My LBM - DMP In Progress

nonnynonny · 26 January 2010 at 3:05PM

I have finally decided to do something about the money i owe.

I am just under 30, my wife is just over a year, is 21, our child is 18 months and we have another little one due in the Summer.

All debt is in my name (from before we were married), and after all expenditure at the moment i am now looking at only £480 to pay everything else i need to pay.

I earn £1880 a month.

I owe around £31k, have done a SOA with the CCCS and have an available payment of £427, with which i think is a generous budget and will see us through.

This is a DFD of 6 years.

We bought a house last year for £88k, with a £10k from father-in-law which my wife is paying back, and a £78k (£492 per month) mortgage which i pay.

My creditors are :

Northern Rock Loan £7k
Cahoot Flex Loan & Overdraft £4k
Virgin Card £3.5k
Halifax Card £4.5k
Tesco Loan 1 - £2.7k
Tesco Loan 2 - £8k
Lloyds Overdraft £400
Next Catalogue £290

I hope these will all be happy with a DMP and revised payments for the next 5 years or so and i can clear them all.

As i dont have any debt with Barclays i have a current account i opened a month or two ago (i saw this coming) with them where i will switch to from Cahoot on payday (this thursday).

All being well i will aim to make first CCCS payment for 1st March 2010, and i hope its accepted and i can carry on without this constant weight on my mind.

Any success stories with the creditors above will make me feel very happy

I may have a CCA issue with Northern Rock also, as per my other thread : http://forums.moneysavingexpert.com/showthread.html?p=28469361#post28469361

But i am going to start a DMP before i start the game with them.

Here's to getting debt cleared.

DVardysShadow · 26 January 2010 at 5:49PM

Hey, I actually find this story quite heart warming. There are many women who will not take on a man while he has debts - and those who do very often find that their man learns nothing and carries on in the same way. But firstly, your wife has taken you on and you have taken it upon yourself to get on top of the debt.

Nothing much to suggest, apart from posting an SOA here - there is a format for doing it referenced in one of the stickies at the top of the forum. Get your wife involved too. What happens here is that the regulars go over your SOA and suggest ways of saving in a way which CCCS won't - so it will cut you even more slack, perhaps allowing you to finsh your plan earlier.

To clearing your debts!

MsRed1 · 26 January 2010 at 7:08PM

What's LBM? Saw it on a couple of other threads.:)

londonfraggle · 26 January 2010 at 7:39PM

Light Bulb Moment! that awful moment when you realise how much debt you are in and that you actually have to take your head out of the sand and do something about it. Some people can have a fair number of LBMs before it really hits home - I know I had 2 or 3 before I finally had the REAL LBM!!

nonnynonny · 27 January 2010 at 10:59AM

Thanks

D-Day is tomorrow, my mortgage payment was due on Monday, but i rang them and re-arranged to pay it on Thursday (payday), i will then change the direct debit to my new Barclays account from Cahoot.

I will then drain the Cahoot account over 2 days, pay off a Barclaycard (To keep me in the clear with them for my new account, they have not been included in DMP - £628), and then cancel all direct debits from the Cahoot account, they are mostly due out on the 1st.

I will then deposit £630 into my new Barclays account to last for the months food and bills which i will pay by debit card for this month, and set up new direct debits for next.

Hopefully then get DMP pack, issue £5 token payments to creditors in February, and pay first months DMP to CCCS on 1st March, for distribution on the 25th March.

Sound like a plan?

pure_dead_dopey · 27 January 2010 at 11:13AM

Well done so far, just watch your DD dates, it can take a couple of days to set up new DDs, most will accept a phone call but some will want you to do it in writing, our mortgage had to be changed in writing for example. Most companies run a pre-run for DDs a couple of days before so you have to take this all into account when changing.

nonnynonny · 27 January 2010 at 12:05PM

I am hoping to make debit card payments in February for them and then arrange new direct debits in March.

There is only the below to arrange :

TV Licence (Due 11th Feb)
Council Tax (Due Not Payable this month)
Virgin Cable (Due 15th Feb)
Car Insurance (Due 14th Feb)

So hopefully i can sort it.

Its when i cancel direct debits and they all find out, that i am dreading slightly.

I went into my credit card accounts 3 months ago and deleted all mobile phone numbers, and left them with a duff landline number, so hopefully i can remain incommunicado by phone.

nonnynonny · 28 January 2010 at 5:11PM

Had a bit of a wobble this morning, half an hour deep thought, then i went for it, cancelled all direct debits, stuffed the CCCS envelope with all required information, put it in the post box, and emptied my cahoot account at lunch time.

Send notifications and token payments tomorrow, and then i suppose the worst part begins. Wish me luck.

pure_dead_dopey · 28 January 2010 at 7:07PM

well done you're taking control. I can honest say that, so far, no one has been awful. They have, accepted our DMP mostly and I've only spoken to Egg and Cap One, both of whom were very polite and sympathetic and they cancelled the interest and charges. So it might not be that bad. I think like you its just the not paying the bills thing that got me the worst.

nonnynonny · 29 January 2010 at 8:54AM

Thats good to hear, it makes so much difference to read these forums and hear from people who have started and had all things accepted, gives us new people confidence.

I imagine next week will start the mail, and hopefully i will receive no phone calls.

nonnynonny · 29 January 2010 at 1:30PM

Letters are all prepared and sealed, tokens will be on their way by recorded delivery this afternoon, then off we go.

I will keep up-to-date on here, as i have found before i began the journey on my DMP that these diary threads were most helpful and supportive. - Unlike anyone over on the CAG forum.

My LBM - DMP In Progress

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