PayPlan... confused what to do, what happens.

MsLouise_2

hi guys.

got myself into quite abit of trouble - £23,000 of debt.

Ive been intouch with pay plan. basically my pay is reduced for a couple of months and ive got more going out than coming in. Ive got all the letters for my creditors through this morning. (they are advising me to offer a token payment of £1).

My question is (and i know i need to contact Payplan with my queries -i just cant sleep for stress right now) do i send these letters out now. and what type of response will i get? will i be getting phone calls etc? could my credit be passed to a debt collector? could i end up with someone knocking at my door? (i dont want my flat mates to know my situation).

I get paid on 4th of the month

ive just opened a basic acount with alliance and leicester (ive just read to make sure the new account isnt linked to creditors - mine are halifax, egg, cahoot) does anyone know if this is ok??

do i now move my next pay over to the new account and my direct debits ie phone, electric and gas.??

i just dont know what the next steps are and whats likely to happen

thanks for any advice.

PollyandMartin

Hi
I am in a very similar situation.

Have been to CAB
Have a telephone meeting with Payplan next weekend
Have opened a new cash card only bank account with Nationwide
Have never been late for a credit card or loan payment (that is one of the reasons why we are in so much debt)
It has been suggested that I cancel DD payments to creditors from this month in order that I can actually afford to live. This terrifies me as I am scared of the nasty letters and phone calls but worst of all someone knocking on my door, worrying the children etc.
Will do a letter and offer a small amount.
All our priority debts eg mortgage, council tax and utilities are paid.
Unclear of when to transfer my bank account.
Terrified that the IVA won't be accepted as nearly 25% with MBNA who have heard are likely to reject. Rest with Barclaycard, Egg, M & S, Barclayloan, Barclays overdraft.

If there are anyone who can help or reassure me, that would be wonderful.

MsLouise_2

Polly and Martin, we're in exactly the same situ.

ive never missed payments either and scared of what will happen if i cancel the DD. i live in a shared house and really dont want to involve my housemates or explain.

payplan have written the letters for me and sent them by post but they've not sent any info on what to do.. and now i cant speak to them until tuesday.

i dont see how how yours could be rejected, my outgoings (without my debt) is more at the moment, although im on reduced pay for 2-3 months. Pay plan have written in my letters a token offer of £1 - i just cant see them agreeing so wondered what happens now.

hopefully someone will be along with some info for us. keep intouch.

haggisAThome

hi both ...

first of all don't panic , i am about to start my DMP with pay plan . i know its scary as hell in the beginning , especially when your told to go and clear out the bank right up to the OD limit , then cancel all DD etc etc .

don't panic , you both sound just like me 2-3 weeks ago . i know its easier for me to say but you will be ok ,before you have the phone interview please make sure your income and expenditure is all up to date and you have the account numbers . if you don't this will slow things right down . as soon as you have had the phone interview , it will be the worst days of your life until the paper work comes through . after that you will feel better . yes you will get hassling phone calls from the creditors , just nicely inform them of your PP id number and leave it at that .

one important thing i may add is you will be budgeting , there is no father christmas or birthday bunny , the creditors don't believe in them so you wont be allowed to budget for them , so don't forget you can get a budget for mot,car costs , hair cuts and medication etc etc . but remember the more you take of for your self the longer it will take to pay things back . i had to put my food bill up to the max as one of my kids has celiac,s and her food costs a fortune .

hope that helps and if you need to know more just give me a shout

scott

MsLouise_2

thanks scott.

did you send all the letters off yourself then? im unsure whether to post them. i have a new account set up with alliance and leicester although im unsure if this is linked to any of my creditors - halfax-cahoot-egg.

my next plan is to call payplan and speak to them as ive only been able to communicate by email the past week. i presume i move my direct debits - rent, phone and bills to new account. im so scared to cancel the direct debits.

i think it makes it worse because i have noone to talk to ie family etc- i couldnt possibly tell them the mess im in. i'm also scared debt collectors will knock at my door as i dont want to tell my housemates.

haggisAThome

you need to talk to pay plan asap , how far have you got with pay plan ? have you had your phone interview with your income & outgoings ? and have you had your letters with authority to act on you behalf and statement of affairs decoration ?

msgnomey

have been there myself and it does get better! payplan were fantastic with us and they helped to get it all sorted and back on track. You can just tell anyone who phones your payplan number and ask them to call payplan, payplan were much better at getting things sorted than the CAB who although very kind, were also very slow

good luck there is light at the end of the tunnel
xx

Nargleblast

MsLouise - suggest you post a thread on the debtfree Wannabee board as soon as possible, as loads of people on there are on debt management plans and will be able to help with advice.

It is all very daunting and scary when you are in this position, but we've all been stupid with money at some point, nobody is perfect. At least you now recognise you have to do something about it - consider this the first step to getting your life back.

PollyandMartin

Thanks so much for all your help. I will try the debt wannabee threads. My main worry is people knocking on my door. I ahve never been in trouble with anyone and I'm scared.

MsLouise_2

polly and martin, that is my worry too, I see this as my problem and can't bear the thought of someone knocking at my door and scaring my flat mate. Thanks for all the advice everyone.

Ive been on the phone to national debt line today and also CCCS. I'm confused about the best option from reading on here.

National debt line thought an IVA wasnt the best option for me and more so to consider writing to the creditors myself whilst i figure my job situation (long story) My employment contract at the moment says possible termination if employee becomes BR, (this employment isnt a perm thing) so figured to try speak to the creditors myself then reconsider BR when my employment is back on track (ive already checked this out with hopeful future employment and it seems to be ok)

I now have an appointment with CCCS on 21st aug (long wait) so going to try stick it out unitl then. I already have a new current account set up so mid aug will transfer my priority debts.

how you getting on Polly and Martin??

haggisAThome

the thing is here (not trying to scare you) but the longer you let these things go on the worse it will get , phone pay plan and try and get a phone interview ... please , then you will start sleeping better . i was/am in the same situation as the pair of you , the days of worrying and making sure the bills and loans were payed first and then worrying about only having 100 quid to keep the family going for the month are now over , if you leave it for a month then the companies will start to send letters etc etc .

phone pay plan and get your phone interview asap