Disillusioned with DMP

rotti163

I'm getting very disillusioned with my DMP (cccs). Been doing it for 3 years now and was told in 3-4 years I'd be debt free. In another 3-4 years on top of that maybe! The banks keep adding charges here and there so feel like I've barely paid anything off. The figures from the bank and the cccs are worlds apart.

When i started my DMP I was full of hope, now I just feel back to square one. I had to move back in with my parents but hoped to get my own place once the debt was nearly paid off, that seems totally unrealistic now.

I'm at the end of my tether. There must be another way? Can anyone suggest another way to clear my debt? (20K)

GeorgeUK

A few times i've seen in posts that CCCS tell clients that the banks will wipe all charges and interest once they have repaid the initial debt. Were you told the same thing?

It might be worth writing to CCCS (not phoning) to see if you can get confirmation of whether this is an agreement with the banks or exactly how this would work.

Failing that i would look at reclaiming charges and possibly trying to put money aside to make a reduced full and final settlement offer (Not partial or short settlement).

exharris

I feel the same with mine. I don't blame the CCCS really - but the issue has been that

a) they send out notices to the creditors about their proposed agreement plan, but don't monitor replies , or lack of them. This means if one or more of your creditors does not agree to the plan, you don't know about it until said creditor starts adding lots of charges to your account for missed late payments, etc.
b) they don't seem to have any gravitas in terms of negotiating creditors agree with repayment plan.
c) most creditors won't reduce interest to zero, and all the CCCSs calcs on when your debt will be reduced is based on zero interest and no charges

The best thing to do is to keep in monthly contact with both your creditors and the CCCS. Often, one doesn't know what the other is doing. Go from one to the other. To be fair with CCCS, it's not thier fault, it's creditors who don't go along with them. CCCS have always been very helpful and polite over the phone. They sometimes mess up the payments for me though, and send the creditors duplicated payments in one month, and then no payment the next.

Another option may be to do the whole thing yourself. There's lots of info on how to do this on boards like this and the consumer action forum Debt boards.

Nargleblast

Just because you are in a DMP does not mean that creditors are obliged to stop all charges and interest. Unfair, I know, but that's the way it is. I am surprised, three years down the line, that your debts have not all been sold on to third party companies - when that happens then all charges stop. Another option would be perhaps an IVA, or, if you have no property or assets to speak of, bankruptcy but you would need to discuss those options with CCCS. Otherwise it is a case of persevere with the DMP and try to see if you can at some point obtain a lump sum from somewhere to offer a full and final settlement to clear it for once and for all. Whatever you decide, keep CCCS informed of things.

Shoe_Gal

Hi

Just wanted to say 'hang in there'. I know how you feel, over 2 years in (as you will see in my signature) it's very slow progess CCCS told me 5 years but I think it's glong to be more like 7! I have taken over my DMP now from CCCS as it makes me feel more in control - and gives me the chance to make the odd overpayment when I can

Good luxk, keep going :A

rotti163

I don't blame the cccs for this, its the banks ultimately not being as helpful as they could be.

I don't have a property or assets so not sure which route to go down. I really need to get my own place as living with my parents is starting to affect our relationship. But because they dont take as much money off me for board as they could do, I will end up paying more for a flat and therefore reduce my DMP payments. I feel like I'm in a hole and I'm not going to get out.

Nargleblast

Of course you will get out of this hole, it will just take a bit of time that's all. I would take advantage of the fact that living with your parents means reduced accommodation costs so you should be able to pay more off your debts for a while to bring the total down faster. Once you have got rid of your debt then you can look into getting a place of your own - and that's your motivation for getting the debt cleared asap. Have you checked on this site for various (legal of course) moneymaking schemes?

Poosmate

If you are not happy with your DMP with CCCS then maybe you could take it over and administer it yourself. There is nothing to stop you negotiating with your creditors lower interest or cessation of charges. Also, if you are not aware that these charges are being added you cannot negotiate their removal and it doesn't sound like CCCS are fighting your corner. I guess they are rather overwhelmed atm.

If you post up your Statement of Affairs on here we may be able to help you make cuts in your current outgoings and allow you to pay more off your most expensive debts. With CCCS they will pay the same % off each debt regardless of the interest being charged.

Please use this link:

http://www.makesenseofcards.com/soacalc.html

to work out your SOA and post it here.

Also use this link:

http://www.whatsthecost.com/snowball.aspx

when you know what the balances are and what interest rate is being charged so you can target your most expensive debt.

There are people on here who have sucessfully negotiated their own terms and are administering their own DMP. However, you do have to be disciplined to run your own DMP and not slide back into your old habits of living on credit and increasing your debt.

Hope that helps

Poo