DMP questions??

brassmonkey_2

Hi all,

Posted on here last week with my situation and received loads of helpful advice and tips so thanks to everyone for that.

I phoned Payplan today for some further advice and have an appointment on Wednesday evening for more in depth advice and options. I found them very understanding over the phone and very helpful.

My main concern now is if it seems that a DMP is my best solution this is a route my wife and I are extremely afraid of, but we dont know enough about it.

1) Obviously this route would affect our credit report etc and if this is the case would we be able to remortgage when our fixed rate ends and how long is credit report affected?

2) Do they allow you to budget stuff like social activities and entertainment etc so that we can still have some kind of life other than work and home?

3) You obviously cannot go further into debt so in an emergency situation (e.g boiler packs up, car breaks down) how would you pay for this if we have no savings whatsoever?

4) My wife is a SAHM and doesnt drive, would we be allowed to budget in the cost of driving lessons? Also my wife has been looking into gaining the necessary qualifications to becoming a childminder, so obviously driving would have to come first plus the cost to obtain these quals.

5) If then my wife did become a childminder and we found our circumstances improved could we end the DMP early?

6) If I lost my job would we be able to reduce amount etc etc?

7) Are there any other possibilities other than a DMP?

8) One of our biggest debt is our overdraft so how would all of this affect our bank account?

Sorry in advance if I'm being confusing, my head is all over the place with worrying about our situation.

Thanks in advance.

jenevieve

Hi brassmonkey,
There is a fantastic thread for those who are on a dmp so I imagine some of the guys from that will see your thread and provide good answers.
From what I have read, they do allow for a social life and entertainment so that life isn't too strict and miserable.

If your situation changes - ie wife becomes a childminder, I think you have to let them know of any change of income and that would be taken into account in regards to your payments which could obviously bring your debt free date forward. If you lost your job, the same would apply in that you would need a review of payment.

Hope that little helps, the experts will no doubt be along soon but well done for getting the ball rolling!

brassmonkey_2

bump (sorry)

tara66_2

Hi brassmonkey,

Welcome. I'm sorry I am not sure of your specific circumstances but am assuming that if you are considering a DMP then your finances aren't great at the moment, (mine neither). If you are currently able to meet your minimum debt repayments, without getting any more credit, then you may be able to find a solution that doesn't involve wrecking your credit rating, until your wife can begin to work.

If not then realistically once you start missing payments and getting defaults on any credit agreements then your credit rating will be badly affected, and won't be any worse for the fact that you have an agreement in place to pay everything back.

With regards to new credit this is not an optionon a DMP, and this is scary when you think of the things that can go wrong. However if you can't manage to already set a small contingency on one side, then most people manage in the way they put their budget together for the DMP. For example some people 'find' they have pets or prescription charges. Alternately I have a maximum budget on food based upon what was allowed. I use the grocery challenge to reduce this, and put the balance to something else. It is important to prepare a realistic budget before you finalise it with your DMP provider.

Don't know much about the mortgage concern you have, but as another poster said, have a good look at the DMP thread it is really useful.

Good luck x

brassmonkey_2

will have to check that thread out, thanks for your replies. In the meantime any comments are more than welcome.

cloudnine_2

jenevieve wrote: »

Hi brassmonkey,
There is a fantastic thread for those who are on a dmp.........

Hi Jenevieve...How the devil do you find your way to the new DMP Support thread which Nearlyrich has just set up???

I just can't seem to find my way there.... Thanks, Cloudnine...

Tigert

Hi,

Come and join us on the DMP Mutual Support Thread

http://forums.moneysavingexpert.com/showthread.html?t=977633

There are loads on there including myself doing DMPs - I'm sure they'll be able to help with your questions.

To answer some of the ones I know :

3) As a one off emergency measure you can sometimes temporarily reduce your monthly payment.

5) Yes - Is you are in a better position, you can increase payments to pay it off sooner or make Full & Final Offers (Offers of a reduced amount to end the debt)

6) Yes - You can't pay what you haven't got - You would speak to Payplan and they would re-advise you appropriately.

7) IVA or Bankruptcy - These will hurt your credit rating far more. And are only appropriate in certain circumstances.

8) Your overdraft would be included in the DMP. So continuing to use that bank account would be a problem. You would need to open a new one that wasn't linked to your creditors.