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I have outstanding balances on five credit cards and am only making the minimum payments. What can I do before things get worse?
I have outstanding balances on five credit cards and am only making the minimum payments. I'm in the building trade and my income is decreasing whilst my outgoings are increasing. I'm concerned that in a very short time I will not be able to pay all my bills. What can I do now before it gets worse?
You need to draw up a Debt Management Plan (DMP). The aim of a DMP is to persuade your lenders to freeze the interest so that you can make reduced payments without affecting your credit rating and pay off the whole debt.
The Citizen's Advice Bureau will provide you with free forms and free advice on how to fill them in. They should be able to help you insert expense figures that will be deemed reasonable by the lenders and advise you how to prioritise debts as will National Debtline and other local non-profitable organisations. A DMP is something you can do yourself and administer yourself. Don't be put off if your first proposal gets rejected. Seek advice and persevere.
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