C for Criticism

One thing I have realised during my time as a debt advisor is that very few people want to be on a DMP forever. People who tend not to fully understand the different debt solutions are often far too keen to criticise, arguing that those on a debt management plan are really just looking for an ‘easy way out’.

What people don’t understand is the difficulty that comes with being on a consistently restricted budget – where every single thing must be accounted for and justified and there is absolutely no spare for any kind of spontaneous purchase. What a lot of people do appreciate about a DMP though is that it offers the chance for some vital breathing space...

Tracey was a single mother who was raising her three children alone. She had run up quite a lot of debts, not through extravagance or splashing out but through trying to make sure her kids hadn’t felt a major difference in living comfort since their father left.

Tracey had the option of selling her house and repaying debts that way, but during consultation with her it became clear that this was something she was really reluctant to do. Her children had finally settled at schools in the area and she really wanted to keep some kind of continuity for them after the turmoil of their dad leaving. I had to admire her for her refusal to compromise when it came to her kids; she would rather enter a DMP and allow her kids to stay in their family home than move them to rented accommodation in an area too far away for them to get to school. Tracey does hope to sell her property in the future and offer a full and final settlement, but she refuses to move her kids out of their home until they are ready to go.

Another lady I went to see, Annabel, had a high-powered solicitor job in Hampshire. She owned a lovely home in a small village and commuted to London every day, until her mother was diagnosed as terminally ill. Although she had three other siblings, none of them were in particularly stable financial positions. Annabel took the decision to leave her job, and move her mother from the home she was staying at back to live with her in order to give her full-time care.

It was expected that she wouldn’t live very long, but four years after leaving her job she is still caring for her mother.

Annabel has been left with mortgage arrears, a huge tax bill and credit card debts. Because she hasn’t worked for four years, she won’t have to pay the tax bill, but she had got herself into such a state that she couldn’t face even sorting that out before I went to see her.

I went back to see her three weeks later and when she answered the door I honestly didn’t recognise her. She looked alive, and told me it was like a whole weight had been lifted off her. She had also finally dealt with the Inland Revenue. She had been so down that she couldn’t face doing anything to improve her situation, but once some of the stress and pressure had been taken off her she was actually even able to start thinking about ways to earn money whilst still caring for her mother.

Having trained as a counsellor, I know that even just sitting with someone and listening to them – offering them a sympathetic ear – is easier than talking to friends or family. I see a lot of people who aren’t just thinking ‘Oh I’ll go on a DMP because it’ll be an easy way out’, but who see it as an immediate solution to give them a bit of a break from creditors’ hassle and something which allows them the chance to come up with a more permanent resolution to their debts.