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If you are struggling with your DMP get advice and help here
By Diane Wood
Hello, I have been watching this forum for a while but have never asked anything before. However, I am in a debt management plan but there is a risk that I may be asked to reduce my hours at work. If this happens, I am not sure how I will be able to continue to make my payments. What would happen if I cant? U was hoping that this would not happen but now I think it will. Thank you for any help you can offer. D
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By Andrew Graveson
Hi Diane,

Hopefully this will not materialise and you can carry on as you are.

If the worst does happen you should speak with your debt management plan provider and go through your revised income and expenditure with them.

This might result in a reduced contribution. It might also lead to consideration of other options depending upon the changes that may occur.
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By Steve Jackson
Hi Diane and welcome. Its really great to know that you have been finding the posts on the forum useful. In terms of your debt management plan, have you any idea by how much your income will reduce and therefore how your payments will be affected?

A debt management plan is a very flexible debt solution in the sense that you can reduce your payments at any time if you need to. The key thing is whether or not you can still continue to pay anything at all. Do you think that this will be the case or will will your disposable income reduce to zero?
By Diane Wood
Thank you so much for your replies,

If my hours do reduce which I think is pretty certain, then my wages will reduce by about £20 a week. This will therefore reduce my debt management payments by about £100 to £150. Do you think my creditors will allow me to reduce my payments even further? My debt is about £19,500 now....
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By Hayden
Hi there Diane

As Steve and Andrew have said, you can reduce your monthly debt management payments if you find that your income drops. Given that you can still afford to pay at least £100 a month then I would think that this would still be OK.

Do you have a property or are you renting? I ask because if you are renting, one option open to you could be to consider bankruptcy. I know that this sounds bad but bankruptcy can actually be the very best solution for someone who is realy strugging and has no property.

After all, if you try to pay £19000 back in a dmp at even £150 a month it is going to take you over ten years to pay the debt.
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By Steve Jackson
Hello Diane

Have you heard anything more about your wages or hours? If you can still afford to pay £100 a month, then I am sure that your debt management company will be able to work with you to maintain the plan.

However, as Hayden has said, paying back £19,500 at £100 a month using a debt management plan is a daunting prospect. I would suggest that you find out a little more about bankruptcy.

This solution is really not as bad as it sounds if you are renting, or a homeowner with little or no equity. In these circumstances, there is no risk to your house and your debt problem will be resolved far more swiftly. You can find out much more information about this solution here: https://www.beatmydebt.com/bankruptcy/index.htm
By stephen88
If you do have a pay cut then i would update your income and expenditure to take this into account. This means that whoever you have the dmp with should adjust you payments per month.
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By Steve Jackson
You are quite right Stephen88. As Diane is in a debt management plan, she can reduce the monthly payment she makes towards her creditors. The problem is that if the cut means that she is left being able to afford only £100 or so a month, it is going to take her at least 16 years to pay off her debt. As such if there is no prospect of increasing her income soon and she is renting or has little or no equity in her property, bankruptcy could be an extremely good alternative option.