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By Larson12
#23375
Hi

I have been paying into a DMP for 3 years but over the last 6 months or so I had a number of financial emergencies. This meant that I had no choice than to turn to borrowing from Wonga and Quick Quid. Can I now add these debts into my DMP or will this not be allowed?
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By Steve Jackson
#23385
Hello Larson12 and welcome to the forum.

In theory the answer is yes, you certainly can add these debts to your debt management plan. However you will get different reactions depending on which debt management company you are using. If you are using the CCCS it is likely that they will not help you and go so far as to cancel your plan if you tell them you have borrowed more money. If you are with a commercial company and are paying a management fee each month they should be more than happy to help you.

You should also take this opportunity to review whether your DMP is working for you or whether you would be better off considering an alternative solution such as an Individual Voluntary Arrangement (IVA) or bankruptcy.
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By Hayden
#23396
Hi there Larson12

If you are not in a DMP with the CCCS then you should be fine to add these two payday debts. Rememebr that if you add new debts but are unable to increase your monthly payment then all of the origional creditors will end up receiving less each month. As such a new payment proposal will have to be submitted to them and they may start adding interest to your debts again until things have settled down. I do also agree with Steve you should also take the opportunity to review all of your options and make sure that the DMP is still the right solution.
By Larson12
#23405
Thankfully my DMP is not with CCCS so from what you are saying this should be possible. I will speak to my debt management company straight away about it. I take your point about reviewing my circumstances again but unfortunately nothing has really changed (if anything my finances have got worse with the increasing cost of living) so I think sticking with my DMP is the best thing. I have considered bankruptcy but it is not for me because of my property which has good equity.
By Larson12
#23459
Hi guys, just a quick update. I spoke to my DMP company and they are going to add the payday loan to my DMP no problem. Out of interest they have told me that this will reduce the payments that the origional list of creditors are getting which might cause some short term issues with them. However there is not a lot else I can do so I am going with it and will see what happens. Thanks for all your advice. Great service you are providing.
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By Hayden
#23464
Great news Larson12. Hopefully if your debt management plan company handle things right you should not have too much trouble from your origional creditors. However the payday loan companies will probably give you some trouble initially. If they do come over heavy, just try to ignore them. Sometimes they will try to claim they you have been fraudulent in taking the loans. However this is not the case as you mean to repay them. They cannot blame you for their own poor lending decisions and as such they are not to be treated any differently than any of your other creditors.
By Larson12
#23555
Hi there everyone. Just thought I would let you know how I am getting on. The payday loans were added to my DMP this month so my DMP company contacted all my original creditors with the revised payment proposals. That was last Monday when I made this month's payment and so far so good, I have not had any of my creditors contacting me to complain (except from the payday loan companies of course but I expect that). I hope they will also come round before to long but my DMP company is dealing with them so I feel confident. I will keep you updated with progress.
By Carla
#23576
Hi Larson12

Are you managing to save a little bit each month from your living expenses? If you can try to do this it will really help for when you do get the inevitable financial emergency and hopefully prevent you from having to go to payday loan companies. I am on A DMP and I try to do this. I have to say I am not managing it do it every month but I am building up some money to fall back on. I would recommend it if you can.
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By Steve Jackson
#23594
Hi Larson12

I am glad to hear everything is going according to plan at the moment. Carla gives some good advice about trying to save a little each month into an emergency fund if you can. That way you should not find yourself in the same position of having to borrow more in the future if other things crop up.

Keep us posted.