DMP Mutual Support Thread - Part 7

jo-urney

antk4 wrote: »

Hi, we're just about to have our first review with CCCS after 5 months on our DMP. Can you do it over the phone or do you have to send them information. Are you expected to increase your payment or is it ok to stay the same. We might be able to increase payment slightly but not by very much.

hi there, the review is very easy to do on the phone - takes around a quarter of an hour - have all your up to date figures ready with any changes you need to make - increases and decreases! they fully expect for things to not have been exactly right when u first set up the plan so do not worry if things need to change. if it has been too tight for you to manage over the first 5/6 months then there is no point worrying about always having to struggle - just set your outgoings to reasonable, truthful amounts and there wont be a problem, i have found. if you reach the upper advised limit for a particular area of outgoings then they will tell u, and you can sort something out. since starting our dmp a year ago, our repayment has gone up by £23, and just recently down by £91. dont panic about it, just be prepared with all your figures ready

MadamMim2013

jo-urney wrote: »

my suggestion would be to open a new joint bank account with a bank not linked to one of your creditors. do not put your money into your joint account with natwest any longer and there will be nothing in there for them to take. we had a joint account with lloydstsb and received a letter saying if my partners loan would not be paid directly by her, then any money owed would be creamed from our joint account (which had hardly any money in it lol). so we opened a new account and nothing goes out from lloyds.

We got new bank accounts when we started the DMP, this is activity within the Natwest accounts that we stopped using over a year ago! They were the ones who pushed it over the overdraft limit on the joint account by putting all the charges etc on!! Every time I write to them they ignore & carry on! They have sent us Default notices for the loan acct at £30 each and say they will charge us £30 each now for every missed payment?! My thought is !!!!!!?? If they know we cannot pay them in the first place why push us toward bankcruptcy where they'll get sweet FA???? grrrr

ianmak

Mrsgibbs1503 wrote: »

We got new bank accounts when we started the DMP, this is activity within the Natwest accounts that we stopped using over a year ago! They were the ones who pushed it over the overdraft limit on the joint account by putting all the charges etc on!! Every time I write to them they ignore & carry on! They have sent us Default notices for the loan acct at £30 each and say they will charge us £30 each now for every missed payment?! My thought is !!!!!!?? If they know we cannot pay them in the first place why push us toward bankcruptcy where they'll get sweet FA???? grrrr

Yeah unfortunately they will continue to take the money regardless of there being none there.

Have you tried writing to their MD perhaps? Or tried ringing them?

copperboom_2

Hi all, hope you're bearing up.

Had my second acceptance today, from Shop Direct, which I'm very happy about. They've accepted and frozen the interest! I rang them up to find out after getting a statement in the post this morning, and getting the information was like blood from a stone! Eventually I found out that they'd accepted on June 16th and that apparently they were going to be charging me 4 weekly and the first payment was due on the 16th July so I was late and compromising the plan! I told them that that was ridiculous since they must have other customers with CCCS and monthly on the 25th is just how they do it. So they put me on hold for a little while longer before coming back to me and agreeing I was right!

Anyway, what I've come here to post is a general grumble that I think it's very unfair that we have to (quite understandably) inform our creditors of every little change in our circumstances but they don't even have to tell us whether or not they've accepted our plan! Does this irk anyone else?

hlk_3

ianmak wrote: »

I know it's a bit late, but you need to setup a bank account with a bank to whom you owe no money, or linked to any creditors as such. You've already told payroll to pay into the Santander account? You maybe lucky but I'd imagine Santander will offset. Is there no way of explaining that your wage will be paid into the incorrect account? I assume you have an Overdraft or debts with BOS hence changing accounts?

Is there any sort of cooling off period where you can close the bank account within seven days of opening it? I'm clutching at straws here! Can you speak to CAB or CCCS for advice?

Anyhoo, whatever happens, please don't panic, and you can always set the ball rolling on setting up a Basic Bank Account perhaps, with a non linked creditor. Natwest and Co-Operative banks are normally good starts, but are Natwest linked with BOS? There's a link early on this page or the previous one detailing linked banks.

Hope this helps a little, and good luck!

Thanks for your advice, I spoke to CCCS this afternoon and they were very helpful. Basically, they advised me to setup a basic bank account (which I have now done with the Co-op, I will get sort code and account number in the post within 7 days...its a pain you cant open a basic one with them online ) and what they are going to do is start my plan on the 1st August however put a hold on Santander so basically I pay via Transcash my monthly payment on the 1st August, and CCCS wont advise/pay Santander of my proposed payment. So I need to make a token payment in August for my Santander associated debts, and then when I have my account details from Co-op they will set the dd up for September.
I had a thought after I came of the phone though, I have sent the template letters to all of my creditors (including Santander) advising them of my situation and that I was unable to meet monthly payments (it did not mention the amount I will be paying per month on the dmp) I have made the minimum payments for July for all my Santander debts (loan and 2 store cards) If when my wage goes in to this account on the 29th of this month, do you think Santander will take all the money out?
I am starting to really panic again but I dont know what to do, surely if I have met the minimum payments to them for this month they wont do anything but do you think due to the fact I have sent them a letter advising I am going to be applying to go on a dmp they will wipe out my account?

