Starting DMP what to do next

Annie_99

Hi Everyone,
I have spoken to CCCS and am starting a DMP with them. They have emailed me the DMP agreement for me to print off and sign and have asked me to send statements of all my creditors.

They have also asked me to inform my creditors but do i do this once I have opened my bank account with the Coop on Tuesday? I dont want to inform my bank at the moment as this is my biggest creditor.
So do I open up account, move remaining bit of money out of said bank into new bank. Then cancel DD's and set them back up in new account??
Also do I sign the letter to the creditors?

Thanks Annie

HappyMJ

It's strange that you and CCCS picked a DMP as the best way out when you had a supposed £500+ excess each month after making the minimum payments on your loans and credit cards.

Monthly Budget Summary
Total monthly income.................... 2,767
Expenses (including HP & secured debts). 1,729.4
Available for debt repayments........... 1,037.6
Monthly UNsecured debt repayments....... 464
Amount left after debt repayments....... 573.6

How is your credit rating? If it is still clean I would still go for trying to make those minimum payments but alerting the creditors that you are considering a DMP.

But, if that's what you want to do then what you are planning is fine. There is no rush for anything you will get the defaults on your credit report anyway so an extra month won't make any difference.

Annie_99

I had a good look at our statements and accounts and hadnt included 2 overdrafts of 2000 and had underestimated our monthly expenses. I am again today going to check and double check before I totally go into DMP.
We have had quite a lot of late payments and defaults so our credit rating is shot to pieces.

HappyMJ

Annie_99 wrote: »

had underestimated our monthly expenses.

Doesn't everybody...

Don't be afraid of doing a new one and posting it on here. You can do one as many times as you want (but for our sanity no more than 1 new thread per month)

When posting put a note that you are going onto a DMP and have £700+ per month of unaccounted for expenses. Put down the maximum limits that CCCS allows for each category. The online debt remedy tool they have will give you an idea. Try going higher and a pop-up appears saying something like "CCCS recommends between £140 and £195 per month"

Annie_99

I did the Debt Remedy after realising I was underestimating our budget, I also had not realised I needed to add overdrafts.

It came up with DMP so have gone for it as we have debts that we can pay but at least with a DMP they might freeze the interest. All we do is make minimum payments month in month out and it never seems to go down by much..

My worry (thats kept me awake allllllll night) is that my husband is totally silent on the idea. He agrees we need to do something about it but hasnt said a word. I told him about debt remedy coming up with DMP after me relooking at all our statements and when he got home he never said a word...

Dont know what to do now. Im trying my hardest to get working on this 20,000 debt but feel very very alone..

HappyMJ

You've got us here on the net....LOL....and for what it's worth £20,000 of debt with a £33,204 income isn't that bad. It may have come up with the DMP as it assumes you need to pay 3% of each debt monthly so the application would have put £600 as your minimum monthly payments. Which in reality is a good idea because you will be debt free in 3 years.

NorthernLas

Annie -

Late payments and defaults are two completely different things. Defaults happen when you have not paid at all for at least a couple of months.

So what I am saying is that your credit rating may not be as shot as you think.

I can appreciate your need to sort this out quickly, but I do think your OH needs to be comfortable with it and you need to work as a team. Especially because of the effects on your credit rating.

Could you work within a budget and write down where things are spend for a few weeks, so that you are more confident about your figures?

Annie_99

Hi, I totally agree that my OH needs to be happy with this. I have had default notices as I had a few problems last year with a catalogue and my cc so know I had them then.

I have a meeting with CAB on tuesday and wonder what they will suggest. I dont think I should rush but at the same time dont want to leave it and have the same debt in 5 years!!

We are making paying all our bills albeit it minimum payments at the mo so shouldnt worry too much eh?

You will all help me so for that I thank you. Im gonna have a chat to my Lovely husband later on and we will see what do do over the next few weeks

HappyMJ

Well with a DMP you may welll have the same debt in 5 years. But, it depends on what payment they recommend and I think they'll recommend close to the 3% mark which you could self-manage and have no further defaults.

No need to worry yet. Only when debt is higher than income then it becomes serious.

Annie_99

Hmm seems like I have a lot of thinking to do then, it seems from what you are saying is I shouldnt rush into DMP.
I think with careful budgeting we could probably pay off a lot of our cards.
Gonna look at how over the weekend...