Advice on DMP

Mumof3Ls

Hi

I would really like some really good advice on how a DMP work and how long it takes to set up, how long they last and advice from people who have 1 already just to see if its the right road to go down for my because im in need of some serious advice becaouse of my situation.



Thanx

CCCS_Alan

Hi Mumof3Ls

A Debt Management Plan is normally an option when you cannot meet your contractual payments to creditors. You prepare a SOA and look at reducing areas that could be classed as excessive, into reasonable expenditure to create a surplus that can then be offered to creditors. Once this is done you can then write to your creditors offering the lower payments, and asking them to stop interest and charges to allow you to pay your creditors back in a reasonable amount of time. Each month you would pay each one the amount calculated on a fair pro rata payment in a way that you control, such as a SO or over the counter with payment slip until all your balances are cleared.

A DMP does not have to be done by you as many companies (some fee charging) and charities can offer this service. If you look at peoples signatures they hold names and contact numbers for people that could help you do this.

The set up time is normally dependent on how long before you can get advice and then how long till you can get the paperwork to them to set up your plan.

The amount of time to pay back your credits depends on how much you owe and how much you can afford each month.

Sometimes a DMP is not always the best option for everyone so if you approach people for advice you may be told that a better option may be better suited to you. You can also try our online advice facility called Debt Remedy where you can complete a financial statement and be provided with advice on the best way to deal with your situation. It may say a DMP is a good option or it might point you in another direction but it sup to you if you wish to pursue the advice.

Good luck and keep us informed how things are going.

CCCS_Alan

jue3107

Hi Alan

Sorry to hijack the thread, but I have a similar situation and went onto CCCS's website last week and complete the financial statement. The result said that they couldn't do anything to help me at the moment as I have no surplus to pay my creditors, so I'm desperately trying to get my outgoings down and income up at the moment. Can I just ask if I did go down the route of having a DMP how long will it impact on my ability to get a mortgage - I'm desperately trying to avoid losing this as the last thing I want to do is rent.

Any advice would be gratefully received.
Thanks
Jue

rayday2

A DMP would probably mean that you would have to look at sub prime mortgage suppliers as you usually end up with defaults on your credit history. Some creditors could push for a CCJ too.

It is slightly harder to get a mortgage but possible you just pay higher interest. I am on a DMP and just going to a high street lender my current sub prime mortgage is about 9.5% interest.

rayday2

Mumof3Ls wrote: »

Hi

I would really like some really good advice on how a DMP work and how long it takes to set up, how long they last and advice from people who have 1 already just to see if its the right road to go down for my because im in need of some serious advice becaouse of my situation.



Thanx

I have been on a DMP for coming up to two years now. It has definately changed our life for a positive. OK we would struggle to get more credit but we see this as a plus as quite obviously we cannot deal with credit cards!

It gives you back a balance, instead of paying everyone then worrying how to afford shopping or sudden children expenses, you work out how much running your family costs, budget for christmas, birthdays, clothes, hair cuts and then a bit more for unexpected things then think right that leaves x amount over that will divide up amongst our creditors.

The down side is you get marks on your credit history and it can take a few months before your creditors go quiet - but its not that bad. I managed my own from the start and coped. I did cheat and change my phone number for free so I only got letters.

But you can get free help from Payplan, CCCS or the National Debt Helpline.

There is quite a large DMP Support Thread hanging around and there are lots of people in there, been on a DMP, starting one up and some even seeing the end coming up in a year or so. Good levels of support there and we appreciate how daunting contemplating one is.

Mumof3Ls

Hi

Thanks Alan for your advice. I gave National Debtline a ring and they were very helpful. Im going to get a call on Monday to discuss a DMP. Hopefully we could get one because i dont fancy contacting my creditors myself. It seems more professional coming from a company who deals with them.

Im also going to do the debt remedy site you suggested. Once again thankyou.



This site is FABULOUS im soooooooooooo glad i found it. Where would we be without Martin Lewis.

Mumof3Ls

How long did it take you set up Rayday2

xgingerx

Hi, to put ur mind at rest I started a dmp about 10 months ago and I have had no issues with any of my 11 creditors, I have even called them all last month to make sure everything was ok and they were all more than helpful and were happy as long as i made the agreed payment each month through the CCCS, I am paying a sensible amount back each month which think might have helped, out of the 11 I have had 4 defaults but the rest as just showing that im on a payment plan and not showing in arrears anymore as most have cleared the arrears and my new min payment is the agreed payment thro CCCS.
Like I saif for me DMP has really save me and my family from ruin if im honest, we are all happier knowing the debt is coming down slowly but reducing, no more interest is a god send .

Well Good luck and hope everything works out ok but just wanted to give you some reassurances that its not as bad as you might think, also you want to bear in mind that most of the posts on the DMP site are problems which people need advise for and for the vast majority of people Im gussing must be doing ok

rayday2

Mumof3Ls wrote: »

How long did it take you set up Rayday2

Well I did mine solo.

First thing I did was apply for a new bank account as I had credit cards with the same company, as soon as that was safe I wrote to creditors explaining we were having difficulties could we have a current balance to work a payment out and in the mean time here is a £1. It took about two weeks to get my bank account up and running.

The money I did not pay to my creditors that month went into my new bank account - and about 28 days after sending out that first letter to companies I was sending them a new monthly payment - I sent mine out with the offer letters.

I used all the templates on the National debt helpline website and it was remarkably easy just sounds daunting!

Not sure on time scales though if you do it with a company sorry!

Mumof3Ls

Thankyou you all for your advice and help

Well done ginger im glad you got your sorted and your happy with it I just hope i will be with mine. It all seems quite frightening really but with a lot of help and support from this site you know your not the only one in this situaton its very reassuring.

Thankyou rayday2 wow you done it on your own your so brave. I cant believe that they would except on a £1 until further notice. What happens with your interest now as you havent done it through anyone else.

rayday2

Most of my interest was stopped within the first 3 months. One company charged me for 9 months and I wrote a formal complaint and got it refunded and a case of wine.

It really is not as hard as all the worrying I did before hand and I am a control freak - so it suits me but others it suits them to have the comfort of a company behind them - at least you have options!