Am I doing the right thing? Trying to avoid a dmp/iva.

[MicronesiaIsMyHome]

We have got ourselves into a huge amount of debt (~£19000). It is mostly credit cards and two loans. The monthly repayments take all our money so we basically just surviving. There is no extra money for repairs, treats, new clothing, school trips. Dh and I discussed asking for help and going on a dmp but last month I managed to get a job so we should be better off and because we have now got a grip of what we owe and are not using any credit the balances are coming down (very slowly).
I think we should stick at what we are doing for a bit longer and see how my working changes our finances before signing up to a dmp. Dh thinks we should just go for it. I am reluctant because I realise it is a big thing and will affect our credit rating and put us in a vulnerable position as we currently rent. I think if we plow on as we are we will still pay everything off in less than five years but without trashing our credit history.
Dh hates being skint (who doesn't?) it is depressing but it is essentially our fault and I think that he thinks a dmp is a quick fix. When I looked into it a dmp would still take us nearly five years, we would still have a limited budget a non existent credit score.

Can anyone help me see the positives of dh's idea.

[MurielWoods]

What benefit is there into taking out a DMP? Won't the repayments still be the same?

Could you move the credit card debt onto a new card with zero percent fees to reduce the interest?

[Damnautocorrect]

I chose not to take out an IVA but an informal DMP with a non profit organisation. I wished we had gone IVA as it is 6 years, if your circumstances change so does the payment (as does a Payment plan) but not the length. E.g you get made redundant on an IVA your payment reduces for the term, on the plan your payment reduces but the length of time increases. 10 years on mine would have been long gone if it was an IVA. But by the same token, you get a lottery win you can pay it off on the plan.
You just need to work out which is more likely, lottery win or loss of earning.
you can offer final settlement offers to your creditors if you can get a lump sum together. E.g I owe you 10k here's 7. They might take it

[MicronesiaIsMyHome]

There is no chance of being accepted for anymore credit Muriel as we both already have reached our limit and there is no chance of a lump sum.

I think if dh was made redundant then we would have no choice and would be instantly in the shit moneywise but his job is secure enough for now.

Dh is very much head in the sand about this and I can't talk to him very much. I've done all the sums and taken over managing our budget and since then things are improving in that the amount we owe is decreasing although we seem to be living so tight from week to week. For example we have £39 to live on until next friday now.

[QueefOfTheSporned]

I would strongly advise you to explore your options properly with one of the money advise services such as Step Change or National Debtline. Explain all your concerns and they will help you to determine the best debt solution for you.

[Damnautocorrect]

Yes do talk to them, they weren't about when I took mine out.
Both the plan and the IVA's are hard to begin with but it does get easier, it's also nice actually dealing with it not burying your head anymore.

[Charlesroi]

The advantage of a DMP is that creditors usually freeze interest on the debts and will accept less than the minimum payments. Your credit will be trashed for 6 years from the date they register the default on your credit files and some lenders will mark the file with an arrangement to pay, so your file will be iffy for six years after you've paid it off. Not fair, but they do do it.

I'd keep doing what you are doing, OP. You can look at shuffling to interest-free cards when you've paid a bit more off (or existing lenders may offer a balance transfer deal). Btw, letting agents can only see public records like CCJs and bankruptcy - they can't see your credit file - as they are not offering credit.
I assume you've checked that you are on the cheapest deals for insurance, utilities etc?

[annielostit]

Have a look at debt thread on money matters.
There's spread sheets etc to help you find your best way forward plus lots if advice.