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  1. #1

    Don't know what to do

    Hi -

    A few months ago I entered into a DMP, I cancelled my bank account - set up a new one, started payments and hoped to become debt free. Unfortunately I was in the position where I was in a very controlling relationship (I'll not get into details, but I was threatened to be thrown out unless I could provide more money) so I borrowed more (stupidly, but at the time I wasn't in a position to argue) - fortunately I am now at a different address, away from the person in question, they are not allowed to contact me, however as all of the debts are in my name, I am responsible. As of a few weeks ago I've been put on anti depressants and am getting counselling for my issues - but am unsure about what to do regarding my DMP, at the moment, the payments, along with my rent and other basic living costs (food etc) are crippling me, I'm very apprehensive about speaking to my debt management company about this as I'm worried they will void my DMP due to taking out more credit.

    I've spent all my time over the last month or so looking into other options (IVA etc) - as my debts are probably totalling about 20,000 now - fortunately the one saving grace is that I am in a stable long term employment (7+ years) with a regular monthly wage, all my rent payments and bills are up to date, it's just credit cards and payday loans etc that have got me - I'd just like to stop worrying. I'm not even sure if I can add my new creditors to my DMP, or ask if I can switch to an IVA, or change over my DMP from my current Debt Agency to stepchange or someone similar? I just don't see a way out of this any more.

  2. #2
    Are you with a fee paying company ? If so cancel it NOW and contact Stepchange.

  3. #3
    I am, at the time I was in such a panic that I just went for the first one I could find. I didn't know if I could just "swap over" like that.

  4. #4
    Yes, contact one of the free companies (Stepchange, Payplan, CAP or National Debtline). They will give you good advice and set you up with them.

    In the meantime, write to your current fee-paying DMP provider and give them 1 months notice that you are terminating their services. Then, when the month is up, cancel the direct debit so they get no more cash.

    These fee-charging firms really are the bottom feeding scum of the debt relief world.

  5. #5
    Of course you can cancel - and you really need to. Contact stepchange or one of the other deb management charities. Otherwise you're paying someone to manage your Direct Debits basically. They send box standard letters and hold on to your cash for a set period (earning interest) and then distribute the money. Oh and if they go under then the money of yours they still hold vanishes despite you having paid it towards your debts, it's not uncommon that they hold a few months worth of your payments before releasing it...

    If you are now away from the abusive relationship then I would simply start afresh and be honest with the DMP charity.

    you might want to post your SOA up here and we can help give you our views on what solution might actually be best for you. It could simply be that going bankrupt is the best way for you to start afresh or a Debt Relief Order might be suitable.


 

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