DMP pro's and con's????

sparklygal123

Hello everyone!!!

I currently have debts of £29,000 and even though I earn a reasonable salary its become a bit of 'rob Peter to pay Paul' situation!!I have an appointment with the CCCS tomorrow but I just wondered if someone could advise me of the pro's and con's of a DMP.I have never defaulted on a loan,or CC payment and reading peoples threads it seems like lots of people recive shirty phonecalls from their creditors on a DMP!!!which would scare me!!!

could someone advise please?

thanks in advance

immoral_angeluk

No matter what you do you'll always end up with hassle from creditors. But if you have a DMP with someone such as the CAB, CCCS or Payplan then you just tell them that they're handling your affairs and pass on their number. You can also write to them requesting all contact to be made in writing, which you can then forward on to the CCCS.

sparklygal123

thanks for your reply!Do you end up with CCJ's?will I lose my house?(i have no secured borrowings)

immoral_angeluk

A DMP if a formal agreement with creditors. The CCCS will act on your behalf and deal with everything. You pay the CCCS and they pay your creditors pro rata. There's no guarantee they won't take further action but no court would do anything if you've shown that you are paying everything you can so please don't worry.
To get a CCJ the creditor would have to go through court as well, so as long as you keep paying and don't default on your DMP you shouldn't have a problem.

sparklygal123

sorry for so many questions!how long will I have to do a DMP for?Do I tell the CCCS EVERYHING that I need to pay for to the extent of prescriptions,haircuts etc...?

immoral_angeluk

The CCCS will ask you to complete a financial statement. You can actually do this via their website if you use their 'budget planner'. The DMP length will vary dependant on your debts and what you can afford to repay.
And don't worry about the questions.. that's what we're here for!

sparklygal123

thank you for your advise,you are very kind!

I just wondered if there were DMP'ers out there who could advise how they manage with their allocated budget?

immoral_angeluk

No problem at all. There are quite a few people on DMP's here who will be able to advise so I'm sure someone will be along shortly. Good luck with everything.

yellowmonkey

Hi. I am on a DMP and have been for over a year now. As IA says a DMP is not legally binding but as long as you keep the payments every month your creditors are normally happy to recieve something as opposed to nothing. They do not have to stop interest or charges but,speaking personally,my 3 creditors have stopped charges so my monthly payment actually goes to reducing my debt. It is the best thing I have done to keep myself sane and also take responsibility for my debts and try to pay them off.

Regarding the budget. They allow for quite a few things and will go through everything with you. To give you a rough idea try this link http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm.

Any questions try this link http://payplan.com/frequently-asked-questions/debt-management-plans.php. May ease your mind a bit.

Try not to panic as it is the best thing I have ever done. There a loads of us about here http://forums.moneysavingexpert.com/showthread.html?t=729285.

Hope everything goes OK. Good luck

ym

sparklygal123

thanks for the links!Im thinking that Payplan would not accept me as the majority of my debt (bar £100)is to one creditor(loan,CC and overdraft with Lloyds tsb)Is this true as im getting worried that they wont be able to help me????

please help

yellowmonkey

They should be able to help you. Try not to worry. It is daunting when you start and things are a bit obscure. Hang in there and pop along to the DMP Thread. I have no experience of Lloyds but there are loads who have. You do not have to do this alone.

Good luck and see you on the DMP thread if you feel like it. If I am not there say YM invited you :T

ym