Unknown territory on the debt front

slicsav

Please help!

I've just spoken to one of my creditors (of which there are many) to find that they cant help me out with an arrangement.

They've told me to get in touch with Payplan to discuss a debt management plan - what does this entail?

MrsTinks

I'd personally speak to one of the free debt charities myself the links are in my signature

Basically you are I guess at a point where your credit is getting unmanageble and they are suggesting you enter a DMP, IVA or consider going bankrupt...

BigCraigJohn

Go with the above

slicsav

Thanks. I'll give CCCS a call now x

slicsav

I've filled in the forms and opted for the low start DMP - once I've entered into this and pay the amount required can my creditors still issue proceedings? I'm up to date at the moment with all payments.

fatbelly

slicsav wrote: »

I've filled in the forms and opted for the low start DMP - once I've entered into this and pay the amount required can my creditors still issue proceedings?

Yes - as things stand, it's just an informal arangement. The vast majority of people on a dmp never see court action. If it does happen, come back here for advice first.

Payplan is also fee-free, by the way. But I don't want to start an argument!

MrsTinks

They may be but they are not on the recommended list by Martin so I don't tend to suggest them... probably because they're not a charity But who knows

MrsTinks

slicsav wrote: »

I've filled in the forms and opted for the low start DMP - once I've entered into this and pay the amount required can my creditors still issue proceedings? I'm up to date at the moment with all payments.

Yes if you can't afford your full monthly payments you will in effect default your debts. As fatbelly says you are entering an informal agreement with your creditors. The chance of them "being nice" is increased by going through a debt charity/organisation as they know you will get support and help and guidance and there is more chance they will eventually get their money back. There is however never any guarantees.

However ultimately you will be better off getting the advice and support of one of these than if you were to default and struggle on your own...

slicsav

Thanks Mrs T.....tbh I'm cr***ing myself. I took your advice and got to them pronto! I've opened a new bank account and transferred all my housey things there and basically cancelled all my dd's. They're all paid up to date so it'll be from here on in. I'm guessing my headache will ease at some point.....Thanks so much. Feeling desparately delicate at the moment!

MrsTinks

So long as your new bank account is with someone not connected to any of your current debts then take a deep breath and have a cuppa... it's scary, no... actually it's terrifying isn't it? But so long as you deal with your priority debts - mortgage, secured debts, council tax, utility bills - then try not to panic. You're not alone in the boat and you've just put a rudder on it so YOU can control the direction it's going in now.
CCCS will send you out a pack with your reference and everything else you need to fill in - if you need any help filling it in then shout on here
In the mean time you can always do your SOA (statement of affairs) and post it up here to let us all have a look at it for you and see if there are areas you can cut back on or improve on. All adding to an earlier debt free day

slicsav

Its funny really....my new account shows a credit balance for the first time since I got divorced 10yrs ago!! Albeit about £100 but it's in the black.....gonna have a good cry now! Thanks soooo much