If you prefer not to go down the route of a trust deed I think you are probably better off looking at DAS. This is similar to a dmp and can be set up by the CAB. If accepted the interest will freeze and any charges will be included within your monthly contribution. The advantage of DAS is that you are also protected from legal action in a similar way to a trust deed.
Hope this helps.

A good point well made by jls0505. Indeed there are many free advice agencies that can set up a debt payment plan for you for nothing, whether via the Debt Arrangement Scheme or not.

Having said that, there are also many reputable debt management companies that you may prefer to use. I am not sure about the monthly fees they charge but what you say seems about right.

Hi Numanor,

It is my understanding that the DMP charges are usually dependant upon how many creditors you have.

I would agree with the previous poster. Should you be in a position to repay your creditors in full over a suitable period of time then DAS is an option worth considering given the additional protection it provides.

Julie

Most debt management plan companies will make two different charges based upon your monthly disposable income:

1 -The "Initial" charge. Normally one or two of your first monthly payments in return for setting up the plan. These payments will not be distributed to creditors. Some rogue operators charge a lot more than this.

2 - A "Monthly" charge. Normally a percentage of your monthly payments after the "Initial" charge has been covered. This might be 15-18% on average of the monthly payment. The remainder of your payment is distributed to creditors. Some DMP companies have minimum and maximum monthly fees relevant to those with small or large disposable incomes.

There are operators such as CCCS with a different funding model that would not charge you to run a debt management plan. They are funded by your creditors if you do a DMP with them.

As previously mentioned there is also the Debt Arrangement Scheme which does have charges (around 10%), is somewhat more formal than a DMP, but which carries the major benefits of a guarantee of frozen interest and protection against legal recovery action by the creditors.

Hi numanor

From your initial post you stated:

'I have been receiving State Benefits which includes the DWP paying my mortgage, and due to illness and to my chronic back condition I will never be able to work again.My wife does not work'

I don't think you have taken heed of any of the previous posts and are still trying to find that magical solution, where the house is safe and you get to keep the policy money. A solution which does not exist. I am sure there are countless DMP companies who will be delighted to relieve you of your benefits, while no DAS administrator will look at this as a DAS scheme as you are both on benefits.

The net result of the above will be that unless you look seriously at your position, then one of your creditors will do it for you and that will be your quickest way of losing everything.

Mark

Hi Numanor,

Sorry, didn't recognise the name and link it with your previous post when drafting my response!

Following on from what Mark has said above, if you are in receipt of benefits only then the DAS is not an option and in all honesty a DMP should not really be considered either.

Julie