DMP advice/experiences

Ytaya

I've worked my way through CCCS's Debt Remedy gadget on their website, and it tells me that I should consider a DMP. I don't want to get into the ins and outs of my income/SOA here just at the moment, but I would like some more information about DMPs.

Financially, I'm in the position where I'm just squeaking by on a monthly basis, but I am very much living month to month. If the car blows up, I'm b!ggered, y'know? My debts aren't huge by the standards of many here, but I'm slowly coming to realise just how anxious they make me. It's so easy to get used to something when you live with it a long time. Then suddenly one day you look around and think, "Actually, this isn't so great and it's really getting me down". My goals here are twofold: reduce my debts, reduce my anxiety.

I know many of you here are or have been on a DMP. My primary concern with them is how it will affect me in the future, when I'm debt-free. What kind of impact can I expect it to have on my credit-rating, in the medium and long term? Does it vary according to the creditor (Barclaycard and Amazon credit card, if it makes any difference)? Are there things I can do to minimise the impact on my credit rating? Are there things I can negotiate with my creditors to minimise the impact?

It's time for me to make a positive change to this area of my life. Thanks for listening.

sam89

Hi Ytaya,

Clever folk will come along and explain the credit rating soon. I've not worried about it as I never want credit again. I can't cope with it or control my spending when it's plastic .

As for anxiety and a DMP I can only say it is the best thing I have ever done. Looking back I had years of anxiety and fear over our mounting debts and for the first time in my adult life the money I owe is decreasing :rolleyes: and I sleep well at night .

Good luck on your journey,
Sam,
x.

Deep_In_Debt

I'm on a dmp with CCCS at the moment and have been for a few months and I only wish I had done it sooner. Your credit rating will be trashed as you are defaulting on your original agreements with creditors by paying reduced amounts each month. However, like sam89 I don't want credit again anyway so I'm not bothered about my credit rating. It is satisfying seeing the debts go down even if it is by a small amount at least they are going down.

Good luck on your debt free journey.

itsnowtime

I'm also on a DMP with CCCS and I can only support what the others have said. My debt is now reducing, yes I know my credit rating is no where near as good as it was but I don't need it.

I was living from month to month and didn't have any spare cash - and with a DMP you do need to budget so if something does go wrong you have a bit of spare cash left behind because you wont be able to use your credit cards once you're in the agreement.

It's the best thing I ever did - my debt is reducing, I see light at the end of the tunnel and I no longer dread the letterbox or a phonecall...

It's definitely been worth it.

Krasnoludek

Hi

I can totally relate to the phone call/ letterbox thing!

We were getting by - making minimum repayments on everything but occasionally using our cards for shopping etc. Its not really living is it ??
I am sure I will get credit again in the future, we want a bigger house and would like a better car but credit cards/loans - no thanks!

Its the best move we ever made with our finances

K x

angeldiva

sam89 wrote: »

As for anxiety and a DMP I can only say it is the best thing I have ever done. Looking back I had years of anxiety and fear over our mounting debts and for the first time in my adult life the money I owe is decreasing :rolleyes: and I sleep well at night

I second that as well as the above I also have to say that i've finally got a balance between paying bills and living my life. Im with payplan and I really say its the best thing I have ever done. I too have a mortgage and will eventually want to move (when im debt free) but im not at all worried I will deal with it when the time comes, just today I saw on this site some links to mortgage brokers who help people like me so it will be fine.

Ytaya

Thank you all for your advice. The only reason I'm worried about my credit rating is because it's likely that I'll need to move house before the debt is cleared. I rent, so that means credit checks.

I think I'll implement Plan B: Get a flatmate. Give that a try for a few months (halving my rent will give me a lot of breathing space) and see how it goes. If it all goes horribly wrong, it's good to know I have another option.

angeldiva

You could also look at this thread for more information and advice from people on DMP's

http://forums.moneysavingexpert.com/showthread.html?t=729285