DMP becoming unaffordable.

TimSynths

I've just been asked a question by a chap I speak to when walking in the park. He has told me that he has been on a DMP since 2009 ish and it has all dropped off his credit file but he only pays a small amount (£30 ish) due to budget and fixed income. We were chatting (like everyone else) about the fuel crisis and he knows that the amount he pays on his DMP will be eaten up completely by the price rise and we were discussing the effect this may have on him, I said since it was no longer on his credit report that I was unsure what action anyone could take if he stopped paying altogether. I would like to point him in the right direction before he calls the DMP people, I'm sure he isn't going to be the only one in this situation now. Any ideas?

EssexHebridean

As he’s been paying towards the debts, they will not have become statute barred if that’s the route you were thinking of. 

The best direction you could point him in right now would probably be these forums as there are going to be further questions that need answering before real advice can be given, it sounds as though his budget was rather too tight in the first place though if it has so little wiggle-room. One definite thing you might check with him though is that the DMP company is a free one not one that charges fees. 

TimSynths

Thank you- I will prompt him to join MSE tomorrow. 

sourcrates

TimSynths said:

Thank you- I will prompt him to join MSE tomorrow. 

The route people take to deal with their debts is normally specific to there circumstances, so we could waffle on about every possible option, but much better for your friend to complete an SOA (statement of affairs) on here, and we can take it from there.

fatbelly

Yes, he needs advice from someone who doesn't have a vested interest in him having one particular strategy. It may be that the dmp now doesn't make sense but if we see the facts and figures we can point him in the right direction.