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DMP private company x free
solus_2
Posts: 11 Forumite
I've just agreed with a private company to handle my DMP, I should make the first payment at the end of April. I know everyone here would say it's crazy to pay when you can have the same help for free. I thought if I don't need to deal with the creditors myself that would be worth the money. I'm kind of changing my mind and may cancel this agreement, and go for free help. I came to the conclusion that I can't afford if the £100 I initially agreed I'd pay.
Some questions:
1-Do the so-called free companies help people the same way as the paid ones ? Do they deal with the creditors or they give advice and you do it yourself?
2-Does anyone have any experience with Christian Against Poverty? I had a look at their website and they even come to talk to you on your place if you live in an area where they have an office. All that for free, I find it hard to believe.
3- In case I only offer token payments, how likely is that the creditors would accept that? And how long for? Would that be wishful thinking hoping to make token payments for six months?
Thank you!
Some questions:
1-Do the so-called free companies help people the same way as the paid ones ? Do they deal with the creditors or they give advice and you do it yourself?
2-Does anyone have any experience with Christian Against Poverty? I had a look at their website and they even come to talk to you on your place if you live in an area where they have an office. All that for free, I find it hard to believe.
3- In case I only offer token payments, how likely is that the creditors would accept that? And how long for? Would that be wishful thinking hoping to make token payments for six months?
Thank you!
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Comments
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Hi Solus,
First of all have you spoken to one of the debt charities to make sure a dmp is right for you?
That should be your first step really. As obviously any company that you are agreeing to pay will say that a dmp is the right thing for you even if it isn't as they want your money !!0 -
Hi
Sorry will have to say yes I think it is nuts paying a company.
Have you spoken to the debt chartites (thans Wishes I copied your links)
http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/
For more essential info and ‘more’ Debt charities:-
http://forums.moneysavingexpert.com/...html?t=1056083
I found both CAB and National Debline so helpful.
I had looked into to doing a DMP with Payplan but the surplus they said I had was nothing like I did have so I decided with the help of National Debtline to approach my creditors myself. I'm not saying it's easy and sometimes they don't always accept your first offer, but I perserverd and got lower affordable offers accepted for initially a 6 month period. I have kept up with all my payments and most of them have agreed to extend this.
I would say it would depends on whehter you want to approach these people yourself or not.
The lady at the CAB did offer to do letters for me. Natinonal Debtline have template easy to use letters on their website.
Sorry I'm not sure about your other points, but sure someone will be along to help,
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Solus, I can't say anymore than I did on your original thread....apart from please please speak to a debt charity first x
Original thread
http://forums.moneysavingexpert.com/showthread.html?t=2391999"If wishes were horses, then beggars would ride"
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There is no need to pay anyone to help you, that is all I can say really. Use this site it is invaluable.:pB&SC No. 298
Life`s Tragedy is that we get OLD too soon
and WISE too late!0 -
Absolutely no need to pay someone to dealw ith it for you. I amlost this myself too but very soon cancelled the payment as i too couldnt really afford the £100 payments.
i spoke with both CCCS and payplan, both of which offered the same advice like you and make token payments, its hard to say if these will be accepted or not but they give you the template letters and everything, I have found that so far all my creditors have accepted this some for 6 months, some for 12.
If I were you i would definately speak to one of teh charities or your local citizens advice, they will deal with your creditors for you i believe!0 -
I would recommend CCCS everytime. We took on a DMP with them back in Feb 2008 we were initially chased by some of our creditors (Lloyds TSB where a real pain in the but) but once we told them we were on a DMP they left us alone.
CCCS where one of the first charities to set up in the UK in the 1990's. They took the model of an American charity set up in the 1950's to help people in debt so have lots of experience. I had a DMP with them back in the 1990 and things have changed a lot since then. If you do look at CCCS I would recommend that you fill in the DMP online as I think there is quite a waiting list to go over your affairs over the phone.
And yes as Dojoman said you will get plenty of help and advice from this forum.
Good luck
Ang0 -
Please don't pay anyone to do this. My DH did this, we have worked out he has roughly paid them £1200 in fees and his debt has barely moved (we are about to start official complaint about this as it appears to have been mishandled and they can't explain where a further £2000 has gone, which should have paid his debt).
They also said he would be in a DMP for 4 years. This has magically increased to 6 now. We spoke to the National Debt Helpline, who are advising us on the complaint, and also about a proper DMP moving forward.
