Dmp?

Tiger006

Myself & my partner are currently experiencing difficulty with our fiinances, this is due to a drop in our monthly income.
We have been in touch with Debt Matters who have suggested a Debt Management Programme. They have advised their cost will be 15% of our monthly payment each month (about £54) and the rest will be shared equally to our creditors. They have advised this will take approx 49 months to clear our debt.
Has anyone had any good/bad experiences with this sort of thing?

Tigert

Firstly welcome to the board.

I'm not sure about debt matters however as they charge a fee, I doubt they would be recommended on here.

Can I suggest that you contact either Payplan or CCCS. They will both advise you and set up DMP's for free so that all your money goes to paying creditors. There is no need to go with a company that charges fees.

I'm with Payplan personally - the 1st 3 months of a DMP are a bit rough while it gets set up, but I'm coming up to Month 4 of mine now and all my creditors have accepted - Best thing I've ever done - I was in constant worry before, but now I know everything is under control, I'm a lot happier.

itsnowtime

Just wanted to second the advise that you've already been given. By using a fee paying company not all of your spare money is going to pay off your debts. - Just think that additional £54 could help you reduce your debts a lot quicker.

I'm on a DMP with CCCS and again it was the best thing I ever did. It's coming up to a year now and my debt is reducing.

Good luck.

LilacPixie

well just to echo the advice of the previous posters. I'm guessing that if 15% of your monthly payment is 54 ish pound then you must be throwing around £360 a month at your debt. £360 - 54 admin charge from debt matters is £306. £306 multiplied by 49 payments is around 15k of debt.

now if you take that same 15k of debt, do a DMP with a free charity or even on your own then you could throw the whole £360 at debts and clears them in 42 months. and they by saving yourself around £2700.

jackie710

Hi,

I went with a company called Debt Free Me and they were going to charge me £600 in 3 monthly payments BEFORE paying off creditors then 5% fee of debt paid off!!
Thanks to this wonderful forum and support from the members I transferred to CCCS which have been brilliant and are FREE!
I would definitely go with CCCS very helpful and understanding.

Good luck with it
Cheers

Holeypockets

How does a DMP show on your credit rating? I am guessing it really screws up your credit rating for a while but perhaps that is a good thing. Do you have to be in a position of defaulting before you can go on a DMP or can you start one before things get that bad?

Tigert

Holeypockets wrote: »

How does a DMP show on your credit rating? I am guessing it really screws up your credit rating for a while but perhaps that is a good thing. Do you have to be in a position of defaulting before you can go on a DMP or can you start one before things get that bad?

It will screw up your credit rating one way or another as you wil no doubt receive defaults from some creditors. However as one of the rules of a DMP "is no more credit" then your credit rating is not so important (except I'm guessing if you need to re-mortgage).

I hadn't defaulted when I started mine but I was pretty close to it. I had just been living off other credit and payday loans :mad:

If you know you are in that situation, far better to get advice now than wait for defaults..... Wish I had found out about DMPs earlier.

Holeypockets

Tigert wrote: »

It will screw up your credit rating one way or another as you wil no doubt receive defaults from some creditors. However as one of the rules of a DMP "is no more credit" then your credit rating is not so important (except I'm guessing if you need to re-mortgage).

I hadn't defaulted when I started mine but I was pretty close to it. I had just been living off other credit and payday loans :mad:

If you know you are in that situation, far better to get advice now than wait for defaults..... Wish I had found out about DMPs earlier.

So if you were in a position to re-mortgage it might be worth doing this before going DMP? The re-mortgage would be - Just to get a fixed rate - not to add on more debt. Is it worth putting the mortgage over a longer period with the hope of being able to overpay?