Credit Crunch & dmp?

giddykipper

Hi everyone

I hope you don't mind me posting and asking what is probably a pretty dim question, but I don't really understand all the ins and outs of this credit crunch business.

I get that its mainly due to bad debt ..... which, having a dmp, is something that I must have contributed to.

My worry is, how will it affect my dmp? Can the banks that are going under or in trouble demand all their money back? Can they demand higher payments from me? Or are us dmp-ers really just small fry to them?

I'm just a bit worried that, after 2 yrs on a dmp, and just about coping, I'm going to end up back at square 1 (the calls, the letters, the sleepless nights, the crying etc etc.) if they suddently start demanding money I don't have.

Thanks

Jo

dodecanese

Hi
I would imagine that with the impact the credit crisis is having on the banks, it may make them a bit more desperate to claw whatever money back they can. Maybe they'll get a bit more aggressive/hardline in their collections tactics.

The important thing for you is that you are on a DMP with a reasonable/within the BBA guidelines budget.
You can't pay what you havnt got. If the banks demand more/all of it, just refer them back to your budget. It shoudnt affect your DMP at all, just keep on paying what you can.

Worst case is one of them could get unhappy with your level of payment and go for a CCJ- but it's down to the court to decide what you pay, not the bank. The court will also not make you destitute, and as long as your outgoings are reasonable (ie no huge Sky packages/gymn memberships etc), the payments are generally set at a level you can manage.
As long as the CCJ payment order is kept up with the creditor can do little else.

If your'e concerned, it may be worth ringing your DMP provider up, just to get advice and peace of mind.

giddykipper

Thanks for the reply.

I've already emailed my dmp provider, I'm just waiting for a reply and stressing in the meantime!

But you're absolutely right, they can't make me pay what I don't have and luckily I don't have any secured debt (except mortgage obviously) so I suppose the worse case scenario is a court case. (mind, thats bad enough)!.

Thanks again

Jo

Lelc

giddykipper - I've been wondering the same thing. I've got review of my dmp tomorrow so I think I'll ask about this as dodecanese suggests. I'll let you know what they say.

I must admit it is worrying me that one of the creditors might go for a ccj.

Miss_Piggy_2

This is something that has crossed my mind too so will be interested in reading the replies.

However, ultimately, like the previous poster sai, they can only take so much off of you. I pay every penny I can and I know I have no outgoings which could be classed as frivolous. So theres really no leeway.

Don't worry too much though.

Miss P
x

giddykipper

That would be great, thanks, who are you with? I'm with Payplan.

Lelc

giddykipper wrote: »

That would be great, thanks, who are you with? I'm with Payplan.

I'm with payplan too. I've been in my dmp for the last 2 years but still about another 3 years to go.

giddykipper

Oh right, thanks, it will be interesting to see what they say about it. If they email me back in the meantime, I'll let you know what they say.