DMP 's What's the Point

[andrewgoodman121]

Don't get me wrong , i am not Anti DMP.
Say that i had a debt of roughly £10000
then a DMP would most probably be a good solution, but how long would it take to clear that balance.

If i owed say £50000 and was working then an IVA or Bankruptcy would surely be the way forward Not a DMP as it would take forever to clear if you was on an average wage with a family.

If i entered a DMP on that sort of Debt it would as some posters who have been on here say
Take Forever like Kallis 19-20 YEARS.

YOU FIND YOURSELF TRAPPED AND YOU JUST WANT TO DO ANYTHING TO KEEP THE LIONS AT BAY BUT AT THE SAME TIME GET RID OF THE DEBT BUT TO DO SO YOU ARE RISKING YOUR CAREER, JOB AND FAMILY.

[size5]

Depends upon the exact circumstances of course, but the affordability of repayment is the initial key, level of debt is much less relevant at the outset.

£10k with a payment of £200 would take 61 months approx in a fee paying DMP, assuming interest freeze. Similarly, £50k with a payment of £1000 is exactly the same time, meaning that an IVA would not be necessary.

However, £50k at £300 would take approx 17 years so an IVA or BR in those circumstances would be much more appropriate, and no professional worth his salt would advise DMP as the answer in that scenario unless there were very very good reasons.

As stated before, the quality of the initial advice is all important and I do take your point that the unitiated can sometimes take the first lifeline that is thrown to them, which is hopefully where this forum helps enormously.

Regards.

[Vincent Bond]

This is a really important point that size 5 makes re the affordability of the monthly repayment.

At the start of any solution, breaking the cycle of debt and preventing the debt getting any bigger is key. Therefore, once once your disposable income is established it is sometimes this that governs what solution you can do.

I also agree with the above posters that getting clear advice at the start and not rushing into anything is vital. This and several other forums like it are providing a great source of valuable information, lets just hope people are finding it easily.