DMP Mutual Support Thread (Part 6)

scouselad1974

Hi Sarah

Yes that is normal with Capital One, I had the same thing, as long as you make the reduced repayments you will be fine, I haven't heard a thing from them apart from a statement every month since starting my DMP in July

glitterlea

Hi everyone
I recieved a default notice from my Tesco CC yesterday but I'm a bit confused Please could someone read it for me as I can't make sense of it!

" We have been contacted by PAYPLAN, who have advised that you are arranging a repayment program through them.
We confirm that we will accept the proposed repayment plan but it is necessary for us, at the same time, to proceed to formally terminate your agreement with us. As part of this procesdure we have to issue our standard CCA Default Notice, which is enclosed.

You do not have to reply to this letter as it is confirmation that your repayment program is being set up and, as a consequesnce, we will suspend interest charges on your account. (yay)

If however, you do not wish to go ahead with the repayment plan, then you must action the Default Notice within the period stated. Please read this Default Notice carefully, and, if applicable, send the required payment of £18.99 within 17 days starting the day after the date on the notice... blah blah blah"

So, my confusion is that I'm £18.99 over my credit limit (charges they have imposed on me! :rolleyes:) As I read it, if I want to go ahead with the payment plan, I do nothing but if I want them to cancel the default notice I have to send them £18.99.. is that right?

Thanks a million x

tass

Lloyds have started treating our account with them as a "normal" account ie not on a dmp and as a result they have started charging interest which is almost as much as our monthly payment through CCCS. Have spoken to a couple of different people albeit both foreign call centres and they won't budge. Apparently they only agree dmp's for one year. We are 7 years down line. Anyone else had this.

londonfraggle

Just thought would give you all an update as have had my phone appointment with CCCS now. I spoke to a really nice lady who was so encouraging. The good news is that, because I have a decent surplus (no dependants or car etc. so apart from rent, bills and feeding/clothing myself I can throw it all at my debts) it looks like I could be debt free in 2.5 years - yayayayayayayayay. :T

I wanted to tell anyone who is wondering whether to go down this route - DO IT! The CCCS are so nice and really listen to you. She even played with my budget a little bit so that there was a bit extra in there (I work in the city and have to look smart and groomed at all times) which was so kind of her as I was v. worried about dry cleaning/shoe repairs/etc.

Now I'm just waiting for my pack and to send letters/token payments off. And then fingers crossed all my creditors accept my payments (which she was pretty certain they would as she said the offers were fair).

So for the first time in ages I'm feeling happy and positive - perfect timing with the bank hol coming up - I don't even mind too much that the sun isn't shining here today! I really also want to say a huge thank you to everyone on this site - and on the CCCS thread - for all the advice, support and kind words. It has really helped me get this ball rolling and given me hope and motivation. So thank you! :grouphug:

I know there's a long way to go and I suspect the next month is going to be a deluge of calls and letters once my creditors find out what I'm doing - but hey, I feel ready for it now!!

Hope you all have a lovely bank holiday and, as I've said, anyone who is considering a DMP - GO FOR IT! :j

Fraggle x

capcom99

All my plan is in place but HSBC have just written to me and offered me a managed loan to consolidate bith my accounts into one.

I'm not sure what to do?


Should I just carry on paying HSBC into my DMP with payplan or take the loan and have it removed from my DMP?

Please help.

I have know idea what to do.

JillyOJolly

tass wrote: »

Lloyds have started treating our account with them as a "normal" account ie not on a dmp and as a result they have started charging interest which is almost as much as our monthly payment through CCCS. Have spoken to a couple of different people albeit both foreign call centres and they won't budge. Apparently they only agree dmp's for one year. We are 7 years down line. Anyone else had this.

Hi, Yes this happened with all my creditors, the idea is if you an pay over a minimum payment then you are not considered "in financial distress" anymore, it really is a stinker. If they have put your interest back to a huge alarming rate ask them to put you on a reduced rate, normally half. It is not quite considered a debt management plan, but an acknowledge by the company that you still owe them money but if they dont help you out they may not see any of it if forced to keep you in debt.

