towards your debts, so court action is unlikely.

ShirePiskie

I think you can give notice with debt management companies - I've read of others either switching to a fee-free service or managing it themselves, so it must be possible. Check your paperwork/ agreement with them.

I'm sure any of the free services will be familiar with many others who have been in a similar situation and be able to advise.

Just to warn you, when (not if) you leave them, there is a chance not as much of your debt as you think has been paid off because of how they structure things.

mwr789

ShirePiskie wrote: »

I think you can give notice with debt management companies - I've read of others either switching to a fee-free service or managing it themselves, so it must be possible. Check your paperwork/ agreement with them.

I'm sure any of the free services will be familiar with many others who have been in a similar situation and be able to advise.

Just to warn you, when (not if) you leave them, there is a chance not as much of your debt as you think has been paid off because of how they structure things.

Ok so it sounds like switching is the best thing to do. I have seen a company called PayPlan who look good? Have you heard anything? Can switching land me in court if there is a short period of no payment while i switch provider. I am due to pay £113 tomorrow to my DM company. Should i hold off this and get the ball rolling? I have just checked and i have a 2 week notice.

Tixy

I would probably pay the one tomorrow.

Then start speaking to a payplan or a charity provider (payplan are well thought of on here, they offer free DMPs but did used to slightly oversell insurances - don't take out any you don't need).

Then I'd give notice to DFH in just under 2 weeks time, to finish just before your next payment to them is due.

mwr789

Tixy wrote: »

I would probably pay the one tomorrow.

Then start speaking to a payplan or a charity provider (payplan are well thought of on here, they offer free DMPs but did used to slightly oversell insurances - don't take out any you don't need).

Then I'd give notice to DFH in just under 2 weeks time, to finish just before your next payment to them is due.

Ok my payment tomorrow is a late payment, my next payment will be due on the 01/06 to DFH. Shall i call Payplan and explain the situation to them to get the ball rolling?

ALSO THANKS EVERYONE SO FAR BEEN VERY HELPFUL!!