Debt management plan

[jmh740]

Has anyone had a debt management plan?
My oh is currently unable to work it looks like we will have to claim universal credits, I only work part time and earn 13k a year due to caring responsibilities and my health I would struggle to get a new job. We have about 25k in debt with various credit cards I am worried sick how we will manage.
I dont know if a dmp is something that can help.
We have 2 children at home.
I feel ill I can't stop worrying and I don't know what to do for the best.

Hi OP
I have a lot of debt and was going through STEPCHANGE to help me with it.

I have MH and have since stuck my head back in the sand because it's so overwhelming for me to sort it all out but give them a call. They are quite helpful and it's all free

Good luck to you

I had a DMP with step-change. They were amazing, you can do most of it online. They contacted my creditors and arranged smaller payments.

It took years but I paid it all off and although my credit rating was damaged at first I have now built it back up and this year was able to get a mortgage.

Give them a call, make sure you have all your financial details to hand and be honest with them. They literally save my life!

I work in debt collection and refer people to Stepchange all the time. They are great. I would download a basic financial statement from the internet and fill it out as accurately as you can so that you can give them all the information when you talk to them. Most creditors will allow you to make smaller repayments if you go through an affordability assessment. It might take a long time but you can sort it out 😊

You can look at Christians Against Poverty too @jmh740 , they were so helpful when I had my DMP, absolutely lovely. I still donate to them now (10 years on) out of sheer gratitude.

Have you looked at the benefits calculator too, to check if you're entitled to anything else? Contacted your local food bank to see if they can help, even short term?

Wishing you the very best of luck, please do contact Stepchange/ CAP and they will help straight away, it will be such a load off your mind [flowers

Or even!

Dont pay for one of these companies!!!!

Go to CAB or another free money advice service and set up a voluntary repayment plan.

If it's only a temp drop them that should be fine.

If it's permanent you might have to look at a trust deed (if homeowner) or bankruptcy (if not).

Honestly bankruptcy isn't anywhere near as bad as people think. Most debt gets wiped off.

Stepchange is a charity and does not charge you a penny.

Totally agree with going to Stepchange or Christians Against Poverty. I work in debt and we refer people to these 2 charities all of the time.

If you rent rather than owning your home then bankruptcy might be another option. The debts would be wiped and you wouldn't be able to get credit for 6 years. We usually tell people to look for local credit unions to help with things in the future.

@felulageller which companies?

I was wondering that too Tricia.