DMP Mutual Support Thread - Part 7

SkintEarl

lynda231 wrote: »

Hi all, I am just starting to try to get a DMP. Spoke to Payplan yesterday who were very helpful. I have always managed to pay my minimum payments by doing overtime at work but this has now stopped. Should I keep paying the minimum payments (I would have to borrow to do this) till my DMP is set up or will creditors think I am able to pay so refuse to accept the DMP? Or should I pay a token payment so they can see I cant afford any more? I really would appreciate some help, I am terrified of ending up with bayliffs at the door.

Send letters with minimal token payments. The last thing thing that you should do is get in more debt. The token payments have to be sent sooner or later so do it now. Sending the token payments is all part of the setting up process anyway. Don't be too worried!

lynda231

Thanks, should my letters inform them I am trying for a DMP?

SkintEarl

lynda231 wrote: »

Thanks, should my letters inform them I am trying for a DMP?

Go to national debtline and they have samples that you can adapt. If you have not done a budget yet you should do so and include it. Don't be tempted to underestimate your budget either. Be realistic and make sure you have enough for for any extra little things that crop up. For me it is always school trips and the odd evening out/birthday party/gift etc.

nationaldebtline.co.uk/england_wales/debt_advice.php[/url]

lynda231

My boiler broke last year, I took out British gas cover, dont tell them you have a problem now though. They came out to service the boiler and heating and I told the engineer the water etc wasn,t working. He said to wait 6 weeks then report the fault. I pay £27 a month but it saved me over £300.

selinaw001

After finally having my LBM last weekend I have recieved my pack from CCCS . For the first couple of days after deciding to go down the DMP route I was pretty relieved but now I am terrified of the unknow that lies ahead mainly because between myself and DH we have 19 creditors to deal with :eek: anyway I have noticed whilst browsing on here that people are suggesting to use postal orders to send token payments is there a reason for doing it that way? When i have been making my usual payments I do it via my online banking but dont want to do it that way if it is going to cause me futher problems!!
Any advice will be gratefully received

SkintEarl

selinaw001 wrote: »

After finally having my LBM last weekend I have recieved my pack from CCCS . For the first couple of days after deciding to go down the DMP route I was pretty relieved but now I am terrified of the unknow that lies ahead mainly because between myself and DH we have 19 creditors to deal with :eek: anyway I have noticed whilst browsing on here that people are suggesting to use postal orders to send token payments is there a reason for doing it that way? When i have been making my usual payments I do it via my online banking but dont want to do it that way if it is going to cause me futher problems!!
Any advice will be gratefully received

Reason for postal orders is because if your bank is a creditor and included on your DMP (overdraft/loan/credit card etc) you will be making a token payment to them and they could possibly freeze your account.

You should start a new account with a bank that has no ties to your creditors immediately. You should be able to find a list using google quite easily.

I opened a Natwest account as they had a branch nearest to my home, but came to a separate agreement with my (then current) bank about paying off the O/D.

suehippo

Hi

First post so sorry if in the wrong place. We are just in the process of setting up a DMP with CCCS and wondered if there was a list anywhere of the lenders most likely to freeze interest and charges and accept the repayment proposals. We had some very bad dealings with Capital One years ago and although they aren't one or our creditors we are a bit worried.

Thanks for any information.

DevonGirl

suehippo wrote: »

Hi

First post so sorry if in the wrong place. We are just in the process of setting up a DMP with CCCS and wondered if there was a list anywhere of the lenders most likely to freeze interest and charges and accept the repayment proposals. We had some very bad dealings with Capital One years ago and although they aren't one or our creditors we are a bit worried.

Thanks for any information.

Unfortunately Sue there is no rhyme or reason to how creditors react to DMPs. If you read through previous pages on this thread you will see some people are lucky where others aren't, although of course it does depend upon individual circumstances such as the length of the DMP, monthly payment etc.

If you reply listing your creditors, people will be able to give you their experiences which might give you an idea, but unfortunately you can't rely on receiving the same treatment.

Ultimately CCCS will keep sending them the monthly payments - legally creditors are NOT allowed to refuse to accept the payment - and I think eventually most creditors give in.

CCCS follows industry standards on working out your budget and gives creditors a fair share of the money left for repayments, so you can't really do more than that. I'd suggest you just forge ahead with the DMP and just 'cross that bridge if/when you come to it'.

selinaw001

SkintEarl wrote: »

Reason for postal orders is because if your bank is a creditor and included on your DMP (overdraft/loan/credit card etc) you will be making a token payment to them and they could possibly freeze your account.

You should start a new account with a bank that has no ties to your creditors immediately. You should be able to find a list using google quite easily.

I opened a Natwest account as they had a branch nearest to my home, but came to a separate agreement with my (then current) bank about paying off the O/D.

Ok thanks I understand now, My DMP has not been set up as yet so my current bank doesnt know ( I have a £400 OD with them) but I have several payments due to creditors over the next few weeks and no way I can make full minimum payments to them so should I just send them something ? So sorry of all the questions my head is all over the place !!

suehippo

DevonGirl wrote: »

Unfortunately Sue there is no rhyme or reason to how creditors react to DMPs. If you read through previous pages on this thread you will see some people are lucky where others aren't, although of course it does depend upon individual circumstances such as the length of the DMP, monthly payment etc.

If you reply listing your creditors, people will be able to give you their experiences which might give you an idea, but unfortunately you can't rely on receiving the same treatment.

Ultimately CCCS will keep sending them the monthly payments - legally creditors are NOT allowed to refuse to accept the payment - and I think eventually most creditors give in.

CCCS follows industry standards on working out your budget and gives creditors a fair share of the money left for repayments, so you can't really do more than that. I'd suggest you just forge ahead with the DMP and just 'cross that bridge if/when you come to it'.

Thanks for the info. I was expecting as much but was hoping for good news in that, if there was a list, all our creditors would be on it. Still taking the first steps to being debt free in under 5 years so feeling really positive.:j