DMP Mutual Support Thread - Part 7

sn603

Hello all

I've been lurking for a while now and wanted to say what a fantastic community this is.

I wonder has anyone got any experience of my situation?

Due to overtime payments coming late (and me overspending, foolishly), I've only been able to make 50% of my monthly DMP payment to Payplan this month. I will be able to make the remainder in approximately 2 weeks.

I've been in the DMP for a year now and not missed a single payment - and all creditors have accepted or are on board to some agree.

I just sincerely hope this slightly late payment does not enrage the creditors and make them think that I'm not on board.

Payplan have advised as it will be just over 2 weeks until they get the remainder of the monthly payment that it is best to wait and say nothing - as by the time they issued letters/statements to everyone and they were processed, the remainder of the payment would have reached them anyway.

Any experience of paying reduced payments temporarily is welcome - I'm (obviously) worried about this and really hope it doesn't jeopardise my hard work in budgeting and paying off over 8K in just under a year of my debts already.

Thanks in advance all!

DevonGirl

Hello sn603

No experience with PayPlan but have had a couple of reduced payments with CCCS and no problems at all. You might get a couple of creditors having a little moan via letter, reminding you of your responsibilities and threatening to withdraw their support for your reduced payment plan etc, but nothing to get too worried about.

By the sounds of it you have a previous good record of complying with your DMP so hopefully this should stand you in good stead. I've been following the DFW thread for some time now and the only time I've heard about people's DMP being at serious risk is when they've stopped payments for a while without letting their DMP provider know, which of course implies that they aren't taking it seriously. I think as long as people are kept informed and it appears to be a plausable explanation (s**t does happen of course), there shouldn't be any long term side effects.

DG

OnMyWay_2

Hi just wanted to introduce myself, been on debt for ages but recently lost my job. decided to do a DMP with payplan, hopefully it'll be the best way to start taking control. just waiting for payplan to call back.

Kim11

Hi guys, my parents (both in their early 50s) are about to start a plan with CCCS I think it is, I've got a bit of a worry though, I've read stuff from people who say they're over a year in to their plan and the debts are still the same or in some cases worse! Is that often the case until it settles down? I've read the first few months are the toughest with creditors adding charges etc so we dont expect an easy ride but I do worry about the stress they'll be under when they get letters for late payments etc through and see statements to find the debt has got worse!

I'm just looking for a bit of encouragement that things do get better I guess, thank you!

Kim.

jo-urney

Kim11 wrote: »

Hi guys, my parents (both in their early 50s) are about to start a plan with CCCS I think it is, I've got a bit of a worry though, I've read stuff from people who say they're over a year in to their plan and the debts are still the same or in some cases worse! Is that often the case until it settles down? I've read the first few months are the toughest with creditors adding charges etc so we dont expect an easy ride but I do worry about the stress they'll be under when they get letters for late payments etc through and see statements to find the debt has got worse!

I'm just looking for a bit of encouragement that things do get better I guess, thank you!

Kim.

hi there,
ive only had positive experiences since being on my dmp with the cccs - just into month 14 now and have paid off 3.5k so far (lots lots more to go though!!!). all of our lenders have frozen the interest on our debts so it has been going down ok. i believe it is in the case where an interest rate is high and the creditor refuses to freeze or lower it that there has been a problem with peoples debts ending up higher than they were. it may be worth contacting the cccs before taking out the plan to discuss with them the creditors in question and how responsive they usually are to freezing the interest for ppl on a dmp.

hope this helps!

jo

Kim11

jo-urney wrote: »

hi there,
ive only had positive experiences since being on my dmp with the cccs - just into month 14 now and have paid off 3.5k so far (lots lots more to go though!!!). all of our lenders have frozen the interest on our debts so it has been going down ok. i believe it is in the case where an interest rate is high and the creditor refuses to freeze or lower it that there has been a problem with peoples debts ending up higher than they were. it may be worth contacting the cccs before taking out the plan to discuss with them the creditors in question and how responsive they usually are to freezing the interest for ppl on a dmp.

hope this helps!

jo

Hi Jo!

Thank you so much for the reply and advice, will definitely look in to that. Thanks again and I hope your plan continues to go well.

