Debt management plan

[Madondogs]

Hi , has anyone had any experience of using a debt management plan?
Even though our income is well above average, we have some quite large debts, this coupled with some bad luck has meant that we are really really struggling.
DH contacted CCS today and we were a bit surprised that he was told we may have debt collectors turning up and may even have to go to court if some of the creditors disagree with the management payments.

Has this happened to anyone ?

I am a debt counsellor for a major bank and have experience of dmp. If you enter into a formal dmp your creditors are more likely to agree to the repayment. A dmp ensures that all creditors are offered an affordable payment on a pro-rata basis. As a result, it is not worth creditors going to court as they wouldnt be awarded anything more due to you not being able to afford it.

Do be aware that adverse info will be registered with credit reference agencies. Usually as a default and an arrangement to pay. This will affect your credit file for up to 6 years.

However, if you are really struggling they are a good solution. I would recommend CCCS as they are a charity and do not charge for their services.

Thanks uggmum,
It was CCCS I just left out a C! That does sound reassuring.I do understand about how it affects our credit rating and don't really mind.
If either of our salaries increase while we are in the management plan, will the creditors ask to increase our payments.

Feel SO ashamed about the whole thing.

Usually cccs review your payments each year and will take into account increase in salaries and also increases in bills.

Don't feel ashamed. It's so hard when you are experiencing problems with your finances. It can happen to anyone as circumstances can change really quickly. The most important thing is that you are trying to resolve it.