DMP Questions

Hax

I would recommend phoning CCCS and talking to someone. It can be very reassuring to have a friendly ear to talk to and someone to explain the processes to you properly. It also allows them to ask questions and get answers much quicker - hopefully resulting in you getting started on the correct solution sooner. My thoughts are that it would be wise to enter the DMP as soon as possible in order bring your unsecured creditors under control - but I'm in no way suggesting that this *is* the correct solution - I'll leave that up to the professionals!

From my experience, I found that those creditors that wouldn't freeze interest ended up just "selling" the debt on to a collector. This in itself it generally nothing to fear - the collectors are often subsidiaries or companies associated with the original creditor. It is when it gets to these guys that interest will be frozen. They'll probably phone you and write to you in order to try and leverage money out of you, but just refer them to the people you have your DMP through. I would imagine that you would be recommended to at least make token payments whilst negotiations are ongoing in order to make it clear that you are willing to pay back the debt but are just unable to do so at the current rates.

As for the free services, definitely choose one of them. I first entered a DMP with a company called Gregory Pennington and whilst I cannot fault the service they provided, I am sorry that I wasn't aware of the CCCS when I look back at the money that could have been targetted at the creditors instead of being lost in fees - I think that either 10% or 15% out of every monthly payment was being taken by the DMP company for their fee!

For the last 12 or 18 months, I left the CCCS too and managed my negoations myself. The creditors were all fine with continuing to receive the same payment - I even increased some payments as and when I had pay rises. I found it also gave me a better view of what was left to be paid and therefore the projected end date. By this point, I was also a lot more comfortable with my situation and felt more able to deal with collection companies.

Upshot is, don't let anyone bully you in to paying out more than you can afford - you NEED to live! By trying to arrange a DMP, you are showing that you are at least willing to pay back the money you currently owe. If you took the IVA/bankruptcy route, then your creditors would likely get back an awful lot less!

Oooh - one more thing - if you have any money in bank accounts, and those accounts are related to any of your creditors, then take it out ASAP to stop the creditors withdrawing that money to cover some of their outstanding balances.

Open a "basic" account - I had a Natwest Step account - but I believe that the CO-OP also offer a basic account. These allow you to receive wages, etc through the normal "BACS" system as well as setup direct debits and standing orders. You'll have a debit card, but no credit facilities such as cheque book and overdraft. Use your new account for all of your future banking.

Sorry about that - a bit long winded! Hope it all gets sorted out for you

P.S. Hold onto the cash your Mum gave you - keep it external to the rest of your finances. Maybe ask your Mum to hold onto it and then take you shopping for bits as and when the time is right

goingforward_3

alamaya wrote: »

Hi all

Thanks for the replies. I have not had chance to read properly as at work and have peering eyes but from the quick read i have managed i appear to have slightly misled you.
I am not currently on a DMP but thinking about starting one as debt rememdy told me it was best choice they also were the ones telling me that i was not paying enough for food and entertainment etc (we dont go out at all)

The SOA i am doing is one i made myself. Basically im starving myself as i felt so stupid i wanted debt gone asap.

I will read carefully tonight and reply properly to you.

Thanks again

I'm on a DMP with the CCCS and when you do it they make sure you have enough money for the essentials.. ie they are 2 adults and 2 kids in my house and we were allocated £350 a month for food.. thats more than i've been able to spend for years.. we a get a decent amount for petrol, internet , mobiles etc and some each month to allow for car tax , insurances etc etc.

Starving yourself wont do you or the baby any good.

DMP's arent right for everyone, but we should be debt free in about 7 yrs... some creditors have been excellant and frozen interest, a couple are being less helpful but i'm sure it'll all work out in the end

Good luck x