DMP Mutual Support Thread (Part 5)

mcrfan

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?

Totally agree, I have noticed that with all the talk of the credit crunch and how the banks are struggling this seems to be the one area that no one is touching on. It is their own fault that they have been chucking credit around and now people cannot afford to pay it back. I racked up most of my 30k debt when I was on a wage of 10-13k how were they expecting me to pay this back?!!? I know it's my fault I was insane but I had offers coming through the door all the time and on my online banking.

PM defo needs to get a grip on this area and possibly like you suggest make some laws on DMPs.

mcrfan

HylyJn wrote: »

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

Perhaps check with Payplan, I'm not sure what is for best. I have paid in a small amount to one of my overdrafts to get in back in the limit to ensure no future charges but it was only £4! May depend on the amount for you I'm not sure.

mcrfan

rachaelfleur wrote: »

It's the best feeling ever, I think you've made the right decision. I know the debts haven't disappeared but it's so much easier making one payment to CCCS/Payplan then making lots of teeny payments to creditors and being left with nothing to live on. Good luck and keep us posted on how you're getting on.

cocker100, I can't believe it, the weekend is the only real time I get to spend on here. I guess I'll just have to catch up on Monday at work :rotfl:

I agree life will be so simple making one debt payment! I use microsoft money and it takes me ages to type everything in at the moment!

Toffee_Penny

cocker100 wrote: »

:eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek:

Oh no, what are we all going to do???????

The MSE forums are closing at 10pm tonight until Sunday for a major upgrade!!!

No DMP thread for the weekend!!!!!!!!!
:eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek:


Cocker:)

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Guaranteed system overload on Monday when 1000's of MSE'rs log on at the same time.

princess-of-plastic

Toffee_Penny wrote: »

POP - congratulations!, we all know what you have been up to, saving money not going out during the credit crunch! :rotfl:

LOL, too right, turned out not to be very money saving tho with all the baby stuff to buy hehe.

Sorry for the veeery late reply, im easily distracted lol. Thanks for all the congrats!

pop xxxxxx

cocker100

Testing testing 1-2-3

Oh good,

We seem to be back online.

I've missed my usual trawl through the MSE website!:D

I'm clicking submit to see if this works.................................

Toffee_Penny

When did we come back on? I thought it was Monday duh!

Anyway good to be back on, I was sad trying to research stuff Fri/Sat night and it kept showing links back to this site but it wasn't working

Really hope everyone is well?

rcpbiggles

DevonGirl wrote: »

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.


Hi Bigmommapuppet and rcbiggles! :beer:

Just in month 1 of my DMP with CCCS and must confess I've thought about the whole 'emergency c/card' thing. I know for sure that in the T&C of a CCCS you agree not to take out any other credit. Not sure how they find this out, and as said above, if you're doing your own DMP you can get away with it. However, in the nicest possible way , I would urge caution. if you're anything like me 'an emergency' can be something like a pair of shoes or new clothes for work or an MOT/car repairs. The trouble (I find) is that these emergencies are highly subjective and before you know it, you owe £500 and can't think out to pay it off, and so the cycle continues....

I would keep anything you make on E-bay, unless we're talking £1,000s, because this can either be used for treats, unexpected expenses or emergency funds.

Sorry, this is the first time I've posted anything going against what another user has said, I just want you to think carefully about having emergency credit. Not trying to be awkward or nasty!!!:D Hope you're still talking to me! :rotfl:
Best wishes
DG

Thanks Guys
Thinking about it some more I think you are right. Although the card only has a £750 limit and the intention is to only spend what I credit it with, the temptation is there isn't it?
I have to say, I'm being so much more savvy now with money. The only card I carry with me is my Step account and it only has £5 in it at one time - so enough for emergency bread/milk and nothing more (and whatever small change I have in my purse). It's really making me plan better about what I need and also making me go away and think about things I've seen and want.... do I need them!

Thanks for your thoughts - the Tesco card is being cut up!

jenevieve

Hi all,
Have been away all week for a work thing and have just caught up with the thread.

Am posting off my notification of debt forms & tokens to all creditors tomorrow plus all the necessary stuff to CCCS. Hoping to be up and running by May.
The phone calls seem to have calmed slightly, still not answering. A few default type letters but after reading on here, am not alarmed in the slightest.
Will expect a flurry when all creditors get my letters and will be keeping fingers crossed that they all accept as quickly as possible.......

Hope everyone is okay xx

ianmak

Ha ha, I like the way everyone starts drifting back in after the weekend. We all have withdrawal symptoms I think!