DMP advice after reading threads...please xx

in Debt-Free Wannabe
16 replies 1.5K views
I have completed a debt remedy solution on CSCC today and with 21k of unsecured debt it recommended DMP as a solution for my 6 creditors.

I have read a few posts on here and just wondered if people could help me understand a few bits and peices as I feel a bit apprehensive about this after seeing that even when people entered a DMP they still received threatening letters and default notices and charges on their account.

I might have been being naive but after reading the leaflet from CSCC I felt a huge sense of releif that this may well be sorted once and for all and that there was an end date to all this debt and misery ... but Im started to worry it sounds too good to be true.

My debt payments at present are 770 and my surplus is actually £384 so that would be my payment to CSCC for the DMP. Iv been told my budget amounts etc so Im clear on all the figures.

Could anyone tell me, or reassure me, that once you have made the DMP and the creditors agree - is it a case of it's all plain sailing (so to speak - or at least plainer sailing than present situation!!) as long as you keep up the payments and inform them if I can afford to pay more - or will I still be hounded and sent court letters? Im so scared and confused after reading peoples posts on here. Although I have major debt problems, I actually do make my debt payments on time and I dont ever have to deal with CCj and Bailiff threats and Im terrified of that happening - but what I struggle with then is my daily living and surviving for the month and I end up using the available credit I just paid to live for the month again...a never ending cycle :-(

My creditors are

Shop Direct (very and additions) (£3000)
Barclays Bank Personal Loan (£15000)
Barclays Bank Overdraft (£500)
Capital One Credit card (£1600)

Has anyone had experience with these during a DMP?

My partner is doing a DMP as well but seperately from mine as we dont have joint financial accounts and her creditors are

Halifax Credit Card
Virgin Credit Card

Any experience with these?

I feel like this is the last thing I want to do but I dont see any other option. I have taken a less drastic step than bankruptcy which I initially thought for months was my only solution but now I hvae spoken to CSCC properly I know this sounds so much better for me.

Id love some reassurance or peoples opinions. I feel so embarrassed about my debt and I dont talk to my friends or family about it so Im hoping you guys will be able to help

Tina x
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Replies

  • kiwikazkiwikaz Forumite
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    Hi Tina and welcome to the DFW's board.

    You've taken an extremely important step in your quest to become debt free. :T

    As you've completed the debt remedy on CCCS at least you've now an indication on how much you have left to pay your creditors once all " essential " living expenses are taken into consideration.

    If you've not already done so then I'd give the CCCS a ring first thing to discuss your options further.You are under no obligation whatsoever to do a DMP with them.

    Post up a SOA so other DFW's can maybe make suggestions on where you can make additional savings.

    I've been on a DMP now for just over a year with CCCS ( along with my OH ) and it's the best thing we ever did. Only wish we'd done it sooner.
    Initially we did continue to get phone calls and demand letters but once we wrote to all our creditors informing them that we had started a DMP with CCCS and that they'd be in touch then things did start to quieten down.
    It's not all plain sailing and the CCCS do conduct a review of circumstances with you and then inform your creditors of your current financial position. CCCS have in my opinion made it easier to cope with our debt and they're always available to speak to.

    Go for it Tina you've nothing to lose but your debt !

    Good luck, Karen.
    July £10 a day challenge £ 20.05 / £ 155
  • Thanks Karen - have u had to provide bank statements to anyone at anypoint? Im worried about being crucified for my spending habits of like £10 in boots or something un-necessary that could have been used for debt

    its positive to know it's working for you, it will just be such a weight off my mind. Im happy to do teh DMP with CCCS - it's free after all and everyone seems to have had good dealings with them
  • kiwikazkiwikaz Forumite
    379 Posts
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    Morning Tina,

    I don't recollect having to forward any bank statements to the CCCS other than to verify the amount we owed on our overdrafts. Upto date cc statements and loan info I did pass onto them.This info is needed to help set up your DMP.

    Please dont get yourself worked up. You've acknowledged your debt and now in order to get out of the mess you've now got to change your attitude towards money.Spending a tenner in Boots may have been a necessity.Only you know if it was a frivolous purchase !

    We've all been there at some point and that's why we're here trying to clear the debt.

    If you've not already done so make sure you open a bank account that's not linked to any of your creditors.

    Karen.
    July £10 a day challenge £ 20.05 / £ 155
  • Thanks Karen - Im just doing the forms now from the pack for the CCCS and trying to get all my statements together. It's such scary stuff, I get so anxious about debt and bailiffs and the idea of a CCJ against my name - thats what is making me hyperventilate over all this! I definitely think DMP is the way forward for me, and once it is in place Im on the biggest challenge every to budget even further down to up my payments in a few months time. At the moment it's impossible because Im in this vicious cycle but once i have that 1 standard payment going out I'll be able to see my finances so much clearer and Im hoping to be able to budget so that I can pay an extra £100 to it ... the sooner it's sorted the better. I just want it gone so I can live my life again stress free and actually enjoy the money I earn instead of whittling every penny of it in interest.

    Sorry to rant ... rant over.

    Thank you for your kind advice Karen - and Im going to open a bank account right this instant! x

    Has anyone else had any relations with the creditors I mentioned in their DMPs?
  • kiwikazkiwikaz Forumite
    379 Posts
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    Hi,

    Glad you've set your wheels in motion.

