I think I'll try the usual path (in my ideal order): Self negotiated DMP, 1st with token payments whilst waiting for them to agree to an informally/formally agreed XY-year repayment plan. Cut off extra card in shared credit card a/cs so I no longer need to worry about what other card holders are doing in my name. CCA and SAR when I can afford postal orders, maybe 1-2 each month. Budget those in too! Stick to a realistic DMP, even if it's 50 years repayment! Never use credit again until I need to for something like keeping a roof over out heads. The pre-paid credit card option looks viable without the issue of interest etc. As Bandit said, paying utilities, mortgage etc is more important. I'll factor in realistic projected values for my I&E sheet and go from there. Those are definitely a priority for both myself and my family vs credit card debt/OD/ I'm so glad that I'm finally getting to grips with this and will no longer need to rely on credit for something as meagre as buying a loaf of bread at tescos!

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Thanks for your continued advice.

Thanks. Re: the 2 credit rebuilders: As I said, it's just a proactive means of recouping some credit rating over the next 6 years, hence the personal interest, as well as the protection again fraud and for any purchases >£100. I guess it's just a sign of how the creditors won't be reasonable if they find it objectionable. I would ONLY be using them for items on my I&E form which has already been deemed more frugal than average according to CCCS. I can even give receipts to the creditors to prove this. Although I guess that they won't be reasonable enough to consider the logic behind it. RE: DCAs You're saying that my liabilities will all be passed onto DCAs even with token payments and/or an agreed upon DMP? Like I said, I think I might have £150-200 for a DMP plan, although it's Thanks for replying, I didn't know really know properly about BRUs/BROs until your post prompted me to look into them.

Please could someone advise me about my issues. I've already spoken to CCCS and was told that my options were either bankruptcy or token payments. Background: Currently working part time and earning just enough to cover a "low" budget according to CCCS's standards. Had health problems, including hospitalised. Now I need to get into a career which will allow me to work for the next few decades. Debt: Approx £28K over 6 credit cards (highest is £6k, lowest is £2.5K) and 1 overdraft. I was advised that I need to be in a position to pay the debt off in under 10 years so CCCS won't sort out a DMP for me.In my case, what I really need to do it pay reduced for around 4.5years. Then I'll be in a position to be making larger payments. In 6 years I need to co-sign for a re-mortgage of the family house. Currently NOT in my name in anyway. All debts are on my file with Equifax and most likely enforceable. Question: At the moment the only attraction for token/DMP is that I can keep two credit-rebuilder cards to boost my credit over the next 6 years. However if I risk getting some random default say 3 years from now if the bank sees my CR file and doesn't like me using it, then my record is tarnished for 9 years, not 6! I also wanted the option of using the credit card due to the inherent protection against fraud, purchases over £100 etc. Eventually I was planning on CCA and SAR'ing all of them as I set aside money each month for postal orders. I should have made a thread on here earlier and forgone the waiting time for CCCS appt. On the plus side, I now now for certain that I'm not eligible for any benefits or support from the State. Questions below and in earlier paragraph with “question” in bold. Do you think the creditors will accept token payments until July 2017, higher reasonable payments thereafter and consider that a DMP and not default me? CCCS said that they aren't able to negotiate that kind of variable DMP at the moment. I'd of course be frank about my health issues, how I'm studying pt time then fulltime, difficulty finding more work at present etc. However CCCS said that the banks probably won't care about my personal circumstances nor accept a DMP on such a low level of repayment (without defaults on my record and/or passing it onto an agency. Agency might accept it though...). so...DMP, bankruptcy, IVA, token payments or what? Thanks

Thanks for your continued help and advice. If CCCS/StepChange don't make it to the next phone appointment, I think I will have to get things started on my own and send the letters. I'm still a bit confused about a few things. If I do send the relevant letter from the link (Letter B) with a signed I&E sheet (either from My Moneysteps, CCCS or National debtline) showing that I only have a small amount of money left for each creditor's monthly bill I assume that I will be shown as being in default from the 1st day I miss the usual large payment. Is the following link right: http://www.consumeractiongroup.co.uk/forum/showthread.php?347162-DMP-questions&p=3805212&viewfull=1#post3805212 i.e. that even if I am still on a DMP/making reduced payments 6 years from now, the entry will be automatically removed from my CR file? Thanks

