DMP Mutual Support Thread (Part 6)

rfl

Hi all,

I'm just helping my husband set up his DMP. He is using CCCS and is in it for the longhaul.

All his debts are unsecured credit credits + 2 loans. We are unsure of what to write for the reasoning on the letter for all the creditors.

He is unable to meet the minimum payments for all his unsecured debt can we put something along the lines of 'unmanageable credit repayments' or 'managable credit value' ..

I have read through this post as ws sure I saw some advice on the matter however I'm struggling to find it again.
Thanks in advance
rfl.

twoflower169

Hi rfl

We are unsure of what to write for the reasoning on the letter for all the creditors.

When we sent our letters we put that it was down to us no longer being able to make our contractual payments since me being on maternity leave and returning to work part-time.

Has anything changed for you like that?

rfl

thanks twoflower169. No, nothing has changed like that, its a case of having too much credit, spending it then living off it because the min repayments creep up and now they are unmanageable.

Now we're trying to get them sorted but at the moment its just one hurdle after another.

thanks again
rfl.

twoflower169

No Worries, its good to have someone else here to chat to, I've and my 18month old and my DH have been unwell with a sickness bug thing, so sitting on here reading everyones post's has been a life saver the last few days!

ianmak

Triggles wrote: »

I'm looking at trying to convince DH that a DMP is the best way to go with our finances. We have numerous creditors, and we owe quite a bit. The minimum payments are crippling us, and in a few months our incoming money will be less than it is now, so I'm concerned. DH seems convinced we will be able to continue struggling through, but I don't agree. The debt is mostly in his name, however, it is OUR debt, IFSWIM, and obviously he needs to be on board with this in order to proceed. I am concerned that by continuing to struggle, we are throwing good money after bad (so to speak) by paying all the extra interest and such, when we could go into the DMP and actually be starting to pay off the balances (if possible). So.. a few questions so I can discuss this with him with info I know he will ask...

- is it best to change our phone number right away(so they don't have it and call incessantly?)
- do you cancel DD's and change bank accounts PRIOR to contacting the creditors?
- can I have the account in my name only so they can't just help themselves? or can DH & I both be on the account and still keep it safe?
- i understand we need to have his paycheck put into this new account, but how do we make regular payments to these creditors without setting up new DD's to avoid them taking more? I understand cheques are not the way to go either and aren't money orders costly?
- if I cancel a DD through our bank, can the creditor still take money from our bank account without our permission? or does that stop it cold?
- how do we know where to get a bank account that isn't related to our creditors? seems like all the companies are in bed together (we have debt with halifax, abbey, mbna, barclay, virgin (mbna I believe), tesco loans)
- big concern regarding bailiffs coming into home and taking stuff, especially our car, which DH doesn't use to get to work, however, I use to get our 2 littles around - although if push came to shove, I could drive him to work sometimes and then claim it's used to transport him to work so it couldn't be taken, if that makes sense

Sorry for all the questions - I would expect the first few months to be awful (phone calls and such), but at this point, I'm almost looking forward to it, as it would be a change from the constant worrying... which I know doesn't make a lot of sense, but there it is.

Hi Triggles,

You seem to have a lot going on in your head at the moment, lots to plan etc, etc, etc, but it's really not as bad as it all sounds. You need to get your action plan in order, and get the support of a DMP company, if that's who you're intending to have manage the DMP.

So, on the DMP side of things, you'll generally have a choice of PayPlan or CCCS, both are free, operating as charities (I think):
http://www.cccs.co.uk/
http://www.payplan.com/

They'll be able to go through a Financial plan/Statement of Affairs with you, and work out the best solution for you, and how much surplus you have available to pay your debts with. This takes into account any benefits/maternity payments you maybe receiving. Once this has been sorted, and assuming you choose to go ahead with the DMP, then they will send out offers to your creditors, along with your Financial Statement so they can see what you can afford to pay.

