Cant pay wonga & on dmp

losingbigtime

losingbigtime wrote: »

Hi, thanks for your helpful answer - I would be grsteful for more advice on how to deal with WOnga - I havent contacted anyone yet - Im too scared - I want to contact CCCS but Im scared they may cancel my DMP. I have howeve posted on the Ask CCCS Counsellor a question board and am waiting for a reply.

I have gone into the overdraft to its limit yes, due to various things like birtdhays, christmas, emergencies, school trips, school shoes etc etc all sorts. I have looked at my budget today and I can make some cuts here and there but that doesnt solve my current problem. I just wish someone would magic £3000 up then I can pay off the od, open a new bank account, pay my mortgage arrears and start again from scratch

OK so days after being sick, not eating, crying, cant work properly, cant speak to clients at work because I cant stop crying, I contacted CCCS via email and told them everything. Their response was not very favourable which was my own fault. They have said that I have broken the rules (which I know) and if I can provide a receipt for the boiler then they MAY be able to help me - only problem is I cant provide a receipt because my husband's friend did it "cash in hand" and didnt put it through the books and there is no paperwork or receipt. So it looks like CCCS may stop my DMP - things are now even worse, I dont know what I am going to do.

I cancelled my debit card that I originally had logged with Wonga and have a new card, will they still be able to take it? Repayment promise date is on the 13th (Sunday) but my payday isnt till 15th. Will they still try and take it on the 15th? I have opened a basic bank accoutn with Barclays and have switched all my DDs to that - but my boss says she doesnt know whether she can change my wage to the new a/c on time so will I be able to get it out of the TSB via internet banking and into Barclays before WOnga try and take it? Or else all my DDs including my mortgage and secured loan will go unpaid and this situation will be even worse.

PLease please any advice - I would be soo grateful. I am at my wits end with all this. x

Deep_In_Debt

losingbigtime wrote: »

OK so days after being sick, not eating, crying, cant work properly, cant speak to clients at work because I cant stop crying, I contacted CCCS via email and told them everything. Their response was not very favourable which was my own fault. They have said that I have broken the rules (which I know) and if I can provide a receipt for the boiler then they MAY be able to help me - only problem is I cant provide a receipt because my husband's friend did it "cash in hand" and didnt put it through the books and there is no paperwork or receipt. So it looks like CCCS may stop my DMP - things are now even worse, I dont know what I am going to do.

I cancelled my debit card that I originally had logged with Wonga and have a new card, will they still be able to take it? Repayment promise date is on the 13th (Sunday) but my payday isnt till 15th. Will they still try and take it on the 15th? I have opened a basic bank accoutn with Barclays and have switched all my DDs to that - but my boss says she doesnt know whether she can change my wage to the new a/c on time so will I be able to get it out of the TSB via internet banking and into Barclays before WOnga try and take it? Or else all my DDs including my mortgage and secured loan will go unpaid and this situation will be even worse.

PLease please any advice - I would be soo grateful. I am at my wits end with all this. x

Hi

Not sure I can really help but my suggestion is to close your current account and try another dmp provider i.e. Payplan who do not charge and include your overdraft and Wonga debt in the dmp.

Wonga may still be able to take the money even if you change your card although I'm not sure on this, but just to be on the safe side, I'd close the account completely.

You maybe able to get your money transferred but it may incur a cost for a fast transfer - check with the bank.

You need to ensure that your mortgage and secured loan are paid before any unsecured debt as they are priority and perhaps offer a token payment £1.00 or whatever you can afford, to each of your unsecured creditors. They won't be happy, but tough.

As others have said, if you find yourself in this situation again, get in touch with your dmp provider, explain the situation and arrange to make token payments for a month or two and then re-start the dmp rather than take out further loans. Dmp providers are used to this and accept that we all get unforeseen expenses.

Good luck.

heatherks

have you thought about going to one of the other free debt help palces like payplan / CAB (if you can get appointment)

HAYLEY8005

Hi losing
Not much help but i do know to transfer from the tsb to barclays is instant i use the tsb for my bills account and i transfer from barclays to them and have done vice versa before and its instant as they are both part of the faster payment service, no charge for it either.
Hayley

saltnvinegar

losingbigtime wrote: »

OK so days after being sick, not eating, crying, cant work properly, cant speak to clients at work because I cant stop crying, I contacted CCCS via email and told them everything. Their response was not very favourable which was my own fault. They have said that I have broken the rules (which I know) and if I can provide a receipt for the boiler then they MAY be able to help me - only problem is I cant provide a receipt because my husband's friend did it "cash in hand" and didnt put it through the books and there is no paperwork or receipt. So it looks like CCCS may stop my DMP - things are now even worse, I dont know what I am going to do.

