DMP Mutual Support Thread (Part 6)

DevonGirl

rachaelfleur wrote: »

Hi everyone, I hope you're all doing better than me at the moment! I posted the paragraph below on the 'ask a CCCS counsellor a question' thread but nobodies replied and I really need some advice! I know you guys and gals will try to help me.

I'm currently on a DMP with CCCS which I've only just started. My second payment is due on the 1st August. I have a huge problem, my boiler just packed in and I don't have hot water or heating at the moment (although my heating's not really required just now). The trouble is I've had someone in the look at it and basically I need to replace my boiler. I've had a few quotes for this and everyone has quoted well over £1000. Unfortunately I don't have any insurance for this and my house insurance doesn't cover it. What do I do apart from curl up in a corner and cry? Is it possible to seriously reduce my DMP payments for a few months so that I'm able to replace it? My only other option would be to take a credit plan with british gas, although I'll probably be refused this due to my bad credit rating. I can't ask a family member to help out as my sister's getting married soon and everyone's payed out alot of money for that. Oh god, I really don't know what to do, any advise would be appreciated.

Hi Rach

Don't worry about this - yes, it's bad timing and a complete pain - but CCCS are fine with this. They'd rather alter your plan than have you take on more credit.

I speak from experience as I had to reduce my month 3 payment to CCCS to pay for my boiler which (fortunately for me) only broke down - didn't need replacing. I rang them up to explain and, like you, said I could take out credit, or borrow from a family member. The advice was that to borrow money on my DMP would be like shooting myself in the foot as all my money is budgeted for and trying to claw back money to pay for a new debt would endanger my plan.

They were quite happy for me to go to a £1 token payment for a month before getting back on track, but I preferred to spend all my 'emergency fund', which I'd proudly built up to £150, plus reduce my payment by half, which covered the amount for the repairs. They wrote to my creditors and advised me to ring them myself to explain this month's payment would be less, but I was a woss and didn't want to phone them. Anyway, I got a letter from CCCS later to say that one of my creditors (Citibank) wouldn't accept the reduced payment, but they would pay them the amount offered and I didn't have to do anything. That month's payment came and went and, as they predicted, Citibank accepted the reduced payment and I haven't heard anything from them directly.

Sorry, it's so long winded but just to say that these things do happen and shouldn't cause a problem with the help of CCCS. A boiler is an essential item, not an option, and you have no other access to credit so please don't worry. I kept my service receipt in case any of my creditors demanded to see it, but nobody did. I think as long as they're receiving something they leave you alone.

Hope this helps - please don't worry!!
Best wishes
DG

Edit - incidentally, the creditor who said they wouldn't accept reduced payment, Citibank, are only owed £800. I owe other creditors £££££s! Like Saskia says, there's no rhyme or reason to how each creditor acts.

sandalwood_2

glitterlea wrote: »

Hi.
Just wondering if anyone has a template letter for making a token payment to my creditors?

My DMP is due to start next month but I need to make a toekn payment to my credit cards this month.

Thanks in advance
x

Hi Glitterla
Please see below template of what I sent,just fill in the gaps:hope it helps




Date: xxxxxx

Account No:xxxx

Dear Sir/Madam

I have recently been experiencing some financial difficulties.

Previously, I have been repaying my debt to you, on line from my bank account. However, due to my recent difficulties, I have been in touch with a firm called (CCCS/Payplan), who are a free debt advice agency.

My case number with( Payplan/CCCS) is :xxxxxxxxx

I am in the process of going through a free financial assessment with them, and am hoping to set up an arrangement with them, to repay my debts to yourself and my other creditors. Therefore, I can no longer keep up with these, and offer you a token payment of £xx until my assessment has been made and my arrangement is in effect.

Please accept this offer as a goodwill gesture for a short period of time, and my Case Officer will be in touch with you, in due course to negotiate the new payments to you.

I would be grateful if you would put my account on hold until I am in touch again to up-date you.

Thank you for your time, patience and understanding with this matter.

Kind Regards

glitterlea

jaybag wrote: »

Hi Glitterla
Please see below template of what I sent,just fill in the gaps:hope it helps




Date: xxxxxx

Account No:xxxx

Dear Sir/Madam

I have recently been experiencing some financial difficulties.

