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If you are struggling with your DMP get advice and help here
By Bennet12
#27556
I started my DMP about 18 months ago and I thought all was going well as I really hear very little from my creditors. However about a month ago I receved a statement from onw and was surprised to see the balance which was not as low as it should have been. That prompted me to investigate and it turns out that more than one of my creditors have still been adding interest. At this rate it will take me twice as long to repay my debts as i first thought.

I have been doing some reading and I now realise that this is quite a common problem with a DMP. Is there anything I can do?
By Carla
#27576
Hi there Bennet12

Yes, unfortunately this problem is common. The first thing you need to do is speak to the organisation managing your DMP and tell them about the problem. They should be working hard to make sure that all of your creditors do stop their interest charges.

Some debt management organisations are better at getting interest stopped than others. As such if you feel the one you are working with is not doing a good job for you you can change to a different provider. This is quite easy to do.

The other thing would recommend is that you do a review to see if the DMP solution is still the best for you. If you can change to an IVA then interest and charges have to be stopped by law.
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By Hayden
#27591
Hello Bennet12

As Carla has said, this situation is not unusual I am afraid. It is rare that all creditors involved in a DMP will automatically stop all interest and charges. Most of the time there has to be some effort put in to getting these stopped by the debt management company you are with. You need to speak to them straight away about the issue and make sure they speak to all of the creditors and put some pressure on them to freeze future interest.

How much debt do you owe and how much are you paying each month? If you can give us more details we can advise whether the DMP is the best solution for you or not.
By Bennet12
#27620
Hi there, sorry it has taken me a while to write back. I currently have debts of about £12,000 and an paying £150 a month. I did originally look at the option of an IVA but was told I was not eligable as I am a home owner with equity of about £20k. Is this correct advice?
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By Hayden
#27622
Hello Bennet12

From what you have said I believe the advice you have been given is incorrect. I think you can still do an IVA even though the equity you have in your house is more than your debt. The fact is that you will simply not be able to remortgage to release this. I would say you should speak to one of the experts here at BeatMyDebt about starting an IVA. This will give you monthly payments of £150 and a guarantee that no further interest will be added to your debt.
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By James Falla
#27639
Hello Bennet12

Hayden is correct. You can do an IVA based on the information you have told us. I understand that the equity in your property looks greater than your debt and so technically you are not insolvent. However for reasons known only to themselves creditors do seem to be ignoring this fact and have been accepting IVAs of this nature for some time.

I would definitely recommend that you apply for an IVA and see how the application goes. It will cost you nothing (you can even stay in your DMP while the application is made) and ultimately if your creditors reject you have lost nothing. As such you have everything to gain. Please do give us a call at BeatMyDebt.com to discuss this option through in more detail.