Just had debt advice

debby

Just had a phone call from debt advice foundation.
They have advised us we should give ourselves a certain amount to live on for the month and the rest gets spread across our debtors. This would be paying them without all the interest, and we should be debt free in about 2 years. Yes our credit rating will be knackered but that's it.
Anyone else done it this way??

DCFC79

debby wrote: »

Just had a phone call from debt advice foundation.
They have advised us we should give ourselves a certain amount to live on for the month and the rest gets spread across our debtors. This would be paying them without all the interest, and we should be debt free in about 2 years. Yes our credit rating will be knackered but that's it.
Anyone else done it this way??

Your credit rating will be knackered only you can see it. Lenders etc see the history. The rating is just a number.

debby

Yeah. Right now my credit rating is the least of my problems.
Just wondering how this works. Do the companies have to accept payments we make and not including interest. Would they come looking for it in the future?

January2015

That's called a debt management plan (DMP). Loads of us are handling our debts this way.

Which debt advise foundation did you speak to? Just make sure it's not one that charges you for their services.

DCFC79

January2015 wrote: »

That's called a debt management plan (DMP). Loads of us are handling our debts this way.

Which debt advise foundation did you speak to? Just make sure it's not one that charges you for their services.

They are actually called "debt advice foundation", they are free like stepchange is.

debby

We used debt advice foundation...it's mentioned on MSEs list if ones to use. They have said they deal with 2 companies that we should go with, and they don't charge a fee. We pass on our money left over after our living expenses, then they pay all the companies we owe money to

debby

And we don't have to add our car into this, as we wouldn't be able to get to work without the car

January2015

Debby - there are loads of us plodding through our DMPs. Come and join us and get support and advice through your DMP journey on the mutual support thread.

debby

January2015 wrote: »

Debby - there are loads of us plodding through our DMPs. Come and join us and get support and advice through your DMP journey on the mutual support thread.

Thank you x

patman99

Debby, I am with Stepchange for my Dmp. They needed all the information about my outgoings and income along with whether I had a mortgage, car and savings.

Your property and vehicle are never under threat and a DMP is based purely on what you have left after expenses. They might suggest replacing the car with a cheaper one and downsizing to a smaller property to free up equity, but this is just standard advice.