Previously, I have been repaying my debt to you, on line from my bank account. However, due to my recent difficulties, I have been in touch with a firm called (CCCS/Payplan), who are a free debt advice agency.

My case number with( Payplan/CCCS) is :xxxxxxxxx

I am in the process of going through a free financial assessment with them, and am hoping to set up an arrangement with them, to repay my debts to yourself and my other creditors. Therefore, I can no longer keep up with these, and offer you a token payment of £xx until my assessment has been made and my arrangement is in effect.

Please accept this offer as a goodwill gesture for a short period of time, and my Case Officer will be in touch with you, in due course to negotiate the new payments to you.

I would be grateful if you would put my account on hold until I am in touch again to up-date you.

Thank you for your time, patience and understanding with this matter.

Kind Regards

That's perfect.. thanks so much!
x

scouselad1974

Hi Everyone

I'm after a bit of advice regarding harrasment from Monument, the majority of my creditors have accepted my DMP with CCCS apart from Monument who I owe a very small amount to, because I no longer take their constant calls they have started to telephone my parents house, What can I do to get this stopped as my parents are elderly and unwell.

frankfish

Hi,

Another newbie hear, I am about to start a DMP with CCCS and would appreciate any advice.

Current situation is that I have 3 loans:-
Halifax - Balance is 7K pay £221 pm paid 10K so far
Northern Rock, Bal 17k pay £229pm, paid 10K so far
Hitatchi (was LV) Bal 17K pay £300pm, paid 8K so far

Due to having to change job, redundancy, my income has dropped by over £1000 per months.

Budget agreed with CCCS gives me £250 pm for payments, which will take 14 years assuming they freeze interest etc.

Ideally I would like to go onto a DAS, but I have been told this would not be possible, as the repayment period should be under 10 years. I am lump sum as part of the redundancy and using this could help get the term down, or do I hold onto it for a while and use it to offer F&F settlements, if so how long do I wait ?

I am about to start the ball rolling, and send the letters out, I can make the payments in August but come Sept the DMP will have to kick in.

No arrears at the moment, what can I expect when I send off the letter informing my creditors, using the CCCS template ?

What has been peoples experinece of the 3 companies above when it comes to DMPs?

I have about 20K equity in my house, my OH has the other £20K,

Lots of questions, any advice appreciated

FF

bradfordlad

bradfordlad wrote: »

Evening geoff / everyone else!

Had a bit of a "development" this evening.

Did the CCCS debt remedy online, ad they suggest BANKRUPTCY as our best option!!!!

The only problem (as tempting as it might be) is that my wife works for a bank, and I work for a Financial Services firm so in short we'd probably both be out of work!!

Does anyone think this sound like something CCCS / creditors would go with? :-

I can juggle our budget around to the point where we can pay about £120 a month into "the plan", basing everything on our guaranteed income (it would take 32 years to repay everything at that rate!!!!) - SO we offer token payments to start with. Admittedly, the token payments would be exactly that - maybe £15 a month per creditor.

My job has a cr*p basic, but I SHOULD earn commission each month so I say to them that on top of the token payments each month, I will make a lump sum reduction to the plan every 6 or 12 months of say £4,000. In about 5 years time, we will be receiving another £300 a month, so commit to paying that into the plan at that time.

Bit of a long shot, but....thoughts please?!:rolleyes:

I spoke to CCCS this morning, the lady there didn't think my idea above would be acceptable.

We have our appointment with a councillor in a couple of weeks time, and will be able to maintain payments to our creditors for the next month or so.

I think the reason the system suggested bankruptcy was because it would take over 30 years to pay everything back. Can I ask, does anyone have any experience of paying their creditors a token amount of say £5 or £10 a month, with a view to reviewing it in 6 months time?

We are at our wits end here because it appears we will not be allowed to do a DMP (too long to pay everything back), but we cannot go with bankruptcy due to my wife's job (she'll lose it if she's declared BR - and the income that goes with it.). We have no equity in the house so can't sell it to pay anything off.

I honestly feel as though we are trapped in a nightmare that we can't wake up from...

