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Payplan_company_representative

penelious wrote: »

Hi

I am really struggling in deciding whether an IVA would be suitable for me or not.

I have been paying into a DMP with Payplan for a year now at £320 per month. I have debts of £30k. All creditors seem happy so far, I am not being chased and all but one card have frozen interest and charges. Payplan estimate pay off to be 8 to 10 years, depending on interest and charges.

At my annual review, they have now decided I qualify for an IVA.
I have a mortgage of £53k, house value £90k, my dad is 50/50 joint mortgage holder. I own a car using approx 130miles/week.
I understand that on the 4th year, the creditors will want any equity in the house. I have a big problem with this - If I remortgage, I end up in more debt over a longer period for the sake of paying off creditors quickly. Payplan say it may be unlikely that any company will give me a remortgage considering my ultra bad credit rating - BUT can the creditors still stake a claim on the equity somehow? Can they force me to remortgage if a company does accept me?

I thought credit cards were unsecured - yet through an IVA they can still get money from my house!

Not to mention the thousands Payplan will charge to do an IVA.

I am wondering if I should just stay with the debt repayment plan - how likely are creditors to kick up a fuss half way through and start bankruptsy procedings? All of them seem happy and have frozen interest anyway (though some statements still moan I haven't paid the minimum - dont know if thats just default).

Any help much appreciated. :T

ps. I wish payplan wouldn't use Zoopla to value houses - Zoopla say my house is worth £90k but a recent estate agent valuation says realistically £70k. Big difference.

Hi,

Firstly you need to speak to your case officer about the doubts that you are having and they will be able to go through things with you in more detail.

We use Zoopla to estimate you property, we would arrange with you a accurate valuation of your property in the fourth year of your IVA. If you are unhappy with the valuation from Zoopla that we use for the purpose of your proposals then we can arrange for someone to come to you and value your property.

In your fourth year you would need to seek a remortgage, however if you cannot obtain this then your creditors would require you to make an extra 12 months payments.

I hope this has answered your queries, but let me know if you have anymore.

desparate

Hi, I currently have a dmp with payplan who have been great - my problem is i am trying to get bank account details from payday loan companies and they are point blank refusing to give them out. I will not give them my new bank card detials as last month they just wiped my account.

can you advise if any of you have dealt with these 3 creditors beofre and if so do you have the sort code/account numbers so I can give to payplan to add to my payments

They are:
Capital Finance One CFO - on the consumer credit forum they gave these bank details can anyone verify if they are right?
account number 14203995 Sort Code 60-18-01 Please ensure for reference you put your full name and date of birth so we can recognise who the transaction has come from easily.

Pounds to Pocket

Early Pay Day EPDL

if anyone can help I would really appreciate it

many thanks

StepChange_Pavan

freedomfromdebt wrote: »

Hi,
Would really appreciate some advice. I have already contacted Payplan about this and they say they can't give me any advice!!!
I am currently almost 2 years into DMP with Payplan. Largest creditor is Halifax -originally owed over £15k and currently Halifax have balance as £13400 (payplan estimate balance as £9861). They are only creditor not to freeze interest but did reduce. Our payment to them each month is £275 and approx £136 of that goes in interest charges
This month statement showed interest charged was £250 and so only £25 came off outstanding balance.
I rang Halifax and they advised me that because I am now paying more than monthly minimum payment which they calculate to be £255 I no longer qualify for any reduction in interest and so full interest will now be charged each month @ 23.9%. They were adamant nothing they could do and advised I contact Payplan and if I am struggling with payments then if payment to them is reduced below £255 they can consider reducing interest. At this rate got no chance of ever getting out of debt. Payplan have estimated DFD as June 2014!!!
Can you advice me on the best course of action to try and get them to reduce interest or preferably freeze!! Also are Halifax allowed to charge full interest as in doing so they will make it impossible for us to repay debt.!
I just need to know where I stand and really don't know where else to turn.
Many thanks. MJ

Hi MJ and thanks for your post.

It looks like you’ve already had some helpful advice on another thread.

In the first instance I’d recommend that you speak to your DMP provider as they may speak to Halifax on your behalf.

Unfortunately there are never any guarantees that a DMP will stop any interest and charges, but you can write to them to explain your situation and ask for their consideration.

