What actually happens in a debt management plan?

[takemetoabeach]

Just that really. Seeking advice IRL but just wanted to hear about people's real life experiences and if it really is the answer.

I have a car on finance and a house with about ten years left on the mortgage. Will it put these at risk? Other thank this, lots of unsecured debt that was perfectly manageable until I lost my job, and now I don't know what to do.

Do they freeze your bank account and watch what you spend?

Any other comments positive or negative please? Or alternatives? Thank you. I'm really struggling to find my way around this.

You have full control, there is no freezing of accounts.
Your mortgage will be treated separately. You enter all of your incoming and outgoings (food, utilities etc) in the form and then it works out how much you have left to be divided among your debts.
I’m not sure how they will work your car loan out as it is also a debt, maybe put it under transport costs rather than as a loan.

we had to change bank accounts.

I've been doing agency work, so sometimes even more than others - how would this work with the income/expenditure? If I made a plan based on an average, I'm worried that some weeks I wouldn't be able to afford the plan.

We spoke to stepchange after struggling with accruing credit card debt after DH was out of work and I had just had a baby and it spiralled from there. We are now in a DMP with step change who are amazing, your mortgage and energy and council tax is always priority as well, you will pay all your bills and form of credit is paid from stepchange, you fill in an expenditure form and whatever is surplus you pay to your creditors.

Best thing I did going step change we spend ages in a circle of debt paying credit cards off only to have to use them to survive the month so never paying anything off.

If you do a survey on website you speak to advisor they advise best plan for you.

It will affect your credit rating as creditors default against you but this only last for 6 years and you won't be able to obtain any credit while on DMP.
X

Thank you. It's sounding more positive now.

So do they control your bank account to see what is surplus, as my income varies?

Is it six years after everything is paid off, that it remains on your file?

Sorry to bombard you, @OctoberGirl91 is there any marker against your mortgage?

no they dont control your bank account, they have no idea, it is up to you to keep the informed.
try and get an average for your income
if it decreases or increases let them know, for your own benefit.

No marker against my mortgage because that is paid in fully every month, only markers or defaults will be against the credit accounts e,g credit cards or loans where you make reduced payments.

We moved banks just because all debt was with one bank HSBC and were told if they saw spare or surplus funds they sometime will take it to allocate against the debt so we moved to bank we had no credit with.

You are in total control of what figures you give them, the only payment they handle are creditors so bank loans, catalogues, store cards etc everything you'll pay as normal and just give them figures for what you pay, they don't ask to see your bank statement just wage slips to get an average xx

@takemetoabeach the defaults only stay on from 6 years from day they apply it so early they default you the better we had most of our defaults within 6 months, so by this time next year we will already been down to 5 years before they are removed. Our plan will end after defaults have come off so won't really affect us as we will effectively start again after the DMP.

Although I'll never have a credit card again! Lesson learnt haha xx

Mine is all from legal fees/divorce etc. Perfectly manageable until I lost my job. Now spiralling very quickly.

Did you continue to be chased by the companies you owed?