Debt management plans

A question about : Debt management plans

Has anyone used a DMP where they claim (or indeed do) to write off part of the debt? How can this work?

Best answers:

• The only way you get some of the debt written off is through an IVA. Explained here
  https://www.nationaldebtline.co.uk/en...tsheet_26.php3
  Want to explain your situation, as we may have been through the same ourselves and could tell you what we know.
• I have been in touch with a company who claim to deal with everything (for a fee) but that they then have a solicitor who will negotiate "settling" the account for less than the actuaL amount owed, which you supposely get by either i) having managed to save some money or ii) through remortgage or consolidation loan.
  Any ideas?
• Companies that charge a fee are not worth it, your money should be going on paying off the debt. If you saw a job advertised which meant you got Ј50 a month for writing 10 cheques would you take it? Of course you would it's easy money, there's no reason you can't sort out your own plan with help form people on here. A debt management company gets money each month you are with them so ask yourself if it's in their best interest to get you out of debt sooner.
  If you write a list of what debt you have, what interest rate it is on and what your monthly incoming and outgoings are like then we can help you to shuffle things around so that this debt is paid off sooner.
• Thanks you for that, I thought it sounded odd, though this guy reckons that they take a 10% of what they save you by writting it off - I know I probably sound stupid for even listening to him but what do you make of that? ( I am in the process of listing all my creditors' interest rates etc and will post them asap).
• A friend of mine had this service, or something very similar. The company took his debts (12K) and negotiated final payments (8K) then lent him the 8K plus charged him interest on his new *loan*. Total repayable was virtually back up to 12K. Total waste of time and took years to repay.
  Regards
  X
• I would avoid any of these organisations that advertise on the radio/TV or in the media. If they can afford to pay out the advertisement charges they are making too much money from the likes of us.
  I am using CCCS -free. They are respected by the creditors I have, which helped!
  D
• Hi all,
  I have been struggling with debt for a decade, ever since I became a single mum about ten years ago. I have tried to save, tried to budget (sometimes successfully) but as no month is without a financial emergency of one kind or another to !!!!!! any budget (kids need shoes, dentist bill, broken boiler, car breaks down, extortionate electric bill... eg normal life). My childcare costs kept me broke for years but now they are teenagers and the costs have changed but somehow not decreased! They grow and their needs grow, but their father's financial contribution froze in time ten years ago when it was agreed and my salary, and it seems my prospects at moving up the career ladder, has hit stasis. I now work a second job, sometimes 7 days a week. Whilst I am lucky to have both help from their dad and a good (albeit still lower taxpaper threshold) salary, my bills and living expenses just go up and up and up. Credit cards and increasing mortgage on home equity have kept us afloat and I've always managed somehow, but I overdid it in 2003 --helped along by a year of emergencies -- and have been juggling payments each month since to keep everybody paid somehow.
  At Christmas I realised that I just couldn't juggle anymore, found myself missing mortgage payments to keep the credit card companies from defaulting. I knew I had to ask for help. I was lucky to find the CCCS who have been great. I start their Debt Management Plan this month. I had to change banks, and my new bank (even though I'm swimming in debt, mortgage arrears and missed payments) offered me a platinum card and an overdraft!!! I'm pleased to say I refused these. I'm starting off with my DMP with a small payment, until I've cleared my mortgage arrears in a few months, then I can increase it.
  I know most companies respect the CCCS, but I've read that some will refuse the amount offered and proceed to take matters to court. I am very afraid of losing my home, its small, it would be hard to impossible for us to move down. It needs work doing to it which I can't afford, and would be hard to sell. Even making top price, we couldn't afford to stay in this area with the remaining equity. If there are creditors that refuse the repayment offers from the CCCS and try to get their money from forcing me into bankruptcy, how long will it take them to begin this process? Can unsecure creditors attach my home? Any advice?
  I feel so very very stupid to have gotten myself in this situation!!! but good that I have finally drawn a line under it. I have started to claw my way back to a better way of living. Kids have been very supportive. BTW, this chat forum and moneysavingexpert.com is great, a real boost!
  Thanks!
• Hi Sally Jo
  Youve defo come to the right place for support and help and you might find you get even better response if you post a thread of your own, sounds like the "A team" would be able to really help you
  All the best