Kim.

Twit_Head

Kim11 wrote: »

Hi guys, my parents (both in their early 50s) are about to start a plan with CCCS I think it is, I've got a bit of a worry though, I've read stuff from people who say they're over a year in to their plan and the debts are still the same or in some cases worse! Is that often the case until it settles down? I've read the first few months are the toughest with creditors adding charges etc so we dont expect an easy ride but I do worry about the stress they'll be under when they get letters for late payments etc through and see statements to find the debt has got worse!

I'm just looking for a bit of encouragement that things do get better I guess, thank you!

Kim.

Hi to you and yours
I'm in much the same age group as your parents (but still 23 on the inside! ) I've been on my DMP for two years now.
It's very true that at the beginning of a DMP the amount of debt can rise. Creditors can get flappy, so may start adding late payment charges, etc. All they know at this very early stage is they're not getting their agreed money, so may try to act the 'heavy' and lean on you a bit.
CCCS will deal wih the basic stuff for your parents, but I (and others here) believe in communicating with creditors directly too. Phone or letter (my preferred method) communication lets them know exactly what is happening. If they are aware there are financial difficulties, but a commitment to repay, it helps. Send all letters recorded post, then there is proof of postage/delivery. 'Not received your letter' is a common ploy from creditors at start-up.
Tell your parents not to worry. I'm sure they are distraught (as I was) to find themselves in this position. But stats.prove more and more of folk of our age group are running into difficulties. If they are not computer literate, you can do them a great service by keeping an eye on this thread and learning on their behalf.
Soon they will be able to re-assess their finances, and have a clear picture of the future, without the worry they are going through now.
My best wishes to you all,

'Twitty'

Twit_Head

OnMyWay wrote: »

Hi just wanted to introduce myself, been on debt for ages but recently lost my job. decided to do a DMP with payplan, hopefully it'll be the best way to start taking control. just waiting for payplan to call back.

Hello to you and welcome
Hope your call from PayPlan was helpful and productive. If a DMP is the right way forward for you, stick with us here for advice, support and general madness

'Twitty'

Kim11

Twit_Head wrote: »

Hi to you and yours
I'm in much the same age group as your parents (but still 23 on the inside! ) I've been on my DMP for two years now.
It's very true that at the beginning of a DMP the amount of debt can rise. Creditors can get flappy, so may start adding late payment charges, etc. All they know at this very early stage is they're not getting their agreed money, so may try to act the 'heavy' and lean on you a bit.
CCCS will deal wih the basic stuff for your parents, but I (and others here) believe in communicating with creditors directly too. Phone or letter (my preferred method) communication lets them know exactly what is happening. If they are aware there are financial difficulties, but a commitment to repay, it helps. Send all letters recorded post, then there is proof of postage/delivery. 'Not received your letter' is a common ploy from creditors at start-up.
Tell your parents not to worry. I'm sure they are distraught (as I was) to find themselves in this position. But stats.prove more and more of folk of our age group are running into difficulties. If they are not computer literate, you can do them a great service by keeping an eye on this thread and learning on their behalf.
Soon they will be able to re-assess their finances, and have a clear picture of the future, without the worry they are going through now.
My best wihes to you all,

'Twitty'

Hey Twitty! Haha so are they!

Thank you for the advice. I've been trying to show them as much stuff on line as possible as they dont use computers and all this is really helpful.

I'm trying to explain its not the end of the world, plenty of others go through similar or worse and come through it but I guess they're the ones who see their bank statements and the words "late fees" etc so I understand their panic. Hopefully in 3 or 4 months we've made some progress and they dont have to dread the postman arriving anymore!

Thanks again for the reply and I'll show them the replies here as soon as I can.

All the best to you too.

Kim.

OnMyWay_2

Twit_Head wrote: »

Hello to you and welcome
Hope your call from PayPlan was helpful and productive. If a DMP is the right way forward for you, stick with us here for advice, support and general madness

'Twitty'

Thanks, Payplan wanted me to consider an IVA. Then I phoned CCS and they recommended bankruptcy! Still considering as a DMP seems a less scarier option.