DMP Mutual Support Thread - Part 7

Squirrel29

Thanks so much Sunfleur. Your post reiterates to me that I've done the correct thing in picking up the phone and calling Payplan!

mikon

Hi everyone,

I have been on a DMP with CCCS since last June. We have worked well with CCCS and kept in regular contact with our creditors and the majority have stopped interest and the remaining 2 have reduced interest charges. We are now finding it very difficult to manange on the money we have left at the end of each month. We are considering going back to CCCS and asking for a review to reduce the monthly payment. My two questions are :

How would CCCS view me reducing the monthly payment to creditors?

How would the creditors view the reduction? They have been very quiet and that has been good I don't want to start being pestered by calls etc.

The reason for this is that i am spending more on petrol and have been hit with parking charges as my location of work has changed. My food costs have increased as have sundries items such as hair cuts due to having two daughters. We are finding it difficult to get to the end of the month.

Has anyone reduced their monthly payment and can advise on this?

Thank you

ianmak

mikon wrote: »

Hi everyone,

I have been on a DMP with CCCS since last June. We have worked well with CCCS and kept in regular contact with our creditors and the majority have stopped interest and the remaining 2 have reduced interest charges. We are now finding it very difficult to manange on the money we have left at the end of each month. We are considering going back to CCCS and asking for a review to reduce the monthly payment. My two questions are :

How would CCCS view me reducing the monthly payment to creditors?

How would the creditors view the reduction? They have been very quiet and that has been good I don't want to start being pestered by calls etc.

The reason for this is that i am spending more on petrol and have been hit with parking charges as my location of work has changed. My food costs have increased as have sundries items such as hair cuts due to having two daughters. We are finding it difficult to get to the end of the month.

Has anyone reduced their monthly payment and can advise on this?

Thank you

Just ask for a review explaining what has gone up. As long as you budget for it it shouldn't be a problem. Not sure the creditors will agree, but it will happen more often this year.

dmb_2

Hi Mikon
These extra costs all seem perfectly justifiable to me. You're not in control of petrol and food increases and I'm sure CCCS will see it that way. You've got to be able to live after all.
Give them a ring and I'm sure they'll be very understanding. As for creditors let CCCS do the talking
Good luck:)

mikon

Ianmak and dmb

Thank you both for the positive response. I think when we initially did budgetting and set up the DMP we wanted to show creditors we were committed to paying as much as we could a month back so we cut everything to the bone not anticipating the increase in cost of living and we have both had a pay freeze as well as child benefit freeze.

We are now seeing the increase in the cost of living bite and finding some months we have no money left.

I panic at the thought of creditors threatening me and ringing us but also need to live. My other worry is that we are on a variable mortgage and it looks like interest rates are going to increase so I would like to hold off rather than review now and then again when mortgage rates go up. Oh what a mess I have got us in.

mozzyc

ianmak wrote: »

Just ask for a review explaining what has gone up. As long as you budget for it it shouldn't be a problem. Not sure the creditors will agree, but it will happen more often this year.

I agree. They may not be happy about it, but you have to live and get by. Everyone, especially those in Debt, are going to be hit hard with all the increases this year. The budget has to take that into consideration.

simbalou

I've just had my annual review today and my monthly payment has gone done due to petrol/food costs rising. CCCS completely understood and kept checking that I still had enough to live on. They've set my next review for 3 months time to make sure that everything is OK. I've been on a dmp for quite a while now (couple of years) and creditors have always stayed quiet when they are faced with a different payment amount. So, my advice would be to give them a ring and I'm sure it will be OK

mikon

simbalou wrote: »

I've just had my annual review today and my monthly payment has gone done due to petrol/food costs rising. CCCS completely understood and kept checking that I still had enough to live on. They've set my next review for 3 months time to make sure that everything is OK. I've been on a dmp for quite a while now (couple of years) and creditors have always stayed quiet when they are faced with a different payment amount. So, my advice would be to give them a ring and I'm sure it will be OK

Simbalou

Thank you for replying. It's good to hear from someone who has gone through the process and even better to hear that the creditors did not hound you.

Thanks once again.

Superbiatch

Hi all

Having had a drop in salary forced upon me back in August I reached the point of being unable to stick to my repayments for the following:

Halifax overdraft - £2000
Halifax loan - £10646 (was a 17k loan)
Halifax Card - £4230
Virgin (MBNA) card - £2880
RBS Card - £1930

Somehow I'd managed to struggle on for a few months before I was hit like a brick on 22nd December. It felt as though my world fell in because I didn't get my mileage paid to me in my salary! Silly I know, but it did make me realise I couldn't continue as I had been - borrowing here and there from family and basically eating at family and friends houses to save having to buy food or heat my apartment myself

Anyhow, I took the bull by the horns and went straight to the CAB. That day, I emptied my Halifax account of every penny and opened up a new account with Santander. Due to the Christmas period I only got emergency advice from the CAB and then had a appointment on 5th Janauary to discuss moving forward. My specialist case worker was excellent and helped me draw up a SOA and highlighted what I could afford. She armed me with all info needed to set up a DMP as her funding ends on 31st March so didn't want to leave me up in the air with no support - I felt empowered again

So far I have had all creditors accept my reduced offer with Halifax bending over backwards talking about restructuring my loan in the future when I'm in a better position. MBNA on the other hand have decided my offer does not meet their criteria - this made me laugh (for the first time in a very long time) as I thought I can't pay you what you want, surely thats the criteria but not it seems . So I'm all set to pay my first payments on my self managed DMP on 29th January, whether MBNA want it or not!

I didn't realise just how much this had affected my life, my OH commented I had been highly strung for a while and he thinks I was living on adrenaline (we don't live together but he has been a rock I couldn't have managed without), now I'm starting to feel the normal stresses of life again - never thought I'd feel 'normal' again - probably should have gone the docs.

With having a mortgage, I was afraid I'd never be able to remortgage to a good deal and if interest rates shoot up (which I have a feeling they will do!) - i'd be stuck with a home i couldn't afford. I couldn't lose this place as well as feeling like a failure for not being able to repay my debts. As it so happens I have learnt I will probably be able to get a good deal with my provider anyway.

So I'd like to thank you all on the Debt Free Wannabe board for helping me out so much with templates, advice and just seeing how supportive you all are - you are worth your weight in gold and I shall be sticking around to see what else I can learn from you all. I shall keep you updated!

SB xx

Queenbelbake

Hi there Superbiatch

I too have realised the mess we are in and are now looking for a way forward. Just a question have you done this yourself or through someone like CCCS? Just wondered because we dont know which way to turn at the moment and although contacted some creditors we are not getting very far fast.