Debt help without going through a DMP

[SophieLloyd22]

Hi there this is the first post i've sent so im quite unsure how this really works.

I am in just over £5000 worth of debt with several creditors. This has happened due to my stupidity of when I was 18. I don't want to go through a Debt Management Plan or IVA or anything like that as I know it will effect my credit score for the next 6 years.

I want to try get rid of this debt within 12-18 months 24 months max. How do I go about setting up a plan with these creditors by myself and I want to do it as much as possible in writting so I have proff. Does anyone have any suggestions?

Thank you

Sophie

[citizenB]

You do NOT have to go through a recognised DMP and can quite easily do it yourself

 

I have attached a budget sheet which will calculate as you enter the figures. Please also read Sequenci's debt blogs which are linked in my signature.

 

 

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[citizenB]

You should keep all your communication in writing to ensure you have a paper trail

 

There are template letters for offering pro rata payments in the CAG library which you can access from the top of hte screen.

[baz1986]

hi sophielloyd22, its great you have come for some advice on here its a great start, What i will say that whether you do a dmp with a company or on your own it is a strong possibility that by doing this it will effect your credit file, as if your creditors do stop interest etc for you it will go against you on your credit file and as i have not payed the full contractual amount on one of my debts they have defaulted me.. So i would have a really good read on this site and ask as many questions as you need!! I am currently doing a self DMP but i know my credit file is and will be effected!!

[Tingy]

Hi Sophie,

 

You need to have a look at your credit file as you may already have adverse markers against you. If this is the case it could easily transform your view on how you are going to deal with your debt, which is only a small amount, and have a bearing on the length of time over which you intend paying them.

 

From what you say it sounds as though you have a fairly substantial disposable income. You won't know this for sure until you have filled in the IE sheet, so try to make that a priority alongside getting your CRF - you can get it free online.

 

The IE sheet, as mentioned, will work out pro rata payments which is what you then offer to each of your creditors. I cannot see you getting away without any negative data on your file though, so given this, you want to get the defaults etc.... onto your file as soon as you possibly can so that they fall off as soon as possible.

 

Work through the above and then post back.