DMP - just signing up to one

lyndsey80

Hi,
I have today submitted my details to CCCS about getting a DMP. I am scared and nervous about the whole thing.
I am also a bit confused and have some questions.
I really don't know where to start, will they talk everything through with me? I have added my overdrafts on the plan so I need a new bank account with a new bank, how will all this be co-ordinated? I am stressing about direct debits and wages.
I have a load of credit card statements that I just have not had the money to pay, getting phonecalls and ignoring them. I have no money whatsoever until Friday where I get money from my part time job but this isn't going to cover the arrears I have managed to get myself in!!
Shall I pay what I can to all of them or pay the arrears on some but still miss the others? I have buried my head in the sand and feel sick about all of this, kind of thought if I don't think about it, it will go away. And now feel like there is so much to sort out with it, it's panicking me a bit!!!

hitabrickwall_2

Hi. First of all don't panic. I would give the CCCS a ring back and ask them the questions. They are brilliant and very helpful.

I am in the same position but am having delays setting up DMP (not due to CCCS though) and this is what CCCS advised me to do.


I cancelled the direct debits from my account to all creditors and set up a new bank account with a bank that I had absolutely no debts with. I spoke to Payroll about getting my salary paid into that account.

I then sent letters to all my creditors explaining I was in financial difficulty and seeking advice from the CCCS. You can send a token payment to your creditors (CCCS suggest a £1). Send this to them in the form of a postal order and recorded delivery.

Mosts creditors have been brilliant and as soon as I give CCCS reference number (even though DMP not set up yet) they stop all calls for 30 days. I have had a lot of letters and phone calls though but have just spoken to CCCS who have said I do not need to speak to them on the phone. As long as they are informed by letter then that is fine.

Hope that helps a bit.

saltnvinegar

Hi Lyndsey80

Congratulations on setting up a DMP and contacting CCCS! This is a real big first step and I know its a difficult and painful one.

CCCS should be in touch and will talk you through everything. If you're worried give them a call.

Getting a new bank account is easy and not as scary or stressful as you may think. There are lots of options out there the important thing is to open an account with a bank/building society that have no connection to your creditors.

The reason for this is they can do something called 'offsetting' where they will 'dip' into your current account to get some money back against your debts.

Once you have your new bank account details cancel all your direct debits. You then need to set up standing orders to pay priority bills (mortgage/rent, council tax, utilities etc). It may take a few phone calls but again is really easy and should only take you a couple of hours.

Don't make any payments to your creditors that you cannot afford. If they call you inform them you will only deal with them in writing.

And finally (before I have to get back to work!) try not to worry. You are doing the right things and the CCCS will help you work towards getting debt free

SNV

Pott5y

lyndsey80 welcome aboard.

If you haven't read the post at the link below... do so. It contains a lot of fantastic info and advice from the perspective of a DMP newbie.

https://forums.moneysavingexpert.com/discussion/2673537


This link:

https://forums.moneysavingexpert.com/discussion/2636953

will help with you setting up a new account as it shows which banks are linked. Many people on here recommend the co-op cashminder account. I have a Natwest step account which gives you a debit card and good on-line banking with no overdraft.

Good luck with it all and if you need any more reasurrance and or advice just ask, there are always plenty of nice people on this forum to help.

lyndsey80

Thanks for the advice / kind words. MBNA have just rung my work number!!!! They asked me security questions, which I would refuse to answer anyway as I don't know who they are and I told them to ring me this evening on my mobile. They asked me to confirm my mobile number and I said, well you should have it. Think I will answer these calls from now on and quote the DMP reference number that CCCS gave me, and ask them to contact me in writing. Is this the right thing to do?

Pott5y

That is definately the right thing to do. I would probably ignore their phone call this evening too. Turn off your mobile and let them leave a message.

Then write to them.

These creditors can have a habit of being rude and upsetting people to try and get money out of them. Do not let them get to you. It is not personal!!

Do not agree anything with them on the phone. Just say that you are dealing with the CCCS and setting up a DMP and they will be contacted soon. If they keep going on politely say goodbye and hang up.

I would also send them a letter as below. That should stop the calls though it cannot be guarenteed.

Dear Sirs,

Account No: XXXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing. I have verbally requested that these stop, but I am still receiving calls and I now require all further correspondence from your company to be made in writing only. I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine. Be advised that any further telephone calls from your company may be recorded and used in evidence and I expect this harassment to cease immediately.

Yours faithfully
Sign digitally

lyndsey80

The annoying thing is they never leave a message. I also have HSBC ringing me constantly. I'm in that spiral now of missing one payment, trying to catch up then not having enough money to pay another debt, etc etc. I will pay them all equally when I get paid Friday, that is all I can do at the moment.

Pott5y

This is unfortunately going to happen for a while, but it will calm down once they realise that you can't afford to pay them any more and they will then start accepting your DMP.

Stick with it and just play them at there own game. You are in control no matter what they think.

lyndsey80

Well today just gets better. Got my statement from Npower and they are upping my Direct Debit from £39 per month to, wait for it, £101 per month!!! Apparently i have accrued about £220 worth of debit with them!!!! I am going to have to change my DMP to include this, there is no way I can afford to pay it along with all my debts. Trying not to let it worry me.
So I need a plan, and do one thing to help with my DMP every day. So tomorrow I will try and open a new bank account. Do you need a basic one? Am going to see if Barclay's will help me!!!

goingforward_3

Have you spoken to Npower? I had a similiar issue with British Gas wanting to up my payment by £50 a month... The new figure quoted was generated by computer but once i spoke to an advisor and explained that once summer was here and i turned off my storage heaters i would clear the debt.. i think in the end my payment went up by £10.

lyndsey80

Yes I rang them and they were most unsympathetic. I had accrued at £100 ish debt in February but they never upped my DD payment as "I never rang them about it"!!! Having spoke to other people Npower are not one of the best suppliers around. Think I will have to stick with it until I know the debt has cleared then find someone better! I will contact CCCS today and put this extra £60 in my budget, at least that's one good thing, I would never have been able to afford that if I hadn't signed up to this DMP, that's the equivalent to one credit card payment!