DMP Mutual Support Thread - Part 7

Bettingmad

Jenjen wrote: »

Hi everyone

I've just spent the last 2 hours reading posts on this thread and picked up loads of useful information thank you.

Dh and I are just starting our debt free journey and we think we will be going down the DMP route. I'm very scared and emotional at the moment which is putting a real strain on our relationship. We had a blazing row last night because I accused him of not caring enough and always being too tired/busy to look at our finances and putting off doing anything about it. I've known we have a real problem for over a year now and we've tried to sort it out by cutting back, moving debts around etc but things just aren't getting any better.

So the point we are at now is I have done the budget calculator on the CCCS website and they have recommended a DMP. Some of the figures are only estimates at the moment because I haven't dug out all the paperwork or log in details to the accounts yet. But CCCS are currently recconing that it will take us 17-18 years to pay off our debts of around £30,000. That seems a scarily long time but I hope we can improve that as time goes on. I have my own business which is small but growing so as that improves I hope we can pay more. And Dh is looking for a better paid job so hopefully things will improve then. I suspect we will be in it for the long haul though and we just have to face up to that.

I'm a little confused about the order we need to do things. We haven't yet applied for the DMP. Do we need to do that before or after we start changing bank accounts, cancelling direct debits etc?

At the moment we haven't missed any payments although we have had a few overdraft charges. So most of our creditors have no idea thare is a problem. The next lot of payments will be due to most of them around the 6th December so I really want something sorted before then. Is that possible. I don't want December to be as miserable as November has been and I also want to be able to afford some at least token christmas presents for family etc. Most of them don't know our situation and I don't really want them to so I can't just not buy them presents. Future years obviously I will budget for this but I need to do something this year and I know credit cards are not an option.

Sorry for the long rambling forst post. My head is spinning with information so I just wanted to say hi cos I suspect I'll be spending quite a bit of time here in the next few years.

Jenny

You have done the hardest part in recognising you have a problem so well done there.
First things first sort out a basic bank account not related to any of your debts. Cancel all your direct debits and pay a token ammount by way of recorded delivery. I would only pay £1 it doesn't make any difference by paying more.
I was proactive and phoned all my creditors up telling them that I was seeking a DMP annd I would be making token payments whilst it was set up.
Don't be pressurised by your DMP provider to start your payments straight away. Personally I would be looking at making 3mths of token payments to get together a small emergency slush fund behind you.
The biggest piece of advice I would give you when providing your budget figures for groceries etc be realistic, pare it down to far and it will give you little breathing room.
Good luck, you will sleep easier when you make the first step. I'm not saying it is easier, however it is far easier than what you are probably experiencing.

Jenjen

Bettingmad wrote: »

You have done the hardest part in recognising you have a problem so well done there.
First things first sort out a basic bank account not related to any of your debts. Cancel all your direct debits and pay a token ammount by way of recorded delivery. I would only pay £1 it doesn't make any difference by paying more.
I was proactive and phoned all my creditors up telling them that I was seeking a DMP annd I would be making token payments whilst it was set up.
Don't be pressurised by your DMP provider to start your payments straight away. Personally I would be looking at making 3mths of token payments to get together a small emergency slush fund behind you.
The biggest piece of advice I would give you when providing your budget figures for groceries etc be realistic, pare it down to far and it will give you little breathing room.
Good luck, you will sleep easier when you make the first step. I'm not saying it is easier, however it is far easier than what you are probably experiencing.

Thank you. Will it not just make the companies angry if I spend 3 months only making token payments? I don't want to end up with debt collectors chasing me. Can a DMP not be set up any quicker than that? Thank you for responding so quickly.

Jenny

Bettingmad

Jenjen wrote: »

Thank you. Will it not just make the companies angry if I spend 3 months only making token payments? I don't want to end up with debt collectors chasing me. Can a DMP not be set up any quicker than that? Thank you for responding so quickly.

