To DMP or not DMP; that is the question...

mcrfan

elsie52 wrote: »

Hi,

Speak to the professionals and go on a DMP... We were in the same situation of paying only minimum payments, and it would have taken forever to pay our debts off. We are about to start our 2nd year on a DMP, and its the best thing we have done. We can pay our debts, save a little by being careful with everything, and budget for the important things, like Car Tax, MOT. etc. Its hard, don't think its not, but it wont be forever, there is light at the end of the tunnel, even if some days it feels as if there isn't. Yes you will get creditors ringing, but once the dust settles it gets less. You can always tell them that you will only discuss the matter in writing. Good luck, and keep posting, you will get great advice and help from the people on this site.

Thank you. I'm just not seeing the light at the end of the tunnel at the moment...
That is a good idea telling them to discuss in writing...do they abide by this though?

mcrfan

HHH wrote: »

I am on a dmp with CCCS and its fab. You will have to tell your parents though as to begin with you will get nasty letters and phone calls from your creditors. they usually stop once your dmp has been running for a couple of months. you must also start living within a budget, not as difficult as it sounds actually. if you keep your head in the sand you may well end up in a worse situation than you are now. there are 1000,s of people on dmps and it's very satisfying seeing your debts go down instead of up. if you keep paying only the minimum you will probably never pay off your debts. with a dmp often they get passed to a DCA and interest stops. dont be frightened ( easy to say I know) have a look the the dmp support thread and you will see how relieved people are and the sort of problems they have had to deal with. good luck

Thank you.

What happens when your debt gets passed to an agency? Do they hassle you?

MrsTinks

First point - going on a DMP will mean you're not likely to get any credit for a while - this is a good thing as it seems to me you are unable to control your spending...
I don't mean to get personal but have you sought help for the depression? Medical help I mean. We can show you how to do things to address your debts but we can't change your mind set - if you are still trying to spend then any work we put in won't make a blind bit of difference...

Secondly - post your SOA back up - your creditors WON'T be reading it and even if they did they wouldn't know who you are now will they?

Do they scrutinise what you have spent the money on? No not as far as I know... you don't exactly hand them a diary of your life for the last 3 years What you hand them is a "this is what basic living will cost me from now on" and because you can't put anything on credit you have to stick to it...

That means no more shopping splurges (in fact any chance some of those purchases could be either returned or sold to pay off some of your debts?) no matter how you happen to feel. Ofcourse this would be easier if you were having the cause for the splurges addressed at the same time

MrsTinks

mcrfan wrote: »

Thank you.

What happens when your debt gets passed to an agency? Do they hassle you?

Yes - however you can send them a letter to inform them that you only wish to be contacted by letter which they then have to do.

MrsTinks

mcrfan wrote: »

Thank you. I'm just not seeing the light at the end of the tunnel at the moment...
That is a good idea telling them to discuss in writing...do they abide by this though?

They have to - if they don't you report them to the OFT etc They'll get the message quick enough

Deep_In_Debt

DCA's tend to freeze interest and accept payment plans so it's not necessarily a bad thing if debts get "sold on". Some of mine have been and my debts are finally going down and as DCA's buy them for p's in the £ they tend to accept low full and final settlements.

mcrfan

MrsTine wrote: »

First point - going on a DMP will mean you're not likely to get any credit for a while - this is a good thing as it seems to me you are unable to control your spending...
I don't mean to get personal but have you sought help for the depression? Medical help I mean. We can show you how to do things to address your debts but we can't change your mind set - if you are still trying to spend then any work we put in won't make a blind bit of difference...

Secondly - post your SOA back up - your creditors WON'T be reading it and even if they did they wouldn't know who you are now will they?

Do they scrutinise what you have spent the money on? No not as far as I know... you don't exactly hand them a diary of your life for the last 3 years What you hand them is a "this is what basic living will cost me from now on" and because you can't put anything on credit you have to stick to it...

That means no more shopping splurges (in fact any chance some of those purchases could be either returned or sold to pay off some of your debts?) no matter how you happen to feel. Ofcourse this would be easier if you were having the cause for the splurges addressed at the same time

Thanks for your reply. This is true that I have been on mad spending sprees over the past few years. I was a bit better last year but unfortunately ran up the 2 smaller overdrafts and I had a relapse and did some mad shopping in December with these.

Sorry I am having a paranoid outburst! My figures are the exact figures that I will be using for a dmp and I'm concerned that they might look at it! I know it's a mad thought but can't help it!

I have been to the Docs on and off for the past year...I have had some CBT but I still have big issues to work on. I do feel like my shopping addiction has ended due to the shock of what I owe (plus not being able to get any more credit) and I still like to buy things but it is alot more controlled now. Strangely I now appreciate things I buy so much more so buying one £10 top a month is more exciting than the masses I used to buy. I also work in a clothes shop on saturdays so the temptation is there but the funds are not!!

I have also added something secretly in there that I cannot live without and it is not seen as essential it is my gym membership. It is not alot of money but I can't live without so feel a bit guilty about having to sneak that in.

I can't return anything as it is all from early last year and before. Except for my last naughty purchase which is something I really want and is kind of my "last supper" before going on spending lockdown!

MrsTinks

Gym membership can be justified provided it's the only luxury I think And so long as it's not a £100 a month membership and you ACTUALLY use it (something I don't lol - I last a month or two and that's it )