ARmy Rumour SErvice

**carlbcfc** · 09-07-2009, 09:57

I went to the local CAB when I lost my job and things got tight last year. I was advised to speak to companys called CCCS and Payplan.

These are FREE debt management companys, note the FREE part.

You pay them I think Â£100 or Â£50 per month in a Debt Management Plan depending on which one you use, and they distribute it between your creditors, who they have contacted and agreed fees with on your behalf.

The debt management companys have very good relationships with most credit companys and are more likely to get them to agree than you would yourself due to the fact of their success rate in recovering the money. This is reviewed yearly depending on circumstances at which point you will be able to pay a decent sum off at least.

I never actually used a DMP in the end but that is the info I found out.

If you can get in a DMP that will be covered by your basic wage, would that not be your finances in order with no fear of them demanding higher payments???

fivetodo, is there rules on Debt Management Plans or is that covered in the Â£275pm idea?

**fivetodo** · 09-07-2009, 10:05

There is nothing whatsoever in the guidelines to suggest a debt management plan cannot be used, as far as the Army is concerned the maximum debt or outgoings that is permitted when entering training is Â£295 (if you work out the percentage).

To that end if you are enrolled into a debt management plan that is willing to take Â£200 a month then there should be no reason why it would not be allowed, it would be no different than entering into a credit agreement for anything else where you are agreeing a term of payments.

I have put people into the Army with borderline debt before, purely because they need to be earning to pay them off and as long as i do not feel that the amount they are paying is going to see them getting nothing to spend at the end of the month and they are not going to push them further into debt then i do not see it as a problem.

Where it becomes a problem is when the debt is too big for the recruit to manage on what he or she receives during training (bearing in mind for the first 6 to 7 weeks you are cash paid) and they then become an administrative case due to being chased for debt.

Having a debt plan to me would show that someone had been responsible enough to sort their finances out and as long as it was under the limit and i felt that they were not going to become a risk to train then i would allow it

**carlbcfc** · 09-07-2009, 10:22

daddypops, this might be the magical answer to your problems mate.

Check it out and then approach your recruiter with the facts being that you will be in a DMP and finances will be in order.

Tell the DMP company that payments would have to start around 1 month after you start basic unless you can get it covered, they will then tell the creditors when your due to get your first pay. They will agree, they deal with the creditors multiple times per day for millions of people.

Failing that, borrow a time machine, go back a few months, and apply at fivetodo's office.

**daddypops** · 09-07-2009, 12:48

Thanks mate,

I have called Payplan on your advice and have arranged a phone interview for Saturday - clearly this is the best and fastest way forward.

Thanks again for your input.

**Smiler_1985** · 09-07-2009, 12:51

also http://www.moneysavingexpert.com/ is good for a whole range of money issue advice etc. I found a lot of useful things when my ex got me in deep debt KAKA with Orange Mobile. Took a while (7-8 months) but got myself out of debt in the end

**daddypops** · 09-07-2009, 13:08

Thanks Smiler, I'll keep a note of that!

**carlbcfc** · 09-07-2009, 13:14

No probs mate. Keep us informed how you get on.

**Smiler_1985** · 09-07-2009, 13:39

And good luck. Debt is a real kick in the teeth. Originally mine was only 600quid (Ex decided not to pay her phone bill which was in my name). But with orange not being too helpfull in informing me, and with various fees it went up to 2grand. Obviously not as much as yours aye but when ya struggling to get thru uni it was crippling