My DMP - kazonline

Kazonline

Hi all. Well as some of you may know I've been agonising all over Christmas as to what route to take, and even now I can't hand on heart say I've fully made up my mind.
I've drawn up pros and cons lists, asked heaps of questions and am constantly dreaming about journeys where I take the wrong turning and am forever lost.....
I received my first DMP letter from CCCS yesterday and to be honest I'm a little worried by it. Although I had the print off advice booklet from them after filling in amounts etc I was under the impression that I would now get a bit more advice from them about the DMP.
All the letter explains is about contacting the companies with 'Notification of DMP' and to make token payments. I was under the impression that I would get an initial hour consultation with one of the advisors so I could be sure that I was doing the right thing before notifying all me creditors.
The reason for my change of heart is that my financial situation has again changed. My budget was allready far tighter than what I'd actually been living by, and that was scary enough. On top of that some of my utilities have shot up - eg water (i'm on a meter, am now arranging to go on vulnerable group tariff, but now have arrears to clear) Gas & ele (contacted them with meter readings hoping to update and switch, but discovered now have horrendous arrears).
Next year, unless I find a suitable course I won't be entitled to the ALG, and there's always the possibility that it'll be abolished losing me £125 pm (I'm very lucky it exists anyway).
Early in 2008 my fixed rate ends on my mortgage and my mortage will shoot up (ok, only about £45 at the moment - but who knows what the rates will do)
All of these things make the DMP almost unaffordable, and while I don't want the debt to keep growing by juggling my cards I REALLY don't want to lose our home.
I know that to some my food budget seems high - but I used to allow £125 per week (although I'm not sure how much I spent - it was just a 'guide') and cutting it this far is scary for me.

Given that there is a strong possibility that I won't be able to afford the DMP and also that until my circumstances change my DFD is 40 years (I can't see my creditors liking that) is a DMP for me - or would I be better trying to stay affloat by juggling the cards?
I've had lots of help with my SOA and I really appreciate that, but at the moment I don't want to shave any more off my outgoings incase any more nasty price increases sneak in, nor to commit to a food budget I can't manage (not sure I can manage this one!).
I would however really appreciate some more input on whether I should go for the DMP or not. I can't do this on my own, and there's no one else I can talk to. I'm so scared, and so sorry if it seems to some as though I'm 'going over old ground' but I really can't think straight on this one.
I'm scared that by starting the DMP I'll be putting the rope around my own neck.... 'If it ain't broke, don't fix it' - and at the moment although the debt is growing (due to interest) at least there's no immediate threat to my home (I've about 5k of credit still available to me on one of my cards)
Equally I know that getting deeper into debt is bad - but then there's no guarantee that it won't continue to happen on the DMP as some lenders continue to charge interest....
Please someone, hold my hand????
Kaz x

sandralovescats

I am disillusioned with my DMP of two months.

Despite the DMP, tne creditor is taking me to County Court for a CCJ, to demand immediate repayment. I don't know where this will end.

jillie1974

hi kazon! sorry things arent going so well. did you do the thing with CCCS on-line or over the phone?
i found that over the phone was better adn they could prob advise better way of dealing with the situation. have you thoght about doing an IVA?

Kazonline

Sandralovescats - I'm so sorry to hear this. It's a situation like that I'm so scared of - I 'm not strong enough at the moment to deal with it. Who are you doing your DMP with and have they advised you on this?
How achievable is your DMP for you? I think your house is only at risk if you default on payments set by the court after a CCJ, which are usually the same payments as the DMP, so if you're ok on your DMP you shouldn't have a problem.
Hi Jillie - I completed the DMP thing online, but have spoken to them a few times too. The main problem is while I can 'hold it together' for a while, after a few questions on the phone I get confused and anxious again and I can't think clearly. I feel as though, patient as they are, that they are feeling frustrated by me - that I can't see the answer that is so crystal clear to them.
I think that if it was guaranteed that the interest would stop (and so my debt stop increasing) and that I wouldn't lose my house I would more than happily do the DMP. While it's not a guarantee it feels like a big gamble - as though the only guarantee is that my debtors will start to chase me, my credit will be shot for an eternity (so I'll end up paying higher interest on my mortgage) and that I lose the 'safety net' of available credit (I would only use it for emergencies such as the car breaking down/urgent home repairs).
Does that make sense?
RE the IVA I understand you have to be employed to be eligible for an IVA and I'm currently on Income support as a single mum.

sandralovescats

You will not be advised not to take on extra credit whilst in a DMP.

