DMP Mutual Support Thread - Part 7

ukjs1976

Being realistic about what a DMP can do

Hi - I am continuing each day this week taking
the required actions to start my DMP to one day pay off £13,500
(in theory it will be 5 1/2 years) (£700 is overdraft the rest on 2 credit cards).

I thought it would be useful to discuss
the positives and risks in going down the DMP route.

I am trying to be factual and realistic for myself and
anyone else who this info may help.

Here is my understanding of what a DMP can do and what it perhaps cannot do,
additional comments and corrections very much welcome :-)

Positives:
~ Following the light bulb moment when you realise what is really happening and panic,
there turns out to be a realistic solution that is available.
~ The debt will be repaid (as long as the DMP goes to plan)
~You will eventually be debt free (as long as the DMP goes to plan)
~The DMP short circuits the debt spiral (again as long as it goes to plan)
~Going through a not for profit organisation means you aren't on your own and
have expert advice (not for profit = no additional charges = no additional debt)

Possible pit falls of a DMP:
~A DMP is subject to agreement by creditors and they can reject the plan
~ A DMP does not mean interest and charges will actually stop, this can
only be requested and may be rejected by creditors
~ You can still have legal action taken against you and end up with a CCJ

Things to remember:
~they can't have money that you haven't got
~being in debt isn't a crime
~ quite frankly you and me are just one in the ranks of hundreds of thousands (millions?) of people in this country, the banking system itself and indeed the government in experiencing financial distress and needing assistance right now.

For me, the bottom line is I can see no alternative to a DMP apart from bankruptcy and I am very grateful for the advice on this webiste and the help I've had so far from the CCCS.

Thank you.

MRS_A_3

Yay thanks ian I've got a number.

I've found that starting my DMP has given me the power to say to creditors "No I can't pay you as I'm starting a DMP with CCCS and they should be in touch with you soon"

It now means that I don't have to think of excuses or hide away from anyone.

This is my positive, that plus a load of my mind

scouselad1974

Mrs_Ryan wrote: »

I'm giving Kensington the boot - had enough of them messing up :mad:

My debt is now down to 3k from 5.5 so I'm pretty proud of how well I'm progressing but Im fed up of getting messed around by them. I'm moving to another fee-paying company - *braces myself for the yells*

To anyone who doesnt know, CCCS and Payplan both rejected me as my debt level was too low. I am unable to administer my own DMP for various reasons so I guess I just have to get on with paying! Not looking forward to having to keep explaining myself again but hopefully normal service should be resumed soon...

Hi

It's a shame that you have to pay somebody to do this for you, but everybody has their own individual circumstances and if it suits you then that is what matters.

Just an idea but with your total debt at under 5k have you ever considered an Administration Order rather than A DMP. I think you need a CCJ to apply.

Administration orders are granted by the county court in order to settle outstanding debts of an individual. You can apply for administration order if your outstanding debt is less than £5,000, at least one County Court Judgement and more than one creditor. If you get an administration order, the creditors will not be allowed to take any action against you.
Like debt consolidation the Administration order enables the borrower to accumulate all his loans into a single monthly payment. But in this situation he will be required to make payments to the court. The court will administer the process and distribute the money to all creditors on a pro-rata basis.
There is no application fee but the court charges 10% of the total amount of repayment for administering the process. This fee will be deducted from your monthly payment

manicmiz

Hi, I am just starting a DMP with CCCS - first payment is due to go out on 1st August. I think they said it will take about six years online, but I can't seem to find an estimate in the welcome pack. I guess it will depend on how many creditors agree to freeze the interest anyway. 3 of my debts are with HSBC so I'm praying they will be kind!!! I hope to learn lots from you experienced DMPers as I'm sure I will have lots of questions along the way! Please can I have one of those number thingies? M x

Mrs_Ryan

Hi scouselad - I've read about AO's but wouldnt qualify as I have no CCJ's. My creditors have all been brilliant and only 2 out of 9 have even defaulted me so I really wouldnt want to end up with a CCJ :eek: but thanks for your help - much appreciated

