DMP length

Emzvic2020
Emzvic2020 Posts: 4
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edited 6 November 2023 at 11:34AM in Debt-free wannabe
Our current DMP for joint debt with my husband of around 28K based on our current budget paying out £100 a month will take us near on 30 years to pay off. We took out the DMP last year and intended to up it with our budget review this year, however cost of living crisis and our mortgage almost doubling that isn’t possible. It means our DMP will span over 30 years if we keep it at that amount going forward. 

My question is would it be terrible hypothetically to just see it as part of our mortgage for the next 30 years and accept that we will just pay small amounts for the forseabale? Is anyone else’s DMP here that length? i also am set to get a good inheritance from my parents (hopefully not anytime soon, but in the future) so one day I will be able to pay off in full. Not sure if better to slave away paying maximum amounts when we could do it the long way? i know it means the debt will be sat there, but that might give us a better chance with savings for emergencies seeing as our credit is shot? 

Any stories or advice would be appreciated. 

Thanks 

Comments

  • Sorry I meant £80 a month not £100 that we pay towards DMP 
  • fatbelly
    fatbelly Posts: 20,198
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    Our current DMP for joint debt with my husband of around 28K based on our current budget paying out £100 a month will take us near on 30 years to pay off. We took out the DMP last year and intended to up it with our budget review this year, however cost of living crisis and our mortgage almost doubling that isn’t possible. It means our DMP will span over 30 years if we keep it at that amount going forward. 

    My question is would it be terrible hypothetically to just see it as part of our mortgage for the next 30 years and accept that we will just pay small amounts for the forseabale? Is anyone else’s DMP here that length? i also am set to get a good inheritance from my parents (hopefully not anytime soon, but in the future) so one day I will be able to pay off by full and final settlement. Not sure if better to slave away paying maximum amounts when we could do it the long way? i know it means the debt will be sat there, but that might give us a better chance with savings for emergencies seeing as our credit is shot? 

    Any stories or advice would be appreciated. 

    Thanks 
    I corrected your post. Your creditors will do a deal rather than wait 30 years, should you come into a lump sum.

    Your other option would be an IVA but if you do get a lump sum it would not be yours to do what you want with. I would not recommend an IVA given what you have said

    The debt-free wannabe board is the place for this
  • gwynlas
    gwynlas Posts: 1,615
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    Yes, if it takes 30 years it takes 30 years so consider it as being like a mortgage. However chances are that your financial position will change. Then you can either save money up so when settlements offerred you can pay debt off or increase your payments when you can afford in order to shorten length of DMP. Who knows what the equivalent to £100 per month now will be in 30 years time
  • sourcrates
    sourcrates Posts: 28,508
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    I`ve asked the forum team to move your thread to the DFW board instead.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • RAS
    RAS Posts: 32,442
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    Do you have an emergency fund? Have your debts defaulted yet?
    The person who has not made a mistake, has made nothing
  • Rob5342
    Rob5342 Posts: 1,337
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    Have you looked at making CCA requests and affordability complaints? I have £15,000 of debt that is unenforcable as they didn't supply the CCA so I'm just ignoring that, plus a £15,000 interest refund from an affordability complaint. I think I was incredibly lucky with the affordability complaint and it took two years of persistence, but any sort of success with either of those will be beneficial.

    You won't need to pay it off in full, the creditors will accept a reduced settlement offer at some point.
  • If you let your accounts default then there will be no interest.

    With the current rate of inflation then the "reduction" in real terms of the debt amount over time will be a nice bonus without even taking payments into account.
    Debt List ( 15 / 02 / 2024 ) :

    Capital One (26.4%) CC - £299.75

    Leap Day 2024 - the day of freedom. The day my pernicious debts will finally die.

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  • Who is your DMP with?
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