PayPlan

Watson

I've read through this thread and found it extremely helpful, hopeful and supportive. I'm on the point of contacting Payplan, but wanted to ask first if anyone here using them is - like me - self-employed?

On most years (last year was an unfortunate exception) I earn a reasonable annual income for someone in my position (single with no dependants), but it comes in very sporadically: several months can pass with no income at all, then a lump sum can appear: six, seven, eight thousand pounds maybe. Then the next couple of months see very little again.

I just wondered how Payplan (and maybe the CCCS too) react to that sort of situation.

Many thanks!

JHW

ashden

Hi Watson,

I'm self-employed but my income doesn't change too much from month to month, there's usually a minimum amount I expect to earn.

When I called PayPlan they wanted to know the 'worst case scenario' monthly income - so I'm not sure how that would work for you if there are months where you don't have any. I'm guessing they might want you to divide your annual net income by 12.

Give them a call and see what they say - they're very friendly and I'm sure they'll be happy to help.

Ash x

Watson

Ash,

Thanks for that. Yes, I'm afraid my worst case monthly income scenario is pretty much zero, though I do have an early pension which brings in £145 a month (and which I wasn't thinking of as "earned income" when I wrote my previous post).

I'll take your advice and ring Payplan - they seem to be just what I need.

JHW

Gemmzie

lennymfo wrote:

Fair one, so I am talking bollox! But is it an option if Giddy doesnt want a DMP?

I can't find Giddy's original post to look at his/her financial situation

Gemmzie

Watson wrote:

I've read through this thread and found it extremely helpful, hopeful and supportive. I'm on the point of contacting Payplan, but wanted to ask first if anyone here using them is - like me - self-employed?

On most years (last year was an unfortunate exception) I earn a reasonable annual income for someone in my position (single with no dependants), but it comes in very sporadically: several months can pass with no income at all, then a lump sum can appear: six, seven, eight thousand pounds maybe. Then the next couple of months see very little again.

I just wondered how Payplan (and maybe the CCCS too) react to that sort of situation.

Many thanks!

JHW

My father is self employed and I've just been setting up a DMP for him. They will want your income figure AFTER all business expenses including income tax and NI.

And take an average based on last years figures, most companies review every six months anyway so if the figure is way out it can be rectified

HTH

Watson

Gemmzie,

Thanks for the reply. I've just been speaking to Payplan: very helpful, very non-judgemental, extremely encouraging, and the lady didn't flinch even momentarily when I told her about my erratic income or my level of unsecured debt.

At this preliminary stage she took my gross annual income figures for the last four complete financial years (the first two of which were healthy, the second two not) and my projected income for 2006-2007 (inclining to the healthy again, but not healthy enough). They're sending me (by email attachment) a complete information pack, with breakdown forms for me to print out, fill in and return.

Obviously this is early days but I can only echo what others have said: I'm extremely glad I made the call.

JHW

belfast_2

I used the 'justabank' website that Payplan uses and printed out the letter templates asking for a reduction in interest to some of my creditors.

I am expecting a reply this week to the requests. I owe Cahoot (part of abbey nat) and Argos Card. They keep pumping up the interest on the money I am paying back.

I have to give out praise for Cap One who froze all interest and sent me a goodwill letter. Very decent of them.

Has anyone else sent these letters and if so do they reduce the interest.

cheers

Watson

Well, after being so positive in my previous post about my initial experience with them, I'm sorry - and somewhat depressed - to have to report that PayPlan weren't really able to assist me at all.

The bottom line seems to be that they can't help me with a debt management plan because I don't have a regular monthly income, "You have to have a surplus of at least £100 a month over all your expenses before we can do a plan for you". (Thinking about it, I could live on a surplus of £100 a month, and then I wouldn't need the plan in the first place.)

The chap I spoke to had one concrete piece of advice: to set up a new bank account (with no overdraft facility) and transfer all my regular direct debits to it. When I asked him if any bank would agree to do that, given that I had no regular incoming monies to pay into the new account, he said "Oh no - I suppose not, you're right."

His other suggestion was that I should either take in a lodger (in my one-bedroom semi-detached bungalow) or sell the house and buy a cheaper one. And while I accept that this latter might be a possible solution, there are - as I thought I had explained on the form - all sorts of practical reasons why it isn't possible.

He did offer to send me a template letter to use on the credit card companies to ask them to accept minimum payments until my circumstances change. I see from the post immediately before this one that they're available on the PayPlan website anyway, so I'll take a look there.

We talked briefly about the possibility of releasing some of the (considerable) equity I have in my property, but as he admitted, it's a subject which he really knew nothing about.

I don't want to suggest that the guy I spoke to was anything other than kind, polite and supportive, and it's very clear from what others have said here that if you fall within PayPlan's normal average customer base then they can be of considerable use to you and take a great weight off your mind. But my impression is that if your circumstances are in any way unusual, then there's much less point in contacting them.

JHW

Gemmzie

That's a pretty important part of a DMP with anyone, £100 minimum 'disposable' income to pay the debts.

Watson, if you are self employed and your wage is that low then how do you live months you have no income? And, have you thought about applying for WTC?

Watson

Gemmzie, my "wage" on an annual basis is generally pretty healthy. I'm in my present mess because of bad overall management on my part, nothing else: a lack of proper budgeting, planning and so on, plus a (stupid, I know it) tendency to rely on credit as a temporary measure, paying it off as and when money comes in.

For various reasons, I've been through a patch where income was sporadic even by my usual standards, and my ability to repay credit cards and so on hasn't kept pace with getting in enough money to do so.

What's WTC? I'm off to look that up.

JHW