Please take the advice on here and use one of the charities. They are excellent,and we wish we had known about them a few years ago.0 -
1-Do the so-called free companies help people the same way as the paid ones ? Do they deal with the creditors or they give advice and you do it yourself?
not exactly the same, the main difference is they will advise you on what is the best course of action FOR YOU and not what will make the most profit FOR THEM
other than that yes they will deal with the creditors for you (so long as you meet set criterior)
you also sometimes get a better response from the creditors if you use a free charity as they know every penny you can afford is going to paying off your debts and not paying the profit of a paid for debt company2-Does anyone have any experience with Christian Against Poverty? I had a look at their website and they even come to talk to you on your place if you live in an area where they have an office. All that for free, I find it hard to believe.
i have not got any experience with them however they are in the MSE list so would expect them to be pretty good, you have to think about the nature of the charities and the fact they get funded differently so the people doing it will still get paid so they will do what they can and i believe the CAP are at least part funded by the church so have one very wealthy backer3- In case I only offer token payments, how likely is that the creditors would accept that? And how long for? Would that be wishful thinking hoping to make token payments for six months?
Thank you!
well all creditors will 'take' the payments however 'accept' them in the long term is a bit difficult to predict, all depends on the company and their internal policies, and the size of the debt, and their back log of work you get the idea.
just one think to remember,
they can not have what you do not have to give,
if all you can afford is £1 a month then thats all they can have, EVEN if they decide to start court proceedings a judge will not usually order you to pay more than you can afford, as that would be silly since that is setting you up to fail! and if you have gotten advice from one of the debt charities you will have shown willing to try and pay them back with everythign you can affordDrop a brand challenge
on a £100 shop you might on average get 70 items save
10p per product = £7 a week ~ £28 a month
20p per product = £14 a week ~ £56 a month
30p per product = £21 a week ~ £84 a month (or in other words one weeks shoping at the new price)0 -
1-Do the so-called free companies help people the same way as the paid ones ? Do they deal with the creditors or they give advice and you do it yourself? Free ones have a much better reputation at helping and been understanding towards you
2-Does anyone have any experience with Christian Against Poverty? I had a look at their website and they even come to talk to you on your place if you live in an area where they have an office. All that for free, I find it hard to believe. CAP comes as highly recommended as others, key word is charity they do it for free for that reason, they want to help and are funded by donations.
3- In case I only offer token payments, how likely is that the creditors would accept that? And how long for? Would that be wishful thinking hoping to make token payments for six months? Creditors are more likely to accept a DMP if you have help from the right people, like the free providers.
Thank you!
Free Providers list - http://forums.moneysavingexpert.com/showthread.html?t=2077631
The only bad side of free dmp providers, which the same can be said for fee ones they are no better, is court action. They ask you to admit the debt. Never do this, handle all court proceedings yourself and defend them. If you do not defend you are admitting liablity to everything they say and likely they will grant a CCJ. Show your on a DMP and all money goes towards it, get the judge in your favour.
Finally an example in snowballing
Debt management is a service, buts its not a service you want to pay for, because it means less money is going towards your debts and it takes you longer to pay them off.
Use a free charity, CCCS, National Debtline, CAB, Payplan, CAP, etc.
Pay debt management firms also have a terrible reputation of failing to make payments soon enough, making false statements about defaults, CCJs, credit files court action etc.
Stay away from any pay firms for both reasons above.
Example (over simplified) using http://www.whatsthecost.com/snowball.aspx
£10000 debt at 6% APR.
You make repayments of £200 a month.It will take you 58 months to pay off these debts if you snowball correctly. During that time, you'll pay £1,469.00 in interest.
Same debt again, but with 15% commission, £200 = £170.
£10000 debt at 6% APR.
You make repayments of £170 a month.It will take you 70 months to pay off these debts if you snowball correctly. During that time, you'll pay £1,805.00 in interest.
So at 15%, it costs you ~£350 in interest more, keeps you in debt for an extra 12 months, and you pay that £30 commission for 70 months (£2100). Pay firm are a bad idea.
Summary
DMP yourself or free provider
£10,000 debt paid off in 4.8 years, £1,469.00 in interest
Money paid to provider - £0.
Total cost 11,469.00
Paid DMP provider @ 15%
£10,000 debt paid off in 5.8 years, £1,805.00 in interest
Money paid to provider - £2100.
Total cost 13,905.00
Do the maths
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Thank you, Dark Convict, but I don't understand when you say all DMP companies are bad when it comes to court action, as 'they all want you to admit the debt' .
Can you, please, explain to me, as I don't understand, how we are not going to admit a debt you're already paying. Maybe what you're saying is kind of obvious to everybody, but I'm new to all this 0
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