    We've a CC with Cap One and Bank of Scotland CC's. In our case, If and BoS. They're linked with Halifax as you probably know.

    With Cap One they were a wee bit **sey at first and passed our account to Capquest their in house DCA and then the account was passed back to Cap One. Odd I thought but apparently this can be the way they operate. Having said that they did eventually cease interest and charges.
    Our CC's with BoS have now been passed onto Blair Oliver and Scott and, once again our interest and charges have ceased. For now at least.
    Everyone seems to have their own experiences with creditors and their respective DCA's and DCA's if the debts have been sold on.No hard and fast rules.

    Over the last year we've managed to increase our payments to our creditors thro the CCCS twice which has almost halved our DFD.Still got 12 years + to go and that's providing no further interest and charges are added and we maintain our payments !

    Please don't IMO trim your budget so tight that you've not an inch of flexibility. Go over to the Old Style board and you'll pick up loads of tips. Squirrel away the odd few quid that you may save from budgeting either for a treat, in case of an emergency or ultimately to pay extra off those debts.

    Keep your chin up and take one day at time !

    Karen. ;)
    July £10 a day challenge £ 20.05 / £ 155
  • Squirrel29Squirrel29 Forumite
    646 Posts
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    Hi Tina, I've just paid my first payment to Payplan and sent off token payments in the interim. My understanding is, even if they did take you to court which is unlikely, CCCS would support you anyway and the majority of judges would acknowledge the fact you have sought help and would not impose a CCJ and just let you carry on as you are. I may be wrong so please correct me anyone.

    I put my credit card debts into a tool on here and it worked out it would have taken 43 years to clear as I was only paying minimum and can't get a 0%. Ive tried consolidating but still ended up running more debt as most people do. Those to me was the deciding factors and I know that in 9 yrs (or hopefully less as I keep doing overtime) I will be debt free. Stay positive, I think it's the best thing you will have done.
    Second and final LBM 01/01/11 Nearly got there but fell of wagon. HAVE to do it this time :mad:
  • edited 3 February 2011 at 9:40AM
    Mrs_ArcanumMrs_Arcanum Forumite
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    edited 3 February 2011 at 9:40AM
    CCCS are very helpful. However having a DMP does not prevent your creditors from taking legal action to recover the debt.
    The most important part is to continue making payments to CCCS as agreed by the DMP.
    Also be prepared for your debts to be passed on to another company or a solicitor. These will incur charges and you need to ensure CCCS make the payments to the new people along with the additional fees being added to the money you originally owe.

    Currently one of my five debtors is perusing a Charging Order and has become a priority debtor in the process. Also due to charges they are now my largest debtor but are not receiving the largest share of payment. :(

    Thanks to the information on the forum I am pleased to discover they should only get a restriction on the property as it is jointly owned with my debts only being chased. :T

    I had a Virgin credit card & they (so far) have been brilliant.

    You are not out of the woods yet; but well on the way. :D
    Truth always poses doubts & questions. Only lies are 100% believable, because they don't need to justify reality. - Carlos Ruiz Zafon, The Labyrinth of the Spirits
  • I think the one that scares me the most is my barclays bank personal loan which still has £15000 left on it and is at an interest rate of 22% (I was desperate at the time!) iv only had the loan about 9 months and my payment is £400 a month usually .... I don't think they are going to take very lightly to having a payment of £100 a month for it instead and I'm pretty damn sure they won't cease my interest ..... Banks scare the hell out of me so this is the major thing that is giving me sleepless nights is that they won't accept my dmp and I get threatening letters etc. It's all so terrifying

    I'm not quite as scared of the others (cap 1 and shop direct) but because of the amount I owe barclays I'm just scared of what will happen

    :-(
  • eyeopener2eyeopener2 Forumite
    1.8K Posts
    Part of the Furniture Combo Breaker Debt-free and Proud!
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    woody24 wrote: »
    I think the one that scares me the most is my barclays bank personal loan which still has £15000 left on it and is at an interest rate of 22% (I was desperate at the time!) iv only had the loan about 9 months and my payment is £400 a month usually .... I don't think they are going to take very lightly to having a payment of £100 a month for it instead and I'm pretty damn sure they won't cease my interest ..... Banks scare the hell out of me so this is the major thing that is giving me sleepless nights is that they won't accept my dmp and I get threatening letters etc. It's all so terrifying

    I'm not quite as scared of the others (cap 1 and shop direct) but because of the amount I owe barclays I'm just scared of what will happen

    :-(

    Hiya

    i'm on a dmp which has two loans.

    What will happen is that all the interest due over the term will be added on so your £15k loan may well be £20k in total.

    Thats what has happened to me anyway.

    E2
    I'm Debt Free :j 2/09/2013
    Debt at LBM 30/04/2010 £24,109.38,
  • Thanks eyeopener - if that happens it will just be a longer term agreement I guess ..... Which is better than a lifetime agreement which is what I feel iv got at the moment! I'm hoping to get a 2nd job next month so il be asking the CCCS to up my payments when I do and all my 2nd wage will go towards the debt .... Every little helps

    Scary times :-(
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