Considering Debt Management Plan

s1h

Evening all, I have seen the light at last I think.

Bit about me first and then Just got a few questions and need a bit of advice on a DMP. Don't falll asleep , thanks in advance.

I need to get myself sorted out I have been out of work for a while and as well as a loan i already had and some credit card debt, I have been using credit cards to pay bills etc then when they got to their limits i started getting stuff on finance from catalouges and selling it on ebay, took out a couple of mobile phone contracts to sell the phones to get some money selling the phones for £300 and being left paying £40 a month on them for 18mths. Stupid I know. So im now about £16000 in debt not as much as some I know but still a fair bit.

Vicious circle. I have a new job starting next month so its time to sort myself out. Unfortunatley I am useless with money and have tried cutting up cards etc before but it did not work, I just reordered new ones.

The DMP interests me as I only have to make one payment which I think would be easier for me. I know I am a grown up but when it comes to money I am useless and need wet nursing.

I have been on the cccs site and done the remedy. I have a total of £15770 and its recommending a payment of £222 per month and will take 5yrs 11 months which doesnt sound too bad as at the moment im paying about £600 which is only touching the interest on some of the cards.

Could I pay more than that if I wanted? like up it to £300 a month?

While on the debt management plan if I want to say on occasion pay I don't know another £100 a month here and there can you do that?

Are most of the creditors fairly accomodating and accept these plans?

Mine are:

AllianceLeicester - Loan & Overdraft
Intelligentfinance - Overdraft
Capitalone - Credit Card
Barclaycard - Creditcard
Aquacard - Credit card
Vanquis card - Credit Card
Egg Card - Credit Card
Easyjet card (citicard) Creditcard
Flybe card (sygma bank) Credit card
Littlewoods direct Catalogue.

Does anyone have any experiences with DMP with these above companies? Which are willing , which are not.

What happens if they are not willing to accept it?

How does going on one of these plans affect my credit file? (for the future)

Thanks again in advance any advice welcome please even if it is not in response to the questions I asked. If you think it would help then please tell me.

s1h

One other point are cccs the best people to use. I see there are others.

I know they could probably answer a lot of the questions but they are not available right now.

CLAPTON

Just a few comments:

Being on a DMP means your credit rating will be trashed for 6 years and you won't be able to get any credit.

Don't worry about being able to overpay ... you will need to learn a saving habit as when things go wrong (maybe car packs up) you will need to have savings to fix it as you won't be able to use loans/CC.
Also some savings may allow you to make full and final offers to clear the debts off earlier.

It's difficult to predict whether particular companies will be good on a DMP because it depends on many factors .. and with the credit crunch and government pressure things are especially unpredictable.

If you have prepared a SOA why not post it up and get some feedback
http://www.whatsthecost.com/snowball.aspx

s1h

Its a tough one isn't it, but then I reckon If I didn't do it I would still have a lot of this in 6 years. Did have a look at that snowballing before but I dont have the discipline for it.

What is an SOA and how do I put it up?

Numpty_Monkey

Lots of questions and things in that ikkle first post

Well done for wanting to get things sorted:T

Try posting your full SOA all debts and income
Statement of Affairs Calculator

DMPs through one of the Non-profit Debt Counsellors' List
might be the way to go,
there is no guarntee about interest been with stopped but you have a better chance with CCCS
You might not need one :A

amy662

Hi Guys, Its a bit long winded but I just wanted to share my experience with you regaring the debt management plan in which I entered. Please note that this is a personal experience and may not reflect how other DMP work....

I split up with my partner and was left with the following debt to pay off on my own (all the debt was in my name):

Natwest overdraft 2000
Natwest Loan 3000
Natwest Credit Card 500
Halifax Credit Card 1650
Halifax overdraft 100
Kays catalogue 500
Argos Card 200

