Debt Management Plan - Help

[IwishIwishOhshit]

Just wanting some advise from people who have a DMP or have had one in the past.

Please talk me through how it works, how did you manage and how to come through the other end.

Thank you

Sorry advice not advise

Anyone????

A DMP basically works by working out how much 'spare' money you have each month after paying bills and allowing for other essentials and then diviing that amount between your creditors. Usually the creditors will agree to stop charges and interest but not always.

You can do it yourself or use a company to manage your DMP for you, use one of the free charities such as Stepchange or PayPlan, do not go with any of the companies that make a monthly charge.

How long your DMP will last for depends on how much you owe and how much you can afford to pay back each month. Sometimes if it will take years and years to clear your debts, other options such as an IVA or even bankruptcy may be better. Have a look on the Stepchange website, they have a Debt Remedy tool where you fill in your informationa nd it will recommend the best course of action for you: www.stepchange.org/Debtremedy.aspx

It will trash your credit rating for a number of years but if you are at the point where you are considering a DMO, you probably don't have the best rating anyway.

Call Stepchange.

My partner was on one. Yes, it was hell for a few years as we had to live on very little. But it's paid off now. He even has a credit card to build his credit rating up now.

It was a lifesaver, honestly. All the fear of them coming after you stops, you can sleep again.

Have you looked on the debt free wanabee board on Money Saving Expert? Loads of advice and experiences on there. Good luck.

Just to add to all the useful info from the poster above, You could on the ongoing/ support debt thread in this section for further support.

Can I ask hoolio how long your partner was on it?

He was on it for 3 and a half years. It was meant to be a lot longer than that, but he did 2 settlements, where you pay off a debt for much less, sometimes 30%.

Do it, it really did save us!

Thanks hoolio DH is currently looking into getting a loan to pay it all off with one large payment but I'm not so sure, and think a DMP shouldn't be ruled out.

No!!! Loan is a terrible idea. Please bring Stepchange for advice. Please.

He thinks it will better then totally trashing our credit rating for years to come.