On DMP - cant pay WONGA back

losingbigtime

I have been on a DMP with CCCS which I have been managing (just) since April 2010. Anyway, my boiler broke in December and we had no water or heating for over a week, I had to have the whole thing replaced or have no water or heating at all for my famikly which in the middle of the snow and freezing temperatures we had was unbearable, especially for my children. I had nobody to borrow money from and no emergency fund whatsoever, so ( *gets ready for criticism here* ) I borrowed from Wonga. I borrowed £500 to get the boiler fixed and thought I would be okay next month but I wasnt, I had to roll it over again in January and I am supposed to be paying it back on the 13th february but I will not have enough money to do this or I wont be able to pay the mortgatge (I am already 2 months in arrears with the mortgage) :_(

I dont know what to do, can I roll it over a third time? ( I know this wil incur more interest but I am desparate) or can I add it to my DMP? I know this is against the rules of a DMP (ie taking on more credit) but this was a desparate situation and I had no other option, will CCCS stop the DMP if I tell them I got a payday loan? IM not here to be judged, I know i was stupid but I didnt know what else to do. I am scared to ring CCCS in case they cancel my DMP but |I am also not prepared to pay WOnga instead of the mortgage as I could potentially lose my home here. I have cancelled the debit card (told the bank I lost it) and I have a new debit card as I understand this is how WOnga take their money, with the card and not the account details (?).

Will Wonga agree to a payment plan if I contact them to explain? I simply cannot pay this at all, when I have paid the mortgage I have £68 for the whole month to live on, and thats for food, transport to school for the kids and everything. I have no friends or family at all who can help me.

SHould I contact CCCS or should I contact Wonga BEFORE the payment is due to see if they will agree to let me pay a certain amount per month to clear the debt?

:mad:I know this is foolish but ..............any advice would be greatly appreciated. Thankyou I am so scared....

fozmcfc

Sorry I can't be of any real help.

But I would say hold on before contacting anyone, as others I'm sure will be able to tell you where you stand, in particular with regards applying for credit when you are on DMP as you know yourself you're not meant too.

Try posting the same on the debt free wanabee section for further advice.

Tixy

I'm not sure what CCCS will do - but I think you do need to tell them. Hopefully they will be understanding and let you add the debt on, but they might be more concerned about the mortgage arrears and without help from them it doesn't sound likely you will get back on top of your mortgage repayments.

I understand why you borrowed from Wonga - but in future if you have an emergency contact CCCS that month and ask to not pay your DMP payment that month.

You could try using the ask CCCS counsellor thread to pose the question about what they will do without telling them your CCCS reference number. If the worst happens and they did stop your DMP then you could consider trying Payplan or CAP (who also don't charge).

What has caused you to get behind with your mortgage payments? these are far more important than your DMP payments. You might need to talk things through with CCCS and see whether your allowances are sufficent for your expenditure, they may be able to increase your expenses and decrease your DMP payment going forward if they can understand where you have overspent.
If you are overspending without a 'reason' and they consider your expenditure allowances sufficient then you need to look at where you are overspending and where you can cut back (thats not a criticism by the way - its meant as advice so you don't get further behind with the mortgage).

whichwhydoIturn

hello there, i didnt want to read and run, I did want to say though that no one here will judge you.we are here because we all have life experience in common, and at the end of the day, we all do what we have to do. i would contact your DMP in the first instance, what is the worst that can happen.2nd have a ebay day on Sunday, any cash you raise goes to the family emergency fund , for just in case times.big hug xx

losingbigtime

Thanks for your replies - I have also posted this in the DFW and Ask CCCS boards. The thing is I have already gone through a review of my expenditure with CCCS and they reduced my montly amount to £100 but I am still struggling. We now only by food monthly instead of weekly and it is horrible. WE just have no money at all. Basically I dont earn enough to pay my mortgage which is why I have got behind. If \I had missed my CCCS payment that month it wouldn't have made a great deal of difference as its only £100 and I needed £500. I earn £1500 a month, my mortgage and secured loan together are £1000 then there is all the other bills and CCCS plus transport to school and dinners, sports fees & school stuff for my son. I have nothing left at all after paying out all that.

