DMP Mutual Support Thread (Part 5)

sandalwood_2

crafty1 wrote: »

If I want to make my token payments next month (dmp in the process of been set up) on a barclayloan and my overdraft also with Barclays, does anyone know where I send these?

When I asked payplan about sending token payments for my bank overdraft she said not to worry about the overdraft with the token payments,but I did send token payments for my loans,the address should be on top of the loan agrement you signed or just look on line
Hope this helps

crafty1

jaybag wrote: »

When I asked payplan about sending token payments for my bank overdraft she said not to worry about the overdraft with the token payments,but I did send token payments for my loans,the address should be on top of the loan agrement you signed or just look on line
Hope this helps

Thanks I have my new account opened ready for wages to go into this month and just in the process of transferring direct debits over (elec/gas etc) I intend to send a letter to creditors saying token payment enclosed etc and that I am waiting for my appointment with the CCCS - do you think that will be ok?

I long for the day when I don't have to keep asking questions, but can help others out by answering them!:rolleyes:

sandalwood_2

crafty1 wrote: »

Thanks I have my new account opened ready for wages to go into this month and just in the process of transferring direct debits over (elec/gas etc) I intend to send a letter to creditors saying token payment enclosed etc and that I am waiting for my appointment with the CCCS - do you think that will be ok?

I long for the day when I don't have to keep asking questions, but can help others out by answering them!:rolleyes:

I am no expert by any means,it is only what I have picked up on due to reading the posts (becoming quite obssessed to be honest) and what payplan have told me.
Not to sure the way it works with CCCS,but as soon as I even made an enquiry payplan gave me a reference number which they told me to quote on the token letter payments to creditors-see below-just copy and paste and add all your details where relervent
This board is a great help and it is good to know that there are other people in the same situation to offer advice


Date:

Account No:

Dear Sir/Madam

I have recently been experiencing some financial difficulties.

Previously, I have been repaying my debt to you, on line from my bank account. However, due to my recent difficulties, I have been in touch with a firm called Payplan, who are a free debt advice agency.

My case number with Payplan is

I am in the process of going through a free financial assessment with them, and am hoping to set up an arrangement with them, to repay my debts to yourself and my other creditors. Therefore, I can no longer keep up with these, and offer you a token payment of £x until my assessment has been made and my arrangement is in effect.

Please accept this offer as a goodwill gesture for a short period of time, and my Case Officer will be in touch with you, in due course to negotiate the new payments to you.

I would be grateful if you would put my account on hold until I am in touch again to up-date you.

Thank you for your time, patience and understanding with this matter.

Kind Regards

crafty1

Jaybag you're a star that letter is perfect!:beer:

Skintlady

The cccs gave me a letter/ notification of DMP to send my creditors in my welcome pack i jsut photocopied this and sent it to all my creditors with a postal order.

crafty1

I think I will be sending the token payments before pack arrives, as bills due in 2 weeks

smcshane

:beer:

Glad to see a few others who are starting their DMPs in June also, hopefully we will be able to offer support to each other at the start of our journeys as well as getting the great advice for everyone else.

I phoned CCCS yesterday and they have now received all my paperwork so I'm just waiting to start getting the initial calls from creditors but just got to wait and see how that goes! I'm not too worried by it now though as I feel I'm back in control of the finances for the first time in 4 years and I know I can do this. It may take a while but I can now see a very faint candle buring somewhere int he distance:j

Lets hope the road is not too bumpy and we can travel down it together.

Sx

scouselad1974

The very best of luck to you with it, I hope it all goes well, if my self managed plan doesn't go as planned I to will be calling on CCCS or Payplan.

Margin_Walker

Devongirl

Thanks for your reply, and at least you are honest about being an HSBC employee rather than some of the trolls that come along.

However I'm not sure what you say about 'no new monies are provided'. Surely by encouraging me to take out a new loan (effectively a consolidation loan) they are increasing the TOTAL amount of the loan, i.e. the original capital plus the extra interest?

If there's a chance that you can get you DMP accepted by HSBC's DCA and have the whole amount frozen, you can't blame debtors for taking that action...

It may shoot someone's credit file to s**t but they can pay it off as part of the DMP rather than getting involved with HSBC's T&C of a managed loan (which apparently are very much in favour of HSBC rather than the debtor). In addition to their T&Cs, there's no doubt in my mind that the reason HSBC are so heavily in favour of managed loans is because they make money whereas freezing the debt doesn't. They bamboozle their staff with 'it's in the customer's interest to take out a ML' when in fact it's a clear financial winner for them, surely?

Anyway, that's just how I see it...

I would agree with some of that(not the part about me being bamboozled obviously..). If your credit file is already a mess and thats not a motivating factor then in a lot of cases being with a dca and interest being frozen is probably the better option. If it stays with Metropolitan then it's the same company anyway.

The 'new monies provided' part is open to interpretation. If the debt is credit card, informal overdraft or personal loan based and is not being reduced due to your financial circumstances then the interest rate will be higher than that of the proposed managed loan. As long term interest freezing is not an option with HSBC then the term and total interest paid on this debt is almost always going to be higher than that of a managed loan for as long as you are unable to make the contractual payments. In terms of the 'total amount of the loan' it acts more like a mortgage than a personal loan as the interest is not all applied when it completes. Instead it is calculated daily and applied on a monthly basis so the balance of the loan when it comepletes mirrors the debt that is owed.

At the end it of the day comes down to how much of an issue your credit file is.

CornishMaid

scouselad1974 wrote: »

I've just hit my first hurdle with Sky Card (Barclays) after doing so well with Citi Cards and BLS Collections, Sky Card will not accept my offer of repayment even though it is the largest repayment to any of my creditors.

They have told me to contact the CCCS for advice as my account will continue to escalate until I do, they say that the CCCS will be able to reduce my expenditure and prepare a detailed repayment programme on my behalf, I already know this and have followed their advice from day one of setting up my own DMP and given them exactley what they are asking me to get CCCS to do, I am already living on the least amount of cash that I can survive on and to be totally honest If I would of gone with CCCS I think I would be offering my creditors less not more. I am self Employed and never earn the same amount twice, so some months I have more other months I have less.

Hi there - I'm doing a self-managed DMP and initially Skycard were very difficult. I received the same letter refusing my payment (as did my OH) and advising me to contact the CCCS. I sent 2 further polite but very firm letters which explained that whilst I was happy to take advice from the CCCS and National Debtline I preferred to deal with my financial affairs myself. I also ignored their phone calls (but logged the details - you can never be sure when you may need them!) The result was that they have now accepted reduced payments on both accounts and also suspended interest and charges for 6 months. :T So I can only say that it is definitely worth keeping on at them and consistently stating the payments that you can afford.

Whilst I agree with many others that the CCCS offer a fantastic service, I think it's wrong to assume that their service is right for everybody. And I certainly don't see that a creditor should be able to insist that you negotiate through them. So stick to your guns and hopefully you should get a positive response :rolleyes:

CM