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Debt Managemt Plan query

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universallyuncredited
universallyuncredited Posts: 19 Forumite
Fifth Anniversary 10 Posts
edited 24 July at 8:20PM in Debt-free wannabe
Hello.

I've been in a dmp for a number of years, paying all my disposable income into it which amounts to about £140 a month.

My situation is potentially going to change and my disposable may go as high as £1000 a month.

Obviously I want to increase my dmp payments accordingly and start clearing this debt, but, do I 'have' to give all my disposable income to the plan?

I would like to start having a life again and give myself a little something back to help my mental health.

Any advice appreciated.
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Comments

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,444 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    First bit of advice is you should post here.

    Debt-free wannabe — MoneySavingExpert Forum

    You will be asked for much more information before we can advise you the beat way forward.
    If you go down to the woods today you better not go alone.
  • gwynlas
    gwynlas Posts: 2,244 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    As above the more information you can give the better  to assist advisers

    In order to make life as bearable as possible you should never have committed to giviing all your disposable incoe into a DMP as this will affect mental health and committment.

    Look at how much you much debt you have outstanding and how long this will take you to pay off at current rates.

    Consider how much of your new disposable income you feel free to commit to payments.whilst getting some tangible benefits for yourself.

    You can of course start building up savings so that you can respond to full and final offers that you can negotiate

  • sourcrates
    sourcrates Posts: 31,540 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Moved to more appropriate board.
    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 forumteam@moneysavingexpert.com. 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
  • ManyWays
    ManyWays Posts: 1,330 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    who is your DMP with and how many of your debts have been sold to debt collectors?
  • ManyWays said:
    who is your DMP with and how many of your debts have been sold to debt collectors?
    Hello. Plan is with Financial Wellness Group. It has about a dozen creditors, none of which are the original  organisations. 
  • RAS
    RAS Posts: 35,573 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ManyWays said:
    who is your DMP with and how many of your debts have been sold to debt collectors?
    Hello. Plan is with Financial Wellness Group. It has about a dozen creditors, none of which are the original  organisations. 
    How much are they charging you each month?

    There are free options with Stepchange and Payplan, or you can self administer
    If you've have not made a mistake, you've made nothing
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,444 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    OK Cancel your DMP  NOW with the vultures who are making money at your expense, you do realise it could have possibly been cleared by now if you had used one of the charities or self managed?

    Try and work out how much you have paid them in fees and you will see what I mean.
    If you go down to the woods today you better not go alone.
  • ManyWays
    ManyWays Posts: 1,330 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    RAS said:
    ManyWays said:
    who is your DMP with and how many of your debts have been sold to debt collectors?
    Hello. Plan is with Financial Wellness Group. It has about a dozen creditors, none of which are the original  organisations. 
    How much are they charging you each month?

    There are free options with Stepchange and Payplan, or you can self administer
    FW used to charge for DMPs but I think they are now all free?
  • fatbelly
    fatbelly Posts: 22,962 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Suspicious lack of info on that on their website

    https://www.financialwellnessgroup.co.uk/solutions/debt-management-plan/
  • FWG do charge. And they charge a lot. The reason I've stuck with it is purely for an easier life.  I wasn't with them to start, my plan was moved to them about a year ago when they bought out the previous company I was with.  I owe about £55k on the plan, to be fair their fees are a drop in the ocean for a plan that won't complete before I die with the current payments I can afford...even on a free plan.

    If my situation changes, as I'm hopeful it will, then yes, I think changing plan is a good idea as then there will be potential light at the end of this very long tunnel.

    I know IVA may be a better option, but its a joint plan and my partners job is financial based and they will lose there registration with an IVA on file.
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