PayPlan - Anyone got any advice

kellys0706

Hi Guys

I finally made the phone call that I've been dreading for months to a company called PayPlan and I needn't have been worried at all. They were very non-judgmental and were understanding when I had a few tears whilst trying to explain everything.

I realised I had a serious debt problem when my boyfriend saw that I hadn't opened my post for weeks. He opened everything and went through all the letters I had stashed away and wrote down everything I owed - it scared me as its approx £20k and I thought it was only £12k! My un-secured debt is actually £12k as the rest is my car on HP.

PayPlan went through all the details with me and figured out how much I can afford to pay back and how long it will take. I understand this is only an approximation as not all of the companies will freeze interest and they have estimated 3.5 years which is a lot better than the 7 years or so I was predicting.

Sorry if I'm waffling as I've never posted on a forum before, I would just really like to know if PayPlan are really what they're cracked up to be as it all seems a little too good to be true!?

Kelly

Tixy

Hi and welcome

Payplan are a good choice and great news that you are now tackling your debt and on your way to being able to move forward.
Have they set you a budget/ income & expenditure and are you comfortable you can live within those amounts for each item?
It can take a while to get used to living on a budget but if can definitely be done and you should find loads of tips on these forums if you are struggling with spending.

Good luck on your DMP, I hope your creditors agree to freeze interest quickly.

mum2one

Just wanted to give you a big hug you've done the hardest thing in the world, I dipped my toe in and out for a dmp for nearly 6 months, I knew there was a problem, but for me letting someone else know there was a problem was the hardest step in the world.
I used cccs, thou payplan are as gd, there both charity based, so you know that what ever you pay goes to the debt, and not a large % to the company in handling fee.
I've started my dmp as a personal one, so far 8/10 creditors have said yes, the other 2 just got to send in income/expenditure etc, as one is loan and 10k outstanding.... but others have been brilliant, one company my interest on cc was 59%, its now been dropped to 0.25% and will be cleared within 4 years.

For the first time I'm trying to live within a budget... but get there, and when eventually debt free, be like a new lease of life.

Just to wish you good luck, and remember your on the home straight. xx

kellys0706

Thanks Tixy

They have set me a budget but my boyfriends thinks I've gone too low on some of my expenses, expecially for my car. He is going to go through it with me to make sure I can live on what is left and then I'll go back to PayPlan and change some of the figures. At the moment PayPlan are saying I have £289 a month to give to creditors but my other half reckons £200 is more realistic for me!

I feel so silly as I earn a decent wage but I just buried my head in the sand and it all got out of hand!

I just feel like there's a light at the end of the tunnel now and it's nowhere near as scary as I thought it would be! The possibilty of being debt-free in 3.5 years is so uplifting!

Tixy

Might be worth posting up a version of your statement of affairs on here - people can probably make recommendations as to what is 'reasonable' and will make creditors most likely to accept. You'll probably also find people have loads of tips on saving money and getting things cheaper to make it easier to live within your budget.
We use this calculator - http://www.makesenseofcards.com/soacalc.html which works out how much you have left for debts etc and reminds you of costs its easy to forget to include in a budget.

los72

kellys0706 wrote: »

I would just really like to know if PayPlan are really what they're cracked up to be as it all seems a little too good to be true!?

I went through Payplan too and I'm on a self-managed DMP. They were fantastic, wrote a letter on my behalf to send out to my creditors...:T

All my creditors except one have accepted the payments, infact, the one that hasn't has said it has to be an official DMP...ppffft.

billyg123

Hi,

Payplan are the real deal. So helpful, straightforward and the website allows you to login to see lots of useful info concerned with your plan. The options for contacting your debt manager are also excellent.

Good luck;)

Frankie100

Another thumbs up for Payplan!
They helped me so much when I didnt know which way to turn.

sharpy2010

kellys0706 wrote: »

I feel so silly as I earn a decent wage but I just buried my head in the sand and it all got out of hand!

Don't worry, you've taken the first step towards sorting it out. Look to the future, deal with problems as they occur in future, instead of burying your head, and you'll find you'll be a LOT happier :0)

bottleofred

Hi Kelly,

You should definitely post your statement of affairs and you'll get loads of tips/advice on how to save cash, which can then go towards your debts. Keep a spending diary and you'll know exactly where all the money goes and how much you have left each month. Be sure that you've been realistic with what you have left, as the creditors will want as much as possible, but it's better to offer them what you can afford from the start and then increase payments later if you've any additional cash. Good luck on your dmp and well done on using payplan, as they are free and do exactly the same thing as the companies who charge for this service.

Red

kellys0706

Thank guys, you've all made me feel so much better!

My statement of affairs is below. I feel silly as I earn decent money but it's all got a bit out of hand. But I know I'm on the right track to sorting it out!

I need to tweak these as my other half thinks that my expenses should be more. He thinks I haven't budgeted enough for everything, especially my car servicing/maintenance!

Income 1,500.00

Rent (inc bills) 450.00
HP 153.12

Priority Arrears 20.00

Mobile Phone 32.00 (my bill is actually £40)

Car Insurance 55.00
Road Tax 11.00
Fuel 180.00
MOT & Maintenance 25.00 (I think this needs to be higher)

Housekeeping 180.00
Clothing 20.00

Health 17.00
House (repairs, etc) 7.00
Hairdressing 10.00
Internet 30.00
Contingency 20.00

Total Income 1,500.00
Total Expense 1,210.12

Surplus 289.88

Thanks everyone
Kelly
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