DMP Mutual Support Thread - Part 7

ianmak

mrsiwannabefree wrote: »

Hi
I entered my figures on the CCCS debt remedy last night and have been advised to go with either an IVA or DMP. I think as I've got a mortgage that I should go with the DMP but I'm not entirely sure....

An IVA is in place for 5 years and then the remaining debt is written off, the DMP tells me I'll be paying it for 17 years! Is this right??

What do people suggest I do I have £197 a month surplus that I can pay to my debts of around £30k

Thanks in advance for your help

An IVA is probably better for those that don't own a house for this reason:

During the 5 years of the IVA, if you sell your house and receive equity from the sale, I believe you're expected to put this towards the IVA.
See martin's guide below for the pros and cons:
http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

The DMP will take as long as it takes. However if your circumstances improve then you maybe be expected to put this to the DMP and reduce the DFD.

ianmak

tess8526 wrote: »

Thanks you, does that mean we will just have our fixed rate interest only mortgage ported onto a variable rate repayment? If thats the case then that makes things a little easier to swallow.
I just don't understand why companies like Egg and Tesco seem to deny all knowledge of letters from CCCS, they have acknowledged that i have told them but say CCCS have sent them nothing, when we ask CCCS say we will send it again, i am a bit of a control freak (apart from when it concerned my finances) but now i have money on my radar i hate passing this onto a third party, i would prefer to send the letters etc. myself.

I will never borrow money again.

Due to the DMP I haven't left my mortgage provider. However I'm still entitled to the same fixed rate deals or trackers as everyone else, and they've never charged me a setup fee (I always go fee free) for setting up another fixed rate.

With companies not acknowledging letters, PP for me have resent letters/financial statements three or four times before the creditor got the message...

mum2one

Could I ask did anyone have major problems with a DMP, - just put the figures in for mine and presently it says 6yrs 1 month, - but at a push just kepping head above water, but theres a possibility that I could lose 50% of my income, at that stage be up the river without a paddle, just curious how anyone else felt?

darwins_mum

mum2one wrote: »

Could I ask did anyone have major problems with a DMP, - just put the figures in for mine and presently it says 6yrs 1 month, - but at a push just kepping head above water, but theres a possibility that I could lose 50% of my income, at that stage be up the river without a paddle, just curious how anyone else felt?

Hi, I lost 50% of my income in November. It is tough. I am back to making token payments on my DMP. The hardest part is getting monthly statements from predators and not seeing the balance change significantly. Your debt free day seems a lifetime away :eek:
When your income decreases you become adept at being creative with your budget. Meal planning, growing veg, doing the drop a brand challenge at the supermarket, using petrol wisely, altering clothes to get a bit more wear out of them. Begging, stealing and borrowing from friends. Not to mention calling in favours - and no I dont mean simply borrowing from them.

The hardest part is when it seems as though it will never get any better, which is where I was in the middle of the night and had a little wobble.

Have faith in your ability to get by, that's half the battle won. :A

mrsiwannabefree

Thanks for your reply. I'll probably go with the DMP and will set it up on CCCS website this evening, the IVA worries me that at some point they may bring the house into it and I really don't want to end up homeless!

Being in debt is stressful enough but being stressful and homeless is a completely different level!

My mortgage rate goes down in June so I should be able to up the payments on my DMP and get them cleared quicker.

darwins_mum

ianmak wrote: »

If the debt is sold, then interest should be stopped, as the DCA shouldn't be able to charge interest. They make their money on the fact that they've bought the debt cheaply (As usual, don't quote me on them not charging interest!).

With that in mind, the DCA would be delighted to, and in fact will offer you an F&F at the beginning. However, what they offer you will likely be no less than 50% of the debt owed.

Thanks for that Ianmak, any idea how long before the debt is sold on? I am quite keen to be in a position to offer F&F of less than 50% and start to repair my credit file.
I rang Lloydstsb and they told me to ignore the letter as they have accepted the terms of my DMP (why bother sending the letter then). They didnt confirm whether the intereset had been stopped - perhaps I will ring back and check.

On a more positive note, I may have potential lodgers for my room - got quite a positive response from my ad. DS will just have to lump it or sleep in the car.
Have a good day y'all.

ianmak

darwins_mum wrote: »

Thanks for that Ianmak, any idea how long before the debt is sold on? I am quite keen to be in a position to offer F&F of less than 50% and start to repair my credit file.
I rang Lloydstsb and they told me to ignore the letter as they have accepted the terms of my DMP (why bother sending the letter then). They didnt confirm whether the intereset had been stopped - perhaps I will ring back and check.

On a more positive note, I may have potential lodgers for my room - got quite a positive response from my ad. DS will just have to lump it or sleep in the car.
Have a good day y'all.

Well the debt may never be sold on...

darwins_mum

ianmak wrote: »

Well the debt may never be sold on...

What is the likelyhood of lloydstsb hanging onto my paltry debt indefinately? Am I able to negotiate a F&F with lloyds directly? I was under the impression that it was easier to negotiate once the debt had been sold on.

thanks for any advice
DM

ianmak

darwins_mum wrote: »

What is the likelyhood of lloydstsb hanging onto my paltry debt indefinately? Am I able to negotiate a F&F with lloyds directly? I was under the impression that it was easier to negotiate once the debt had been sold on.

thanks for any advice
DM

Thankfully I have no experience of Lloyds TSB so I've no idea what they will do. Hopefully someone can advise...

What I will say is there are no guarantees while on a DMP. You cannot presume or assume this or that will happen, or anticipate 'x' happening.

I think you would be able to offer Lloyds an F&F, though I think it'd be cheeky to do so! Also bear in mind your other creditors when offering an F&F...

fairsats

Hi All,
After 3 months with CCCS...Natwest have transferred my O/D AND Loan debts to their DCA in Telford and frozen all interest from 31/12/2010
Halifax CC have previously done the same.... MBNA CC down to .685%... and Opus down to 0.5%
I am really satisfied with the situation at the moment...GLA