DMP Dilemma

TimTheBear

Hi Guys

Me again, waking in a panic and cold sweat, me and my partner decided last night that we will start a DMP quite soon as we're approaching to 1 months of late payments with cc companies. Our dilemma is this. We're with Northern Rock and our mortgage is on current SVR. The DMP duration says it will be about 5.5 years and we're debt free providing all the creditors freeze interest rates etc.

Another thought dawned on me when I woke up crying again.. What happens if the interest rates soar and NR decides to be real sadists and make our repayments unnaffordable? There is no way to even have a sniff at other mortgage lenders for the next 6 years?

I really have low esteem of myself and hate being my position right now.

If anyone can give words of wisdom would be appreciated. I'm tired of crying every morning and yes I'm a male and 36 years of age!

Thanks...

scouselad1974

Hi

I don't have a mortgage but I do have a DMP,I can however understand your worry regarding your repayments, I'm sure that somebody will pop along later with some brilliant advice for you.

Regarding crying whilst being a man of 36, I can totally understand that to. I'm sure most of us here have been in that situation to as Debts can really affect you emotionally. I have good days and then the odd bad day when you feel like you will never get out of the mess you have found yourself in, when you get like that it's always a good idea to pop on here and have a read through the posts, as there is always somebody willing to listen and advise.

I can totally reccomend the DMP route though as it will eventually remove the stress of worrying about having enough money each month to pay all of your bills, at first it will be a little tough but as time goes on it will probably be the best decision that you have made.

Good luck with it all and when you feel down come on here for a rant and if possible tell your other half how you are feeling.

PS don't let the !!!!!!s get you down, think of all the good things that you have in your life and remember money is only one part of it

MyLastFiver

Hi mate,

If your mortgage payment rises then you just have to recalculate your budget based on the new figure. This will probably mean there's less money for your creditors and they will have to accept lower payments. It's no big deal. Think about it - when interest rates do start to rise, there will be thousands of DMPers in your position and having to do the same thing.

Some of your creditors might say they won't accept the reduced payment, but it's tough. They can't have what you haven't got. They all accept it in the end. If your DMP is only 5 years then it sounds like your creditors are getting a reasonable payment anyway - more than many - so you are in a fairly strong position to negotiate lower payments if you have to.

One way to approach your DMP is to -ahem- build in a little leeway right from the start of your plan. This creates a buffer as living costs rise.

Don't stress about this. Everything is uncertain at the moment but once your DMP has been underway for a few months and your creditors have settled down, you will feel much better.

TimTheBear

Thanks for your kind replys. My eyes are welling up as I speak.. I really hate myself. We're going to apply for the CCCS pack tonight and hopefully get things moving.

MyLastFiver

Don't hate yourself. We are conditioned to be ashamed of our debts but remember the lenders who approved your applications do not feel any shame. Yes you've done something you're not proud of, and now you're dealing with it, the same as all of us on here. Just file it in the "stuff I'm not proud of" drawer in your mind, and move on.

No-one is judging you. You haven't let anybody down. When banks lend money they account for the risk that some people won't be able to stick to the terms of the agreement. They have departments dedicated to dealing with those people. In other words, they EXPECT you to default. It's just business. It's all just numbers on a screen, mate.

TimTheBear

Thanks guys.. I'm really scared that the creditors will be a right B*stard and keep on piling on charges and interest. Thats my biggest fear. CCCS, says 95% of the banks are 'sympathetic' these days. I just keep running into horror stories on the net

Just my luck!

Fitzer2000

Hi Tim mate, Don't let your debt worries get to you too much. Can you post a SOA so we can see where saving can be made and the type of debt you have? It may be possible to go down the "Unenforcibility" route on some debts if they are pre-2007. You'll get lots of support and advice on here. And don't be worried about being upset, I for one was in despair until I found this forum, in particular Never In Doubts "Enenforcibility & Templates" and Mouseanns " Frightened for my Future" threads. Take a look if you have a minute and you'll be surprised with some of the results acheived so far. I've just started the CCA process about three weeks ago and am soooooo looking forward to the battle. It means I can start eat fresh food again cause the vultures are not getting one cent from me again. Thanks for posting mate! C'mon Mexico!!

[Deleted User]

Hi there, I know exactly how you feel! I am just in the process of starting up my DMP with CCCS, just had my paperwork through the post today. Like you I keep reading horror stories on the net but I have now decided to actively stopping looking at them! It is freaking me out far too much which is the last thing I need. I have decided to just keep my situation in mind and deal with whatever comes my way. I'm preparing myself for plenty of unpleasent letters and phone calls but hoping that it's not that bad! I know that if I do have any issues I can come on here for advice or just phone the CCCS. I keep reminding myself that I am doing the right thing by not burying my head in the sand and facing up to my problems. Good luck with it all, hope we both have a relatively trouble free DMP!

Cat-astrophe_2

Hey there!

I'm just setting up a self-managed DMP and I have been bricking it!! However, so far (fingers crossed) the creditors that have agreed (5 out of 9) have all been understanding - I only sent the letters out a couple of weeks ago - it took me 2 weeks to get the nerve to post them as well

All I can say is that a DMP was the way forward for me, and even in these early stages, I feel more relieved and happier than I have in a long time... talking of long times, my DMP looks set to last about 9 years, but I am ready for the journey and although I felt embarrassed before (about getting myself into this mess), I am proud to be working at it to get rid of it

I know I haven't really given any advice here, but I found the support from these boards a life-saver and if you EVER need a sympathetic ear, this is the best place to come... Don't ever think you're on your own.. we're all going through it/come out the other side and just think, in a few months, you'll be offering support to others :beer:

Take care for now and best of luck for the (bright) future!

Broken_hearted

Sorry but interest rates will rise its just a fact of life. We were in a DMP for a number of years with a mortgage and as long as the mortgage company were being paid they did not care, other creditors come second and although they may kick up a fuss they will accept what you can pay in the end.