I cancelled my debit card that I originally had logged with Wonga and have a new card, will they still be able to take it? Repayment promise date is on the 13th (Sunday) but my payday isnt till 15th. Will they still try and take it on the 15th? I have opened a basic bank accoutn with Barclays and have switched all my DDs to that - but my boss says she doesnt know whether she can change my wage to the new a/c on time so will I be able to get it out of the TSB via internet banking and into Barclays before WOnga try and take it? Or else all my DDs including my mortgage and secured loan will go unpaid and this situation will be even worse.

PLease please any advice - I would be soo grateful. I am at my wits end with all this. x

Hi

Ok as I see it you have the following main issues:

1) Dealing with Wonga and your overdraft
2) Sorting out your DMP with CCCS
3) Changing your relationship with money

Lets start with 1) Dealing with Wonga.

Have a look at a thread I started here which will be a good place to start:

Dealing with Payday Loan Companies

Is just cancelling your debt card sufficient? In my opinion no, and my thread above explains why. It may give you sufficient time to move your wages into another account before Wonga get their hands on it.

So you just need to treat Wonga like any other creditor. The only difference is that Wonga tend to be very aggresive in their collections so you need to be prepared for that. The important thing is not to stress and let it get to you.

You need to be prepared to email them 2-3 times a day offering a payment plan of what you can afford. Email as many email addresses you can find. I used to email all of the following:

[EMAIL="balanceoffer@wonga.com"]balanceoffer@wonga.com[/EMAIL]
[EMAIL="collections@wonga.com"]collections@wonga.com[/EMAIL]
[EMAIL="debtmanagement@wonga.com"]debtmanagement@wonga.com[/EMAIL]
[EMAIL="theteam@wonga.com"]theteam@wonga.com[/EMAIL]

I would then follow up my emails at the end of every week with a letter confirming what I had put in my emails and asking for an explanation if they had failed to respond.

Make sure you send all letters via recorded delivery and do not sign any correspondance (use a fancy font on your computer if necessary).

Eventually Wonga will back down and offer you a payment plan but you have to be prepared to work at it and get in their faces.

Theoretically, if you believe their marketing twaddle, 3 days after you default they should freeze all interest and charges anyway.

However, I know from my experience and many others, that Wonga are highly unlikely to come to a payment arrangement with you until after you default on the loan.

So onto the overdraft....

Very simply you need to close this account, or default on the overdraft and treat it like any of the other debts you have. Your new account you open up you must NOT take out an overdraft as this is only creating more debt.

Ok onto the next stuff........

2) Sorting out your DMP with CCCS

So I'm afraid its not good news here, CCCS would be justified in canceling your DMP. However, you cannot change whats happened now, and beating yourself up about it is not going to change anything.

You need to speak to the CCCS as a matter of urgency and see if they will restructure your DMP to take into consideration Wonga and your overdraft.

One of the reasons why you should not take on any further borrowing is that a DMP is based on trust. Your creditors are agreeing to a reduced payment plan, and even freezing interest and charges on the basis of trust and goodwill.

When you take on further borrowing, if you then go back to creditors who have made this goodwill gesture you are really going to rub their backs up the wrong way. This not only destroys your creditors trust in you, but also impacts on the credibility of the CCCS as it is they have set up your DMP, and negotiated with your creditors in the first place.

I'm not meaning to lecture you here btw, but just need to make you aware of why the CCCS are taking the attitude that they are.

However I think you need to resolve the CCCS issue FIRST, because if you do, and they restructure your plan, you don't need to worry about contacting Wonga.

But you won't know this until you speak to them, so pick up the phone and talk to them. They may decide to give you a second chance, but until you speak to them you will never know.

Pick up the phone, don't use email its impersonal and can be read in the wrong way (a bit like these posts :cool:)

If CCCS do cancel your plan then in my mind you have two DMP options left:

1) Contact Payplan and see if they will take you on
2) Go self administered

DO NOT, however tempting it is, go with a fee paying debt management company.

Alternatively then you may want to look at other debt management options, including bankruptsy and IVA. I understand this may be a little scary to start with, but for many bankruptsy is a relief and a way to start afresh. Maybe thats what you need to do.

3) Change your relationship with money

The problem with your boiler breaking isn't what has led you to this point. The fact that you were on a DMP and have run up a £2k overdraft in this time, shows that your expenditure is still more than your income.

So boiler breaking down or not, you still would have got to this point regardless, it would have just taken you longer!!

You have to address this issue, because if you don't, even if you sort out Wonga, you will only end up further in debt, and your creditors will run out of patience.

I know for a fact that the CCCS budget sheet has figures for clothing, school clubs, emergencies, presents etc.

Yes it is a bit tight, but thats what your budget is. I have been personally using these figures for the last 14 months for 4 kids and although it is a struggle it is possible.

Its really simple - if it doesn't fall into the figure on your budget sheet your kids can't have it.

I know as a parent we don't want our kids to miss out, but the black and white of the budget sheet isn't something that can be negotiated with.

So if CCCS restructure your plan, or if they cancel it and you go with Payplan or go self administered you have to be more disciplined with your money and never break your budget.

Use the DFW forum as a great resource for help as people here have lots of good advice on making money stretch a very long way which will help you a lot.

