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Looking for advice on debt and future DMP(4 Posts)
Hi, was wondering if anyone had any advice, im currently thinking of going on a dmp with cccs, i have 2 credit cards , 1 is about 11,500 and the other 400.
The 400 credit card i could keep up payments with, but the the bigger one i'm struggling with.
CCCS first advised a dmp, then when i had to revise the budget they suggested a protected trust deed. I have contacted cccs and arranged a telephone appt with them for next week to find out more about the trust deed.
In the meantime i have done what cccs advised and opened a basic bank acct and have transfered over direct debits and payments.
I have about £150 to pay to cccs a month.
Has anyone else been through anything like this, any advice would be great, thanks for reading.
Do you own property & is there any equity if so?
Hi RedHelenB , thanks for replying, no I don't own any property, i privately rent.
The difference between a trust deed and DMP is that in a DMP you will pay all the debt back, in a trust deed you will pay what you can afford and after 36 months the rest of the debt is written off.
In a trust deed you also have to pay a % of any overtime/bonuses for the benefit of creditors.
Another debt solution you could consider is the Debt Arrangement Scheme (DAS) which is a formal debt management plan where the fees and interest are frozen.
If your creditors freeze the interest and charges your DMP will last 80months v 36months in a Trust deed.
You cannot do a trust deed or DAS unless you are working.
Whatever arrangement you decide is best for you, you will need to include all your debts, you cannot pick and choose which to include.
Have a look at trust-deed.co.uk all the best