Jenny

It's a matter for yourself however you are unlikely to have debt collectors chasing you just by virtue of making token payments. you will learn that you are empowering yourself going down this route and will soon learn that they can scream and shout but can't have more than you can afford to give.
Can I ask if you have any cash behind you as you set up your DMP?

Jenjen

Bettingmad wrote: »

It's a matter for yourself however you are unlikely to have debt collectors chasing you just by virtue of making token payments. you will learn that you are empowering yourself going down this route and will soon learn that they can scream and shout but can't have more than you can afford to give.
Can I ask if you have any cash behind you as you set up your DMP?

Thank for the reassurance.

No we have less than nothing. As it stands at the moment our bank account is £10 od and our credit cards are up to their limit. Oh and DH has to drive 160miles for work on Sunday (can claim expenses but not til after the event) and doesn't have enough fuel in his car!

Jenny

Bettingmad

Jenjen wrote: »

Thank for the reassurance.

No we have less than nothing. As it stands at the moment our bank account is £10 od and our credit cards are up to their limit. Oh and DH has to drive 160miles for work on Sunday (can claim expenses but not til after the event) and doesn't have enough fuel in his car!

Jenny

Okay, if you have made your mind up sort out a basic bank account, cancel all your creditor direct debits straight away if it's left with just a couple of days before payments are due to go out you may find it would be too late to stop.
Please don't worry about making a few token payments as it is important for you to have a small emergency fund behind you to fall back on.
I made 3 mths of token paymens and didnt have any trouble. I kept each one fully updated as to my situation and think I only had one phone call. I was expecting the worst but I am a firm believer that being on the front foot with them makes it easier.
Consider if while wanting to start payments straight away what will you use to cover an unexpected emergency such as a car repair etc.

Jenjen

Bettingmad wrote: »

Okay, if you have made your mind up sort out a basic bank account, cancel all your creditor direct debits straight away if it's left with just a couple of days before payments are due to go out you may find it would be too late to stop.
Please don't worry about making a few token payments as it is important for you to have a small emergency fund behind you to fall back on.
I made 3 mths of token paymens and didnt have any trouble. I kept each one fully updated as to my situation and think I only had one phone call. I was expecting the worst but I am a firm believer that being on the front foot with them makes it easier.
Consider if while wanting to start payments straight away what will you use to cover an unexpected emergency such as a car repair etc.

Thank you. Will look into a new bank account tonight. Do you know if its ok to still take advantage of offers such as Santander's £200 cashback for Santander mortgage holders (I have no other debt with Santander and my mortgage with them is 100% up to date and I intend to keep it that way) Or does it need to be a completely basic no perks bank account. Obviously I will ask them not to put an overdraft on it. We appear to meet all the criteria and it was an offer I was considering anyway before we decided on the DMP.

Jenny

Bettingmad

Jenjen wrote: »

Thank you. Will look into a new bank account tonight. Do you know if its ok to still take advantage of offers such as Santander's £200 cashback for Santander mortgage holders (I have no other debt with Santander and my mortgage with them is 100% up to date and I intend to keep it that way) Or does it need to be a completely basic no perks bank account. Obviously I will ask them not to put an overdraft on it. We appear to meet all the criteria and it was an offer I was considering anyway before we decided on the DMP.

Jenny

There shouldnt be a problem as long as you don't have an overdraft.
Jen it might be better for you to start a new thread and post a SOA, others will also come along to give you guidance.
Have a look at this link as you need to start sorting out some template letters to send to your creditors.
http://www.nationaldebtline.co.uk/england_wales/

Jenjen

Bettingmad wrote: »

There shouldnt be a problem as long as you don't have an overdraft.
Jen it might be better for you to start a new thread and post a SOA, others will also come along to give you guidance.
Have a look at this link as you need to start sorting out some template letters to send to your creditors.

