DMP Mutual Support Thread (Part 5)

thenightporter

Bexxie, we're doing two months of token (£1) payments before we start the DMP. Mainly because the company I worked for went into administration & I was out of work for a month - it will also give us a chance to build up an 'emergency fund' (only a couple of hundred pounds because although I'm working again now it's on a 50% salary cut) before we start.

newlywed

bexxie90 wrote: »

Hi
This is going to sound really stupid but here goes anyway.

I am starting a DMP soon and Payplan told me to start paying token payments to my creditors before my DMP starts. Now here is the stupid part of me.
Do I send what I have read on here £1-5 or do I pay what Payplan have budgited? I havent got enough cash to do this yet as until set up properly with the DMP i dont actually know what I am doing IYKWIM..

Are the token payments so you can get enough money for an emergency fund before starting plan? Or am I missiing the whole point?
Thanks in advance
Bex.xx

Not stupid at all
The token payments are to show that (1) you can't afford the full payment and (2) that you aren't running away from your debt or avoiding it but are trying to make some sort of payment.

It is important not to pay more than their DMP share would be, otherwise they will assume you have at least that much

How much you pay is up to you, I paid £5 to each one. I planned to pay more but I was in such a huge mess that I wasn't being realistic

I didn't build up an emergency fund before entering the DMP as I personally wasn't sure it was fair to stash money whilst telling creditors I can't pay them (but it probably would have been a good idea if I had built up some sort of emergency fund, to be honest). They carried on charging interest to me for a few months so I lost any loyalty I thought I had towards the banks in any case

So it's up to you, but absolutely fine to pay £1-£5 token payment. Even if you pay the DMP rate, they will likely ring you and as for the "rest" of your minimum payment in any case, so I'd be inclined to give em only a weeny bit and sort yourself out ready for the dmp.

newlywed

pinksparkle wrote: »

Okay, so once the 6 years is up, does the account just look as good as new???

And what if there is still a balance on the account, the default notice comes off and then what???

Any idea....?

Pinksparkle
xxx

Hi, that one account with a default might look fine after it "drops off" in 6 years time... but doesn't mean your whole credit file is clean

I have 2 defaults. One other creditor has marked my file as arrangement to pay and lots of 5's to indicate over 5 months late in paying, and one has marked it DMP. That means those accounts will show until 6 years after they have been paid off.

That's why it's better if they all default you

thenightporter

I actually think it is quite responsible to have a small amount stashed - there's no option of using credit (not that I want to ever again) in emergencies (car/boiler exploding/cat getting run over etc). I want to do all I can to avoid having to reduce DMP payments

We're in the process of trying to sell a car & the proceeds of that together with any extras we raise (ebay/second job) will go into a savings acount to offer F&Fs or lumps sums into the DMP each year.

newlywed

thenightporter wrote: »

I actually think it is quite responsible to have a small amount stashed - there's no option of using credit (not that I want to ever again) in emergencies (car/boiler exploding/cat getting run over etc). I want to do all I can to avoid having to reduce DMP payments

I wasn't criticizing, I was just saying what I thought at the time - but that in hindsight a stash would have been a good idea Sorry if it came across wrong

bexxie90

Thanks you have answered my Q perfectly
Such a lovely bunch on here
xx

St0lli

Just thought I would say Hi! as I will hopefully be joining you soon. I've got my appointment with CCCS tomorrow :eek: and I'm hoping they will say DMP is the best way forward. I do have some excess income each month but no where near enough to make the minimum payments required since the APR's have shot up. I'm a bit concerned that one of my creditors will not accept though as I had to spend on that particular CC early in January to buy food a couple of times and I notice that someone on this forum said one of their creditors rejected their application when they did something similar :rolleyes:

I may be back on Friday to catch up with you all!

newlywed

Hi St0lli - GE Money told me they refused due to "recent activity" on my credit card (food, petrol etc) - they accepted the DMP and stopped charges after 3 months though so it wasn't long term

You do have to just stick with it for a few months as not everyone accepts instantly - mine took about 4 months before they all decided to give in

Kudox

Just been reading back through the thread for last couple of days, sorry to hear some posters don't think they're getting the support they need on here.
For me personally I've always found it amazingly helpful and even when I've posted with a particular question and no-one has replied I've always managed to find the answer by searching through previous posts.
I agree with the person who said when you're first setting up your DMP you're on here all the time(it can become addictive!), but when things settle down a bit it's also good to try and get on with your life a bit, at times my DH thought I'd abandoned him I was on here so much!
I always try to catch up with newbies, and post answers as often as I can.
Hope people continue to use this thread and get much needed help and support from it. X

massivedebts

Good afternoon!

I have just been speaking to CCCS asking a whole heap of Q's regarding my DMP that is going to start on 1st April., They are soooooooo nice there, I've spoken to about 6 diff people since I first contacted them just over a week ago and they've all been lovely.

Anyway, just wanted to moan really. We spent AGES in the Abbey on Sat opening up what we thought was a Basic bank account with a cash card, and lo and behold, just had all the paperwork through and they've opened us an account wth a £300 O/D and cheque book and Multi-function debit card!!!!!!! I've just rung them to ask to convert it and have been told it's not that simple and will need to go back to the branch to open a new account, AAAAgggggggggggggghhhhhhhhhhhhhhhhhhhhhhh....Does anyone know if I keep this account if it'll be a prob with CCCS?

Kudox, I agree, I have become quite addicted to this forum and have started to read things that maybe I don't want to be reading, I really need to try and stay focused and just deal with now! I can't wait to be one of you guys who
says.......'don't worry it'll all settle down', hopefully when I'm able to post things like that I'd have started to remember that there is more to life than our debt!

Keep posting peeps, you're really keeping me going

MD xxxxxxxxxxxxxxx