In the meantime, you need to make token payments to your creditors, no more than £2 each, and also as you say, sort out a new basic bank account. A good general account is with the Cooperative Bank, as they are fairly independent, and refreshingly ethical (in my opinion). Their cashminder account provides you with all the usual, minus an Overdraft or Chequebook. You also receive a Visa Electron card rather than Visa Debit/Delta. The only issues are the latter, and the lack of branches in some areas, though I believe you can pay money in at Post Offices.

You'll need to cancel all DDs immediately to your creditors, and transfer any others over to the new account once setup. This can be done over the phone fairly easily, but allow at least 2 weeks to be sure. Also remember to transfer salaries over in time.

The only issue with creditors taking money out is if you have a bank account linked with a creditor, normally with loans I believe, as they can reactivate cancelled DDs, that maybe true of linked CCs too.

Regarding Bayliffs, I think they're generally hollow threats, but if they do turn up, don't let them in and call the police if they attempt to come in.

Er, what else. Phone Calls. You will get lots of phone calls and letters through the post, it's up to you how you react to these. Most will say to respond in post only, and ignore phonecalls. That way everything is in writing and can't be twisted in anyway. You may want to avoid using a signature in any return correspondence. Personally I was happy to speak to my creditors, at least it got them off my back for a few days. Just provide your DMP reference and company used, and explain they'll be in touch. That's it really, however, they will try every trick in the book to get any additional payments from you, just don't back down. That all sounds so easy and simple, and for me it was. They can't have what you haven't got. But I know lots of people may feel guilty about this, or may just give an extra payment to keep them quiet.

Everything above is my personal worded opinion, and others maybe able to add to and/or correct this, and explain better everything I've just said.

Please ask for any further advice, or speak to PayPlan or CCCS, or even National Debtline, or your local CAB for general advice.
http://www.citizensadvice.org.uk/
http://www.nationaldebtline.co.uk/

Twit_Head

rfl wrote: »

Hi all,

I'm just helping my husband set up his DMP. He is using CCCS and is in it for the longhaul.

All his debts are unsecured credit credits + 2 loans. We are unsure of what to write for the reasoning on the letter for all the creditors.

He is unable to meet the minimum payments for all his unsecured debt can we put something along the lines of 'unmanageable credit repayments' or 'managable credit value' ..

I have read through this post as ws sure I saw some advice on the matter however I'm struggling to find it again.
Thanks in advance
rfl.

Hi rfl
I did all my CCCS stuff online without speaking to anybody, and I seem to recall there was a picking list of reasons to opt for. I believe one of the reasons (and a perfectly valid one) was something like "over committed on credit"
This has happened to so many of us through circumstance not wilful mis-spending. I think the creditors are more interested in what they are going to get back from you rather than how you arrived here in the first place.
Good luck sorting everything out (and if you can't sleep at night just pretend you're a big cheese in a bank and imagine how you're going to spend your massive bonus in these times of recession!)

Twit_Head

Hey, hey! Clocks go back tonight so I'm sure you're all SO busy adding an extra hour to your DMP repayment time
Extra Zzzzz's for free though. Lets see the creditors try and reclaim that one!
Hope you are all going on OK and enjoying your weekend.

the_tooth_fairy

Hello everyone hope you are all ok on the last weekend of the longest month ever!
Got a default notice from Tesco c/c yesterday, mind Mint sent us one each then accepted DMP as have MBNA and Next. Four down six to go!
OH cheered me up yesterday by reminding me that we've saved £200+ on the interest alone this month. That really helped me yesterday as I knocked half our garden wall down in the car taking the dog to the vets. I was convinced she had the big C (it was a cyst!!) Why did I cancel the pet insurance???

doodle0269

Hey me again!!
I have started the ball rolling with payplan and have got a new bank acc. My wages will be paid in to there this month (hopefully) and then off we go!!
Just wondering though. Our morgage ends its fixed rate in Sept next year. Does anyone know if we will be able to shop about for a better provider or have to stick with our current off the high street (down a dirt track!) provider? I have researched our current provider and apparently they stick the rates right up once the fixed term is over and quite frankly we can afford that!
Cheers:beer:

Merecat_2

BOS have now decided to charge me £25 per letter they send out!!. Gulp!! They will most probably set the computer to churn about 4 a day now!!!

Hope everyone is ok x