Considering a DMP

andreweduk

Ok, so I owe about 10k, spread over an overdraft, two credit cards, a loan and two store cards.

HSBC Loan - £3700 - £125 p/m
HSBC C/C - £4400 - £120 p/m min
Benefical C/C - £1700 40 p/m min
HMV Card - £270 10 p/m min
GE Money Store Card - £180 7 p/m min
HSBC Overdraft - £1600

I'm paying a staggering amount in charges both on cards and my overdraft at the moment and I just can't go on like this, I got paid last week and I have £50 to get me to the end of the month

I'm considering a DMP, having looked on cccs website, however I'm not sure if this is right for me. It looks like it'll cut what I'm paying, but will I need to open a new bank accoutn elsewhere? If I do, will they give me the facility to pay Direct Debits, or will they even give me an account at all? I'm really worried about the effect it will have on me being able to pay bills etc.

I see cccs want you to pay on 1st of each month and I get paid by cheque on 1st of each month, so this may also be a problem :S

Had anyone had any experiences of doing a DMP if you have debts with HSBC? My debts are having a negative effect on my life, they're a constant worry! I try to spend as little as possible, but with charges, repayments and household bills, I still have less going into my account than I'm expected to pay. I earn around £1070 per month.

Any advice would be valuable!

Andrew

Deep_In_Debt

Hi and welcome
Yes, you will need to open a new basic account if you owe your current bank as that will be included in your dmp.

I opened a Natwest Step account on line. You can pay SO's, DD's and have your wages paid in. There are other basic accounts around that perform the same.

Good luck.

debtmuncher

hi!
the cccs will cut what you are paying out to your creditors because you simply wont have that same amount of money for them.

what they do is re assign your money to make sure your priority bills/living expenses ranging from food right down to entertainment/emergency fund. then anything left will be allocated to the creditors.

if you do the cccs debt remedy then you will see for yourself what you should be living on each month and beleive me (i am just currently getting started on a dmp with cccs) life is so much less stressful compared to juggling everything about before and the constant charges.

do a statement of affairs....the link is somewhere if you can find it but i just about to go off myslef and find it for you!

andreweduk

Thanks for the replies so far

Should I try and open a new bank account before filling in for a DMP do you think?

I've read through on here what other people have been advised and I'm thinking a DMP may be right for me. I don't want to have 100s of pounds to spend, I don't do that now and I don't want to

It seems by filling in the thing on cccs that I can reduce my payments to £270 a month, which obviously, when I take into account £150pm bank charges etc, will mean I'll be much better off and ACTUALLY repaying, not just paying interest and getting deeper and deeper into debt!!

Thanks and keep the advice coming, I appreciate it! Andy

debtmuncher

andreweduk wrote: »

Thanks for the replies so far

Should I try and open a new bank account before filling in for a DMP do you think?

I've read through on here what other people have been advised and I'm thinking a DMP may be right for me. I don't want to have 100s of pounds to spend, I don't do that now and I don't want to

It seems by filling in the thing on cccs that I can reduce my payments to £270 a month, which obviously, when I take into account £150pm bank charges etc, will mean I'll be much better off and ACTUALLY repaying, not just paying interest and getting deeper and deeper into debt!!

Thanks and keep the advice coming, I appreciate it! Andy

going by my experience the quicker you get an account opened and all income transferred to it the better!!! dmp will take about 3 weeks at least.

whatever bank you go with just make sure its not linked to any of your creditors as they would be able to touch your funds.

i am with rbos that took about three weeks. abbey just took a couple of hours but unfortunately that came with an overdraft (i did say basic but for some mad reason the chappie gave us current accs which are no use to you)

debtmuncher

oh...would you be able to put up your statement of affairs so that the more experienced members could see whats what and see where you could cut down? link is in my signature.

cheers!

Fish75

There is an alternative away from DMP option that has the added advantage of not damaging your credit rating.

If your debts were taken out before April 2007 and are unsecured it is almost certain that the Credit Agreements that you signed are not legally enforceable and as a result the debts can be written off entirely.

If successful the contract is deemed not to be valid and instead of a default/ccj the account is removed from your credit profile as though it never existed. So you lose the debt without the impact a DMP would have on your credit profile.

I've worked in finance for over 5 years now and have followed the developments of the above - Have just submitted my accounts totalling just under £20k to be written off.

If you want details of who I used so that you can check them out for yourself drop me an email on [EMAIL="duncjc@msn.com"]duncjc@msn.com[/EMAIL].

Good luck with whatever option you decide to go for.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=14836523"][/EMAIL]

Cyril

Hello,

I was just like you I was making payments to my creditors and was never late and had a good credit history, the Banks then started increasing the int rates and reducing credit limits and I had a light bulb moment to realise I would never pay these debts off.

So I opened a basic bank account and arranged a DMP with the CCCS and have never looked back, things seem to have settled down, but I'm not saying it won't get tougher as creditors get more ruthless, but the relief of not getting into more and more debt each month robbing Peter to pay Paul is great.

I'd say just go for it.

Numpty_Monkey

Please ignore the advice from Fish75 he is recomending going to a fee paying company, for an IVA which if suitable for you CCCS would do at no charge

debtmuncher

Numpty_Monkey wrote: »

Please ignore the advice from Fish75 he is recomending going to a fee paying company, for an IVA which if suitable for you CCCS would do at no charge

is that what it means? i wouldnt have got that from the post!

candy-magnet

Fish75 wrote: »

There is an alternative away from DMP option that has the added advantage of not damaging your credit rating.

If your debts were taken out before April 2007 and are unsecured it is almost certain that the Credit Agreements that you signed are not legally enforceable and as a result the debts can be written off entirely.

If successful the contract is deemed not to be valid and instead of a default/ccj the account is removed from your credit profile as though it never existed. So you lose the debt without the impact a DMP would have on your credit profile.

I've worked in finance for over 5 years now and have followed the developments of the above - Have just submitted my accounts totalling just under £20k to be written off.

If you want details of who I used so that you can check them out for yourself drop me an email on [EMAIL="duncjc@msn.com"]duncjc@msn.com[/EMAIL].

Good luck with whatever option you decide to go for.

Hi,

I'm interested in this, I have £26,000 debt and looking at DMP, they are all credit cards and two overdraft limits. How did you go about it, and who did you use?