Please does anyone have any ideas/suggestions or even just words of comfort? With a 2 week old baby in the house we are REALLY suffering emotionally, and are just sick & tired of the worry in what should be a happy time for us.

Cheers

BL

beaniebabe

2spicy wrote: »

This is an exact reflection of us. We are not in Financial Hardship yet, but Hubby and I sat down and ran through the figures and it was a case of damage limitation. if we hadnt started the DMP when we did, in 6 months time ( around now in real terms ) then we would have been in serious financial hardship and outgoings would have dramatically exceeded income.

Our Damage Limitation worked for us. we now live to a budget, we have enough money to pay our debts off in a realistic time. The recient drop in interest rates have also helped with reducing our mortgage repayments so this has enabled us to spend some money on essential home maintenance. Plus we have no credit cards, no over drafts.

I am in the same position and me and my OH had no option but to go on a DMP as we could have risked losing our home. The plan has made us take some control over our finances. We now stick to a budget, have no over draft, no credit cards and best of all NO ANNOYING TELEPHONE CALLS!!! :T

ianmak

Paolo_H_UK wrote: »

Hi all,

I'm about to start my DMP with CCCS on 1 August.

A payment to one of my creditors (Virgin Credit Card) is about £40 per month more than their minimum charge.

How will this affect the DMP with them? Are they less likely to reduce interest?

All my other creditors will be paid less than the minimum charge.

Many thanks,

Paolo

ps: Please can I have a number

Hi Paolo, I sorted out a number for you a few weeks ago:

Paolo_H_UK 325

Evening all to everyone else!

Toffee_Penny

St0lli wrote: »

Good morning all!

I'm into my 4th month of my DMP and most of my creditors have stopped interest charges except for Halifax and Lloyds TSB. I know a lot of people have advised that things settle down and eventually they will stop these charges but what happens if they don't? Both of these credit cards were taken out years ago so I'm wondering if it would be worth sending off for an SAR?

Obviously I do want to repay the money I owe but they aren't really helping the situation by adding more and more charges and interest.

What to do, what to do........ :rolleyes:

Hi St0lli

I am sure you can claim back 6 years, well I know that is how much you can on ppi claims but some have had success since their accounts opened 2002, 2001 even 2000 when proving mis-selling. So it gives us all hope. I am not sure with bank charges though as I haven't encountered that problem myself but I am sure Martin has written something about it in the reclaiming section.

A letter to a creditor asking to be sympathetic might work if backed up with a CCA request. Halifax credit card was one of our worst but as soon as the CCA request went in, they accepted CCCS payments so you never know

I still can't believe how many people on here are treated so differently by the same creditor. I don't get it! Does it depend on who opens your letters the other end and if they are having a good or bad day in the office when they decide to finally stop interest and charges?

Just try not to let one or two creditors get you down. We have a total of 13 creditors and my GUS catalogue are the only ones who are charging me £12 late payment fees every month :mad: I owe £1400 whereas the highest debt of £13k to Halifax has stopped all interest and charges

I did successfully claim back £48 of administration charges from GUS but they now changed it to 'late payment fees' Seeing as it is only one creditor I'm not getting too stressed about it when I see the other 12 debts decreasing. But if it is silly amounts of pounds extra every month then go for the reclaiming. You have nothing to lose and everything to gain.

Good luck

Toffee_Penny

Daffykjs wrote: »

Thanks very very much ToffeePenny. I will get that sent off.

Do I send it to all CC's AND my old bank? Or should I just start with the bank? That's where the most charges are but there are some with some of the CC's i think!

Ta!

Hi Daffy

Send a SAR to everyone who you think owes you money! They'll hate you for the extra work you have caused them

Depending on the amount of creditors you have, it is a pain and a cost to send those £10 postal orders out (the woman in the PO will tut at you like mad for holding the queue up! :rotfl:)

When you get the SAR it will be pages and pages of everything the company hold on you, most of it gobbleydeegook , but you should get (if they have it) records of telephone calls, a copy of every statement, application forms etc.

It's a pain going through every single statement highlighting the charges you are claiming back but so worth it when you get the letter back offering you that refund! Go for it, it is your money after all!