DMP Mutual Support Thread (Part 5)

newlywed

massivedebts wrote: »

I can't budget and DIET:eek: at the same time, I'd have nothing to look forward to.

If you do ever decide to do both - pop over here http://forums.moneysavingexpert.com/showthread.html?t=1326845 Tis a friendly place

jojo1964

newlywed wrote: »

Hi jojo.

Basically the DMP company work out how much income you have, then they take off how much you need to live and pay your bills etc. The figure that is left is then divided fairly between your creditors (based on how much you owe to each) and your creditors are asked to stop interest.

It's not a formal arrangement like an IVA so if your income or expenses goes up or down later, you can vary the figures paid but in addition, the creditors don't currently have a legal obligation to stop interest - most do, some charge a nominal amount eg 1% above base rate, some are more stubborn

If you are thinking of contacting a DMP company for advice - make sure it is one that doesn't charge a monthly fee - that way more goes to pay your debts - CCCS or payplan are the two most recommended.

So basically, as long as you stick to your budget figures, you can live, pay all bills, save for emergencies, car tax etc and just the "left over" money goes to the DMP company to pay your debts.

Thanks for that, i have gone with PayPlan

dlb

For anyone who is reading and thinking about going on a dmp..please dont do what i did which was go with a fee paying company i stuck with them for almost 3yrs and have now changed over to payplan, if i had gone with payplan/cccs at the start i would be almost debt free now!!!

Anyone that is with a fee paying company...changing over to a free one has been so easy...so really consider changing over and clearing the debt quicker.
Donna
x

carlos700

Morning everyone i used to be a regular on this thread at one time but i havent been on for a while . My DMP is with CCCS which are excellent but i now wish and feel confident enough to go it alone with my DMP .I just want to feel in control myself of my payments . Is there anyone on here doing there own DMP i just have one query how do you make your payments to creditors ? do you have a DD or standing orders set up .
Thanks everyone your all a great bunch

faye6174

Can anyone tell me their experiences of getting agreeance to DMP's from Natwest, Close Finance, BArclaycard, First Direct. Do they generally agree or will they fight to make you bankrupt?

newlywed

Hi, welcome.

The only creditor I have in common with you is First Direct. They accepted straight away and reduced interest to 1% above base rate, but refuse to completely stop interest - still with the base rate so low at the moment, I'm not complaining - it's better than the 19% interest I was paying!

As for your budget - CCCS will advise you if they think your budget is taking the mick and if creditors are likely to question it - no-one else has questioned my budget at all

The best thing to do with regard to tv/phone etc is ring them and ask if there is any way you can reduce the costs - they can only say no! If they do then you will just have to put that down and ask CCCS to make a note that it's under contract so you can't change it - should stop too many questions.

Hope that helps a little, hopefully someone else will help answer the bits I couldn't

Don't apologise - everyone on here has had questions about the DMP - that's why we stick around to try and help others - we know what it's like.

Daffykjs

I have received one letter (from MBNA) saying they accept the offer and remove the interest and payments as long as the payments are kept up! Yay!

Northern Rock and Egg however are being more awkward! Most of my debts are in my maiden name. I got married nearly 3 years ago and had already stopped using most of the cards etc so didn't bother changing them. Didn't see the point!

So my creditors are in a mixture of names! And these two don't like it! I've had to send a second letter of authority already with both my signatures on but still not enough!

they want proof of name change! Can't help thinking they are simply stalling (as i assume they are still charging whilst this is going on! Egg are anyway). And the poor lady at Payplan is being bombarded with this ridiculous problem!

So now i have to write letters about my name change with photocopy of marriage certificate! And here was me thinking it was all sorted!! Oh well, minor really I suppose, I am getting there!

Does anyone know if there's a letter template on here somewhere for this by the way? No worries if not!

Also didn't quite manage my budget this month! I have 20p left in my bank and payday not til a week today! however i'm not worried and that's not as bad as it sounds. i over pay into the bills account (plus no council tax coming out this month) so there is money for food and petrol in there i can use! phew! Amazed at how calm i am about failing at the budget first try tbh! Next month i intend to actually write everything down to see where i'm going wrong (i think i know but will help to see it!) But at least i haven't gone into the red in my account! (just hope there's no surprises between now and next wed)

Oh and one more thing! I'm getting a bonus this month! woohoo! we got the letter saying how much this week! still not exactly sure how much coz it's before tax! but it's good considering i've only been here 6 months! I'm well chuffed! Means i can afterall go on my annual hockey weekend in May (I couldn't go last year due to all this and i spent most of the weekend in tears) and also get my hair done finally! and also will be able to go to the gigs we want to this year! I did consider paying into my DMP but to be honest it's not much so wouldn't really make that much difference and I think it will be much better served being put away for presents or events or things that might come up! I certainly shan't be rushing out and spending it all tho! and it also won't stay in my account, coz money seems to dissapear from there! look at me being all sensible and planning! hehe!!

