Not sure if a DMP is right for me?

Poecile Forumite Posts: 9
Fourth Anniversary First Post
I have 2 credit cards (Vanquis and Fluid) both have insanely high interest rates and are just becoming overwhelming as I struggle to exceed the minimum payments, I end up paying £100 to each and being charged 50-60 in interest makes it feel like a never ending mountain to climb.

My partner is on a DMP and mentioned his debts had their interest frozen while he makes repayments, I just want both of those cards gone urgently as my credit score is already ruined as it is so I have no worries about the DMP "damaging" my score, is this my best option or is there another way I am not aware of?


  • RAS
    RAS Forumite Posts: 31,934
    Part of the Furniture 10,000 Posts Name Dropper
    Roughly how much debt do you owe? Are the creditors leaving you with AP markers?
    The person who has not made a mistake, has made nothing
  • Poecile
    Poecile Forumite Posts: 9
    Fourth Anniversary First Post
    About £6000 in total and not yet no as I have been hitting the minimum payment every month, the biggest thing for me is the fact I am paying £100 out every month but only actually paying of £40 of my debt cause of interest.
  • RAS
    RAS Forumite Posts: 31,934
    Part of the Furniture 10,000 Posts Name Dropper
    Ok. In which case you need to be strong-willed. Your creditors will be under pressure to be nice to you, which isn't exactly what you need or want.

    If they put defaults on your accounts, you know your credit record will be clear 6 years later, and the the interest and fees will stop.

    If you pay less than demanded, they will add AP markers will only come off your credit record 6 years after you pay it off, so a lot longer and they may still add interest or fees. 

    They are under pressure to add AP markers as long as they think you might pay something, under the new customer care rules, but defaults repair your credit record faster and stop the debt escalating further.

    So, you probably want defaults? And if you can't get more credit (likely to be very expensive given your existing rates), you need an emergency fund.

    The creditors will ring you, text or email you and by law have to send you a letter demanding repayment of the whole sum before they can default the debt. You have to hang on in there, ignore, tell them to only write to you, ignore, until they default the debt and you can start paying it down. 

    Meantime you put every brass farthing into your emergency fund. Enough to cover a broken fridge, tick, enough to pay for a visit for a family funeral, tick, enough to cover a month off sick or searching for a new job, tick. Or the deposit on a new rental?
    The person who has not made a mistake, has made nothing
  • Rob5342
    Rob5342 Forumite Posts: 911
    500 Posts First Anniversary Name Dropper
    As bizarre as it sounds you don't want them to help you as that will make things a lot worse for you in terms of your credit report (arrangement to pay markers will stay on for longer than defaults will.

    Stop paying them completely and wait for them to default, the interest will stop then and they be passed to DCAs who will take the payments you offer. While you are waiting work out a budget that includes the amount you will pay off the debts, and put the.amount you would pay off the debts into a savings account as an emergency fund.
  • enthusiasticsaver
    enthusiasticsaver Forumite, Ambassador Posts: 14,706
    Tenth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    Those two cards are well known for high interest rates so if you are struggling a DMP self managed or through a debt agency may lead to interest being frozen. 

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