Thanks for the encouraging and dare I say, empowering message I feel better. I best explain, at the moment I'm still only dealing with creditors, no DCAs. No defaults and no minimum payments. However up till now I've been needing to borrow from family to meet about 1/4 of my minimum payments and/or letting them use joint credit cards in my name in exchange for money for the minimum payments. However since they've had to re-mortgage and have run into their own problems, this is no longer tenable and if anything, I need to contribute more to ensure that we keep a roof over our heads. To get things started: I've setup a parachute a/c rather than using my usually maxed out OD to make payments. It was REALLY refreshing to see a positive balance for the first time in years (i.e. since creditors first kindly offered me an overdraft at 16). I am currently waiting for CCCS to 'make it' to one of my phone appointments to discuss options. I'm hoping that they will be able to negotiate freezing interest and using realistic figures for repayment. I've opened a credit rebuilding a/c with a modest limit to be used for purchases with the balance cleared each month to help recover from the default entry on my file if/when I get onto a DMP. Until then, I'm working 16 hours/week (+part time education). I'm also selling various things round the house which were collecting dust to continue to meet the current minimum amounts until CCCS can get me on a DMP. I know I should try to negotiate myself, however with 3 hours of physio and other rehab daily, studying, work and lastly (should be higher in my priorities I know!) family and other household obligations, I just don't want to deal with direct negotiation. Besides which, I'm hoping that the creditors will take me more seriously if CCCS act as a proxy. Wow, it was quite cathartic getting all that into writing If anyone has any other suggestions, please let me know. Perhaps I should have done the CCA, SAR requests and claiming back charges steps first. However at the moment I think that monthly interest probably outweighs any charges (even with compound interest on them over the years). Therefore moving to get interest frozen with realistic monthly payments towards debt and to stop using credit to pay for essential costs like food, utilities etc ASAP seems like the higher priority. Lastly, all debts are on my Experian file so I don't think I have any grounds for claiming that the debt is not enforceable. As mentioned, I'm not dealing with any DCAs, just original creditors aside from Barclaycard who took over my Egg Credit Card a/c.

Unfortunately when I completed my application for my Vanquis Visa Card over the phone, I opted into this plan since I was somewhat confused as to what it meant and just wanted to finish the application. They were really pushing the ROP too! I've got no plans on leaving any balance on this 34% APR card at the end of the month and was just planning on using this card to boost my credit rating and to make purchases with the benefit from the consumer credit act protection etc (i.e. fraud protection, charge back option against unscrupulous retailers etc). However, I'm wary of anything like PPI or a disguised product like this. I was told that I would be paying £1.29 per £100 balance. I was unable to opt out until my card arrives and is activated. Can anyone see any issue (i.e, expense on my part) with my opting out when it arrives? Or should I keep calling and pushing for someone to take me off the plan? I don't see why they are easily able to opt me into the plan but can opt me out until my card arrives.

Yes however they might choose the reject my offer? Basically I've tried to be honest with mine, however I've seen stories of the OR (whoever that is) rejecting anything >£450 housekeeping expenses for a married couple with 3 children. How can any creditor realistically put me on a debt management plan where I repay a £6000 debt with just £1 per month? I can actually afford £7 per month for my largest creditor according to my I&E which amounts to needing 71 years to clear a £6000 credit card! I don't see any company accepting that proposal?!

Could you elaborate please? When you say 'what the debts are', do you mean how large they are or what type of debt, e.g. credit card, overdraft, loans, finance agreesents etc...? Mustang67 said that in his case, he was able to pay £1 per creditor. Realistically, would a creditor who is owed £5000 really accept anything less than £10 / month? Assume that the debtor is genuinely being honest and realistic about expenses (with none of them near the thresholds accepted according to insolvency.gov.uk). Income is just abysmal plus some unfortunate expenses like medical (non private healthcare insurance).

edit: found out the answer myself. insolvency .gov.uk had a great spreadsheet for classifying expenses correctly.

Ok thanks

Thanks for the link, I had a good read of that last week but had forgotten to bookmark it. Two things I'm still confused about: 1) Will claiming my charges back first make the credit card companies less reasonable to deal with when CCCS try to negotiate for lower minimum payments and (hopefully) reduced/frozen interest? 2) Since the parachute account is to ensure that only I have access to it, I assume that I should NOT transfer the minimum payment direct debits to the new parachute account, right? Cheers

Thanks dx. I thought that the budget sheet is used when applying for a DMP with the credit card company so that they know exactly how little the debtor has at the moment to make payments (I noticed the bit where the debtor signs the budget sheet saying that the info is accurate etc, so assumed it's for the credit card companies). Also, about the parachute account, I understand the pros of transferring my income to it. Should I continue to allow all the direct debits to credit card companies go out of my overdrawn Barclays account or transfer them to the parachute account?

Thanks FS. As I understand it, it will negatively effect my credit rating for around 6 years which should be ok since that's when I'll need to apply for my first joint ownership mortgage. From all my reading, it looks like the charges can be reclaimed at any time so I'll contact CCCS first and get the DMP sorted. Thanks for recommending them since I was stuck between Payplan and CCCS. Since the latter is a registered charity (and based on your recommendation), I'll go with them.