Like you’ve mentioned, if they still won’t help you could consider making a complaint.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Lou.T wrote: »

Thank you Pavan, i think i will redo my debt remedy with just my details and then get this started. Will a DMP have a consequences on my husbands credit profile if it is only for me, we do share a joint bank account..
many thanks

Hi again,

If you’ve already completed Debt Remedy, you could call our web support team and they will help you to do this. They can also advise you in more detail if you have further questions as they will have access to all your information.

If you have any joint debts with your husband (including overdrafts), your DMP could affect his file if he can’t maintain the payments.

I hope this helps but like I mentioned, get in touch if not.

Kind regards,
Pavan

StepChange_Pavan

truckerdom wrote: »

Hi, I have a lot of debt, especially for someone of my age, approx 15k on a loan, 6.5k between 2 credit cards, an outstanding OU course (collectors are looking for me for that one) money to family, friends and an ex girlfriend. None of this includes the mortgage (107k) for the flat I used to live in with my now ex girlfriend. I do not pay the mortgage but I am still on the paperwork. Or the 40-50k of negative equity on said flat! I have been unable to pay basically any of my creditors for about 6 months now since losing my second job and overtime being reduced at my day job. I need to know what I can do as I cannot afford the payments, I've looked into IVAs before and had a company make a very good effort at a pitch but as an experienced salesman I was dubious and googled and didn't really like the sound of it, Martin Lewis has today advised me very strongly to steer clear confirming my suspicions. Bankruptcy although often viewed as "the easy way out" seems to be the best option but I don't want my ex to be forced out of the flat or to lose her car (we're both on that agreement too). I've spoken with an advisor before quite a while ago when I was in a slightly better situation and we concluded I could just afford minimum payments so I should just make minimum payments, even though this will mean the interest kills me for the next 10 years.... What can you advise, I work hard every day and struggle to pay for things such as car insurance and fuel, money is the one thing in life that gets me down but it's starting to get me down quite a lot. What options do I have? I tried the euro millions but it got me nowhere. Thank you for taking the time to read this and for being there to help. I look forward to your suggestions. Regards, Dom

Hi Dom and welcome to the forum


It’s difficult to say what your options might be without looking at your situation in more detail. Both the solutions that you’ve mentioned are forms of insolvency, and we would need to look at your income and expenditure to determine what is best for you. There may even be other options available to you.

As you have a lot of negative equity in your property and you don’t use the car, bankruptcy still could be an option for you but we would need to discuss this further.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

You’ve taken the first step to sorting out your money worries and we can support you with free and impartial advice along the way.

Kind regards,
Pavan

StepChange_Pavan

rogersonjeff wrote: »

hi there need some help
i currently have mortgage arrears of £385 monthly payment of £428
ge money want me to go into a DPM with payplan so i have enough free to clear the arrears
what annoys me is that i have £2888 worth of arrears charges applied to my account (over three years one time i was £2000 in arrears due to wifes illness)
my arrears statement shows i have paid £788 towards these charges this would more than clear my arrears
what should i do DPM or pursue for charges
the dpm would give me good breathing space but i would rather try and catch up my self

Hi rogersonjeff and thank you for your post.

I can’t guarantee whether they will agree to refund you these charges or not but it could be worth a try.

You should still try and pay as much as you can towards the arrears as and when you can. If you’re already in touch with Payplan you could discuss this with them as they may also be able to advise you.

Kind regards,
Pavan

StepChange_Pavan

penelious wrote: »

Hi

I am really struggling in deciding whether an IVA would be suitable for me or not.

I have been paying into a DMP with Payplan for a year now at £320 per month. I have debts of £30k. All creditors seem happy so far, I am not being chased and all but one card have frozen interest and charges. Payplan estimate pay off to be 8 to 10 years, depending on interest and charges.

At my annual review, they have now decided I qualify for an IVA.
I have a mortgage of £53k, house value £90k, my dad is 50/50 joint mortgage holder. I own a car using approx 130miles/week.
I understand that on the 4th year, the creditors will want any equity in the house. I have a big problem with this - If I remortgage, I end up in more debt over a longer period for the sake of paying off creditors quickly. Payplan say it may be unlikely that any company will give me a remortgage considering my ultra bad credit rating - BUT can the creditors still stake a claim on the equity somehow? Can they force me to remortgage if a company does accept me?