No, you couldn't have an IVA on benefits.

Have you thought about talking to someone face to face at the CAB? It might be easier for you that way.

Kazonline

I went to the CAB when everything first started to go particularly pear shaped. I went because I had put in my claim for Income support but they were making no progress on it and as a result I had no idea what my income was going to be, let alone when I would finally get it.
Unable to help me with the income they advised me to stop using my cards - but with 3 children to feed, full morgage payments to meet and only child tax credit as an income I couldn't agree to this at that time (doing so would've meant either defaulting on my mortgage or having no food whatsoever). I think as a result they thought me irresponsible and said that they couldn't help. A few months ago I received a letter saying that I am no longer on their books - but I didn't think I was anyway. I know that this isn't usually the way things go with the CAB, they normally do a great job - but in my case it didn't help.

sandralovescats

Now you have your income support sorted out you need to go back to CAB.

I know this is a difficult time for you but you have to do something to help yourself, it won't go away. You must stop taking on extra credit and learn to live without it. We have all been there - credit is the enemy here.

You will get nowhere with any DMP or othe solution if you refuse to stop using credit as a crutch. I know this sounds harsh and it isn't meant to. It is one of those lessons we have to learn.

Kazonline

Without a doubt if I went onto the DMP I would stop using my cards - I hate the blasted things. I only continue to use them at the moment so that I can meet the minimum payments (eg uses some of my food money to make the minimum payments so I then have to put groceries onto the card as that cash has gone IYKWIM)
I guess I'm just frightened that I'll go on the DMP and the interest won't reduce, wheras if I continue to juggle I'm likely to get some sort of reduction in a few months. To be honest I'd much rather the DMP so that I can start budgeting (this juggeling is driving me crazy) - but as I can only afford to 'clear' £30pm with current interest at over £140pm I'd just be getting deeper into debt on a DMP, IYKWIM?

sandralovescats

Even in an organised DMP you are not guaranteed to have any of the interest frozen.

If you "continue to juggle" all that will happen is that you will hit the brick wall at a great speed. You will reach the point where you are unable to meet your repayments by robbing peter to pay paul. Then you will get the CCJ's which will lead your inevitable bankruptcy.

Have you investigated the possibility of going bankrupt? It may be the best way forward for you.

Kazonline

As our home is mortgaged I think we would lose our home if I were to go bankrupt - and the whole point of all of this is to avoid just that.
While the house needs a lot done to it, it is the childrens home - and they've had enough go on in their lives without the further turmoil of losing this.
I hear what you say about continuing to juggle - by my calculations, at this rate it will happen in just over 2 years time and lead to an extra 5k in debt. But then if I do the DMP it could still cost me the 5k (if interest not frozen and charges not stopped), but the banks might take action sooner (they are totally unaware of my predicament at the moment).
Can you see my dilema, or am I being very naiive?
Kaz x

charlton64

Hi, we are with payplan our dmp started in feb 2005, most creditors have frozen the interest and we rarely get any correspondence from them. If we do we just reiterate we are with payplan and everything goes through them. We had a phone consultation with them initially and went through everything, they then sorted everything out, we haven't had to do anything else. We have had to lower our monthly payment a couple of times due to increases in the mortgage and some bills - we have just contacted them and redone our financial statement, no problems at all. Payplan have made sure that ourt statement was/is very realistic so we don't have any more problems and end up accruing more debt. Hope this helps