will this idea work?

crazyhazy

why don't you do as suggested by several other posters and do a soa and we'll maybe be able to help you see where you can cut back and who knows you might be able to get on top of things without a dmp. Everyone here is trying to help.

katsu

Hi Welshangel,

I don't think DVardy's Shadow is trying to be mean to you, just being a bit blunt in giving you some info. I don't know if you understand the full implications of a DMP? I'm probably not the best person to explain, but I'll try to give you my understanding.

It does damage your credit rating for a period of time and you can end up with defaults on your credit record. Creditors are not forced to accept you being in a DMP and can still take you to court and get a judgement to make you pay them a set amount regularly. You would enter a DMP if you could not make your current minimum repayments, on the basis that you were no longer able to keep to your side of the agreement. You would need to agree a budget with your DMP provider (such as Payplan) so that would agree how much you had to give them to meet your debts. I presume that therefore when you supplied the budget your creditors could see you were not treating them fairly by still paying the full payments to the bank (altho I appreciate this is no longer your plan).

Also - I can see why your BT idea would look fraudulent/wrong. When you made the BT you would agree to it being at X% interest. In the DMP you try to get the interest frozen so it could seem like you did not mean to pay the agreed X% interest for Y months that you agreed with the BT?

Hope this is of some help. Oh, and good luck with whatever you decide to do.

welshangel

Thank you all for your replies. I think I was quite emotional when doing this thread as it is the first time I have properly faced up to things.

I am used to coping, I get by, it's what I do and what I always do. However I was starting to struggle when I took in my sister and her waster of a boyfriend in September. I was sick from work so I was supporting 3 of us on half pay. I know I shouldn't have, but she is family and unfortunately despite my protests he came with her.
So that led to me getting into trouble financially. I feel like I should help family, which is why I am £800 out of pocket at the moment with helping sister get on her feet, thinking I can cope.
It turns out I can't.

Then I was clearly given wrong advice from a fee charging dm company so that has led me to humiliating myself on this board. I didn't really understand the DMP and they clearly told me what I wanted to hear, rather than the full story.

I kinda want this thread to die a death now as I really don't want anymore humiliation piled onto what I am feeling now.

Thank you all for your posts, even those, at the time, I was upset about. It has had be thinking more, and realising that I have to try go it alone without the dmp first.

Thanks for listening.

mum2one

Please don't think anyones here to hurt you, the thing is with some dmp their chargeing companies so for eg you pay them £250 pm,they negoitate with the creditors, and say they pay only £100, the difference is there fee.

Maybe have a break and a think about your money, get a soa started and come on with a fresh thread, and see from there,

Please take care, and remember you have nothing to be ashamed of xx

GeorgeUK

Welshangel, i'm sorry if you feel we have humiliated you. Please don't feel like that. We are not here to judge and most of us are in debt and have felt what you are currently feeling. Just take a look at my signature - if anyone should be humiliated it should be me! This board is a great source of information so please continue to use it.

I don't understand what you mean by saying that 'if I turned around and said I had no money' and by saying I am favouring different debts. Which debts would I be favouring?

Not too well explained on my part there. That's what i get for posting threads while at work.

What i meant was that if one week you take £1k from Egg in doing a transfer and the next month said you couldn't meet the agreed contractual repayments, they would question why the transfer was made and if you knew you would not be able to repay their money.

From the way you typed the thread, it sounded as though you would be making full payment to the Barclays debt, but the Egg debt would be getting only a partial payment. They would not agree to this - all creditors would need to get the same % of available funds for it to be fair.

If you can't manage all your current payments and have cut back on the groceries, for the best price for the utilities and insurance etc, it would be a better idea to do a DMP with Payplan. They may be able to get the creditors to stop adding interest and charges and will also sort out the payments to the creditors. Each will get the same % of available funds but they will require you to put all your creditors into the agreement and you will need to agree to not take out any more credit while in the plan.

If you can afford all the minimum payments, then it may be worthwhile going it alone but as Payplan and CCCS are recognised by the financial industry, you may have an easier time allowing them to arrange any repayment plan.

If anything i have said or alluded to has caused offence or upset, i apologise. This was definately not my intention and i hope you have speedy journey to becoming debt free.

londonfraggle

Hello - just thought I would add my two pennies worth here too!

You poor thing - I know how horrible and daunting setting up a DMP can be - in fact even once you're in it you can still have wobbles (believe me - in fact I had a major wobble day yesterday - thank goodness for dark chocoate digestives is all I can say!).

I began my DMP a few months ago. When you set up a DMP properly (i.e. on your own or with a recognised charity such as CCCS or Payplan) you have to include ALL your debts as they do a full budget and only leave you with enough for basic living expenses (food, petrol, rent, bills, phone, a bit of entertainment etc. - it's definitely liveable on but certainly not enough to keep other payments up to other cards etc that you didn't tell them about).

Plus - it really is in your interest anyway to include every single debt (card, loan, overdraft etc.) that you have in your DMP as the DMP company will work on your behalf and with you to have interest and charges frozen on all your debts so that you can pay them off even sooner.

Regarding basic bank accounts - I too was worried about this, but have set up a Co-Op cashminder account and it comes with a visa debit card (no overdraft or cheque book but I'm really quite glad about that as then can't be tempted in any moments of weakness). And the visa card works just like my old normal visa card from Big Bank Ltd. who helped me run up all my debts!

The best advice I would give you is to set up an appointment with CCCS to go through all your options. They are extremely helpful, won't judge you, or humiliate you and however bad your story sounds they will have almost certainly heard worse! (When I had my first appointment with CCCS and was in tears about how bad I'd let the situation get the guy at the other end of the phone had me in stitches about how ignorant some of the other people he'd had to deal with had been - he probably shouldn't have told me the stories (no names used of course!) but it really did the trick and made me realise that a) I was facing up to my problems and b) doing something to sort them out.

So please don't feel worried or humiliated - get that SOA up and get on the phone to the CCCS (or Payplan)!

Fraggle x

DVardysShadow

welshangel wrote: »

... Then I was clearly given wrong advice from a fee charging dm company so that has led me to humiliating myself on this board. I didn't really understand the DMP and they clearly told me what I wanted to hear, rather than the full story.

I kinda want this thread to die a death now as I really don't want anymore humiliation piled onto what I am feeling now.

Obviously, having been misled by the DMP provider, both you and I were set up to collide. I do suggest you consider one of the free DMP providers. And I suggest you still hang around here - you will be better able to express the issues to others than I was.

welshangel

Thank you all. Really appreciate the replies.

And DVardy, I would like to apologise again. George, you didn't upset me, just confused me, which isn't that difficult! :-D x