My DMP - kazonline

jillie1974

hi Kaz!
most of our creditors froze interest as well. we have also just had 2 months where we didnt pay as OH was on SSP and was no way we could afford them. will prob get few calls over next few weeks but CCCS have advised me just to to refer them to CCCS

Kazonline

Thanks everyone - your posts are encouraging. It confuses me why companies seem to freeze interest for some, and not for others. Why aren't they consistent? Is it a lottery or is it based on your circumstances?
Will it go in my favour that I've faced up to it before I've run up my max credit - or will they think I should've continued to juggle while I could?
Will the fact that my DFD is so far away go against me?
Will they bear in mind that my circumstances could improve and allow me to pay them off sooner?
The people I've spoken to on CCCS have said that they think the creditors will freeze interest in my case, but they obviously can't gurantee it.
I know I'm probably asking some of the most unanswerable questions now - but perhaps someone has some idea?
ps Charlton - Pay plan can't help as I've only £30 per month to give for my DMP - their minimum is £100

sandralovescats

It depends on each creditor whether they will freeze interest.

Some of mine have frozen interest, some flatly refuse.

I am living on basic Incapacity Benefit due to ill health - real ill health not imagined and it doesn't make any difference.

Two have started Court proceedings against me.

dlb

My dmp company just told me from day one to ref creditors to them, been on it 10 months now all intrest has been frozen and some refunded, i was taken to court when i first joined the dmp the dmp people filled in the court papers for me and sorted it all out for me.
I havent had a phone call or letter since about 5 weeks into the plan.
And i have cleared over£2000 in 10 months which i am very happy about.
We cut all our cards up and cheque book and have live off cash only ever since going on the dmp.
Its hard but it can be done.

jillie1974

CCCS told me that they are the step to get us back on track. should our finances improve we would be able to go back to paying the creditors ourselves. though i must admit i like them doing it for me as it may tempt me back to old ways...although i never want credit again ever!!! the worst a creditor can do is take you to court, the judge will see that you are making as much payment as you can afford and will judge that you continue to make those payments. as long as mortgage, c tax, water,elec, gas, tv licence, insurances are paid the rest have to queue up and they get the smaller amounts. its hard to explain it typing so ask more if i confuse you!

Kazonline

Thanks again everyone.
It's situations like Sandra's that scare me the most - putting my hands up, shooting my credit rating to pieces (unable to egotiate a decent interest rate in future) and ending up still getting deeper into debt as the companies refuse to freeze interest - yet if I'd continued to juggle my interest rate might've gone down(the companies all advised that if I used my card more frequently and payed more than the minimum amount each month they'd be able to offer me a better rate IYSWIM).
DLB - how long did it take for all your creditors to agree to freeze your interest? Roughly how long before your DFD according to your DMP (if you don't mind me asking)?
I think I'm particularly scared because my DFD according to the DMP will be in 40 years - and if they don't all freeze the interest my debt will continue to rise on the payments I'll be making (and then it'll take even longer :eek: :eek: )
I'm sure you don't want me adding a '-' to the 'how much have you payed off in 2007 :rotfl:
Kaz x
(ps - I'm not really laughing, just trying to keep a :rolleyes: )

dlb

My dfd will be 5 years time and i owe 22,000.
Have paid off £2,000 this year, it took about 5 weeks for them to agree to new payment from dmp, some refunded charges some didnt, but i know that as long as i pay £387 per month no creditors will contact me until at least july, as the dmp agree 6 monthly agreements with them.
I know know how much money i have `spare` each month to sort out xmas/birthdays/emergencys ect, and have a bit of money spare for savings to maybe come to a full and final settlement with them.

Kazonline

That's such good going to clear 22k in 5 years - good on you - and good luck with getting your charges back and your Ebay challenge.
Kaz x

furrypaws_2

I can totally identify with your situation - I was juggling my cards for the last 3 years (after divorce) I was worried about the stigma of being in debt. I've been thinking about doing something about it for a very long time but would keep changing my mind at the last minute and trying to carry on. I still had quite a bit of available credit, but one of my creditors reduced my rate on my card, which made me take stock of things and realise that it's not really "available" at all, as they are in control.

I don't want to lose my house either, so I've gone for a DMP. I went through National Debtline and would definately recommend them. I'm hoping my DMP will be up and running by the end of January - have started to get calls from creditors now (the part I was dreading the most) but am learning to develop a thick skin (and not answer the phone to them!:o ).

I've worried about what can happen too, but I think the worst will be a CCJ which will just mean a set and agreed monthly payment.

I have to say I'm pretty scared about it all, but I also feel a huge sense of relief that I know exactly where I stand with my bills and my budget now. I have no doubts that I've made the right decision.

You know, it's not worth worrying too far ahead... so what if it's going to take 40 years to pay off, who knows what could happen between now and then - you could end up paying it off a lot sooner than you think

madduck

Hi Kaz

From my previous posts you know that I'm a bit of a DMP fan (sad isn't it?). I was in a very similar position to you 2 and a half years ago. Over £55k in debt and facing over 10 years to my debt free date.

Thought that my life had ended. Cried as I cut up my multiple credit cards. Such lovely patterns they had. Can remember being really impressed when I got my first 'gold' card!

However, I'm now under £40k in debt. Made me really happy when I opened my CCCS statement this month.

Been able to increase payments further this month. Now throwing about £700 per month into DMP. Hoping (fingers crossed) that with increases to salary and such that I'll be able to get it to around £30k by the end of next year. Debt free date is getting closer.

I'm still able to live. Have to be careful, can't just hit the shops any more. Have to budget, know what I need (not want). Go get it and come home again.

So far I've wracked up a barrel load of default notices, but luckily no companies have taken me to court yet. Some have threatened - bless Northern Rock - but nothing as yet.

Don't know where I would be if I hadn't stumbled across the CCCS website when I did. I was getting to the stage where I think you might be getting to shortly. Masses of cards, most of them getting maxed out and unable to get further credit. Or even worse, the people who will give you credit want it secured on your home and at sky high interest rates (been there and done that!).

I don't want to sound as though I'm preaching, just really want you to think about what you are doing. I know it sounds really scary, but then so does the alternative of carrying on the way that you are. You'll probably end up at the same place, a little later on and owing a good deal more.

40 years does sound a long time away, but your circumstances might/will change. Your income may increase, your children will grow up, etc.