Need some encouragement & goals to aim for.

Jacobs_Crackers

Hi all,

this is only my second time posting on here so please be gentle with me! (sorry if its a bit rambling!)

I am currently in a dmp with Payplan which started in Sept 08 and which is actually going quite well (touch wood) (5 out of 6 creditors are currently accepting reduced payments and giving me either 0% or near to it interest, which I am extremely grateful for).
My total starting debt was £28k, and my current is £20k with a dfd of Sept 2012.
Sometimes (quite often actually!), as I am sure many others find, I get really down about how much I owe, i wish I had never been so stupid as to get my self in this situation in the first place etc. But hey-ho, I'm here & now trying to sort it out.
Whilst reading other peoples threads, I see some have smaller goals to aim for rather than the overall bigger picture. While still keeping my dmp I would really like to do this as 2012 seems like an age away (although I am fully aware that compared to others it really isn't that far away) & need something smaller for me to aim for. I asked Payplan last year, if I could afford it at any time was I allowed to clear any of the smaller debts before the others but they said not as this would be favouritism.

Does anyone have any other ideas how I can spur myself on / encourage me?

Any ideas welcome & would be very much appreciated.

Thanks,
Jacobs Crackers.
x

Tixy

Hi JC

I don't have personal experience of being on a DMP but I do know that people do successfully negotiate reduced full & final settlements with some creditors as they go along. I believe that you need to do this yourself as Payplan will not do it on your behalf (because of favouritism) and I think people often write that a family member is prepared to loan you some cash to repay your debts. And in theory that should not accept your other creditors too much (after all with one debt gone they should then get a slightly higher figure each month).

I'm sure others who have actually done this will have more advice when the time comes. So in the meantime I would work on setting yourself goals to raise X amount to make a F&F offer to one of your creditors. You could set yourself a challenge to cut back on certain areas even more - or to raise extra funds by selling things or doing online surveys/reviews etc. How about setting up a seperate bank account just for these savings and trying to transfer a small amount across each week (this money can also act as a small emergency fund).

Just a thought

gargrave50

Hi Jacobs Crackers,

Welcome to DFW.

Payplan are unable to encourage you to make a F&F as they need to be seen to be treating all creditors favourably. However, there is nothing to stop you writing to the creditor direct and making a full and final offer. Be careful to word your letter correctly (see National Debtline template), and to start low (around 20%).

If they do agree to a F&F, then once the F&F has been confirmed in writing and paid you contact payplan and ask them to remove this creditor from your DMP. All they will do is redistribute the money they were paying them amongst the remaining creditors. Hope this helps.

Aim for small goals - starting with your lowest debt and planning to clear it within a certain time frame is a good one. Let us all know how you get on.

xx J

LandyAndy

Three years is nothing, 1/30th of your life. Grit your teeth and press on. Being foolish is easy, being sensible is much more demanding but it is the route you are on. I've paid off far bigger debts than you and I can tell you that the view from the other side of the mountain is well worth the climb.

ZarZar1990

Good luck and welcome to DFW! :j

Jacobs_Crackers

Hi folks,
thanks for your words of advice & encouragement. I can't wait for Sept 2012 to come round! I wish I could fast forward time & start living again!
JC.
x

LandyAndy

Jacobs_Crackers wrote: »

Hi folks,
thanks for your words of advice & encouragement. I can't wait for Sept 2012 to come round! I wish I could fast forward time & start living again!
JC.
x

I don't know how old you are (I am ancient - which might make a difference) but think back to Sept 2006 and 2012 probably won't seem so far away. That's how close you are to your new life;):j.

Pippilongstocking

Tixy wrote: »

Hi JC

I don't have personal experience of being on a DMP but I do know that people do successfully negotiate reduced full & final settlements with some creditors as they go along. I believe that you need to do this yourself as Payplan will not do it on your behalf (because of favouritism) and I think people often write that a family member is prepared to loan you some cash to repay your debts. And in theory that should not accept your other creditors too much (after all with one debt gone they should then get a slightly higher figure each month).

I'm sure others who have actually done this will have more advice when the time comes. So in the meantime I would work on setting yourself goals to raise X amount to make a F&F offer to one of your creditors. You could set yourself a challenge to cut back on certain areas even more - or to raise extra funds by selling things or doing online surveys/reviews etc. How about setting up a seperate bank account just for these savings and trying to transfer a small amount across each week (this money can also act as a small emergency fund).

Just a thought

This is exactly what I am doing, I have a CC bill with first credit which I now want to pay off (I've nicknamed him Gargamel) (stupid I know but it helps me - I;ve had Hairy Mclairy (RBS Loan) and Evil Edna (Lloyds overdraft) and now its Gargamel.

I am putting anything extra into Gargamel in an online saver which I can transfer straight into from my bank it took minutes to set up. Absolutely everything extra goes into that online saver every day - even if its 10p

I find by breaking things down and really making sure every single extra bit goes into my PAD - then I can really make a difference

With gargamel I owe 2660 but they offered me a full and final of 30% less a while back (they regularily do) so I am now saving to be able to take them up on that by using PAD's

Simple, breaks it down and makes it feel more managable.

I started a diary as well - lots of folks drop by and share interesting bits and encourage my silly names and my PAD's

It helps not bieng alone and gaining some encouragement.

i also am a big regular on the 'what small things' thread each day - its amazing how much you can sort your financial head out by listing small things you'll do everyday - and also how much you can pick up!!

Goodluck to you well done on posting!

gargrave50

Jacobs_Crackers wrote: »

Hi folks,
thanks for your words of advice & encouragement. I can't wait for Sept 2012 to come round! I wish I could fast forward time & start living again!
JC.
x

In just 46 days (its late and my brain isn't functioning but its around this long) we will be into 2010. The end is becoming closer - well done. What's your interim goal - have you decided yet?

Jacobs_Crackers

Thank you all you lovely peeps!
I am thinking of saving up & paying off if I can (with a f&f) one of my Lloyds loans as this is almost the smallest debt (£1150). A large proportion of this is due to charges & interest anyway! I have put in a claim to get some of this back, but I won't see any of that for some time to come for obvious reasons, if at all.

fayjmck - your names for your accounts made me smile, good idea!

LandyAndy - you are right, 2006 doesn't seem that long ago. Thank you. x

Thanks everyone.
x

(Off to bed now, will drop by again tomorrow)