DMP Mutual Support Thread - Part 7

creditcrazy

Hi all,
Im still in the process of setting up my new bank account before posting off freeze letters etc,I owe the biggest chunk of my debt to the bank I am with so whilst I am managing to swap direct debits over for bills etc to my new account what do I do about the DD with my current bank for my loan DD?? Its due paying before I can have everything swapped over to new account,I dont want to send my current bank a freeze letter and token payment before everything is finalised with my new account and I know i dont need their account anymore.Would use advise just paying it as I normally would until everything is sorted and what do I use for token payments?Do they accept cheques??Any help appreciated as im so confused with it all at the moment.Cant wait till everything is sorted out.Thanks

ianmak

creditcrazy wrote: »

Hi all,
Im still in the process of setting up my new bank account before posting off freeze letters etc,I owe the biggest chunk of my debt to the bank I am with so whilst I am managing to swap direct debits over for bills etc to my new account what do I do about the DD with my current bank for my loan DD?? Its due paying before I can have everything swapped over to new account,I dont want to send my current bank a freeze letter and token payment before everything is finalised with my new account and I know i dont need their account anymore.Would use advise just paying it as I normally would until everything is sorted and what do I use for token payments?Do they accept cheques??Any help appreciated as im so confused with it all at the moment.Cant wait till everything is sorted out.Thanks

Pay token payments of £1, by cheque is fine.

The problem here is with the loan payment. You can cancel the DD, but if the loan is linked with your bank, then they will use offsetting to reinstate the loan payment. Just make sure that all your wages and other DDs have been moved by then.

ianmak

sophie1412 wrote: »

Hello,

I'm hoping that someone on here with experience of DMPs can give me some reassurance as I'm panicking a bit!

I have debts of about £28000 spread between a loan, overdraft and 3 credit cards. I have applied through CCCS for a DMP and have just posted the agreement back to them today. I felt so positive about it all yesterday but now I'm just stressing!

I have received default notices on 2 of my cards and the expiry dates fall today and tomorrow. When I rang CCCS they said that default notices were pretty meaningless and that it wouldn't affect the companies likelyhood of entering into a DMP agreement with me. Has anyone else been in this situation?

I felt so positive about getting things on the way to being sorted but now I just feel as sick and scared as I did before I contacted CCCS.

How long does it usually take to set up a DMP? I've sent back the agreement and my statements today. I'm hoping a week or so but is this a bit optimistic?

Do the creditors usually accept the DMP easily? Seem to be some stories on here about people still being harrassed by creditors.

I'm just so worried about it all. Any advice gratefully received!

Defaults are all part of the process, as is to a certain extent, being hassled by the creditors. Please don't worry. I was terrified at the beginning too, I think we all are, and it is because it is such a major thing to accept, the fact that you are in shed loads of debt, and you are about to upset a whole lot of creditors by realising that lol.

Take a deep breath, just go with it, and it'll be fine.

ianmak

ianmak wrote: »

Pay token payments of £1, by cheque is fine.

The problem here is with the loan payment. You can cancel the DD, but if the loan is linked with your bank, then they will use offsetting to reinstate the loan payment. Just make sure that all your wages and other DDs have been moved by then.

Oh and be prepared for your bank account to rack up a lot of charges in the process.

sophie1412

ianmak wrote: »

Defaults are all part of the process, as is to a certain extent, being hassled by the creditors. Please don't worry. I was terrified at the beginning too, I think we all are, and it is because it is such a major thing to accept, the fact that you are in shed loads of debt, and you are about to upset a whole lot of creditors by realising that lol.

Take a deep breath, just go with it, and it'll be fine.

Thanks. I think I was under the impression / illusion that once CCCS set up the DMP that the creditors would stop harrassing me and it would all be OK, but think I was probably being a bit naive!! Guess I've got to expect some hassle along the way! It just seems such a huge thing to do and, as you say, I am totally terrified by it. What I have to remember is that I don't really have a choice other than to do this!

