DMP Mutual Support Thread (Part 6)

JoJoB

So glad I found this thread!

We have about 17k of debt, all in OH's name, and finally hit the wall. Will be looking to a dmp soon, but on looking at my soa I don't think there is a big enough surplus - maybe £120 per month to give to creditors. Which will mean a dmp lasting 10 years or so.

Has anyone entered into a dmp with this sort of timespan? I thought it was for 5/6 years max but I don't know enough about it really.

It may just be a precursor to going bankrupt, but I would at least try to make the effort and see how it goes - one thing worrying me was OH took out a 3K loan a couple of months back (he didn't know my ctc had dropped from £250 per month to £50 so thought there was more money coming in - but even so, after doing soa we realised we had been supplementing income with borrowing anyway so had borrowed without really making sure we could pay back). So obviously this wouldn't look good to the OR which is why we want to go the dmp route.

Any info gratefully received!

ianmak

JoJob,

My initial DFD was 2029, so, 21 years at the time. I was paying £158 a month. I was lucky enough to be able to get a promotion and payrise, which enabled me to double my payments within 4 months - but even then it's still 10 years to being debt free. You will get low start DMPs, for those with very little surplus (£50 plus), but you'd be expected to increase that pretty quickly.

You've also got to consider that PayPlan when running through my budget lowered my payments by about £100 as what I thought I could afford, was nowhere near in reality, and that was the start of me learning how to budget. You need to remember to include in the budget those hidden extras, and I'm thinking mainly nights out, and car/boiler repairs.

JoJoB

Thanks Ianmak, really good to know that! We don't run a car luckily, though OH's commute is a whopping £300 per month, which doesn't help. Very pleased to know we should be able to come to some sort of arrangement with payplan then, cheers.

JoJoB

What I'm also wondering is how a dmp for, say, 10 years will affect credit rating in comparison to BR. After 6 years of BR it's not on your record, will it be the same with DMP, like 6 years after entering DMP it won't affect credit rating?

Just thinking long term as we have a child and our small flat isn't going to cut the mustard forever. If we needed to move somewhere bigger and had more income coming in in the future would it be possible to get a bigger mortgage to move on, or would it be a case of selling up and renting?

Twit_Head

ianmak wrote: »

JoJob,

You will get low start DMPs, for those with very little surplus (£50 plus), but you'd be expected to increase that pretty quickly.

Start my DMP in August. Like JoJob I have a similar debt of nearly £16,000 but I can only pay £80-00 month so DMP for them is possible - (something like 18 years timescale for me.)
However bit worried by your comment about increasing payment. Am NHS worker so very likely locked into a long, hard haul to repay. My DMP is also low-start - any advice/thoughts from any one who started in similar position and couldn't increase payments greatly?
(BTW - in answer to welcome from previos member I now realise my user name could be misconstrued as swear word but is actually a true reflection of my mental state/self-esteem when joining forum! )

Member Number 330

Toffee_Penny

Hi Twit Head, oh please don't think I was taking the pee out of your name! I whizzed through the page and saw the name and thought it was very funny, certainly brightened my night up anyway!

A big 'HELLO' to all the newbies :beer: Welcome to the gang

ianmak

I can't actually find where it says about increasing payments on a low start DMP, but will see what I can find!

Twit_Head

Toffee_Penny wrote: »

Hi Twit Head, oh please don't think I was taking the pee out of your name! I whizzed through the page and saw the name and thought it was very funny, certainly brightened my night up anyway!

Thanks to both ianmak for your time and trouble and to Toffee Penny. I love this thread because of the uncondional support shown to all. Like most of you I am here because of unfortunate circumstances not wilful mis-spending or financial ignorance.
Maybe we all 'Will be millionaires one day Rodney' but until that great day dawns, proud to be 'Twit Head' and wishing every last one of you good luck on your journey:lovethoug

capcom99

ianmak wrote: »

Most people don't use the Giro slip, I only did because I hadn't read this thread and didn't know how else to make payment. Either pay by cheque or PO, and send with the letter mentioned above. Also make sure you only make £1 token payments...

why only £1?

Payplan suggested any token payment is fine as long as you do not go above the DPM payback threshold....

Wouldn't paying the creditors slighty more not annoy them so much?

I was thinking £15 to each of my 6 creditors....

bigmommamuppet

capcom99 wrote: »

why only £1?

Payplan suggested any token payment is fine as long as you do not go above the DPM payback threshold....

Wouldn't paying the creditors slighty more not annoy them so much?

I was thinking £15 to each of my 6 creditors....

It's somewhere in the guidelines of CCCS and I suppose PP that token payments should be between £1 & £5 not sure the reason why. When I started my DMP (before I read this forum etc.) I sent token payments of £10 and to be honest it didn't make any difference, same hassle/ letters etc. Should have sent £1 and put the £126 into my emergency fund.

I'm sure others will be along soon to explain the rules of token payments.

Becks