Quick DMP question?

safeashouses

spud30 wrote:

I included mine in my DMP.

Just a word of warning, as soon as my bank heard we were having money problems, they cut my agreed overdraft by £1500 and gave me 3 weeks to pay it back.

Oh b@lls, this is all just a nightmare

We agreed a decreasing overdraft and I don't want to change that. If I have to include it with my DMP and have to shut my accounts it all gets so complicated doesn't it? But if we carry on as we are , we get deeper into debt. It is really a no win situation I think. Particularly since we have an interest only mortgage so if we mess up our credit rating completely with a DMP then we won't be able to remortgage which was a longterm plan.

AAaaaaaggggggggggh

spud30

safeashouses wrote:

Oh b@lls, this is all just a nightmare

We agreed a decreasing overdraft and I don't want to change that. If I have to include it with my DMP and have to shut my accounts it all gets so complicated doesn't it? But if we carry on as we are , we get deeper into debt. It is really a no win situation I think. Particularly since we have an interest only mortgage so if we mess up our credit rating completely with a DMP then we won't be able to remortgage which was a longterm plan.

AAaaaaaggggggggggh

You're right, it is a nightmare.

My credit rating is most likely shot now anyway.

I included all our debts, but I had no choice because I lost my job and was the main earner in the family. It has all settled down now though, touch wood.

We cut our cards up in July and have just got through our first Christmas in donkeys years without getting further in debt.

I didnt want to make you feel bad, but we had a real shock when our bank did that to us, than started piling interest and charges on the account.

Good luck hun x

safeashouses

spud30 wrote:

You're right, it is a nightmare.

My credit rating is most likely shot now anyway.

I included all our debts, but I had no choice because I lost my job and was the main earner in the family. It has all settled down now though, touch wood.

We cut our cards up in July and have just got through our first Christmas in donkeys years without getting further in debt.

I didnt want to make you feel bad, but we had a real shock when our bank did that to us, than started piling interest and charges on the account.

Good luck hun x

Thanks I think we need it - feeling more and more like we might just be better selling our house though and renting

System

CLAPTON wrote:

yes you can, but it might be better to save it up for a bit and make sure you wont need it.
remember once you enter a DMP you will have all your debts defaulted and your credit record trashed. you will not be able to get credit for along time. so you need to consider what you would do if your CH broke, a tile fell off the roof, the car needed major repair, washing m/c needs replacement etc.

Are you sure that you default with all your creditors? Reason I ask is that I have 13 in total and to date I have only received 2 default notices, both from Egg. All other correspondence confirms that I am on an agreed payment plan and should stick to it??????

Lenny

spud30

safeashouses wrote:

Thanks I think we need it - feeling more and more like we might just be better selling our house though and renting

Looking at your other thread, I dont think you need to think about selling up hun.

Look at my debts....I have around £250,000 equity in my house, but I'm determined not to downsize or remortgage

I sort of look at paying my debts back as punishment. I need to go through the process to teach me a lesson, not to get into debt again. We have consolidated several times, and got back as bad, if not worse every time, so daft as it sounds, we want to suffer this time to pay it back.

I can recommend a spending diary. We started one on 1st of the month, and it really makes you think about every penny you spend.

Stick with it....if I can, anyone can x

System

I have an overdraft incorporated into my DMP. The advice Ive had from Payplan is not to inlude overtime or bonuses as it is not regular income. The last thing you want to do with a DMP once it is established is alter your payments unless they are increasing of course.if you have a lump sum saved up it can be shared around your creditors proportionaltely as per the DMP percentages.

safeashouses

spud30 wrote:

Looking at your other thread, I dont think you need to think about selling up hun.

Look at my debts....I have around £250,000 equity in my house, but I'm determined not to downsize or remortgage

I sort of look at paying my debts back as punishment. I need to go through the process to teach me a lesson, not to get into debt again. We have consolidated several times, and got back as bad, if not worse every time, so daft as it sounds, we want to suffer this time to pay it back.

I can recommend a spending diary. We started one on 1st of the month, and it really makes you think about every penny you spend.

Stick with it....if I can, anyone can x

Thanks - been doing a diary for 3 months though and basically we have more going out than coming in.

safeashouses

lennymfo wrote:

I have an overdraft incorporated into my DMP. The advice Ive had from Payplan is not to inlude overtime or bonuses as it is not regular income. The last thing you want to do with a DMP once it is established is alter your payments unless they are increasing of course.if you have a lump sum saved up it can be shared around your creditors proportionaltely as per the DMP percentages.

Ok - thanks for that. But I still cannot work out if I have to include my overdraft in the plan or if I can leave that out and keep the same account? I'd rather do the DMP as it means we are not missing payments and we come to agreements.... But I don't know I want to add the overdraft in - as we have an agreement on a decreasing overdraft of £80 a month so it would be gone in 2 years - if it goes in the plan it will be 8?

Also, we didn't include any overtime in - was hoping to put any overtime in an account and pay it in to CCCS in a lump sum... is this a bad idea? I am so sorry if I am annoying everyone, I suffer from anxiety related illnesses and I know I am getting in a real state here!

System

safeashouses wrote:

Ok - thanks for that. But I still cannot work out if I have to include my overdraft in the plan or if I can leave that out and keep the same account? I'd rather do the DMP as it means we are not missing payments and we come to agreements.... But I don't know I want to add the overdraft in - as we have an agreement on a decreasing overdraft of £80 a month so it would be gone in 2 years - if it goes in the plan it will be 8?

Also, we didn't include any overtime in - was hoping to put any overtime in an account and pay it in to CCCS in a lump sum... is this a bad idea? I am so sorry if I am annoying everyone, I suffer from anxiety related illnesses and I know I am getting in a real state here!

You are not a pain. This is site is built on 'strength in numbers' and 'a problem shared is a problem halved' You can never ask enough questions on here. Personally I would not include overtime or bonuses as they are not regular and therefore, your agreed payments will not be maintained and will jepordise your DMP. Its up to you whether you want to include your overdraft or not. I did but you will lose the ability to bank with the account.

safeashouses

Phew thanks! I'm such a worrier, I haven't slept properly for 2 years so I don't know whether I am coming or going!

Thats ok then, I can keep the overdraft, put any overtime in another account, and hopefully pay off the debt in less that the predicted 8 years.

I hope.