My situation is i owe £21k to 20 different creditors, cannot afford contractual payments. I entered a DMP with Debt Free Direct and to be honest had a nightmare. They used my monthly payment to pay someone elses debts and sent me their statement in error ! So that was the end of them lol
Anyway, been speaking to Thomas Charles who though very helpful were quite forceful in reccomending an IVA. Wanted three months payments before they did any work to help me, so they are also gone !!!
I spoke to Payplan, they were very helpful and advised me that they could not assist me because they believe the best route for me is a DMP, and some of my creditors will not support them. But to be fair to them theyeve done all budget and expenditure statements for me and sent me out letters to send to my creditors.
The reason im posting here is to ask what the chances are of being able to negotiate with my creditors to freeze interest payments without using a company to help me, ive also been on CCCS and they have sent me through a DMP pack, seemed too easy. Currently I havent paid any of my debts for approx 6 months, as money has been paid to fee charging companies who actually dont do anything to help. I am really worried that if i write and my offer is not accepted or they dont freeze my interest im stuck!!!
I have 2 CCJs which i am paying a total of £229 per month, I have £190 disposable income until Feb 2008 then this will increase to £377. I have even rented out a spare room to try and gain some actaul disposable income. This all started when my wife left the marital home.
I am also getting a payrise at work in about 6 months which should enable the amount i offer my creditors to increase also.
Could someone please please just be honest with me and give me their advice whether DMP, IVA or BR is the best option, as this is making me ill with all the letters and phone calls.
Thank you very much.