About to give payplan first payment

phil1cam

Hi all. After a bad couple of years of debt, Finally realised that I am in a bit of a mess. Phoned up Payplan. Great people to deal with. Filled in all paperwork and sent copies of credit card statements to them. My case officer advised that I should be able to aford £569.41 a month back on a £34,000 debt.
Iam quite happy with this, I belive I can afford it. The question I have is, Payplan have told me that after they recive my first payment they will start to talk to my creditors. Is this common practise? The credit card statements have started coming through the letterbox today and I don't know what to do about it. I can't afford Payplan first payment and all the minium payments of the credit cards.

Jules

You don't need to worry about the minimum payments, just send them a token payment for now £1 or £2 and explain that you are dealing with Payplan now. Then just let Payplan do their stuff.
Good Luck on your DFW journey

Jules

frankie1_2

I agree with Jules
I also made my first payment to Payplan this month after paying token amounts to card companies last month. It will take a few weeks before you start to receive letters from your creditors agreeing to your new repayment plan and in most cases freezing your interest.
Your total owed may go up for a couple of months before you start to see it reduce ( I was told to expect this)
You will unfortunately receive a number of calls and some letters during this time from creditors asking you to agree 'individual repayment terms'