I thought credit cards were unsecured - yet through an IVA they can still get money from my house!

Not to mention the thousands Payplan will charge to do an IVA.

I am wondering if I should just stay with the debt repayment plan - how likely are creditors to kick up a fuss half way through and start bankruptsy procedings? All of them seem happy and have frozen interest anyway (though some statements still moan I haven't paid the minimum - dont know if thats just default).

Any help much appreciated. :T

ps. I wish payplan wouldn't use Zoopla to value houses - Zoopla say my house is worth £90k but a recent estate agent valuation says realistically £70k. Big difference.

Hi penelious and thank you for your post.

Thanks to Lizzy for jumping in, but if you need any further help please let us know

Kind regards,
Pavan

Just_Peachy

Hi,

I have posted this on the IVA and DRO board but only had a few responses, so hoping someone here can help with professional advice.....

I am planning on applying for a DRO when i go on Maternity leave in November as my income is going to drop by 2 thirds and I have no way of making my repayments. I have read all the criteria etc and I think I will be eligible for a DRO.

However I am on a temporary contract at work and have just found out that when I leave in November I will get my Statutory maternity pay in one lump sum as I am not returning to work there, which by my workings out (so could be wrong!!) would be a lump sum of £5120 after tax and NI deductions.

Does this mean I will not be able to apply for a DRO? Although I am getting the payment in a lump sum, it is actually my wage for the 39 weeks of maternity leave. I have to live off this and am planning on dividing it into weekly or monthly amounts and living from these amounts. I will be able to get letters from my work stating that this is a lump sum statutory maternity payment and will also have my Maternity forms from my midwife to prove I am an expectant mother.

This has confused me lots and I am hoping it does not stop my application for a DRO - any advice is much appreciated.

Thanks in advance
JP

StepChange_Pavan

desparate wrote: »

Hi, I currently have a dmp with payplan who have been great - my problem is i am trying to get bank account details from payday loan companies and they are point blank refusing to give them out. I will not give them my new bank card detials as last month they just wiped my account.

can you advise if any of you have dealt with these 3 creditors beofre and if so do you have the sort code/account numbers so I can give to payplan to add to my payments

They are:
Capital Finance One CFO - on the consumer credit forum they gave these bank details can anyone verify if they are right?
account number 14203995 Sort Code 60-18-01 Please ensure for reference you put your full name and date of birth so we can recognise who the transaction has come from easily.

Pounds to Pocket

Early Pay Day EPDL

if anyone can help I would really appreciate it

many thanks

Hi there and thanks for your post.

It looks like you’ve already had some useful advice on another thread.

It’s a good idea to write to them and ask for their account details - It’s better to check rather than risk it being credited to the wrong account.

Payplan may deal with these creditors on a bulk basis so you could contact them and see what they say too.

I hope this helps,
Pavan

StepChange_Pavan

Just_Peachy wrote: »

Hi,

I have posted this on the IVA and DRO board but only had a few responses, so hoping someone here can help with professional advice.....

I am planning on applying for a DRO when i go on Maternity leave in November as my income is going to drop by 2 thirds and I have no way of making my repayments. I have read all the criteria etc and I think I will be eligible for a DRO.

However I am on a temporary contract at work and have just found out that when I leave in November I will get my Statutory maternity pay in one lump sum as I am not returning to work there, which by my workings out (so could be wrong!!) would be a lump sum of £5120 after tax and NI deductions.

Does this mean I will not be able to apply for a DRO? Although I am getting the payment in a lump sum, it is actually my wage for the 39 weeks of maternity leave. I have to live off this and am planning on dividing it into weekly or monthly amounts and living from these amounts. I will be able to get letters from my work stating that this is a lump sum statutory maternity payment and will also have my Maternity forms from my midwife to prove I am an expectant mother.

This has confused me lots and I am hoping it does not stop my application for a DRO - any advice is much appreciated.

Thanks in advance
JP

Hi JP and thanks for your post.

It would be best to spread the lump sum over the 39 weeks so it would work out at £131 per week.

There could be an issue when you have the £5120 in your bank account, but if you get confirmation from your employer that this is your income for the coming weeks this shouldn’t be a problem.

I hope this helps. You can still come to us for advice to confirm whether this is your best option and we can also support your application if it is.

Kind regards,
Pavan