How do Payplan and the other DMA work??

loubie_lou

Hello

I've posted on this board a few times and what a great one it is. So many good people giving up their time to offer others advice!

Anyway, I have a small (yet big debt query!). I finished uni over two years ago and I've yet to make any dents in my accrued debt. I really feel its time to try and do something about this situation so I've thought about getting some advice from a company such as payplan. Do you have to be lots of debt to use companies such as this?

Things are not going to well on the job front either, i recently lost my job but i hope to start temping next week (but only for about £6 hour for a full time week!).

I know i'm in the same situation as many other people but if anyone could give me any advice. I would very much appreciate it!

I'll include a list of incomings and outgoings because i know this is one of the first things you guys might ask!

Expected Monthly Earnings: £800

Rent: £238
Loan: £206
Car (including petrol): £60
Mobile: £25
Bills (live in a shared house): £20
Credit Card: £50

Total: £599

Debts:

Egg Loan, Balance £8500, APR 7.9%, about 5 years left.
Barclays Graduate/Student Overdraft, £2800, not sure on the APR, but interest £25 a month. Have no spare finances really to pay this off!
Abbey Overdraft: Balance constantly at a grand, APR free (its a graduate one, not sure when it runs out!). As above!
Barclaycard: Balance paid in full every month (most months anyway!)

I would really like some advice on this if you guys could spare a few mins reading this!

Thanks
Lou x

rprinter

Hi Lou

We can't leave you with no response so I thought I'd jump in here if thats OK!

It looks to me like you're coping with the repayments and you can leave yourself a bit extra each month with the help of the old-style moneysaving board.

The DM fee-free orgs like Payplan and CCCS are there to help people who can no longer meet their credit repayment commitments, perhaps through change in circs like losing their job, or having just taken on too much credit which they now cannot meet the minimum payments on.

The important thing to realise is that if you make arrangements with your creditors either yourself, or through Payplan/CCCS, for lower repayments and frozen interest etc, then your credit file will be marked with 'Arrangement to pay' or suchlike.

This will make it extremely difficult or impossible to obtain further credit including a mortgage.

If you get work quickly I'd tighten the spending belt and pay off the relatively small amount of debt you have.

If not, and bearing in mind the effect on your credit rating, Payplan/CCCS can help you to get interest frozen and/or offer small token payments to your creditors until you get yourself back into employment.