Sorry that ended up a bit of an essay! Only meant to talk about the name change stuff!

massivedebts

faye6174 wrote: »

Hello I am reasonably new to Mse and today have just taken a very big and long overdue step and clicked on the 'request DMP' button with CCCS.

I have so many questions and i hope that those of you with experience will be able to answer them for me.

We are a couple with a house and mortgage, scraping by paying the minimum and living on credit. I want to get everything sorted so that i can have a bit of time off and, (god willing) start a family. This is not an option at the moment.

Can anyone tell me their experiences of getting agreeance to DMP's from Natwest, Close Finance, BArclaycard, First Direct. Do they generally agree or will they fight to make us bankrupt?

I have read that you should cancel direct debits a couple of months before starting DMP is this correct? We need to buy OH a push bike (will reduce fuel costs and pay for itself within 2 months) should this be with the money we would have spent on repayments?

Will creditors accept the budget that we have supplied to CCCS? will they come back and say ...'you should spend less on'....

Also, we are in a contract for our tv/internet/phone, i would gladly reduce/cancel but will they allow it? i suppose they should be glad to get something rather than nothing?

Sorry for the length and i am sure there are so many more questions...

Hi Faye
Welcome to the board:j

You've def come to the right place.

I 2nd Newlywed's comments. The only creditor I have the same as you is Barclaycard, but I haven't sent them my notification of DMP yet and as I've always made my payments in the past not sure what to expect really.

CCCS are who we have decided to go with and have been great, I orig did my budget online, but after speaking to them it has increased by nearly £200 by month, I'll be treating everyone on here to a drink at this rate ... LOL!!!;) :rotfl: . The range of what is an 'acceptable budget' appears to be huge so I wouldn't worry, just listen to CCCS , they know what they're doing and between them and the lovely people :A on this thread, you will be fine!
Lots and lots of luck
MD xx

2spicy

faye6174 wrote: »

Hello I am reasonably new to Mse and today have just taken a very big and long overdue step and clicked on the 'request DMP' button with CCCS.

I have so many questions and i hope that those of you with experience will be able to answer them for me.

We are a couple with a house and mortgage, scraping by paying the minimum and living on credit. I want to get everything sorted so that i can have a bit of time off and, (god willing) start a family. This is not an option at the moment.

Can anyone tell me their experiences of getting agreeance to DMP's from Natwest, Close Finance, BArclaycard, First Direct. Do they generally agree or will they fight to make us bankrupt?

I have read that you should cancel direct debits a couple of months before starting DMP is this correct? We need to buy OH a push bike (will reduce fuel costs and pay for itself within 2 months) should this be with the money we would have spent on repayments?

Will creditors accept the budget that we have supplied to CCCS? will they come back and say ...'you should spend less on'....

Also, we are in a contract for our tv/internet/phone, i would gladly reduce/cancel but will they allow it? i suppose they should be glad to get something rather than nothing?

Sorry for the length and i am sure there are so many more questions...

Faye, firstly welcome. Secondly, your DMP councilor / advisor will give you a full breakdown of what you are entitled to have as an expense BEFORE your creditors get paid. Things like TV / Internet etc are classed as Luxery, but can be easily "lost" ,, ie th ePet allowance and Haircut / Glasses / Prescriptions allowances can easily swallow up the Mid sky package with internet and phone, plus, if your careful with food budget, there are savings to be made too.

Dont use the DMP as an excuse not to start a family, We can sympathise as we would like another child but were waiting until the epmoyment laws change in 2010. Well still be on the DMP, but why should you put your life on hold ? If it happens then the creditors will have to have less money off you .. Easy !!.. plus your allowances for food / baby essentialls all lend towards more cash in your pocket.

We have a loan and a creditcard with Barclaycard, and, to be honest, aside from the initial notification letter informing them of our DMP ref, and one statement saying we were in arrears on our payments, we have not heard a word from them.
MBNA and Egg have been our worst.

The key thing to remember, the DMP allows you to live and pay off your creditors. Living, food / heat and paying essentials like mortgage / council tax / utilities all come before your creditors.

Incidently, if you can accept you will be hassled by phone, stop paying your creditors as soon as possible. Send them token payments and play the hardship card.
Save all the money you would normally give to them as a buffer and, just wait for the dmp to kick in, in the mean time, get yourself used to living on a budget of £50 - 80 a week for 2 for food. ADSA value brands are are very good btw !!

candygirl

Have had yet another threatneing letter off MBNA today about court, ccjs etc.They know I can't afford to pay them anything at all, they've gpt my budget and still keep threatening.Have tried to ring them and CCCS but both are busy, can they realy send bailiffs round to get my stuff or is it just a threat?