DMP Mutual Support Thread (Part 5)

MRSG2B_2

MadDogWoman wrote: »

Hi Icecube,

I think they are a bit quicker, MrsG2b has been offered a managed loan straight away - new policy?

Had a phone call of a very surprised Metropolitan this afternoon, they've received a payment from the CCCS, they were just confirming that I was on a DMP, they were requesting budget information, which CCCS are sending direct.

MDW

I love this forum, its so good to hear what is likely to happen next....hopefully they'll just pass my debt over ASAP as I'm really fed up with the HSBC phone calls now! If they'd helped me when I'd asked for it earlier on in my problems then I might not be in such a mess now!

Had a default letter from Additions Direct (Littlewoods) yesterday, not had one of these before....do I need to take any action or just ignore? Logged in to check the online statement for that account today and I know they're in receipt of the information now as I no longer have a credit limit on the account and they've added my BNPL to the credit......this is all so scary and new but I know now that I can face my debts and do this :j

bobdauilda

Given that a lot of the problems with consumer debt have been created by the irresponsible lending of the banks, why don't the government review the current methods of tackling debt in the UK?

Informal offers of payment to creditors by the debtor or DMP through companies like Payplan are not guaranteed to be accepted by the creditors and its at their discretion to freeze interest payment or not during this time. This can still subject people to court action and a huge amount of stress.

The alternative is an IVA where they have to freeze interest payments and the total debt remains static, but then tie people in for 5 years with a major effect on their future credit ratings. I suspect most of the takers of these are people unlikely to have a major change of financial status within that time period and is ideal for them. But what about those people who have had a blip in life where they've been excluded from work through injury but are likely to return to high paid work within a year or two, or are expecting a large lump sum from a pending court case in that timeframe? They aren't catered for at all.

What we need is an additional plan similar to a DMP but which guaranteed that the interest would be frozen so that repayments actually make a dent in the total owed. Making DMPs exempt from legal action would be a bonus too. This would essentially make it a formalised agreement but at least it would be a halfway house between that of an IVA and informal dmp.

Any thoughts Gordon Brown?

[Deleted User]

Hello All

I've started my DMP this month - due to make my first payment to PayPlan next week.

I've opened a new bank account and cancelled my major direct debits. BUT... I checked my previous bank account and they have charged me interest on my overdraft - now it's gone over my overdraft and they are going to charge me for that!?

What do I do? Do I just leave it and let it add up until PayPlan get in contact with them? It's a little scary, I'd really appreciate some advice.

Thank you in advance!

Hx

rcpbiggles

I have a Tesco Credit card with zero balance that I used to use to earn clubcard points (everything you spend on it collects points). I stopped using it when we were struggling to make repayments on everything else, but this is clear.
I was wondering if I could continue to use it to collect points but use it like a prepaid card - ie put a lump sum on it so I am in credit then only spend what I have on it. This way I'm not using credit, but I can still collect points.

These points are invaluable for us to get days out for the family - can't really afford anything the usual way!

Do you think I could do this or would it affect my DMP?

MRSG2B_2

bobdauilda wrote: »

Given that a lot of the problems with consumer debt have been created by the irresponsible lending of the banks, why don't the government review the current methods of tackling debt in the UK?

Informal offers of payment to creditors by the debtor or DMP through companies like Payplan are not guaranteed to be accepted by the creditors and its at their discretion to freeze interest payment or not during this time. This can still subject people to court action and a huge amount of stress.

The alternative is an IVA where they have to freeze interest payments and the total debt remains static, but then tie people in for 5 years with a major effect on their future credit ratings. I suspect most of the takers of these are people unlikely to have a major change of financial status within that time period and is ideal for them. But what about those people who have had a blip in life where they've been excluded from work through injury but are likely to return to high paid work within a year or two, or are expecting a large lump sum from a pending court case in that timeframe? They aren't catered for at all.

What we need is an additional plan similar to a DMP but which guaranteed that the interest would be frozen so that repayments actually make a dent in the total owed. Making DMPs exempt from legal action would be a bonus too. This would essentially make it a formalised agreement but at least it would be a halfway house between that of an IVA and informal dmp.

Any thoughts Gordon Brown?

I'm totally with you on this....any of the trillon dollars going towards this? I think not!

You can do all you like to try and save the economy and business Mr Brown, but if we're all crippled with personal debt it'll still struggle anyway! Help solve the personal debt, and we might be able to save the economy

rachaelfleur

Hi everybody, haven't been on here for a while work has been hectic with it being month end. This has been a terrible week, a work colleague was killed in the helicopter crash and my cousin witnessed it from another helicopter, so it's been quite an emotional few days.

On a good note, my rent and coucil tax arrears are now paid and I start my DMP on the 1st June. Ever since I sent token payments I've had absolutely no communication from creditors. Not worried though, just feels good to be back on top of things.

I haven't had a chance to read any recent posts, so I hope everyone's doing well with their battle against debt.

bigmommamuppet

rcpbiggles wrote: »

I have a Tesco Credit card with zero balance that I used to use to earn clubcard points (everything you spend on it collects points). I stopped using it when we were struggling to make repayments on everything else, but this is clear.
I was wondering if I could continue to use it to collect points but use it like a prepaid card - ie put a lump sum on it so I am in credit then only spend what I have on it. This way I'm not using credit, but I can still collect points.

These points are invaluable for us to get days out for the family - can't really afford anything the usual way!

Do you think I could do this or would it affect my DMP?

I'm not sure on this one. It's something I've thought of too. I have a BC CC with no balance and have only kept it for dire emergencies. Mind you they cut the credit limit by ½ recently stating due to my financial problems so I presume they check your credit file from time to time.

If your doing a self admin plan then I don’t see there being a problem, but if you’re using a company then I would check with them as you may be in breach of the T&Cs.

bigmommamuppet

Hi Rachael

Sorry to hear about your colleague. I work in the Oil & Gas Industry so we're all pretty shell shocked at the moment.

:beer: and well done on getting update with your rent etc.

pageee2004_2

Hi all

Just wanted a bit of advice from those of you in the know really, if you don't mind.
I've just had my first telephone call (appointment) with Payplan, and the outcome being that we can either go on a DMP for 9 yrs for £64000 worth of debt ( i am bowing my head in shame:() or do an IVA.

Really unsure which way to go and head spinning at the moment....

Need to now start looking at getting new bank account as advised. Do i tell them about my credit cards when applying for the basic account?

Really don't like the look of the IVA (even though 5yrs sounds better than 9).

I am sure i am not alone here but really want to ensure we do the right thing..

Can i ask if we have any spare money above and beyond the set up DMP amount each month (made via ebay etc) can we automatically pay extra to get the payments down quicker?

rachaelfleur

bigmommamuppet wrote: »

Hi Rachael

Sorry to hear about your colleague. I work in the Oil & Gas Industry so we're all pretty shell shocked at the moment.

:beer: and well done on getting update with your rent etc.

Yeah we're all pretty shaken up here, just makes you realise how dangerous the industry actually is.