dmp questions

blueye

hi after what seems like a lifetime i have got my oh to agree to do a dmp he wants to go with churchwood finance after reading reviews im not to sure about them and want to go with cccs, we have been in touch with both, churchwood have sent all the stuff out already not heard from cccs as of yet.
we have 43k with lloyds 2x loans 2x credit cards and 13k on a mixture of cards.
id like to know how stricked cccs is with you as my oh is more interested in going with churchwood because the repayment will be 490 a month and that would leave us a bit to save to go on holiday and things like that
whereas with cccs it is looking like they will take every penny we have left over and leave us with nothing for christmas presents and life as we know it. i know we spent the money and need to pay it back and thats what we want to do but my oh is not going to stick to it if we have no life for the next 7 8 9yrs.
also what do you do in the first month do you send what you can with a letter to say you are seeking help from a dmp company or do you carry on making full payments until dmp starts. thanks

DevonGirl

Hi and welcome Blueye:beer:

Churchwood Finance are, I think, a fee paying company. CCCS are a free debt charity and will provide exactly the same service for nothing, so please don't go with Churchwood! CCCS may be a bit slower getting the stuff out but that's just cos they are so heavily subscribed.

When you work out your budget with CCCS you can alter it so you have enough breathing space (essential for the DMP to work). I'm not suggesting you lie or anything, but the mistake I made was to try to get my monthly amount to the maximum possible to reduce the length of the dmp. Be generous with yourself if possible, while staying in CCCS guidelines. For example, they allow money for haircuts, opticians, pets, smoking and other things that you don't think about initially. Remember, you'll have no access to credit once you sign up so you must have an adequate 'emergency fund'. You can still tinker with your CCCS budget even once you've signed up, so maybe review it?

With regards to the setting up period, CCCS recommend you advise your creditors that you are setting up a DMP and send them a token payment as a gesture of goodwill that shows you are willing to pay. Even just £1 is sufficient to this end.

Hope this helps?!
DG

Eupho

DevonGirl wrote: »

Hi and welcome Blueye:beer:

Churchwood Finance are, I think, a fee paying company. CCCS are a free debt charity and will provide exactly the same service for nothing, so please don't go with Churchwood! CCCS may be a bit slower getting the stuff out but that's just cos they are so heavily subscribed.

When you work out your budget with CCCS you can alter it so you have enough breathing space (essential for the DMP to work). I'm not suggesting you lie or anything, but the mistake I made was to try to get my monthly amount to the maximum possible to reduce the length of the dmp. Be generous with yourself if possible, while staying in CCCS guidelines. For example, they allow money for haircuts, opticians, pets, smoking and other things that you don't think about initially. Remember, you'll have no access to credit once you sign up so you must have an adequate 'emergency fund'. You can still tinker with your CCCS budget even once you've signed up, so maybe review it?

With regards to the setting up period, CCCS recommend you advise your creditors that you are setting up a DMP and send them a token payment as a gesture of goodwill that shows you are willing to pay. Even just £1 is sufficient to this end.

Hope this helps?!
DG

Yes.. for example.. I now wear contact lenses. :rotfl:

blueye

thanks, just one more thing my oh wage can differ quite alot month by month on a bad month he comes out with 2050 and a good month can get 2400 how would they work it so we dont struggle on a bad month?

DevonGirl

I'd go for the bad month figure! Then you're covered for worst case scenario. In the spirit of Debt Free Wannabe though, I would squirrel away the extra amount OH gets on a good month - put it away in a savings account for an emergency. After 12 months if no emergency has happened and you have a nice little nest egg you can offer it up among all your creditors (CCCS will advice it is offered up fairly and proportionately - spelling?) or perhaps as a Full & Final settlement figure with one of your smaller debts. (I think a figure of 25-55% is normally offered in these cases).

DevonGirl

Eupho wrote: »

Yes.. for example.. I now wear contact lenses. :rotfl:

:rotfl::rotfl::rotfl: Love it Eupho. Must admit, I now buy premium pet food!

Eupho

DevonGirl wrote: »

I'd go for the bad month figure! Then you're covered for worst case scenario. In the spirit of Debt Free Wannabe though, I would squirrel away the extra amount OH gets on a good month - put it away in a savings account for an emergency. After 12 months if no emergency has happened and you have a nice little nest egg you can offer it up among all your creditors (CCCS will advice it is offered up fairly and proportionately - spelling?) or perhaps as a Full & Final settlement figure with one of your smaller debts. (I think a figure of 25-55% is normally offered in these cases).

Oo I didn't know that.. :shocked:

Eupho

DevonGirl wrote: »

:rotfl::rotfl::rotfl: Love it Eupho. Must admit, I now buy premium pet food!

hahaha :rotfl:

Deep_In_Debt

CCCS have been fine with me and quite generous with my budget too. I have allowances for emergencies etc. Once you get used to being on a dmp, it's not so bad. I've managed to live below the food budget and and save the rest of my allowance and make f&f's on some of my smaller debts or put it towards a holiday/emergency fund.

Why go with Churchwood who are a fee paying company - therefore it will take longer to clear your debts. CCCS are non fee charging and you can "play" with your budget.

Just think of the holiday you can have once you've cleared your debts...and it would be sooner rather than later if you go with CCCS.

blueye

great so they wont go through the bank statements and find i dont have pet insurance and the like?
that is what we were planning on doing but didnt know if it was possible when you get asked for pay statements, things have been quiet at oh's work and we are looking at a couple of bad months and ive been cut from full time to 20 or less hours a week just cant cope anymore

Eupho

Deep_In_Debt wrote: »

CCCS have been fine with me and quite generous with my budget too. I have allowances for emergencies etc. Once you get used to being on a dmp, it's not so bad. I've managed to live below the food budget and and save the rest of my allowance and make f&f's on some of my smaller debts or put it towards a holiday/emergency fund.

Why go with Churchwood who are a fee paying company - therefore it will take longer to clear your debts. CCCS are non fee charging and you can "play" with your budget.

Just think of the holiday you can have once you've cleared your debts...and it would be sooner rather than later if you go with CCCS.

I am doing my own DMP (because I didnt have enough surplus for Payplan.. anyhooo.. they said £480 groceries 'allowance'.. :shocked: .. I don't spend anywhere near that!