So:

1) Phone the CCCS and sort our your DMP as a priority
2) Once you know where you stand with your DMP then you know what you will need to do with Wonga
3) Start looking at your relationship with money and understand why it is you are spending more than your budget allows.

Best of luck

SnV

Tixy

Totally agree with SnVs post, good advice there.

Except on point 3 you also need a plan to repay your mortgage arrears that have been run up during the DMP. These mortgage arrears are on top of the extra £2k overdraft. If you cannot get your spending within the CCCS budget then being on a DMP is not viable for you and you need to consider other options.

losingbigtime

thankyou for your excellent and comprehensive advice. I appreciate the time you have taken to post this and it all makes very good sense.

Ok, I got my salary diverted into the new bank accoutn (which has NO overdraft) and I get paid tomorrow whereby I will be calling the mortgage company and paying what I can.

The Wonge defauled yesterday so I contacted them asking if they would consider a repayment plan and sent them a current budget, which they are considering and I am waiting to hear back from them. I am still waiting to hear from CCCS but I have to say its not looking good but I can understand from their point of view that I have been really stupid and should have dealt with this in a different way. I am waiting to hear frmo them as to whether they will consider restructuring my DMP. If they wont, and I decide to go with Payplan, do I have to tell them that I have been in a DMP with CCCS or can I just act as a new case?

With regards the account with the overdraft on it, this is not as simple, as my partners name is on it. He doesnt use the accoutn and never had, we opened it years ago to pay some money into when we moved house, and then it just sat there for years with no use and I started using it again when I started my DMP as I had to leave the bank I was with as they were one of my crefitors, so this was an easy way of switching accounts. Bad mistake obviously was it had an overdraft, and you can see what has happened here. So I cant really treat this as one of my creditors as this is my OWN DMP and not my partners, all the debts on the DMP are mine and in my name only, I dont want to drag him into this and so I dont really know what to do with this account as his name is on it. The new accoutn I have opened is in my name only, a basic cashcard accoutn with Barclays, where my salary is paid into and all the direct debits are going to be coming out of.

IM in limbo at the moment as I dont really know whats going on, I am waiting to hear from WOnga, CCCS and am worried about the overdrawn account which i have now withdrawn my salary from and switched over all the DDs from to the new basic acc.

I have not mentioned the overdrawn acc to CCCS as it is in joint names - IM not sure where I stand with this. If I started a new DMP with Payplan would I be able to include this overdraft or not? OR can it only be things in my name.

I really do think when I look at the bigger picture that I should go bankrupt. I dont know if I qualify for an IVA, I think you have to be able to have so much money available to pay and Im sure when I put the figures in I wasnt eligible for some reason but I cant remember. CAn anyone shed any light on IVAs for me?

At the rate I am paying the DMP at the moment it is likley to be around 48 years before the debts are paid off, which is totally unrealistic.

I will keep you posted on what is happening and any more advice would be gratefully appreciated.

Thanks again, x

RAS

Hi

It is not appropriate for you to be paying a DMP if you have mortgage arrears; you need to get those paid off before you do anything else.

With respect to the joint account, legally the bank can and probably will chase your partner, who is jointly and severally liable. Is your partner aware of the issue with the mortgage, the DMP the OD and the payday loan?

HAve you checked out the Trussell Foundation? They offer food banks in some areas and might get you through this month?

RAS

Try http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=33 and check out store cupboard challenges etc.

saltnvinegar

losingbigtime wrote: »

Ok, I got my salary diverted into the new bank accoutn (which has NO overdraft) and I get paid tomorrow whereby I will be calling the mortgage company and paying what I can

Great News, Sorry I missed the bit about your mortgage arrears. Its vitally important to address this first.

losingbigtime wrote: »

If they wont, and I decide to go with Payplan, do I have to tell them that I have been in a DMP with CCCS or can I just act as a new case?

Personally I would say yes for the following reasons:

1) You want to be totally open and honest as you are asking these people to represent you to your creditors and they will not be able to do that with any credibility if they cannot trust you

2) They may find out from your creditors anyway that you were previously with the CCCS which goes back to point 1

With regards to the overdraft your partner is jointly liable for that debt. You will need to talk to him about how this specific debt is going to be repaid however picking up on your next comment.......

losingbigtime wrote: »

At the rate I am paying the DMP at the moment it is likley to be around 48 years before the debts are paid off, which is totally unrealistic.

Is this what the CCCS have give you as a repayment period? The reason I ask is it would be unusual for the CCCS to advise a DMP if this is the amount of time it would take to repay.

They would be more likely to advise bankruptsy or IVA.

If the 48 year period is an accurate figure then IMO I think bankruptsy or IVA is something you should seriously consider and get professional advice on.

Give Payplan a call or Citizens Advice and they will be able to give you more info.

Also have a look on the bankruptsy board on this forum where you can speak to people who have actually gone through the process which should help you understand whats involved and also make it a little less overwhelming.

Best of luck

SnV