Never ending DMP

time-4-a-new-start

Hi

I'm looking a bit of advice. I started my DMP in September 2011 with StepChange with debt of £69k.

Over the past 5 years I have been making regular payments, not the same every year as my reviews either increased or reduced my yearly payment, but in total I have paid £25k into my DMP. Now this is where I need some advice.

I'm still young and always said to myself that I was going to pay off all my debt. Maybe I was being nieave or just stupid, however call it a new year review, but I'm beginning to question if I will ever clear this in a realistic timeframe.

What is questioning this is that I want to be able to move on in life. I want to have a plan to grow my family, look for a bigger house, get a new car etc but feel this is never going to be possible.

Yes I know this might sound strange from a guy who is in a DMP and is looking to get into debt again, but my DMP was a result of a relationship break down and me creating debt trying to stay a float in my own home. I am now more careful with money and my DMP has helped me learn that.

But at my current rate it will take me another 9 years to clear this DMP, which is making me more worried that it's another 10 years of debt being passed around different debtors (my original debtors have been selling my debt onto other providers even now after 5 years), new defaults being marked on my account and my credit history being affected - trapping me in a never ending cycle for at least another 9+ years.

As I said I am young, have a good job and earning good money, but I feel trapped by this DMP that feels will never end. I know that if I had just went bankrupt in 2011 I might have been in a better situation today.

I did do an initial credit history check (now the checks are free) and my score is ok, but know with the DMP and the debt still there, I can't improve or look to plan for the future.

I know I can speak to StepChange about what do to, but am also keen on hearing advice from members as some might have started a DMP but changed it to move on with their lifes. Or maybe there is a different plan I should change to like an IVA to give me some realistic plan. Would be keen on hearing more about other members views and on IVAs etc.

Any input would be greatly appreciated. Thanks

sourcrates

Hi,

I would put bankruptcy out of your mind, if you have a good job and a house, both may be at risk with that option.

Looking at the original size of your debt, maybe an IVA would of been more suitable and cleared the debt quicker, you could look at one again, 5 years versus 10 remaining on your DMP.

You mention your debts been sold on and new defaults been registered, new owners can reregister defaults under there name, but the original default date must stay the same, if it dosent, then complain about it.

Maybe post up an SOA (statement of affairs) and we might be able to tell if an IVA would be suitable for you, or if you should stick with the DMP.

enthusiasticsaver

How about increasing the payments you make to clear it quicker. Is that affordable?

time-4-a-new-start

Thanks for replies.

What do you need to see in a SOA?

I have thought about increasing payment each month. Paying £1k a month will reduce to 4 years. It's doable but with mortgage and other bills would mean living on a shoe string.

Ilona

time-4-a-new-start wrote: »

Thanks for replies.

What do you need to see in a SOA?

I have thought about increasing payment each month. Paying £1k a month will reduce to 4 years. It's doable but with mortgage and other bills would mean living on a shoe string.

Hi.
Everything. All money in and all money out. All debts and interest rates. If you can afford to pay more monthly your debts will decrease quicker. Depends on your priorities. If you want to live a little now it will take longer. You say you are young, you have a whole lifetime ahead of you, If you want the freedom of no debt, best get on with it. Can you earn more? Lots of people live on a shoe string, it's about identifying what you can and what you can't afford. Knowing your needs and wants.
Best of luck

http://www.stoozing.com/calculator/soa.php

Ilona