Advice on Dmp

SCANIA2000

I have been looking at my options as we are £61,000 in debt .
We keep topping up our loans with other loans.
I filled an email in on CCCS and a DMP was reccommended!!!!!
Can anyone advise me if this is the best way as it seems really scary to me?
Do you get lots of nasty letters and phone call?And how long are you blacklisted for?I dont think we can keep going as we are but still not sure if this is the best way

Jules

I was roughly in for the same amount as you at the start of my DMP and it was the best thing I ever did. I was doing the same taking more and more credit to try and keep our heads above water and eventually couldn't manage any more.

Yes you will be blacklisted, but do you really ever want any more credit? I know I don't. I don't know how long it lasts but I presume its 6 years from the last debt is paid, but I don't know for sure.

You will get letters and phone calls and you will have to develop a thick skin and stand your ground with the creditors and don't let them bully you. It takes a few months for things to settle down after starting a DMP but usually things do quieten down eventually.

Some debts will be passed to Debt Collection Agencies but generally these are easier to deal with as they buy the debt at a reduced rate.

I am a fan of the CCCS as without them I don't know where I'd be. It's going to take me another 27 years at my current DMP rate but I will get it paid eventually.

Good luck with whatever you decide.

Jules

SCANIA2000

Thanks for your advise ,
Its just because eveything you buy is on credit, you worry how you will buy new things, buts that is why i am in this mess.
Did all your creditors stop the interset

Deep_In_Debt

Hi
I've been on a DMP with CCCS since the beginning of the year. Generally things settled within a couple of months and most of my creditors were very quick to accept the DMP and freeze interest. One or two (and one still is!) were a bit awkward and refused to accept it - eventually one did and one still won't.

I generally don't speak to them on the phone - I just ignore the phone. However, when I first started the dmp, I did speak to them all, explain that I was on a dmp with CCCS, gave them my CCCS ref no and hung up. That way, they didn't get a chance to bully me. As I say, now I just ignore them and ask to deal in writing.

Generally, the dmp has been great. You've just gotta ride the storm for the first couple of months and be strong.

Good luck with it.

Jules

Yes, I was lucky that they all stopped interest, unfortunately 2 have just started adding it again but I am going to plead with their better nature regarding this.

I have a really good budget in place and budget for everything I can practically think of. It will take a while to get one up and running but when you do you will hopefully have money put by for all your needs.

I bank with Nationwide and have opened around 10 e-savings accounts for different things including xmas, birthdays, car ins, car tax, servicing, medical (dental prescriptions etc), oil heating - you name it and I probably have an account for it!

The only thing I am struggling with at the minute is the price of my weekly shop, so I have joined the Grocery Challenge. Mind you it's still not going too well for me but I'll get there! Join a challenge or 2 on here and help keep the motivation going.

Jules

Deep_In_Debt

Also, once you get used to living on the budget that CCCS give you (which is actually quite a good budget), you may find that you can live on less every month. I've managed to live on about half of the groceries budget that CCCS allowed which means I can save the rest of the money in a nice high interest savings account for emergencies.

I've been used to living on credit most of my life which is why I'm in this mess. Tbh, I don't miss it now. If I want to buy anything it means that I have to save up for it and pay by cash. Often, I find that by saving for a few months I don't buy the thing in the end so maybe I didn't really need it in the first place!! I take a certain amount of cash out with me at the beginning of the week, which is what I need to live on and leave my card at home so I can't be tempted to overspend that way.

Good luck and I'm glad to chose CCCS.

SCANIA2000

Thanks for the advise !!! Like you said not saving for things got us into this debt in the first place. Did you take the maximum CCCS offered you on the essential things like petrol and sundries , or did you reduce them!!!Just think years seems a long time !!! Or would it be wrong do leave our selves short.

Deep_In_Debt

I took the maximum that CCCS gave me. After a while, you get used to living within your budget and it's not that hard to do - just some lifestyle changes which you hardly notice. CCCS originally told me it would take 9 years to clear my dmp but I've managed to reduce it to just over 5 since I've been on my dmp through saving money and offering some full & final settlements on some of my smaller debts and I've had a couple of pay rises meaning that I can afford to pay more to CCCS.

As I say, by saving on some some things - like food - you could put the extra money towards petrol and sundries if you needed to. CCCS will ensure that you do not leave yourselves short and if that happens, then contact them and they will review your payments.

SCANIA2000

Mine was about 9 years so I changed things to get it down to 7 but after your advise I might change it back !!!
When you change bank accounts do you have to tell them when you start your DMP,and can you still have a debit card ?

I was worried if something electrical went and had to replace because we have always had it on credit what do you do . Or do you usually have savings sine you had you plan .

Sorry !!!!! Just so confused did not sleep las night worrying !!!!!

Deep_In_Debt

No problems. I'm hoping I'm helping.

I didn't tell the new bank about my dmp - they didn't need to know as far as I was concerned. Make sure you choose one not linked to any of your creditors. I went for a Natwest Step account with Solo card which you can open on line so no questions asked. Another popular one is the Co-op Cashminder account with Visa Electron but you will need to phone them. Make sure you go for a basic account. Barclays do a basic cash account with cashpoint card only but I think Abbey might do a basic one with Electron card.

I use my saved money for anything electrical that might break although CCCS do allow you some money for that within your budget anyway but it's best to have some extra saved, just in case.

getmore4less

With a DMP of 9 years you may be better off looking at other options, IVA or even bankruptsy,

Will depend on what assets you have like equity in a house and what the SOA looks like but 9 years is too long