DMP and Payplan experience?

Raquela

Bobby81 wrote:

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?

if you feel you can pay them then perhaps, otherwise include them. I'm sure it's recommended to include all debt, not just some, but I actually didn't do that; I have a natwest student mastercard which at the time I owed a little on; I didn't want to include it as I needed a credit card as I thought I would have to rent a car in the near future, and for when I came over to the US (I ended up not being able to afford to rent a car.. they put the prices up!, but it definitely came in handy when I first arrived here in the US before I could get a bank account sorted). If you choose this option, make sure you destroy the cards tho; I did this so I couldn't be tempted to spend, then when I needed to use it for the US, I just phoned them and told them I'd lost it. Now I'm more sensible I'm just keeping it for emergencies, like in case I have to fly back home in a hurry (which would get refunded by my LEA anyway, but I'd need to pay upfront).

Probably not how most people would do things, but my circumstances are a little wierd at the mo! Can't wait til I'm earning properly again!

ETA: yes, you can get off it at any time if your circumstances change. My creditors, as the administrators, are supposed to contact me periodically to see if I can pay more etc., but haven't as yet. They also said that if I got a lump sum at any point I could wack that at the debt without that affecting the DMP (which was anticipated, but hasn't really happened unfort!). However, I've explained that I'll be graduating in 2008, and would likely be earning enough to pay the remaining debt off v quickly (although I'd rather pay my dad that money if I'm honest! I hate being indebted to family!)

Bobby81

I thought when your on a DMP your not aloud to have any credit, i would love to keep my card for emergencys, i only owe 70 pound and would pay that off and would like you snap up the card but have it for emergencys. Will all creditors agree? What if they dont?

poppy52

Payplan won't agree to you keeping a credit card - part of the agreement is that you have no more credit while you are in the dmp. That includes even a cheque book and debit card. I now have an electron card instead.

Raquela

mine may have been different because it's administered with my creditors directly; both of the accounts are with them, so I can't have more credit with them. CCCS didn't say I had to disclose all, so I didn't!

The bit about the cheque book and debit card, definitely not true; I told CCCS that about my natwest account, and they said fine, and recommended me to keep it rather than my cahoot account so that they couldn't touch it to make payments. Maybe Payplan and CCCS are different in respect to this? My standing orders for the DMP come from my natwest account to. Of course the fact that I'm a full time student and needed overdraft etc could have had a bearing, although I doubt they would have been that considerate!

frankie1_2

I'm in my 2nd month of a DMP with Payplan. I was told that you cannot incur further debts whilst on a DMP, even an overdraft. Creditors will know if you incur further debts. Your monthly expenditure will assessed by payplan and signficant cutbacks will have to be made. ( there are no luxuries permitted e.g savings for xmas, birthday presents, nights out etc ). You will be left with money for essentials only. The rest of your income will be distributed amongst your creditors. The good news is that they will all be paid off eventually

Bobby81

Im confused now, when you say im left with money for essentials only, but my payments are coming down from 7-800 pound to 3-400 pound so im saving money arent i and will be able to live a bit more than iam now?

frankie1_2

Sorry to cause confusion.
Payplan asked for a complete list of our income and expenditure ( SOA ).
Items such as Internet, SKY, Mobile phones, Piano lessons for my children were definitely out. There seems to be an allowance for items of expenditure which is acceptable to creditors e.g. £20 per week for petrol, £40 per month for gas,electric, telephone ( each ) & £20 clothing allowance for each family member.
I pay £900 per month to my creditors, approx 33% of my salary
This can be generous

Jolinar

poppy52 wrote:

Payplan won't agree to you keeping a credit card - part of the agreement is that you have no more credit while you are in the dmp. That includes even a cheque book and debit card. I now have an electron card instead.

Sorry but this is simply untrue you can have a debit card whilst in a DMP. You are allowed to run a bank account as normal, just no overdraft that's all.

poppy52

I've been in a dmp with Payplan for over a year and I wasn't allowed to have a debit card. I had to open a new account with no links to any of my creditors and no cheque book or debit card. Payplan were very clear about this account having to be a basic account with no frills and no credit check.

poppy52

Although luxuries are not allowed on a dmp, I in fact do better than before and always have a little bit left at the end of the month. I am allowed to include pet food and pet insurance, and the set amounts for things like the phone are actually more than I usually spend, so I kept a pay as you go mobile. I also included a small amount for emergencies and it is possible to save on what they let you have for food and housekeeping. They don't allow anything for a social life though - that has to come out of food and household expenses. As I said, I have a basic bank account with the Co-op which has an electron card, and I also have a pre-pay credit card that you load cash onto in advance.