Without a paddle... support for anyone starting a DMP in 2010 (part2)

mikon

Hi everyone

Feeling on a low tonight. CITI called again twice in two days demanding £1.80. I told them speak to CCCS the put the phone down on me. I just feel that my home is my sanctuary and they invade it when they call.

All this hassle for £1.80 after all I am paying them £197.54 a month.

Pains.

Hopelessly_Hopeful

mikon wrote: »

Hi everyone

Feeling on a low tonight. CITI called again twice in two days demanding £1.80. I told them speak to CCCS the put the phone down on me. I just feel that my home is my sanctuary and they invade it when they call.

All this hassle for £1.80 after all I am paying them £197.54 a month.

Pains.

Don't let the ***** grind you down Mikon. They can have it - just not right now, seemples. Ask them to put the rationale in a letter, it will help you both if it goes before a court! If I feel a bit low with anything I try to look at how far I've come and this can often help me tackle the what I've still got left to do if you see what I mean. Hope you get a good nights sleep.

HHx

mikon

Thanks HH

Kind and comforting words.

Regards

FortunePig

Thanks HH

I knew that CCCS have an online option - I had a look the other day. The only problem is that I want to talk to someone about options and see what would happen if I cut back further than I would initially intend to, what happens when and if the companies get nasty, what this is going to do to my chances of getting a mortgage in the next ten years - things like that. They were really great and tried to put me through to someone when I called them tonight, but the councellors were all busy. They have told me however that I can try again any time up to the new appt and if someone is free then they'll talk to me there and then. Will try that at a strange time in the middle of the day tomorrow

On another note - not sure if this will help anyone else, but the reason that I ended up looking at the DMP was because I applied for a consolidation loan to try and do a final clear up of the high APR cards (I know...head in the sand again ) and Halifax firstly turned me down via email, then called me to say that they may have 'another option'. I was then put through to their applications dept who searched 'all the major high street lenders' and I was advised that every single one of them had turned me down. Fair enough - that may or may not have been true. they then asked if I would 'like some help with my finances from a solution that was not a lending one'. At this point I thought I'd listen to what they had to say, so they transferred me to one of their 'partners'. This turned out to be a paid debt management company who were very helpful, went through everything with me and then sent me some paperwork to look over.

When I recieved it, the amount they had calculated I could afford was less than I pay now and I would be debt free in 4 years - good, but I would pay in total around £1000 in management fees. Not so good.

I knew about CCCS so called them for an intial chat which led to me making the appt with them.

When the other company called back, I told them I was also dealing with CCCS so hadn't returned their paperwork as yet. On hearing the name CCCS, the account manager lost the will to fight for my business apart from explaining that they charge because they are 'the experts in their field'. Well, so are CCCS and they are free!

Reading back over the paperwork for the debt management company, I discovered that in order to pay the fee to them, you start paying them the amount they advise straight away and stop paying your creditors. This they plainly pointed out, leads to a default over the first two - three months. Not a great idea... the general advice I have had is pay something, anything while you are sorting the DMP out.

The second thing that bothered me is why would Halifax recommend me and transfer me to a company who may then tell Halifax in return that I am no longer paying them the full amount owed, i want interest stopped and encourage me to default on my accounts? It seems as if something fishy is going on here to me... Are banks that do this getting commission or some other payout/perk for the recommendation to offset the loss of money from the client?

I can't fault the company in their transparancy of what will happen, customer service and manner, but I won't be taking up their offer. Since I started researching CCCS, I have seen them mentioned by several respected places and people including Alvin Hall and Citizens Advice.

Hope this helps anyone who is in or at the same position as me and considering a DMP. I've started a diary on this thread as well - feel free to see how I'm getting along with this all.

Hopelessly_Hopeful

FortunePig wrote: »

Thanks HH

I knew that CCCS have an online option - I had a look the other day. The only problem is that I want to talk to someone about options and see what would happen if I cut back further than I would initially intend to, what happens when and if the companies get nasty, what this is going to do to my chances of getting a mortgage in the next ten years - things like that. They were really great and tried to put me through to someone when I called them tonight, but the councellors were all busy. They have told me however that I can try again any time up to the new appt and if someone is free then they'll talk to me there and then. Will try that at a strange time in the middle of the day tomorrow

On another note - not sure if this will help anyone else, but the reason that I ended up looking at the DMP was because I applied for a consolidation loan to try and do a final clear up of the high APR cards (I know...head in the sand again ) and Halifax firstly turned me down via email, then called me to say that they may have 'another option'. I was then put through to their applications dept who searched 'all the major high street lenders' and I was advised that every single one of them had turned me down. Fair enough - that may or may not have been true. they then asked if I would 'like some help with my finances from a solution that was not a lending one'. At this point I thought I'd listen to what they had to say, so they transferred me to one of their 'partners'. This turned out to be a paid debt management company who were very helpful, went through everything with me and then sent me some paperwork to look over.

When I recieved it, the amount they had calculated I could afford was less than I pay now and I would be debt free in 4 years - good, but I would pay in total around £1000 in management fees. Not so good.

I knew about CCCS so called them for an intial chat which led to me making the appt with them.

