Just about to start a DMP

chris175

Hi,

This is my first post, I applied for a DMP with the CCCS yesterday after getting myself into a money trouble paying to get married.

I have roughly 15000 debt in various places and although I've never missed a payment, I can't afford to feed my family or keep them warm over winter, so decided enough was enough. The other problem is I have a 120 mile daily commute and with current fuel prices it no joke.

I have been told that with a DMP payment of £300 a month I could be debt free in 4.5 years, what is the realistic chances of this? I've heard that some companys refuse the DMP and continue to charge high interest, in this case would I be any better off in the long term?

Chris

secretshopper75

Chris, hello and welcome to the forum, everyone's experiences are different, for some, creditors accept the DMP, freeze interest and are generally quite easy to deal with, others may decline the DMP (although keep paying) and may not stop interest.

The CCCS are very good and contact all your creditors, although it does help if you play an active part too.

Good luck with your DMP

chris175

Thanks for your support! I'll be honest this is a scary thing for me, as I guess it is for anyone. But if it all comes off ok, Itll be nice to think I could be free in a few years!

Hopelessly_Hopeful

Welcome Chris

I hope you have a smooth start up. There are a couple of DMP threads you may want to consider joining, very supportive.

Most creditors get onboard but it can take 3 months or so to settle down. My balance went up by 2.5% initially, 9 payments in I have paid off 15%. Intitially my DMP as thought to be 42 months but looks like 46/47 now. That said whats the alternative? I'd have never paid it off, this way the end is in sight.

Good luck

HHx

chris175

That's a good point, I suppose you just have to ride it out. The thing that was annoying me the most is I try and make more than minimum payment but the interest just counteracts it, you think you've paid off £100 but in reality it's more like £35!!

I was suggested one of these DMP's by a company, and I must admit I was tempted, then I read here and found the CCCS, Glad I did too because the CCCS was 12 monts quicker than the other company at the same monthlp payments. So effectively they were charging £3500 for the service over the 5.5 years they suggested!!

Hopelessly_Hopeful

Good for you to have learnt that lesson early Chris.

Everyone has a different story, most people will say that they are not without some blame for the problem. However the main crime most of us DMPers are guilty of is not starting it soon enough because we buried our heads in the sands when we became victims of rate jacking.

Onwards and upwards, in the long term it will have done me a favour. DMPs are tough going but we can hold our heads up that we are responsibly paying our debt and the extortionatre interest charges back, but never again!

HHx

Hales82

Hi and welcome.

Well done on starting the DMP process. It's hard to say how it will pan out, different people have different stories. For us, there was no way we were going to repay our level of debt (we were paying the minimums) in our lifetime. The DMP has given us a debt free date, something we never thought we'd have and it's given us some control back over our money. I no longer have to worry about paying another credit card bill, our CCCS payment will go at the start of the month and then after that what's left is ours.

I've also really started to appreciate the concept of budgeting, and enjoy it. It's a great feeling to pay in cash, your cash.

Good luck with whatever you decide. I can honestly say it was the right thing for us.

chocolates

Hi and welcome!
Ive been on my DMP with CCCS for 9 months now and all my creditors have frozen interest!! Starting a DMP was the best thing i could of ever done,no more worrying about paying cc bill!! But i will be honest its hard living without credit when you've always used it but knowing that you've brought something with your hard earned cash is a great feeling!! Good luck :T

Squirrel29

I started mine last month with Payplan. Too early to say if all creditors have frozen interest. However, it would have been 40 odd years for me to clear credit cards where as my DFD now is 9 years and I'm really confident u can halve that.

I am madly keen on budgeting now and even checking my bank account daily! I would go months without doing it before, and shred statements without even opening them!

I've even got £60 left until payday on Wednesday! :j

It's just nice to come home and not brick myself at the thought of the post. Wish I'd done this a couple of years ago now.

Mrs_Arcanum

Well done on starting the DMP. It may not all be plain sailing but CCCS are there to help you with any recalcitrant creditors. I had one that took ages to stop interest and another that has gone down the court route (still worrying over a year later) however CCCS has helpers to advise at the end of the phone.