I know I have said this before and its a bit of a kick in the teeth, but the balanceyou owe without any interest is exactly what you took from them. The interest is their earnings which they have a right to collect in giving you the money in the first place so be nice to those who are charging interest explain what is going on and you may not get it frozen again, but they may agree to reduce it.

Good luck.

JOJ

cwnacher

Hi everyone!

New here. Just put the wheels in motion for my DMP.

Amount owed: £23,500
Monthly payments will be: £450
Debt free in about 4-5 years

Quick question: How did everyone deal with things until payments were accepted etc? I have 2 loans to one company due soon, and they're really fast at passing it onto a debt collection company (less than 10 days after late payment). Should I inform them first, or wait until the debt collection company get in touch, as I doubt things will be sorted by then?

Chris

Gpuk

Ok, I spoke to Payplan today and they have worked out my budget (quite generous) and they have given me a monthly payment of £108.33 a month which means it will take me 24 years to pay off my debts if they freeze interest etc?!? This seems like a very long time and not much money to give them?? Should I get them to up it a bit? The lady was really nice and did say I can be re-assessed in april when I know my new council tax, tax credits etc but bit worried if I up it too much then they might think I was lying before??

So now I have to make the token payments (she suggested £5-£10 per card).....any idea how best to do this??I was going to do the whole letter/postal order/recorded delivery thing????
Do I need to send all my creditors DMP letters or will Payplan inform them for me?

I have set up new direct debits on my new account and where I can I have converted them to pay point payments so I can have a bit more control of how much and when payments go out in future.

Payplan said I will recieve some papers in the post next week - any idea what these are??

I did get her to explain in laymans terms what a 'charging order' was and not so worried now as we are definately not moving forever!!!

The only other details I had to give her was about my car (which I paid cash for about 5 yrs ago so no HP) and my flat (which has no mortgage) Is this just for their details or would they say I have to sell my car (only worth about £2500 if that)??

Still a bit worried about letters, calls etc but much more worried about bayliffs etc

Anything else I should be doing??

Good luck to everyone who is doing this at the mo.

I start Oct 1st can I have a number please?

mb73

Gpuk wrote: »

Ok, I spoke to Payplan today and they have worked out my budget (quite generous) and they have given me a monthly payment of £108.33 a month which means it will take me 24 years to pay off my debts if they freeze interest etc?!? This seems like a very long time and not much money to give them?? Should I get them to up it a bit? The lady was really nice and did say I can be re-assessed in april when I know my new council tax, tax credits etc but bit worried if I up it too much then they might think I was lying before??

So now I have to make the token payments (she suggested £5-£10 per card).....any idea how best to do this??I was going to do the whole letter/postal order/recorded delivery thing????
Do I need to send all my creditors DMP letters or will Payplan inform them for me?

I have set up new direct debits on my new account and where I can I have converted them to pay point payments so I can have a bit more control of how much and when payments go out in future.

Payplan said I will recieve some papers in the post next week - any idea what these are??

I did get her to explain in laymans terms what a 'charging order' was and not so worried now as we are definately not moving forever!!!

The only other details I had to give her was about my car (which I paid cash for about 5 yrs ago so no HP) and my flat (which has no mortgage) Is this just for their details or would they say I have to sell my car (only worth about £2500 if that)??

Still a bit worried about letters, calls etc but much more worried about bayliffs etc

Anything else I should be doing??

Good luck to everyone who is doing this at the mo.

I start Oct 1st can I have a number please?

Hi

I'm about where you are now, but my plan starts September. I've sent the letters to creditors but they haven't had their token payments yet because I have nothing for them til Tuesday. My debt will take 21 years to pay off at the rate I will be starting, so you're not alone. The good thing is when you can afford a bit more it will bring those years down.

May I suggest you also come and join us on the Long Haul thread? It's here:

http://forums.moneysavingexpert.com/showthread.html?t=581094&page=104

Gpuk

Thanks I have been over and joined, just amended my signature too OMG scary when you see how long it's gonna take and that's IF they stop the interest.......IF?!?!?!?!