When the other company called back, I told them I was also dealing with CCCS so hadn't returned their paperwork as yet. On hearing the name CCCS, the account manager lost the will to fight for my business apart from explaining that they charge because they are 'the experts in their field'. Well, so are CCCS and they are free!

Reading back over the paperwork for the debt management company, I discovered that in order to pay the fee to them, you start paying them the amount they advise straight away and stop paying your creditors. This they plainly pointed out, leads to a default over the first two - three months. Not a great idea... the general advice I have had is pay something, anything while you are sorting the DMP out.

The second thing that bothered me is why would Halifax recommend me and transfer me to a company who may then tell Halifax in return that I am no longer paying them the full amount owed, i want interest stopped and encourage me to default on my accounts? It seems as if something fishy is going on here to me... Are banks that do this getting commission or some other payout/perk for the recommendation to offset the loss of money from the client?

I can't fault the company in their transparancy of what will happen, customer service and manner, but I won't be taking up their offer. Since I started researching CCCS, I have seen them mentioned by several respected places and people including Alvin Hall and Citizens Advice.

Hope this helps anyone who is in or at the same position as me and considering a DMP. I've started a diary on this thread as well - feel free to see how I'm getting along with this all.

Legalised Robbers. I sooo want to swear. That's very simular to my experience. I called my bank of many years. They clearly have us on a 'almost going to hit the wall' type alert and just used the opportunity to gleam as much out of me as possible. By all means speak to CCCS, may be worth calls to payplan and debtline too. I think they will all tell you there are no promises and you will see from posts here there's no set pattern to who will and wont when presented with the same circumstances. Defaults once they start stay on your file for 6 years. Most of us are happy with that as there's often a pledge not to want to waste money on interest again. Mortgages are possible, usually once the dmp over though and you may need to accept that you wont get a low rate until you build equity up. Good luck with it all

HHx

FortunePig

mikon wrote: »

Hi everyone

Feeling on a low tonight. CITI called again twice in two days demanding £1.80. I told them speak to CCCS the put the phone down on me. I just feel that my home is my sanctuary and they invade it when they call.

All this hassle for £1.80 after all I am paying them £197.54 a month.

Pains.

Hi Mikon

Sorry to hear about all the problems with citi. Can you screen your calls with an answer machine service so that you don't have to pick up the phone to anyone for a while? You could explain to anyone that you wanted to speak to that your phone will go straight to answer machine for a bit as you're waiting for a string of persistent unauthorised sales calls to be blocked by your provider.

Also, if citi are asking for an extra £1.80 a month, why not try sending it to them just once or twice - but through the post taped to the back of a postcard in 1p pieces! Truly evil I know, but they'll soon stop asking when they have to unstick and deposit them all...

Not sure if I'm being of much comfort but also remember that:

Nobody can make you feel unsettled or inferior without your consent. ~Eleanor Roosevelt

and

A successful person is one who can lay a firm foundation with the bricks that others throw at him or her. ~David Brinkley

Don't let them get to you whatever you do. Banks are well known for trying these last ditch attempts to make you pay more. They often do it because they know they're about to lose! :T

FortunePig

Thanks again HH. I'm hoping that my lenders will see logic. I'm going round in circles, never paying off the capital and if they don't accept a modified arrangement then eventually if it continues long enough it'll lead to bankrupcy from which they'll get even less! Added to this we'll never be able to afford a rented place of our own and to have children while this is going on, so one way or another, I'll be seeking a way out!

I thought it may take about 6 years to get 'clean' again - but at the moment I think it's going to take me about 15 to save a deposit, let alone be able to afford mortgage payments! I think when this is all over I might book an appointment with an independent financial advisor. With the pressure on pensions, retirement care and loss of benefits for families I'm thinking a bit more thought now will be preferable to a living hell when I reach 50+

mikon

12.45 and just finished typing letter to CITI. These people are like leeches. Must get to bed now.

Thanks everyone.

FortunePig

Night Mikon

Go have a warm drink, a few pages of a good book and a good sleep!

eyeopener2

FortunePig wrote: »

Thanks again HH. I'm hoping that my lenders will see logic. I'm going round in circles, never paying off the capital and if they don't accept a modified arrangement then eventually if it continues long enough it'll lead to bankrupcy from which they'll get even less! Added to this we'll never be able to afford a rented place of our own and to have children while this is going on, so one way or another, I'll be seeking a way out!

I thought it may take about 6 years to get 'clean' again - but at the moment I think it's going to take me about 15 to save a deposit, let alone be able to afford mortgage payments! I think when this is all over I might book an appointment with an independent financial advisor. With the pressure on pensions, retirement care and loss of benefits for families I'm thinking a bit more thought now will be preferable to a living hell when I reach 50+

HI FP

First things first. Don't try and think too far ahead just yet or fill your head with what ifs, it will drive you mad (trust me on this).

Start the DMP ball rolling and just see what happens when your settled into it. Some creditors will be fine, others may not but you can't second guess them, they seem to treat us all differently.

When the DMP starts you may find yourself with a totally new outlook on life, I certainly have, and living life without out credit is strange even difficult at first but you may find it liberating and you can then focus yourself on your future plans.

First things first though, settle into the DMP cos your going to have quite a lot to deal with initially. Letters by the truck full, phonecalls etc etc. So don't worry just yet about what could happen, just wait and see what actually does happen and deal with it as it comes in.

E2