DMP and Payplan experience?

Bobby81

Well after nearly going for an IVA with some company we have changed our mind and now going for a DMP with Payplan i cant blieve we didnt know about this before.
I think teh DMp seems a great option as i know in 2-3 years time i can afford to go back to work full time and we can opt out of the DMP and pay our bills as normal. Also i cant believe its free, the other company wanted an up front fee and also 15%, its mad!
I would love to hear from someone who has done the DMP and and how long does it take etc.......thanks guys, this site is great!!!

cmorlife

hiya,
freaky i did the same bout 6 weeks ago, thought about iva then phoned payplan, all going well so far, only made one payment to payplan and still waiting for all offers to be accepted. Had a couple of threatening letters but just phoned them up and told them about payplan, put copies of letters in post to payplan, weight taken off my shoulders

Bobby81

Hiya thanks for your reply, so how will it work at the end of this month do i pay them my bills as normal?

Raquela

I contacted the CCCS about a DMP, and sent their forms off to my creditors, and they set up one with me directly, so mine isn't administered by the CCCS. It took only a couple of weeks, but I followed the CCCS's advice and made payment in the meantime at the amount I was offering for the DMP.

Someone else asked (can't find thread) if it affects credit rating, and the answer is yes.

Bobby81

To be honest my credit rating couldnt get any worse not due to missed payments though i must add, so at the end of this months what kind of payments would i make also i owe the majority of my debt o one bank, i have 2 credit cards where i just one 70 pound and other 90 pound, would i just pay these off in full and not include them?

moxie_2

I'm in a DMP with Payplan, have been for over a year now. How long does it take? Well, that depends on your debt and how much you can afford to repay per month. As you can see, my debt is large so it's going to take me a while! You need to tell Payplan about all your debts and creditors. They will help you work out a budget, tight but do-able. The rest of your income you pay to Payplan and they divide it out amongst your creditors proportionate to your debt with the. So if you owe most money to one bank, most of your payment will go to them. You will need to open a new basic bank account with another bank that you do not owe money to. Make sure you tell Payplan about every debt you have, including your credit cards. Good luck!

Bobby81

When you say its tight but do-able, what do you mean, surely we would be better off than now or not? At the mo we pay 7-800 pound on debt, so if it went down to 350 we would be a lot better off wouldnt we?

Also what happens at the end of this month when my bills are due do i pay them as usual??

Also in 2-3 years i could go back to work full time could we just cancel the DMP? Thanks for all your views..x

moxie_2

What I mean is that together you work out a budget to live on. They have set guidelines for how much you can spend for example on food, depending on how many in the household. Whatever spare income is left after doing your budget is then used to pay off the debt. If you are currently paying £700-800 per month on your debts and not getting further into debt as a result, they will probably expect you to continue paying that amount for the life of your DMP. But if you are getting further into debt, cos you don't have enough to live on then they will help you work out a sum to repay which will leave you with enough income to live. If you mean your credit card bills mentioned above which are due at the end of the month, it depends whether you have started your DMP and have included them. As they are fairly small sums of money, it might suit you to pay them off in full, and cut them up, and just concentrate the DMP on the large debt. Have you spoken to Payplan yet? I'm not sure about cancelling a DMP if the agreement is not paid off in full, but you should ask them.

Bobby81

I have been reading up about it and its not legally binding so can be canceled at any point from both sides. I pay 7-800 pound on debt now so would obviously want to pay less than that on the DMP otherwise it wouldnt be worth doing it i suppose.

moxie_2

I guess it depends on how much your debt is and whether you are getting hassle from your creditors. I know entering a DMP lifted a huge weight from my shoulders, and although it's still early days for me, my debt is reducing.

Bobby81

well we have never missed a payment yet but we havent got much left to live on so we need to do something. Was going for the IVA but its too final for me as in, they are have a total hold of you and you cant get out of it