Total Debt: 7950
My monthly Income approx 1300

Other outgoings
Car finance/Car insurance 300

I initially applied for a loan of £8000 to clear off the debt...I was refused, and the loan company immediatly referred to me a Debt Management Comapny called MoneyWorries. Being worked up at being refused to loan, the idea of a DMP sounding like the ideal solution.
I was initially told by MoneyWorries that I could pay £200 a month for 3 years and then I would be debt free(£170 toward the plan, £30 fee)...This sounded fantasted and I signed up for the plan, paying an initial £200 sign up fee.
I was told by money worries to immediatly cancel all my direct debits from my graduate account which is held with Natewst.
I was also told to simply post all the correspondance from the creditors to them, which I did.
Three months down the line I was getting telephone calls, particularly from Halifax, saying they had not recieved any payments for 3 months (previous to the DMP I was struggling, but had never missed a payment).. When I queried this with MoneyWorries, they insisted that this was bullying tactics from my creditors inorder for me to pay up.
Fed up and a little bit annoyed of being told conflicting things, I decided to book an appointment with the MONEYSENSE adviser in Natwest (n.b you dont have to bank with Natwest to book appointment).
SO a couple of weeks ago I went to the appointment, and laid all my finances out on the table.
The advised informed me that Natwest had indeed recieved money from MoneyWorries...paid directly into my bank account..NOT OFF MY DEBTS, which of course I spent as I did not know this would be how they paid it (bizzare). The adviser encouraged me, following a finacial review, to step out of the plan and enter into a chariatable one such as CCCS.
So whilst in the bank I contacted MoneyWorries...HERES THE BEST BIT....
I explained that I would only stay in the plan if they could guarentee me one thing....1) The plan would be complete within 3 years
2) I wouldnt have to find the interest to pay at the end of the plan

To which MoneyWorried could not guarentee. Decision made, I decided to pull out of the plan..the phone call ended abruptly when MoneyWorries insulted the adviser in Natwest and then slammed the phone down.
I have decided to manage my debt on my own, and with a budget set my the adviser in Natwest, I am hoping to be debtfree in 18 months...although I have had to find 3 months of arrearrs which MoneyWorries didnt pay, totallyin approxn £1700. I am currently fighting Moneyworries to find out where by £800 went and who they paid it too!!!
Sorry its been so long winded, moral of the story...make sure you ask all the questions you need too and read the small print!!!
:j

s1h

cccs seem to be the people to deal with then if your going down this route.

I think im going to wait until im working next month and then get it sorted out but it looks like the right option to me.

rugbymum

Hi :j
If you post your SOA you may not need to go down the DMP route, as others have said.
I personally have never worried about the six year credit rating getting trashed thing, I never want it again! If you are just about managing now and about to satrt work then post your SOA, folks on here may be a ble to offer some advice.
If it would make life easier & stress free (my option), the the DMP is the way to go.
I'm not sure about any of the others, but CCCS ask you to pay a set payment each month and have regular 6 monthly reveiws. If you have any extra put it in a savings or credit union account. You don't know whats around the corner and, as Clapton pointed out you never know when things are going to go bang!
Some creditors are nicer than others. The majority will be fine, especially if your payments are not far below the minimum payments already set. Mine only kicked off when I had to start making token payments. There is no set rule, unfortunately. Some may not default you straight away, others will .
Hope this helps.
Good Luck!

s1h

im not too bothered about the 6year thing either, it would probably do me a favour and help me out to be honest.

System

Hi, when you have your initial interview with CCCS they will go through your income and expenditure and come up with a figure that you can afford to pay. There are certain 'trigger figures' that they base it upon. These are based upon how many people are in the family, 1 kid, 2 kids etc. I dont want to encourage you not to make available as much as you can but youstill have to live as well. THe website that CLAPTON has directed you to is certainly worth looking at as you will not tar your credit score so to speak.. I remember when I joined on here 3 years ago in the same situation as you albeit with 3 times more than you :eek: lol and the amount I chose to pay off was still significantly less than what I was paying in minimum payments and I have 2 years to go and Im debt free. But having defaults on your records or even as in the case of a DMP marks on your file stating that you are not meeting your monthly repayments can really affect your life in the future if you want credit. I thought at the time of my LBM that I would never ever need credit again and of course I dont want CC debt or loans but things such as a mobile phone, overdraft, car leasing, buy pay later 0% or the ability to get a basic bank account with a debit card are all affected by having an adverse credit record. One to think about whilst you ponder a DMP. Whatever you do good luck and your new life where you are in control of your debt and it not in control of you is just around the corner. Keep posting Len

s1h

Whats the situation with bank accounts, if I already have one that is not to be included in the DMP with a full debit card/cheque guarantee can I keep that?

Mobile phones. I have my contract with vodafone that I have had for a number of years. Do you get credit checked again when you upgrade/renew your contract? Or can I just stick with that one.