Thanks

jackwynder

Hi,

I've been on a DMP with payplan for for around 16 months, best thing I ever did I must say. I have no problems with any of my creditors (although MBNA still charge me interest but at a reduced rate). I was just wandering if it's possible to use equity in my home to clear these debts faster I am fully aware of the dangers of borrowing more against my home and the risk of raising interest rates Vs the flexibility of using a DMP agent such as payplan or cccs. I am also aware that if i choose to take this route I may be refused by my lender or charged a high interest rate. This was initially my chosen route, however because I had panicked when I realised my debts were out of hand my credit score suffered through 'shopping around' for loans, I spoke to my lender who would not lend me the money at the time due to my high debts and recent credit searches. They told me to come back in 6 months and if my status had improved they would happily lend me the money. As you can imagine I could not afford to wait 6 months and it was then that I discovered DMPs.

If i take out a 2nd mortgage on a 3 year fixed deal over say 10 years and overpay to the amount I currently pay out I can clear my debts in half the time. My current mortgage is on a tracker rate of +.3% fixed at 2% minimum, so unless the bank of england base rate jumps up 2% in 3 years I am safe (possible I know) but perhaps worth the gamble?

I was just wandering if anyone else had done this before with any success ?

Twit_Head

jackwynder wrote: »

Hi,

I've been on a DMP with payplan for for around 16 months, best thing I ever did I must say. I have no problems with any of my creditors (although MBNA still charge me interest but at a reduced rate). I was just wandering if it's possible to use equity in my home to clear these debts faster I am fully aware of the dangers of borrowing more against my home and the risk of raising interest rates Vs the flexibility of using a DMP agent such as payplan or cccs. I am also aware that if i choose to take this route I may be refused by my lender or charged a high interest rate. This was initially my chosen route, however because I had panicked when I realised my debts were out of hand my credit score suffered through 'shopping around' for loans, I spoke to my lender who would not lend me the money at the time due to my high debts and recent credit searches. They told me to come back in 6 months and if my status had improved they would happily lend me the money. As you can imagine I could not afford to wait 6 months and it was then that I discovered DMPs.

If i take out a 2nd mortgage on a 3 year fixed deal over say 10 years and overpay to the amount I currently pay out I can clear my debts in half the time. My current mortgage is on a tracker rate of +.3% fixed at 2% minimum, so unless the bank of england base rate jumps up 2% in 3 years I am safe (possible I know) but perhaps worth the gamble?

I was just wandering if anyone else had done this before with any success ?

Hi
Well done for lateral thinking, but to be honest this all sounds dodgy and very risky
One of the commandments on a DMP is 'Thou shall not borrow more' which you are contemplating doing (even in a roundabout way)
And if it all goes bottom up, this is secured borrowing so you could lose your home.
Way back in my DMP releasing equity seemed a way out, but on full investigation it was a complete dud, and not to be touched with a barge pole.
Difficult and painful though it is, forget your credit score. It's a change of mind-set; look to repaying your debts - not borrowing from somewhere else to cover.
Sorry to sound harsh, but sometimes the medicine is very bitter to swallow
(Only my thoughts - someone else may take a different view.)

'Twitty'

Twit_Head

antk4 wrote: »

Hi, we're just about to have our first review with CCCS after 5 months on our DMP. Can you do it over the phone or do you have to send them information. Are you expected to increase your payment or is it ok to stay the same. We might be able to increase payment slightly but not by very much.

Hi
Yes, you can do it over the phone. Don't need to send any more paperwork (payslips etc)
Just make sure you have reviewed and updated your budget figures, then you will have everything to hand as the advisor runs through your living costs. Takes about 15 mins if you have all the facts to hand. (see this link for CCCS pre-budget review- also useful for anyone on a DMP https://onlinedmp.cccs.co.uk/Content/PDFs/ClientBudget.pdf)
The advisors are always very open and non-judgemental; they will guide you through, so it's nothing to worry about.
You are not 'expected' in any form - just an honest re-assessment of how you are coping on your DMP.

'Twitty'

Twit_Head

hlk wrote: »

I?
I am starting to really panic again but I dont know what to do, surely if I have met the minimum payments to them for this month they wont do anything but do you think due to the fact I have sent them a letter advising I am going to be applying to go on a dmp they will wipe out my account?

Thanks

Sorry, not much able to advise you here. Would phone CCCS again and explain the whole situation, and ask for their expert advice.
It is very possible with a linked bank account they might 'offset' i.e. take money from that account towards your other debts.
I would follow ianmak's excellent advice. And like a Boy Scout 'be prepared' - it is possible they will take money from your account.
'Prepare for the worst but expect the best' - take advice, but please don't panic.
You've taken all the right steps so far. It's going to be a bit of a pig's ear (mess-up ) at first. Grit your teeth, try not to worry but deal with what comes your way-you'll come through!

'Twitty'

antk4

twitty thanks so much for all your helpful advice, it's really appreciated. It's so good to be able to talk about what's worrying us without being judged.