Hopelessly_Hopeful

Mrs_Ryan wrote: »

Hi scouselad - I've read about AO's but wouldnt qualify as I have no CCJ's. My creditors have all been brilliant and only 2 out of 9 have even defaulted me so I really wouldnt want to end up with a CCJ :eek: but thanks for your help - much appreciated

Hi - Have you thought about trying to manage your own dmp? There are plenty here that have done and very well. I guess there's nothing to stop you then changing to a fee paying one if you decide you prefer that later? My thoughts are that as you've gathered a record for repaying rather than running off they are likely to accept it. Worth considering? Let us know how you get on.

HHx

dmb_2

My DMP is going well (since Dec 09). All of my 18 creditors (bar one) have accepted plan and have frozen or reduced interest. The GM Card which is owned by HFC Bank is still whacking on full interest and late and overlimit charges. My debt to them is increasing all the time. Whenever I speak to them, write to them or CCCS contact them they say as soon as they have financial soa they will accept plan. 9 months down the line they are still saying the same. Am concerned that I will owe them thousands more by the end of the DMP. What have other people done in same situation. Just wish they'd formally default me and sell debt on

scouselad1974

Had a bit of good news today guys, if you remember my post last week regarding The Halifax and their refusal to remove my telephone number from their systems etc, plus the intervention of The FOS backing The Hailfax, to say I was peed off was an understatement.

Well today less than a week later and one final letter sent to The Halifax, just to let them know that I would no longer answer their security questions, I have received an apology letter, stating that they are sorry for harrasing me and they have actioned my request to remove my number from their system and will only contact me by post in the future.

Success

Now after reading the post regarding The FOS Service, I have decided to take on The Ombudsman, I have asked him why he thinks it is ok for The Halifax to break The OFT guide to debt collection on numerous occassions and to lie about never receivng any correspondance from CCCS when I have proof it was sent.

I will keep you informed

Hopelessly_Hopeful

scouselad1974 wrote: »

Had a bit of good news today guys, if you remember my post last week regarding The Halifax and their refusal to remove my telephone number from their systems etc, plus the intervention of The FOS backing The Hailfax, to say I was peed off was an understatement.

Well today less than a week later and one final letter sent to The Halifax, just to let them know that I would no longer answer their security questions, I have received an apology letter, stating that they are sorry for harrasing me and they have actioned my request to remove my number from their system and will only contact me by post in the future.

Success


Now after reading the post regarding The FOS Service, I have decided to take on The Ombudsman, I have asked him why he thinks it is ok for The Halifax to break The OFT guide to debt collection on numerous occassions and to lie about never receivng any correspondance from CCCS when I have proof it was sent.

I will keep you informed

Good luck Scouse. I called their bluff with Mikon's information 2 weeks ago as I was hacked from 3 months of calls. Said can you please slow down as I'm trying to make sure I record all this and I want to make sure everything is correct as I'm passing this onto the information commissioner to assist him with his enquiries into the recent allegations made against Hellifax. It worked, not a call for almost 2 weeks. Well done Lord Mikon!

HHx

mikon

scouselad1974 wrote: »

Had a bit of good news today guys, if you remember my post last week regarding The Halifax and their refusal to remove my telephone number from their systems etc, plus the intervention of The FOS backing The Hailfax, to say I was peed off was an understatement.

Well today less than a week later and one final letter sent to The Halifax, just to let them know that I would no longer answer their security questions, I have received an apology letter, stating that they are sorry for harrasing me and they have actioned my request to remove my number from their system and will only contact me by post in the future.

Success

Now after reading the post regarding The FOS Service, I have decided to take on The Ombudsman, I have asked him why he thinks it is ok for The Halifax to break The OFT guide to debt collection on numerous occassions and to lie about never receivng any correspondance from CCCS when I have proof it was sent.

I will keep you informed

CITI have started harassing me for £1.80 phoned twice in two days even though I requested that they remove my number. They are starting to get me down. Feeling depressed this evening.

Regards