DMP-What's the point in going on?

Pink-Angel

At the start of the year I had a LBM and recognised my debts were spiralling out of control. I have started a DMP with CCCS and initally felt better that I was taking postive action to sort out my situation. At this point I was not in arrears with any of my creditors.

A couple of months in, I'm wondering what the point is in carrying on. A couple of my creditors have refused to freeze interest and are also slapping on late payment charges. The upshot is the amount I'm paying with the DMP is not covering the interest/charges.

Lloyds are being particularly difficult. Although they froze interest on the loan, they haven't on my overdraft or CC. The are also harrassing me with phone calls (about 7 a day spread between my mobile and landline). I have answered a couple of times and tried politely to explain the situation, but both times the person (a foreigner in a call centre abroad I suspect!) has become quite threatening. I've written to them restating my situation and to ask that they contact me in writing. I'm ignoring the calls - what else can I say that I haven't already?

Anyway, considering the fact that it seems I'm never going to pay off my debts if the interest is going to continuously increase beyond what I'm paying, I feel very low and not sure what to do. I'm swinging between consdiering am IVA and suicide. After all, if I'm not here any more, then my creditors won't get any money. It's not as if my life is very exciting - I have no money becuase of my debts. (I totally accept this is my own fault that I'm in debt.)

I just don't see the point in all this ...

Tixy

It can be frustrating when a creditor won't agree to freeze interest. There is a letter template on national debtline you could send to ask them to reconsider freezing interest - its worth a shot.

Even if they still refuse its likely that they will sell the debt on after maybe a year, and when it goes to a DCA they will be much more likely to agree to freeze all further charges meaning at that point you can start to reduce the balance.

Being on a DMP is still worth it as you are now controlling the amount you pay to your creditors each month, which should mean that you now have more money for priority items and living costs than before you went on your DMP.

Its still early in your DMP - don't give up yet, lloyds may come round yet.

If they are still calling you a few weeks after you have sent the stop calling me letter then there is a follow up letter you can send which insists the remove your numbers under the DPA - have a look here at the lower template - http://forums.moneysavingexpert.com/showpost.php?p=11571485&postcount=4 if they still phone you then you can report them for breach of the DPA.

Pink-Angel

Thanks so much Trixy, that's very helpful. I really appreciate you replying.

nsimpson123

Pink Angel, please hang in there you are still at the beginning of your journey, it takes a while to settle down, I am three years into my DMP and the only time I hear from my creditors is the monthly statement, which shows my balance going down you WILL get there eventually, life is definately worth living you just need to get over this hiccup. Every time Lloyds call you just cut off the call xx

gettingbackontrack

Pink-Angel - please do anything drastic. It's hardf when you start out with your debt mountain which just seems insurmountable and no-one seems to want to help, just to punish you. You have done the right thing in starting a DMP because you are tackling the underlying problem (overspending) which brought us all here. As Tixy said (always great advice!), in a few months, or even weeks, the situation may change. I had one creditor who was horrible at first, demanding £200 a month. We eventually agreed on £110 but this got too much, they were horrible and yet.... when I as made redundant they accepted £10 a month and have been brilliant since. Things DO change - once the creditors see you are making regular payments, they often change their attitude.

Re tha calls - can you change your mobile number? Write to them again, demanding they contact you in writing only, and when someone calls, just hang up.

And please, please, believe that things will get better. Suddenly the debt DOES start to come down and you see a little chink of light.

Take care.

maganan

oh angel I'm sorry you're feeling so low at the moment

Like Tixy said try sending the letters asking for contact by post only and have a browse of the info on the national debtline site, then you can try sending the letters requesting the preditors stop/reduce interest. Lots of people on here say the debt gets worse before it gets better (take a look at some of the sig!), I'm about the same stage as you and it is depressing to see the total debt going up a bit at first but we will get there. Just keep coming on here for support and a virtual hug on the bad days.

