About to apply for DMP and cant sleep for worry!

choco140

Hi there

I have just started the process of applying for a DMP and was hoping if anyone can give me some advice.

I am about to send off my personal budget plan and have a couple of queries

There are 2 creditors i really want to avoid listing- 1 for a car loan which only has 6 months left to run (ends Sept 10). We currrently pay £348 pm repayments. because it is so near the end my sister has offered to take over payments.
The other creditor is my NEXT account- it only has £200 left to pay on it.
My query is - do I HAVE to list these 2 creditors on my DMP or can I carry on as I am at the moment?

The other thing Im really worried about is if the DMP is not accepted by our creditors- currently MBNA (10k) Lloyds TSB (3k) and Co-op CC (7k)

I know the worst thing to happen would be to take us to court and we recieve CCJs, but it doesnt stop the sleepless nights and trying to convince DH this is the right way to go.

My other query is - once the DMP is in place ( hopefully Debtline taking it over for us) do the creditors still hassle us direct or do they have to go through DMP management?

Sorry to rant on- this is all so daunting and Im worried about making a nuisance of myself ringing Debtline every day!!

many thanks x

Poosmate

Hi

As far as I know you have to include all of your debts in your DMP and they will be paid on a pro-rata basis based on what the DMP organiser deems you can afford to pay.

Is debtline one of the free DMP companies? If you are having to pay a set up fee andor a monthly fee please don't go with that company. There are debt charities who will do this for free.

CCCS, Payplan and someone else (sorry it's late and I can't remember!).

I believe, reading other DMP threads, you will be harrassed for a while by your creditors until your DMP gets started but you just need to keep referring them to your DMP provider.

Also, if you don't declare all of your debts to your DMP provider, you'll be in breach of their rules and regulations so they may withdraw their support and help from you.

Hope that helps.

Poo

Poosmate

Doh! I forgot to ask....

Have you missed any payments yet? Going on a DMP will trash your credit score for the next 6 years at least. If you haven't missed any payments yet, then there may be a way that you can pay off your debt without resorting to a DMP.

Also, whilst you're on a DMP you won't be able to obtain more credit, again you'll be breaching their rules. So a DMP, whilst having it's good points in that the DMP provider can usually get the interest frozen and charges stopped so your debt is not spiraling out of control, it's not the only way out.

Hope that helps

Poo

claudia123

Hi there...i am on a DMP with Payplan (non fee paying)...i started in Sept 2009 and i too had £200 that i owed to NEXT

claudia123

Sorry computer just crashed...i was about to say i had £200 that i owed to NEXT and didnt want to include in my plan so i just informed Payplan that i would pay this off and they said that was ok.....i pay £25 per month so hopefully shouldnt take too long to pay off..

Also the creditors hassle you to start with but i unplugged my house phone and dont answer to numbers i dont know on my mobile....it does get easier...2 of my creditors still havnt accepted my plan yet.


Hope this helps

bigmommamuppet

If your car loan is an HP agreement you can't add that to your DMP as it is classed as a priority debt therefore you'll be able to include it on your I/E and carry on paying it as normal.

Becks

choco140

Thanks for the replies- really useful

Its the National Debtline that are helping us- national charity recommended on here, who have been really helpful. They will manage our DMP for free.

Our car finance was a loan and not HP so hopefully they can come and reclaim our car!!

I will list both the loan & the Next debt on our plan but state that they are both going to paid off.

Hope thats accepted! As far as bad credit file- Im really not too upset as if we had had that years ago we wouldnt be in this mess now. I know I only have myself to blame for bad finance management and reckless spending but it doesnt help trying to get to sleep at night! I think a DMP is the only way to go as the repayments on all these debts are well over £1k and I only work part-time and my husband is self -employed so the repayments are getting us deeper & deeper into debt.

Feeling a bit more positve this morning and I find this forum absolutely brilliant!!

Thanks to you all
x