Teekaylon

sophie1412 wrote: »

Thanks. I think I was under the impression / illusion that once CCCS set up the DMP that the creditors would stop harrassing me and it would all be OK, but think I was probably being a bit naive!! Guess I've got to expect some hassle along the way! It just seems such a huge thing to do and, as you say, I am totally terrified by it. What I have to remember is that I don't really have a choice other than to do this!

im at a very similar stage as u Sophie i have 19.5K owing to 2 Creditors... Barclaycard and MBNA...... i defaulted on my minimun payments last month for the first time and upon advice and help from CCCS i have decidedto amin my own DMP ...... am good at waffle on the fone and very confident in order to speak with my creditors... i used to sit awake at night worrying about my debt but to be perfectly honest it doesnt do you any good to worry... i have had a few fone calls and a couple of letters so far am am waiting for things to really hot up which i am sure they will given some time.

My philosophy these days is yes i owe some people some money and yes i have made some foolish financial decisions but then im not a financial instutution am i like they are so who made the foolish decision now then? not that i am trying to shirk my responsibilities as regards my debt but i wont be pushed around, the way i see it is this is a 50/50 problem between me and said institutions so they have equal responsibilty to play out also fairly and no point in trying to bully me cos i aint playing that game basically.so think logically rather that fretting needlesly cos as i say it dont do you any good ..;)

copperboom_2

Hello everyone

No one has really been replying to my posts on here but I find it very therapeutic to post updates on my situation so I shall continue!

Finished my consultation over the phone with Payplan about an hour ago. The woman I spoke to was lovely - she took loads of details from me and talking to her about the amounts of all my debts and explaining that many of them had stopped interest and accepted my token payments made me realise that in fact I'm not doing too badly so far and that in fact if for some reason I can't make any headway with Payplan or CCCS, I would be able to set up my own DMP with creditors.

Anyway, we went through my income and expenditure, and she said she didn't see anything wrong with what I had budgeted for, but that someone would ring me back by Tuesday evening to go through it all in more detail. I hope they don't have any problems with my SOA as it sounds like if it all goes well, I will be making my first payment to them this month.

Hope you're all doing well this evening.

Copperboom

Teekaylon

copperboom wrote: »

Hello everyone

No one has really been replying to my posts on here but I find it very therapeutic to post updates on my situation so I shall continue!

Finished my consultation over the phone with Payplan about an hour ago. The woman I spoke to was lovely - she took loads of details from me and talking to her about the amounts of all my debts and explaining that many of them had stopped interest and accepted my token payments made me realise that in fact I'm not doing too badly so far and that in fact if for some reason I can't make any headway with Payplan or CCCS, I would be able to set up my own DMP with creditors.

Anyway, we went through my income and expenditure, and she said she didn't see anything wrong with what I had budgeted for, but that someone would ring me back by Tuesday evening to go through it all in more detail. I hope they don't have any problems with my SOA as it sounds like if it all goes well, I will be making my first payment to them this month.

Hope you're all doing well this evening.

Copperboom

In a lot of ways Copperboom i think for myself it is best to manage my own DMP .lets be fair this site is a wealth of help and information to lead the way for you so all you really need to add to the equation is a confident telephone manner maybe? i have set the wheels in motion by way of sending creditors letters etc as mentioned earlier so i just take each day and letter or fone call as it comes

copperboom_2

Teekaylon wrote: »

In a lot of ways Copperboom i think for myself it is best to manage my own DMP .lets be fair this site is a wealth of help and information to lead the way for you so all you really need to add to the equation is a confident telephone manner maybe? i have set the wheels in motion by way of sending creditors letters etc as mentioned earlier so i just take each day and letter or fone call as it comes

I did start managing my own before I got a job, using £16 a month from my JSA. All but two of the creditors have stopped interest - including the notoriously tricky (according to some!) Vanquis. The 2 that haven't stopped are still hounding me by phone and letter and to be honest now I'm working I don't have much time or energy to deal with them at the moment I would like a company to take the stress from me for a while. and when I am earning a bit more or even in a position to make overpayments/F&F offers, I would like to take them back. But I know that if my free income is too low for CCCS or Payplan I'll be able to keep plodding along by myself!

Good luck to you

ianmak

Article here for those thinking of going on a DMP and wondering about the consequences.
http://www.lovemoney.com/blogs/debt/debt/11900/ten-things-you-need-to-know-about-credit-card-debt?source=1000550