DMP - 20 years to pay??

debt23

oops - double post!!! sorry.

dlb

IV been on a dmp for a year now, i still owe 24k but there is now a light at the end of the tunnel, joining the dmp has ment i can afford to live again, no more which do i buy milk or bread i can only afford one!!.

Dmp review ever so often mine is every 6 months and your creditors dont agree to the payments indefinatly, they do agree for a set number of months eg mine agree to the payments offered for 6 months then after the dmp review my situation the creditors are made another offer and hopefully they accept it again, so far all the creditors have froze interest and agreed for the last year on the payments.

Any money i make ie ebay is used to pay of big things such as car tax,mots ect then i pay a little more off the debts as and when i can.

Good luck

chevalier

Hi there
I believe there is someone who uses this forum, who's DMP is for 58 years:eek: , so 20 is a mere nothing in comparison. Also companies are glad to get anything of their debts back, rather than them being written off completely.

I believe that payplan and CCCS suggest that you save any extra, as an emergency fund (ie to cover unexpected car bills, or the washing machine giving out), as this isn't covered in the dmp.

I am not sure but I think that you can, after a while, and when you have saved up enough, ask to get full and final settlement figures of a creditor. This figure is often much less than the current amount owed. So you could save towards doing that.
best of luck
chev

giddykipper

Thanks everyone for your replies ...... I feel a lot better already just knowing that there are people who understand and can offer such great support.

Just waiting for payplan to call now.

Thanks again - I really appreciate all your replies.

Jo x

PS/ Anyone know anything about the mortgage situation - I'm not on the best rate at the moment and wondered whether it might be worth changing - but could I do it with a DMP?

Frugal_Fox

Firstly welcome to the boards!

I'm on a DMP with CCCS. I'm paying all that I can towards it - without leaving me so brasic that I slip behind with other commitments. We too are able to keep our house - we had been thinking about selling and renting to get out of our pickle. With CCCS its going to take us about 8 years to repay our debts. We've been advised that if we have extra money off and on either to save it up and make a yearly overpayment or if things improve regularly to increase the monthly payment - but bearing in mind that it might be more difficult to re-negotiate down if things take a down turn.

As for changing mortgage with a DMP - I'm not sure... Probably best to start a new thread with that as its title and see where that goes. There are people on here who should be able to help on that front.

Good luck anyway.

FF

bank_of_slate

Hi again giddy!
You'd need to get advice from payplan about the mortgage situation, there may be up front fees involved with changing your mortgage, even if you stay with the same company.
Please don't concentrate on the 20 years, most people find that as they pay the smaller things off and can pay more to their main amounts that time reduces by quite a bit, just lokk at some people's debt free dates on their signatures, there are a few that have been reduced. but try to save a bit for unexpected things, the whole idea of a payplan is that you can still 'live' while it's going on, if you live a meagre life and restrict everything you'll soon be tempted to slip back into old ways.
...Linda xx

spud30

Hi there giddy !!!

I'm not too sure of the answer to the mortgage question. Our fixed rate period ended just after we entered into our DMP, and I've assumed, rightly or wrongly, that we will not be able to change now.

My main reason for posting is so that you can see my sig, and how we have improved our DFD quite dramatically. It's still not brilliant, but we will keep working at improving it :rolleyes:

Good luck, and stop panicking about dates. They dont mean much at this stage.

giddykipper

Thanks everyone - you've all been really helpful - I really appreciate it!

Wow Spud - you really have brought your DFD down - that's really inspiring - thanks for sharing.

I feel better already.

Jo

livinginhope

Morning GK,you can definately change to another rate with your current lender with no penalties for being on a DMP,but there may be the normal fees as for everyone,we have done this when our fixed rate ended in Sep.I even managed to negotiate a better deal than they had offered,they also knew nothing of the DMP until I told them.I asked our lender about remortgaging in the future,if for example we are able to change to an IVA,they said that as the loan is secured,providing the equity is there,it won't be a problem.
I think chevalier was talking about me with the DMP of 58 years,but we hope it won't actually go on that long as things change.
LIH