payplan

wirelover

Hi

well i made the fist step and phoned payplan after i read a thread on here the other day,iv got about 6000 worth of debt and i want rid. I did phone the cccs and they told me to make token payments of £1 per month but its not getting rid of my debt.

I worked it out and i can roughly afford £150 a month to split between my debts im hoping that if i pay this they will all be gone within 4 years.

Does anyone know when they tell you how long your going to be paying it?

anyway im quite proud of myself for getting of my !!!! and sorting this out lol daft i know.

GeorgeUK

Have you defaulted on the debts?

IF Payplan are telling you to pay £1 per month to each creditor, it might be just until they can work out a proper repayment agreement and get all the companies to agree. Once the companies know that you are being guided by Payplan or CCCS, they tend to calm down a little as they know Payplan will be letting you pay as much as you can afford.

Rather than just throwing money at the debts, i would do as Payplan suggest and try saving as much as possible. You might be able to make reduced full and final offers after a while which will get you debt free sooner.

road_to_recovery

If Payplan have arranged a second "hour long" phone meeting with you, then they may give you an estimate of how much and how long.
I am in the early stages with Payplan myself, and so far, all I can say is that they are really good!
Good luck!

wirelover

Hi

It was the cccs that said pay £1 per month and when i phoned payplan they said i could afford £150 per month and i can,I want to pay the £150 per month and get rid of these debts there doing my head in now but my partner isnt to happy. When i told him i was going to pay £150 per month for how ever many months it took to clear my debts he was angry that i wanted to pay a company money to help get me out of it.

I just told him if he has £6000 lying about to pay off my debts give it me and that £1 per month wasnt getting rid of them, otherwise i have to do something to get rid of these debs, i think he kind of got it in the end

Numpty_Monkey

Payplan don't charge a fee for running a DMP
I agree with wahat George is saying about CCCS, they often advice the £1 token payment, until they have gone through your income and expenditure and worked out what you can afford

thestealer

wirelover wrote: »

Hi

It was the cccs that said pay £1 per month and when i phoned payplan they said i could afford £150 per month and i can,I want to pay the £150 per month and get rid of these debts there doing my head in now but my partner isnt to happy. When i told him i was going to pay £150 per month for how ever many months it took to clear my debts he was angry that i wanted to pay a company money to help get me out of it.

I just told him if he has £6000 lying about to pay off my debts give it me and that £1 per month wasnt getting rid of them, otherwise i have to do something to get rid of these debs, i think he kind of got it in the end

Those token payments CCCS are advising are to give you a bit of breathing space and perhaps develop a small emergency fund for a month or two before you start ploughing all your spare cash into the DMP.

Trust me, you won't regret having a few extra sheckles around..."just in case".

Tixy

Neither Payplan or CCCS will charge you a few for running a DMP on your behalf. So hopefully that will help put OHs mind at rest. All your money will go towards paying off your debts.

Usually they will work out how long you will be paying assuming that all creditors stop charging interest & charges straight away so £6000 at £150 pr month would be 40months, a little over 3years. In practice it can take a while for your creditors to settle down and some sometime never agree to freeze interest so it could take a bit longer than that.

Your finances will also be reviewed every 6months to see whether £150 is still realistic, it could go up or down depending if you have had any change in your income or circumstances.

I expect Payplan have explained this to you but if you and OH are financially linked (joint mortgage or current account or anything) then you going on to a DMP will affect his credit rating. So its probably sensible to talk this through with him so he knows before he applies for any new credit/contract etc.