Anyone who has done a DMP?

Kazonline

I'm considering a DMP but would really like to hear from anyone who has allready gone down this route.
IF you have, or know anything about them is there any advice you could give about them e.g. is there anything you wish you'd known before you did it? Is it the best thing you ever did?
If there is a similar thread allready running can you give me some clues as to how to narrow the search to the right one please?

My 'story' is on the following link http://forums.moneysavingexpert.com/showthread.html?t=248547
The SOA needs ammending, and I'll get that done ASAP.
Thanks,
Kaz x

jillie1974

for us it was the best thing we did.
ok some areas of the budget were tight- socialising we have £30 for the month! but it encourages us to save as well as £80 a month has to be out in a savings account this is for rainy day expenses, xmas, birthdays, haircuts etc
it took a bit of getting used to but we now know where we are every month. bills are all paid on time and we dont get the endless calls or letters from creditors demanding immediate payments.
it was not the easiest thing i ever did but prob the most satisfying!
we went with CCCS and they were helpful an it felt like they really wanted to help and i didnt feel i was being judged. they also reassured me that our debt was minute compared to some and i must admit that it wasnt till i joined here that i realised that.
the most imp thing i found out is despite all the nasty letters and calls you get from ccard companies etc te worst they can do is take you to court where a judge will see that u have financial difficulties and may even have yo paying less than a dmp would!
Good Luck!
You've taken the 1st step!:T

pyrorus

I'd say go onto it they are helpfull.

My advise if your not sure is phone or email both CCCS and Payplan and ask as many questions you like. I found them both very helpfull and happy to answer the questions and they wont do it looking down at you.

They are all very nice people who are happy to help.

Rus

inhotwater

A DMP has been a really good thing for me too. My outlook on money has changed - for starters, it's got me into the habit of saving for things. The rigid framework of the DMP means what I have/don't have is clearer and I'm a lot less stressed - I certainly feel a lot better than when I was having to juggle my credit cards every month just to meet the basic payments.

When you do your phone interview, try and remember all of your expenses. When they send the form with all the amounts, check it carefully in case you've said something incorrect or they've misheard you. I didn't check mine properly and CCCS have one of my expenses as £20 when it's actually £30. As I've got such a lot of debt I didn't want to appear 'difficult' by phoning and changing it so I just have to find that £10 from somewhere else each month.

Set up savings accounts for all your long term stuff and move that money out as soon as you get paid. You can also earn yourself a bit of interest and it gets you into the habit of saving, which can only be a good thing!

Kazonline

Thanks both for your replies, it's so nice to have support.
Part of the reason I'm apprehensive is that I've had to put a tighter budget than the normal to be able to have enough to spare. TBH I don't think there will be anything left for a social life - but then I've not had one (other than the net) in a very long time! Not that I miss it mind - I can't handle drink, and my boys & college course keep me really busy!
I'm not currently receiving any threatning letters etc as I've lots of credit still available on my cards etc, so I'm worried that going for the DMP will initiate the threats etc.
That said your story gives me some reall hope jillie. The thought of actually being able to put something by for Christmas etc sounds heavenly - for years it's just been paying off as much as I can through the year so that I can buy a few bits and pieces at Christmas and feeling guilty about everything I buy, and yet guilty that I am buying so little for the boys IYKWIM.
The lady I spoke to at CCCS was really lovely, unfortunately when I contacted Payplan some months ago they must've been really busy as my experience was very different to the norm. I guess we all get our off days!

When you apply to go onto the DMP and they send you a pack, do they advise you to open a different account etc for your income?
Do the companies then start panicking and hassling you with debt collectors etc?

Thanks also to inhotwater - another DMP success by the sound of it. The rigidity of the DMP would certainly suit me - I'm much happier knowing exactly how much I can spend etc, a lot of my debt was incurred through waiting for the DSS to sort out my payments (I had no income for about 9 months and so had to live off my cards). While they did backdate the ammount it did mean I had no idea as to what my income would be (no one would give me a straight answear - not even CAB!)
Hindsight would help so many people - and that's partly why I love this site so much, we can all learn from each other and hopefully avoid making to many costly mistakes!

lou_lou_skinty_poos

if your bank account is from a bank that is connected to any of your creditors even if you dont think they are for example if you have a mint credit card and a RBS account then mint could take the money from your account to ofset the money that you owe them as mint is owned by RBS. so in that case you would have to get an account separate from any creditor that you have.

inhotwater

You will get the letters, but to be honest most are computer generated and triggered by not receiving the full payment. Read them, obviously, but don't panic because the wording can sometimes seem a lot scarier than it actually is.

You will also get phone calls, but you are able to insist that they only contact you in writing. I got lots of calls, but I live on my own and I have caller display on my phone so I just ignored it if I didn't recognise the number or it didn't show!

Most people I spoke to at the credit card companies were helpful - they acknowledge that you're trying to do something about your debt before it gets even more out of hand. However, some can interrogate you - I had a woman at Morgan Stanley repeatedly ask me to pay more money for about half an hour - she just phrased in different ways each time and used leading questions to get there. I stood my ground - "if I haven't got any more spare cash it doesn't really matter if you're asking me to pay £1 or £1000, I simply haven't got it". Be firm - they can't have what you haven't got, and just refer them to CCCS or as I mentioned, tell them to write to you instead.

Kazonline

Thanks Lou lou, that's exactly the sort of thing I need to be aware of. My account is overdrawn so I know I'll need to make sure I shift all my income to another account or I'll never see a penny! My boys also have bank accounts with my bank - would they be able to use any of their money (eldest has EMA paid into his account) to offset my debt?

jillie1974

CCCS get their budgets etc from courts and under a court they have to give you a social budget..this can be renting dvd, take away etc anyting u want! shopping budget ours is £140 a month for both of us (and 2 cats) so i try to save as much as poss from that (tanks to this forum) to add to our social budget, savings we were doing well but a wedding, birthdays and OH on sick took care of that! but in new year we are aiming to get that back on track. you will get a pack that gives you other way to save money. they also recommend that you get a note book and log everything that you spend money on.this is good as it made realise that i was spending money on silly things- £2 for a sandwich at work could have been 1 weeks worth madeat home etc
any more questions just ask:)
the first thing you do- open a bank account not connected to your current account, if you owe them any money they can take it from your acount without telling you! then you get a leter to send to all your creditors you send them a token paymnet as well. ths informs that you are dealign with CCCS (for exampl) and that they should deal with CCCS future..

inhotwater

I've got a lot of debt (too ashamed to say how much ), so my DMP is really tight and I have £0 for entertainment or for things 'for me'. So, I've tried lots of the money making ideas on here - EBaying, RPoints/Quidco, surveys and I use this money for me, either immediately or as savings. It can be really motivating to do eg EBaying, if you know there's a treat for you at the end!

Kazonline

Jillie and Inhotwater - I can't thank you enough for your help and advice.
I'm very much swaying to the DMP - more for the peace of mind than anything. At least then I'll know that I'm on the road to 'recovery'.

I'm a bit torn as to what to do with regards to a few things that I feel are badly needed (my back door for example - the seal is so bad that the kitchen is regularly flooded and it is freezing in there).
Also, as part of my course I am supposed to do case studies which means I need a treatment couch - which of course is supposed to come out of my learning grant, and there's certainly no scope to save for one within my budget - however having a couch will mean that I might be able to get some extra money when I've qualified, providing I can find clients......
Any advice on the best way to do things?