Debt Management Plan Review

Blobby40

We are on a Debt Management Pkan and have just remortgaged. Our mortgage payments have doubled and we can afford them as we’re both self employed and earnings are actually increasing.
I’m worried about the DMP now, as our income and outgoings are quite different. I’m thinking our creditors may well pick this up from our Credit search checks and demand their money back with interest. 

Also it could be that we get taken off the DMP and again be bombarded with demands from the creditors. 

We’ve kept to the plan well and more than halved the debt, but there’s still a high debt left to pay off. 

Grumpelstiltskin

I hope your plan is with one of the debt charities and not a fee paying company.

If so do a new SOA and explain to them your circumstances have changed and you will have to reduce your payments.

sourcrates

Debt management is an informal arrangement, it changes as your circumstances change.
Debts included in such plans are mainly consumer credit act debts, which are all very low priority for repayment.

Another poster asked a very similar question the other day, and I`ll give you the same answer I gave them, the days of high-pressure debt collection, and creditors on the phone every 5mins threatening to take away the kitchen sink, are long since over.

Thanks to FCA intervention, it`s all very touchy/feely nowadays, with affordability at the heart of any debt repayment plan, so you can pay just what your budget allows, even if it`s only £1 a month, or nothing for that matter, and the creditor has no choice but to accept it.

Creditors/courts/debt charities, all sing from the same hymn sheet these days, affordability is key, if you can`t afford it, you can`t possibly pay it can you, those who can`t pay anything, will have their accounts put on hold for say 3 months, after which there will be a review, if it looks like you`ll never be able to afford any kind of payment, then write off`s are becoming increasingly popular.

Of course, there may be some creditors who plough their own furrow, and may not be so helpful, but you will find the majority of them are.