Me, my DMP and I

franny

Hi all, thanks for reading.

As some of you may be aware already, I am in a DMP with the CCCS. I will have been in the DMP for a year next month and am now in a much stronger financial situation than I was when I started, so much so that I am thinking I could come out of the DMP.

Basically, when my yearly review comes up I'm sure the CCCS will not see me as being in as much need of help as I was.

My mum has very kindley offered to open a low interest credit card in her name and allow me to transfer as much of my debt onto her card as I can, thus paying off my current creditors who will no doubt raise their interest the minute that I am out of the DMP.

Does anyone have any views on this proposal? Does it sound like it could work or are there other ways in which I can lower the interest outside of a DMP?

Thanks all.

boredofbeingathome

Please don't take offence at this suggestion-My only concern is that you will be able to pay back your mum and also interest on the debt, credit cards are usually a variable interest rate, unless life of balance transfer. Think it through carefully.

payingfornowt

Hey Franny,

I am not on a DMP, I am still trying to do it the hard way myself but finding it increasingly difficult with debts totalling £12k ish.

I had a similar offer from my Dad, he offered to give me the money at 0% interest with a monthly SO payment to his account, the way he sees it he will be using his savings and the £200 from me per month from me will help him “wind down” his work until retirement.

However, I refused on the rationale that if I lose my job or my circumstances change in any way and I cannot afford to pay my creditors I would rather not pay the banks than my Dad.

Of course it’s up to you how you handle it, I just thought worst case scenario I would rather the banks be the ones out of pocket.

Good Luck

CCCS_Matthew

Hi franny,

If you find that on your review your surplus available to pay your creditors is now enough to meet the minimum payments towards the creditors we wouldn't simply close your plan down, and we could still support you with paying the creditors via the DMP.

If this is the case, it might be that the creditors would restart the interest again because you can afford to pay the debts off at their required amount each month.

If this happens and you decide to deal with the creditors yourself then of course you have the opportunity to stop the DMP. I would be very cautious of using credit via a 3rd party to help clear the debts. Although you have the best intentions of using the lower interest rate to your advantage, it can be easy for some people to slip into the same trap of relying on credit and getting back in to debt again.

CCCS

franny

My rationale is to consolidate the 3 cards I have with approx £3250 worth of debt with the balances to be put onto the one card at a much lower interest. This would mean less debt in the long run.

I appreciate the concern about not paying my mum back but I am now in a reasonably paid job and although we can never see into the future, I hope to progress in my career and earn a bit more.

But now I am thinking that this maybe not the best route, what do others suggest? I am also looking to ask for charges back from these cards so would like to get rid of them before they close me down and ask for full repayment.

Thanks all