Hope you're feeling more positve soon, you've gots lots to offer X

mummum2

Lloyds are the pits! :mad: banked with them for over 20 years accounts for nothing. Been on DMP 4 years this September, I have loan, interest after about 6 months, O/draft, keep adding interest, stopping interest, till they sold it to Apax this month, all interest stopped, Apax to give them credit was really nice. Sent E&I, which was accepted by them, agreed same amount that I was paying Lloyds.....credit card is another story, paying £96 of which interest is over £60, no amount of letter writting seems to be shifting them, have requested only communication in writting, but still they keep calling, only have my work number, I now don't even answer the phone to them now, can see their number. Arrived home last night to get a letter from their collection centre in Brighton saying:

We would like to tell you about our new online service that will help you manage your account.

Simple go to www.lloydstsb.com/selfmanage and quote your account number and personal on-line reference ID as shown above.

You will be able to:

- View the status and blance of your account
- Make a payment using a credit or debit card (don't think so!!!)
- Notify us if you are experiencing financial difficulties.

In addition, there is help and guidance about managing your money and answers to frequently asked questions (FAQ) about our collections process.

Manager, collections centre (can't read signature...one of their computer generated letters)

Plus another from Hove - (like a payment slip) which reads:

IMPORTANT INFORMATION

You need to make an immediate payment to bring your Lloyds TSB account up to date.

To pay go to (same website as above....quote the same numbers as above)

If you have alredy made your payment, thank you.........YES I BLODDY HAVE, I PAY YOU ON THE 1ST OF EVERY MONTH £98 BLOODY POUNDS, CAN'T DO ANY MORE, PLEASE PASS IT ON..so feed-up. All my other creditors are on board, have been from day one, but these critens are the bain of my life! :mad:

Good luck and let us know how you get on!

MM2

Hales82

Please hang in there Angel, no creditor is doing something drastic over.

I would definitely recommend writing to your creditors asking them to reconsider stopping interest. This is what I have done. of 12 creditors only 2 have stopped interest, the others have either ignored my DMP offer or just reduced interest. Halifax did actually refuse my offer and wrote to the CCCS saying that they wouldn't accept due to recent spending on the card. I wrote them a letter, explained that I was recently spending on the car in order to live and put food on the table and would they please reconsider. Low and behold a few weeks later I had a letter from them accepting my offer. It really can make a difference so give it a try.

I'm with you on how frustrating it is when creditors don't stop interest, we're experiencing the same. Are your CCCS payments close to your contractual payments? Ours are, which is why I think they've only reduced interest.

Hang in there xx

dancingfairy

Hi Pink Angel - sorry you're struggling. You're doing the right things.
Lloyds seem to be a law unto themselves. I've heard tales before where they stop interest on some things and not others, set up a payment plan for 6 months then after that refuse to help anymore etc etc. You are not alone.
Strategies for dealing with them:
1) stop paying them anything and wait for them to sell it on to a debt collector and hope that the debt collctor will be more reasonable. Obviously this means that if Lloyds went to court then you can't claim that you have paid religiously but the judge will still have the same options available to them.
2) write a stiff complaint letter to Lloyds - point out the debt collection guidlines (I think it might be OFT guidlines) that say it is unreasonable to continue to apply pressure to someone when they can't pay any more and I would argue that continually adding interest is doing just that, say you have been a good customer for x number of years, point out that they are not treating you fairly etc. State that you really need them to freeze interest and charges as everyone else has (obviously only put this if true). Wait for their reply -if they fail to reply or you are not happy with their reply - ie they fail to give you any help then you can take them to the financial ombudsman - this won't be quick and you have to have exhausted Lloyds internal complaints procedure but the ombudsman may rule in your favour.
3) keep cracking on with your debts until such time as you can afford a settlement to get rid of lloyds or you have paid off the other debts and can therefore offer Lloyds more.

Oh and I agree with the telephone thing - write to them again and then start reporting them - this may help with your complaint letter and complaint to the ombudsman as well -- deeply, deeply unpleassant but it may play into your hands in the end
Best of Luck
df

winner12

Hi
I think as it stands once they default you the account is then closed and the interest and charges stop.
It takes about 6 months and once passed to a DCA you can negotiate again they are not supposed to add interest or charges.
Then your option would be to pay what you can afford for a while and if you can try to get a F&F offer lower than what they say you owe.

inamess_man

keep your chin up pink angel

i to have felt very very low but the first few months of the dmp are the hardest i think

this place is a goldmine as well