The mortgage company have agreed to let me catch up on my arrears by paying £150 extra on top of the mortgage amount every month for 6 months till i catch up, but if i pay Wonga then I cant pay this month. Im scared that Wonga may try to get the money even though my debit card is different. I cant change bank accoutns because its overdrawn by £2000 so I cant close it. i am living off the overdraft. I know this is against the rules too but this is a former joint account that we both used to use and I took it over as my own when I got the DMP so it has just been used normally but in overdraft. UNless I get £2000 to pay this off then I cant close it and change banks so wonga may still get my money when my wage goes in because i understand that they take the money at like 1 minute past midnight or something like that so they will get there before the mortgage does :-(

ALIBOBSY

I suspect you may well get alot of finger wagging on here, but at this point I can see you have learnt the hard way about payday type loans.

I have been there a few years ago, funnily enough the same sort of senario when our boiler failed during the freezing winter and I had a baby and 4 yr old at home.

We took out payday loans with moneyshop and kept defferring to the next month (horrendous interest). We went in to see them and they were able to convert what we owed to one of their short term loans. Still horrendous interest but at least we could pay a set amount each month until it was cleared and we finally broke the cycle and cleared it.

I would have thought it worth contacting wonga now before you miss payment, because as soon as you miss they will start to add charges and extra interest. Before you contact them I would work out a budget and find out exactly how much you can offer them each month. Be realistic, but they may not be prepared to wait too long.

They may be more receptive if you can pay some now? Perhaps you could pay so much and roll the rest over. Doing this over a few months would then clear things?

If you havn't already look at reducing your spending and upping your income as per the site, food is a good place to cut as per OS boards were you can cook so much from scratch and save.

Good luck and once sorted use that cash you have been paying to them in a savings account for next time-lesson learnt.

My lesson was certainly learnt, although OH was made redundant in Oct and is still trying to find work so those savings we finally put by are starting to dwindle

ali x

Tixy

I'm sorry its an awful position to be in but I think you really need to go back to CCCS and discuss all these issues and the overdraft etc. If you DMP creditors see you are using this credit there is a real risk they will stop accepting your DMP/start charging interest again. It sounds like you just cannot afford a DMP at all and may need to either pay just token payments for a while.

Do you have equity in the house? have you considered selling and downsizing or selling and renting or even considered the option of going bankrupt? Is this a result of a change in circumstances? did you used to live with a partner and have their income as well and now only have your own? Are you getting all the benefits you are entitled to? tax credits etc.

ALIBOBSY

Read your next posting, I type so slow lol. It sounds like sadly you cannot afford where you are, perhaps time to think about selling up and starting again? Speak to an advisor to talk through other options as it sounds like you cannot fufil the dmp you have. To be honest paying 2 thirds of your income just for the house seems unsustainable sorry.

good luck
ali x

whichwhydoIturn

i have been in exactly same position as you op.i tuggled, and paid the wrong money to the wrong places. all i should have done was paid for my roof over my head, utilies & food. with a token gesture to my creditors . Hindsight is fantastic .(:

losingbigtime

Tixy wrote: »

I'm sorry its an awful position to be in but I think you really need to go back to CCCS and discuss all these issues and the overdraft etc. If you DMP creditors see you are using this credit there is a real risk they will stop accepting your DMP/start charging interest again. It sounds like you just cannot afford a DMP at all and may need to either pay just token payments for a while.

Do you have equity in the house? have you considered selling and downsizing or selling and renting or even considered the option of going bankrupt? Is this a result of a change in circumstances? did you used to live with a partner and have their income as well and now only have your own? Are you getting all the benefits you are entitled to? tax credits etc.

No there is nothing in the house, we are in nagative equity. The house is worth £100,000 and we have £90,000 left on the mortgage and a secured loan in favour of First Plus which was £25000 at the time but no idea what it is now as we have had no correspondence from them for years, but the interest was high so its probably more than £25000! The £1500 I quoted was mine and my partners contribution combined, he cant give me any more. I have thought of bankruptcy but then what would happen to the house/mortgage? My sister has just had her house repossessed and she is homeless right now as noone will rent to her because she was on a DMP and her credit rating was shot at. she is currently sleeping on peoples floors with her three children because the only people who will house her is the council but even with her kids there is a 7 month waiting list.

losingbigtime

And I dont think that the creditors will acept token payments seeing as I already reduced the original amount of the monthly payments, to which most of them sent letter saying that i had broken mny original reduced payment plan and then they passed them to debt collectors. \Even if we sell we will still owe loads more money to first plus as they have a second charge on the property, and we probably wont be able to rent because of our credit rating. :-(