DMP Help

Redfoo1900

Hi, thanks for the replies. No joint accounts with my partner, I am going to try and do it myself and my partner is going to keep hold of the emergency funds so I don't relapse. I feel annoyed with myself for getting in this situation but its time to change it. One thing though is that I have two of the debt under an arrangement to pay at the moment, will that affect anything going forward regarding non payment and letting it go to default.

Redfoo1900

Also what happens if you have credit cards with nothing owed on them, do you close them down? As I said before I have a car on PCP in my name for the next three year but my wife makes the payments. I assume going into a DMP would not affect that?

RAS

PCP is secured debt.

A DMP is an only used for consumer credit.

Grumpelstiltskin

Close all your credit cards, it won't make any difference to the PCP.

Redfoo1900

This is how I have worked it out on how much to pay - 

Debt	Balance (£)	% of Total Debt	Payment (£)
Monzo Personal loan	1,640.00	18.29%	18.29
Lendable Personal loan	1,087.00	12.12%	12.12
Capital One Credit card	2,091.00	23.32%	23.32
Tesco Bank Credit card	1,562.00	17.42%	17.42
Vanquis Credit card	1,858.00	20.72%	20.72
Paypal Credit card	215.00	2.40%	2.40
John Lewis - NewDay Credit card	515.00	5.74%	5.74

ManyWays

Grumpelstiltskin said:

Close all your credit cards, it won't make any difference to the PCP.

This is quite true, except you do have to consider what will happen at the end of the PCP, as at that point your credit score will be poor and you will find it hard/impossible to borrow to clear the balloon payment or to get a new car finance on reasonable terms. 

Can you wife sort this out at that point? 

Redfoo1900

Yes the plan was to give the car back at the end of the lease anyway and my wife will either take one out in her name or maybe a car from work if I am in a better situation 

Redfoo1900

Can I ask when do you start making offers of a dmp with your creditors. Do you have to wait for them all to default or as each one defaults?

Rob5342

Redfoo1900 said:

Can I ask when do you start making offers of a dmp with your creditors. Do you have to wait for them all to default or as each one defaults?

It's up to you really, whatever suits your plan. Not much will happen if your wait a few months, but if you hsve no reason to wait you might as well get on with it as they default. 

RAS

Original creditors are unlikely to accept offers for several years, usually wait for them to offer a settlement and then haggle.

Debt that has been sold on was bought for a reduced price, often much reduced. So creditors are more open to a settlement because they can accept 20-40% of the face value and still make a profit.