ELI5: DMP Self-Managed
Hey wise ones,
*For context, I am in Scotland*
Please help me understand the process of starting to manage debt yourself.
I was actually advised to take a debt payment plan (DPP/DAS) by Business Debtline. I called Stepchange and went through the whole rigmarole of appointments/budgets again only to be told three weeks later that they don't deal with people who are self employed. The majority of my money comes from full employment but I freelance on the side.
The lady at Stepchange also gave me the heebies a bit about the DPP as she said remember that a DPP is a legal agreement that you can't just step away from. And even if your situation improves and you earn more, that extra will go to debt repayment and not to making your life easier so be sure about realistically budgeting for the next 11 years. And if you earn less and the DPP fails then you're back to square one.
She said I might want to go for the more informal debt management plan with BDL because my income varies. So back off I trot only to be told that BDL can't do a DMP for me because it can't include my priority debt (just a monthly tax payment) and that leaves me with insufficient funds for any repayments so they pointed me at Citizens Advice for a DPP....
Now I'm feeling a bit emotionally drained and rather confused and am wondering whether to sack them all off and just do it myself in order to keep the control and flexibility but I have NO idea how that works or where to start. My breathing space with most lendors ends next week and my brain is frazzled and tbh, I'm a bit scared of the interest being unmanageable if I don't go with the DPP. Or being hounded down or things getting worse if I'm not under an official plan of some sort.
SO, could someone please very gently explain the steps to these things so I can try and formulate a plan?
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