Funnily enough I was just thinking I should probably have done this in a seperate thread. I will work out what is needed for a SOA and post it over the weekend. Thank you for your help tonight. We have lots to think about but pretty sure this is the route we will be going down.

sickasachip13

Hi Jenjen,

Just to say hang in there, you've done so well getting to this point, you do have options. Get CCCS on the case. I did a blog about going onto a DMP, for CCCS, the details can be found in my blog for looking it up.

Best of luck and I'll be back tomorrow with more thoughts

SAAC

Dolly66

debtfree2015 wrote: »

I am considering a DMP. I considered it a few months ago but got freaked out at the stories of nasty telephone calls & letters, my biggest fear someone turning up at my door.

Debt remedy suggests DMP or Bankruptcy, I cant take bankruptcy as I cant risk my name being splashed about incase he finds us again, plus I havent got the money to do it.

DMP is currently suggested at £119 per month, I currently pay £361. It will make a huge difference to our lives in the sense of not being frightened to turn the heating on, me not going hungry and having money to get on the bus to take dd swiming. It says it will take 9yrs 3 months to take off, if creditors stop interest, Il be almost 40 by then!!

I think if it was something that could be guaranteed, I wouldnt hesitate, but my fear is I end up in so much debt if they dont agree, Il be pushed to bankruptcy and be found by him again, which is why Im in this mess in the first place.
I have a spare account opened, I need to start diverting my direct debits & payments, I don't know what is stopping me, I guess I just keep hoping that something turns up.

My spare account is a Nationwide current account - no overdraft. Are they likely to allow me to keep it open do you know? I have no debts with them.

Dreading them not accepting and my debt increasing even more, Im with HSBC, M&S money, BOS, Egg - which is now barclaycard. Ive seen some positive eg they accept right away, some not so positive.

I keep thinking if I just carry on the way I am for another 3 years my debt will be clear.....but I cant see how I can contiune like this, dd will start school, I won't have the money for her uniform, school trips anything at all.

I hate the thought of having to start again, but I know the sooner I start, the sooner it will be done with, just trying to work up the courage to start.

Any tips or words of encouragement gratefully accepted

Didn't want to read and run, but not sure there's much advise I can give you as I'm fairly new to this as well. If you can find the time, go back and read as much of this thread as you can. It's full of all kinds of useful info.

Well done on escaping your ex. That in itself is a massive achievement. I can totally understand your fear of someone turning up at the door, but as far as I am aware (hopefully someone will be along who can confirm) that can only happen once you've been given a CCJ and defaulted. There is a letter somewhere on here that you can use telling DCA's that you have removed their right to visit you at home for your own peace of mind more than anything cos they might threaten it.

The spare account with nationwide should be fine as they have my spare account as well with no issues.

My advise for what it's worth is to go with a DMP as it's totally flexable, and will change as your life changes. Although it shows 9 years now, if your income changes you may be able to pay more in the future, and that will bring your dfd forward. You would also leave yourself the option of bankruptcy open shouldyou need it. I'm just starting out and have a wedding, house move and hopefully kids during my DMP. Just be aware there will be a flurry of letters and phone calls at first, but you may be able to get them to remove your phone number before you start (another letter around somewhere).

As far as your cresitors go, I only have M&S money, and I can honestly say they have been great. I sent my letter and token payment to them, gos a nice letter back, had a voicemail left asking me to call them re my letter, and a fantastic lady from M&S who was really understanding and didn't make me feel like a criminal for being in debt. Other than that fight at the start, all i have had are statements and a statutory arrears notice, which they have to send me anyway.

The other thing I would say, from personal exerience (and I may get shot down in flames for this one) is to speak to both CCCS and Payplan. They are both charities so don't charge, and broadly speaking they do the same thing, but there are slight differences in the way they allocate payments and in the set up process. I found payplan suited me better as my income fluctuates dramatically and they based my payment on my contracted hours rather then the average from 3-4 months that CCCS wanted to use. For me this means that any overtime I get can get squirrelled away and I can make an extra payment to them every 3-6 months from this.