Author Topic: 10 yearas on a DMA and no end in sight!  (Read 1236 times)


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10 yearas on a DMA and no end in sight!
« on: Mar 15, 2012, 10:58:18 AM »
Hi, my husband and I signed a Debt Management Agreement 10 years ago when we were first starting out in married life and had a baby, as we had naively taken out a number of loans and credit cards that we were no longer able to manage.  Rather than going for bankruptcy we wanted to try to take responsbility for our debt and felt this was our only option.  At the time we were told that we could be clear of debt within 5 years or that our debtors may accept settlement of around £8k.  Last year we managed to hit the £8k savings mark and offered this out but it was rejected.  We are still paying a regular monthly installment to all of our debtors via the Debt Management Agency but as we are now 10 years down the line and still can't see an end to our situation we would like to explore our options.  Does anyone know what a reasonable settlement % is on unsecured loans?  Is it normal to be on a DMA for 10+ years?  We just want to be able to move forward with our lives and to provide for our kids and have a home of our own, but none of this is possible whilst we have this outstanding debt.  Help...?

James Falla

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Re: 10 yearas on a DMA and no end in sight!
« Reply #1 on: Mar 29, 2012, 06:22:58 PM »
Hi there BC
Unfortunately it is not uncommon for a debt management plan to last for 10 years or even more. One of the downsides of a DMP is that ultimately it is not finished until you have repaid 100% of the debt you owe you have successfully managed to negotiate full and final settlements with your creditors.
May I ask how much you owe? Generally speaking if you have been on a DMP for 10 years, I would expect your creditors to accept lump sum settlements of between 30-50% of the debt you owe. If you cannot afford to pay this amount and your lump sum is rejected then I think it is time to consider alternative solutions. Have you looked at the possibility of an IVA. You have also mentioned bankruptcy. Are you homeowners? If not then this may well also be a sensible option to consider.
If you can let us know a little more about your circumstances (e the amount you owe, whether you are homeowners and how much you pay into your DMP), I am sure we can advise you further.
Debt Expert & Author