DMP. Here I go again

Jacobs

I got the pack for my DMP today. My second attempt. Starting at £33 a month. How times have changed - last time I was paying over £1,000. It only lasted 6 months though. Maybe this will be easier to stick to. I remember feeling this low and as much as a loser last time too.

matchboxfull

You're not a loser.

You're sorting it out.

Good luck!

HappyMJ

Jacobs wrote: »

I got the pack for my DMP today. My second attempt. Starting at £33 a month. How times have changed - last time I was paying over £1,000. It only lasted 6 months though. Maybe this will be easier to stick to. I remember feeling this low and as much as a loser last time too.

Make sure it's worth doing. £33 a month isn't very much.

I would aim for a DMP to last no longer than 5 years if you have few assets and if you own a property in which you live no longer than 10 years.

£33 a month over 5 years isn't even £2,000.

If you owe more than this have have no assets it may be worth considering a DRO which will enable you to start again and have more money to live. To qualify for a DRO you only need to have less then £50 excess each month so you qualify on that one.

fatbelly

Jacobs wrote: »

I got the pack for my DMP today. My second attempt. Starting at £33 a month. How times have changed - last time I was paying over £1,000. It only lasted 6 months though. Maybe this will be easier to stick to. I remember feeling this low and as much as a loser last time too.

Are you saying you have 6k of debt and only £33 per month surplus income?

Are you a homeowner?

Are you using stepchange?

Jacobs

"Starting at" £33 yes. Hopefully not long til things change. It's about 12k in all, not 6.

HappyMJ

Jacobs wrote: »

"Starting at" £33 yes. Hopefully not long til things change. It's about 12k in all, not 6.

So....why not take out a DRO and write it all off.

Your credit will be affected for 6 years no matter which option you choose so you may as well write all the debt off now and in 6 years you owe nothing and your credit record will be perfect. If you take out a DMP now paying £33 per month in 6 years you'll still owe £10k and may need to consider a DRO at that time which will affect you for another 6 years. A DMP is also an informal debt arrangement. A creditor could at any time ignore your arrangement and apply for a CCJ against you which restarts the 6 year clock.

Unless of course you own a house which you would make you ineligible for a DRO.

Jacobs

I'd rather be in a DMP for two years and pay it off in full. I know it's the right thing to do. I'm just having some sort of psychological block on returning the forms. I had this last time but once it was actually done and set up, I felt so much happier, positive and focussed. Daft, isn't it?

MERFE

How will it be paid off in 2 years at £33 a month? Is there going to be a change in circumstances. Make sure you are making the right decision first.

Newchapter

Hi All
Isn't it difficult deciding which rote to go down/ I decided to stick with a DMP knowing it would be a long haul. I was a bit irritated that Payplan was trying to persuade me to take an IVA - that didn't feel right for me.

On balance we have to do what's right for us I guess

Jacobs

I think my mental block holding me back from sending the paperwork off is because of the resulting acknowledgment that i have a problem, I cannot carry on living the way I have been living, I need to make some changes.

This is the right thing. 2 years to sort my debt out isn't a lot in the grand scheme of things and personally I find a serviced plan better as I have to be accountable. I need to just send the docs off.

sourcrates

Jacobs wrote: »

I'd rather be in a DMP for two years and pay it off in full. I know it's the right thing to do. I'm just having some sort of psychological block on returning the forms. I had this last time but once it was actually done and set up, I felt so much happier, positive and focussed. Daft, isn't it?

I don't understand where the 2 year figure comes from ?

How do you intend to pay it off in full ?

Are you expecting a large sum of cash or something ?