DMP questions

A question about : DMP questions

Hi there

Ive finally got to the point of no return and filled in my debt details on the CCCS website and it tells me I should do a DMP which will take me just over 6 years to clear.

I just have a few questions before I start this final stage towards debt free heaven...

1. Will my credit score be trashed for ever?
2. What happens if something goes wrong - for example my car dies (I pray not, but you never know) and I dont have enough for a 'new' one? Will I be able to get any type of credit (obviously dependant on whether I could afford to pay it) either for a new car, or repairs??
3. How long does all this take to set up? Its past the half way point in the month for my pay, so I cant change anything as regards new bank details before pay day. Am I best to move my pay after the essential DDs have come out and just pay a token amount amount on my credit cards etc after sending 'the letter'?
4. As regards my new bank account - I have debt with Lloyds in the form of CC, O/D and loan, so need to move account. I already have another current account with Halifax (which they made me open when I got my mortgage) - but as this is now owned by Lloyds, should I get an account somewhere else entirely?

Apologies for the length of my post. I just have so many questions. Im sure this is the right thing to do to sort myself out, but Im panicing over the 'what if's'...

thanks again.

Best answers:

• Have you checked out CAP Christians against poverty? They might be able to help you and it have less impact on your rating
• thanks for the information Growurown.
  If the defaults will stay on my file for six years, is that six years from the final settlement date? So in effect the largest debt would be on my file for 12 years? (assuming it is settled last)
  When Ive eventually paid everything off, is that when I need to start rebuilding my credit score?
  Also - will my DHs credit score be effected in the same way? The credit is all in my name (although it is our joint debt).
  I know Im doing the right thing as we cant go on like we have for the last couple of years, and Im probably just worrying as this is something new. This site has really helped me realise there are options out there and we can sort this mess out.
  thanks again
• Hi,
  You're Defaults will automatically be removed 6 years after the date you defaulted the account, although the balance on the default will be updated to show that it is actually being paid.
  I entered a DMP last year and have cancelled it today - reasons;
  1 - they are taking Ј25 a month for their services - I recieved my annual statement yesterday and they will have had about Ј2000 off me by the end of the term.
  2 - I contacted all my creditors and they are willing to accept just a few pound a month more than what my Debt management company are paying them - so my Ј25 a month fee is being split between them all, plus another Ј25 of my money which means I'm paid off a year earlier with most, and one debt is paid in 11months as opposed to 3 years 9 months!! (I made sure they were willing to accept arrangements before I Cancelled DMP)
  3 - Two of my accounts have remained unpaid without my knowledge for the year - the DM company didn't let me know!!!
  Totally unhappy with the service - I'm not saying all are the same, but all the creditors I spoke to were more than happy to receive a couple of quid extra a month and even offered settlement figures - I can't afford that but it's still nice to know that the offer of taking a couple hundred quid off my debts is there - which it wouldn't be through the DMP.
  I'm pretty sure Christians against poverty don't charge these fees but take a small donation.
  Your credit file is knackered for 6 years and entering a DMP doesn't even prompt companies to put an arrangement to pay on your credit file......I'm not saying you shouldn't do it - just be very careful. Exhaust all avenues with your creditors first and offer them a list of your expenditures and what you can afford to pay them - they can be pushy so always start with a lower payment than you can afford and they might think they've succeeded in just bumping it up a bit and allow you to pay that. If you stay on the DMP, don't assume that your problems have gone away, double check with ALL of your creditors that there is an arrangement in place through your DMP.
  Wouldn't like anyone to have the surprise I did yesterday - Good luck - there's always a way xx
• Unfortunately a bit of research would have steered you away from a fee paying DMP.
  Both CCCS or Payplan are impartial and provide this for free so all your payments go towards your debts. They deal with your creditors and will get interest stopped on your behalf.
  Its a shame more people don't realise this before they go to private fee paying Companies.
• thanks for the information. Ive gone with cccs on the great advice of this forum - and hope it is the right thing for us. I really want to get out of this never ending circle of debt, but its a very daunting prospect, not to have any credit!
  I will continue to follow the advice of you knowledgeable people out there and hope we can all get to our debtfree day soon!