Debt Managment Plan - Does this sound right?

Luvliss

As I stated n a previous post I am setting up a DMP with the CCS.

I am just completing and compiling all information needed.

As I also stated before my monthly deposit to the DPM, calculated by CCS is quite low. It's actually £15, for three creditors. (£5 per creditor)

Now, even the CCS people say as it stands it would take 47 years to pay off those debts. Has anyone else got a low DMP monthly deposit with the ability to actually pay more? Would it be worth setting up and then paying more from my end as well as the deposit? Wouldn't the creditors think that was odd?

Have you received a low monthly DMP and it's been raised eventually or reassessed when you send in your paperwork?

Has anyone had thier DMP amount rejected by the creditor?

I know it's hard to say whether others think it's the correct amount for my budget without actually seeing my budget, but I would definitely be able to cover all three with a DMP of around £150 per month, easily.

crazyguy

As long as your using the charity one and not a fee paying plan then pay off what you want, I would set it up at say a £100.00 per month if you can afford the other £50.00 either top up the payments or put it away and once you accumalate a fair amount make an offer for a full and final settlement.

If you owe a £1000.00 make your FF offer at £250.00 first and work upwards.

RAS

Please type out exactly what the name of this DMP provider is.

Luvliss

This is through the Consumer Credit Counselling Service. I only used the one recommended on this site, definitely not a fee paying one.

CrazyGuy, that sounds like a good plan. So it's normal for the DMP service to give you a figure, and you can actually say 'Let's make it £*** instead?'.

What I have to do is fill out the paperwork with the £15 entered in the space, send it off and they contact my creditors. So when do I get a chance to actually recommend a different amount, shall I do a cover letter?

Tixy

It does seem a low amount for CCCS to be starting you with on your DMP. Have they said anything about it starting low for just a few months and then you increasing payments (eg if you were paying off something more important in the short term - such as rent arrears or similar?).

Do you know why CCCS have assessed it so low? or why you think you could pay more? is it that you expect your costs to be less than they have entered on your statement of affairs? or that you expect your income to be more? does your income fluctuate a lot? are they basing it just on a base salary but you are counting the figures including bonuses or something?
Is it that CCCS have allowed for costs that are not incurred every month (annual costs) and you haven't included them or are not putting the money aside each month for these annual amounts?

Have you spoken to CCCS about why its so low and that you think you can afford more?

Solstice_Twilight

We have a CCCS plan. They didn't ask our opinion on what we wanted to pay - they went through our monthly income and all our outgoings to the penny, and what was left over after that, they took for the DMP.
If they've assessed you as having £15 a month excess income, then surely that's what you've got after your essential outgoings? If you think you can afford more, where's this money coming from? Did you tell them the exact amounts for your living expenses?

TBH, I've never known the CCCS (in four years of having a DMP with them) to take less than we can afford. They've stretched us to the very last penny, and at my annual reviews I normally end up begging them down by £10 or so because the rising cost of fuel and food had left us so short.

Luvliss

Thanks for the suggestions Tixy.

I just got off the phone to the CCS before I posted this. They said until they get the paperwork through he won't know, but it looks like it's due to my budget, and obviously what I have left.

You may be right when you say that it could be temporarily low because I have outstanding utility arrears, but they didn't officially say so.

RAS

They will want you to clear the utility arrears as these are priority debts. Once those are sorted, you will have more money for your other creditors.

Luvliss

Solstice_Twilight wrote: »

If they've assessed you as having £15 a month excess income, then surely that's what you've got after your essential outgoings? If you think you can afford more, where's this money coming from? Did you tell them the exact amounts for your living expenses?

Hey Solstice, yes I told them everything, which is why I think it could be wrong. I really don't know what to expect from this process, quite frankly I'm a little scared about it. I couldn't get a definitive answer from them so maybe I just have less 'spare' money after essential bills than I thought...

Luvliss

RAS wrote: »

They will want you to clear the utility arrears as these are priority debts. Once those are sorted, you will have more money for your other creditors.

Yes that might just be the case, it makes sense. Thank you RAS.