DMP Mutual Support Thread (Part 5)

marfan_not_martian

Morning everyone - Just been catching up on all the posts.

With regards to the Halifax this is one of my main creditors and from reading your posts I am seriously considering putting of starting my DMP until the Halifax have received a couple of £1 token payments from me. That way they might just pass the account over to their in house Debt Collectors and the interest is more likely to be stopped - then I could start my DMP - Does anyone have any advice regarding doing this.

Any help or comments gratefully appreciated.

MNM

dlb

I never sent token payments to any creditor, went straight for the dmp when i hit my LBM.

Took about 8 weeks for them to recive their first payments via my dmp company, yes they were not happy, but not one refused the payments and after the 3rd payment they recived they all stopped interest and refunded me charges they had applied since i went on the dmp.

Its different with different creditors..mine where
Halifax, Natwest Loan, Natwest Back account overdraft, Rent Arrears with local council, Creation finance, Egg, Cabot,Studio, Argos, Natwest credit card, Littlewoods store card, monument,

I personaly cant see the point in deleying starting a dmp if thats what you have decided to do, as the sooner its up and running the sooner creditors will see you intend to pay and the sooner interest hopefully is stopped.

Good luck in whatever you decided.
Donna
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marfan_not_martian

Thanks Donna for your advice. Yep I understand what you are saying and maybe you are right the sooner I get this sorted the better. The only 2 creditors that I have now missed a payment on are credit cards the others creditors which payments are upto date on are a couple of catalogues and the bank overdraft. Did your creditors not question why you had just gone straight for a DMP when you had been paying them on time beforehand?

dlb

marfan_not_martian wrote: »

Thanks Donna for your advice. Yep I understand what you are saying and maybe you are right the sooner I get this sorted the better. The only 2 creditors that I have now missed a payment on are credit cards the others creditors which payments are upto date on are a couple of catalogues and the bank overdraft. Did your creditors not question why you had just gone straight for a DMP when you had been paying them on time beforehand?

They didnt have chance to ask me, from the day i went on the dmp, i would speak over the top of them when they phoned and tell them to contact my Dmp company regarding payments as they now had control over the account, and then hang up.All letters statments were sent straight to the dmp company and they delt with it all.

They soon got the message and stopped phoning and delt directly with my dmp company.

The creditors get a finacial statment sent out to them, When i first did a detailed FS i was shocked at the amount i had `spare` for creditors, i had plodded on struggling to pay minimum payments on time, never once did i take into account things such as haircuts, kids dinner money, entertainment money, xmas and b.day savings...these are all things which need to be account for and you need and are allowed to put in your finacial statment, creditors are not allowed to say you dont need that..just because we are in debt doesnt mean we have to go without!
I was even allowed to account for 2 cars which we had at the time (we have since sold one and got hubby a push bike..saves money and helps him stay in shape!!) Even though i didnt work my husband need 1 car for work and they allowed me the second car as they said i needed it for school runs and shopping ect, so 2 lots of petrol,tax,mots allowed for on finacial statment.

Its hard...the hardest thing iv ever done...but by far the best thing iv ever done, i was at rock bottom and couldnt go on the way we were, the day i picked the phone up and got it sorted was amazing, i cried, laughed and for the first time in months smiled. And its been great ever since, i feel in control again, iv learn a lesson the hard way, i now have savings for the kids, money put away each month for emergencys xmas b/days ect, its turned me into the best budgeter ever.

Just do whatever is best for you in your situation but dont ever be ashamed or worried, you are dealing with it and not sticking your head in the sand.
Well done
Donna
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marfan_not_martian

Thanks Donna
I was a little worried because has I had managed to make the monthly repayments on some of the debts I thought they might get a bit shirty just going straight to a DMP. But I am gonna take what you have said on board and if they phone use the same tactics as you.

I know its not going to be easy but its got to be sorted and I dont want to go down the road of a bankrupcy I want to pay my debts.

Could I ask another question - sorry if this sounds stupid!
I completed the CCCS debt remedy Income and Expenditure form online and have received the first letter from them together with a letter to send to all my creditors. When I send the agreement off to CCCS do they go through your expenditure with you and make you cut it down to the bone - I have not been extravagant with items but do they let you include for clothes and such items or is it just a case of you are allowed to account for the main priority bills like rent, rates, water utitlities food etc.

Thanks
MNM

newlywed

If you've filled in the figures online then they take those figures and only after 3 months do they do a review of the figures (and you can tell them they are all the same/increased/any monthly payments you left out by mistake).

They don't make you cut it down to the bone, they just ask what you spend out. You are meant to be able to live, survive, have heat and food while on a DMP

Though obviously the more you pay to your DMP the quicker you become debt free - but the way prices are increasing, it's better to add a bit of extra leeway in for when they rise again

I only made one token payment as I signed up to the DMP - no-one questioned why I'd gone into it - but then again no-one would give me even £50 more credit so I guess it was kinda obvious

dlb

I was told all those yrs ago, that the govement issue a list of how much is allowed for each item on a finiacal statment depending on the size of your family ect, when i was asked for how much i spend on shopping..i was asked if that was really enough to feed a family of 6 all month (im a good budget shopper!!) and although i wasnt told the highest amount i was allowed was told i was alowed alot more than i had stated, so i raised the amounts to give me more change to get used to being on the dmp.

Within months of being on the plan i realised i was coping fine and increased my dmp payments, and i have done this 3 times in 3 years, as you get further into the dmp you see where you were overspending and learn to make little cut backs allowing you to pay more off your debts.

I started off paying £200 a month, 3yrs on im now paying £400 a month...something i never would have dreamed i could do 3 years ago, it is a learning curve but it is alot easier to make cahnges in your own time once the creditors are off your back, you have time to play about with your budget without worrying where the next debt payment is coming from.

Hope that makes sense.

My current FS allows for.
rent
home contents insurance
council tax
breakdown cover car
car insurance
car tax
petrol
power gas/elec
tv licence
pets( allowed for insurance food)
food( xmas savings come from this in my budget)
clothes/haircuts
broadband
work meals
land telephone
mobiles
school meals
appliance insurance.(i cover my washer, drier and hoover)

marfan_not_martian

Thanks Newlywed and Donna for the speedy replies.

My mind is a lot clearer now thanks for your support - I am gonna get the paperwork off today/tomorrow and get the ball rolling on this DMP

I am proud to be dealing with my debts now and feel much more positive.

dlb

That makes complete sense, its money that you will be spending so need to account for it. This is money that is not spare for your creditors as you NEED that money for yourself and your kids.
Dont leave yourself short anywhere or the dmp will not make your life easier, the whole point of a dmp is to pay your debts off whilst enjoying a life where you are not left without the every day needs of your family.

Be proud, you are sorting your debts out, life will be better!

Good luck
xx

dlb

Also a method i use since my dmp was up and running.

If you think you are in a postion to raise your dmp payments to clear the debt quicker, rather than doing it straight away, put the extra into a savings account or safe place and try to manage without it for a few months...if you manage to do this then yes you can cope without it so go ahead and up the payments.

Easier than raising the dmp payment then realising your streching yourself too much.