DMP and Payplan

Lilpalf

Having spoken to National Debtline and doing a referral for a DMP, we got referred to Payplan last week.

They came back to say that our budget looked good and we could do a DMP but backed it up with the constant threat of court and day to day hassling from the companies and then proceeded to tell me how great an IVA was. It was only for husbands debts and mine would still be a DMP. They made it sound wonderful but on further inspection, including on here, it sounds scary and much more involved than Payplan are portraying it.

I've spoken to them again today with some questions and said that we would probably be doing the DMP and again the threat of court etc were mentioned and how much more secure the IVA route was. I asked about their fees and she wouldn't tell me, just said that it is included within the monthly fees we would be paying and seemed reluctant to tell me how much the fees were. We really don't want to do an IVA unless essential but I just feel that Payplan are really pushing it and I don't know whether that is because it is right or because they get a fee.

I don't feel like I can trust Payplan

Tixy

Hi

If you feel payplan are pushing an IVA a little too much I would suggest you also seek advice from CCCS, or complete the online debt remedy tool with CCCS at least.

If you do eventually decide that an IVA is the right option then I would also suggest speaking to other IPs as well before choosing Payplan. And make sure they all detail very clearly the fees involved. Have you read the MSE guide to IVAs?

On a DMP you could still be taken to court, and whilst this does happen to people there are also many people who have DMPs for years but are never taken to court. And you certainly wouldn't be hassled on a daily basis, and if any creditor was hassling you then you could soon send letters to stop them.

Lilpalf

Thank you for that. That is how we felt. Do you think we could go ahead with the DMP with Payplan or do you think it isn't worth it? I've just done the CCCS debt remedy and their suggestion was DMP.

We have just sorted out the budget details with Payplan and don't know if my brain could take redoing it with CCCS but just think Payplan aren't going to be working in our favour on a DMP.

eyeopener2

Lilpalf wrote: »

Having spoken to National Debtline and doing a referral for a DMP, we got referred to Payplan last week.

They came back to say that our budget looked good and we could do a DMP but backed it up with the constant threat of court and day to day hassling from the companies and then proceeded to tell me how great an IVA was. It was only for husbands debts and mine would still be a DMP. They made it sound wonderful but on further inspection, including on here, it sounds scary and much more involved than Payplan are portraying it.

I've spoken to them again today with some questions and said that we would probably be doing the DMP and again the threat of court etc were mentioned and how much more secure the IVA route was. I asked about their fees and she wouldn't tell me, just said that it is included within the monthly fees we would be paying and seemed reluctant to tell me how much the fees were. We really don't want to do an IVA unless essential but I just feel that Payplan are really pushing it and I don't know whether that is because it is right or because they get a fee.

I don't feel like I can trust Payplan

I've been on a DMP with CCCS for 17 months now and only really got hassle in the first few weeks, it soon dies down.

Could I be taken to court? Yes. Have I? No. Could I? Maybe

Do I get any hassle at all? No.

If it happens, I deal with it no point worrying about something that may happen.

Have a chat with CCCS and do the Debt Remedy and then consider all your options. Payplan are not the only debt help. As well as CCCS there is CAP (Christians Against Poverty).

Plenty of options and go who your are comfortable with.

E2

Lilpalf

Just rung National Debtline and asked for advice regarding IVA, she was concerned about how I felt about Payplan because they did the referral to them and they offered to refer me to CCCS but at the moment I want to see what happens when I put my foot down with Payplan.

She also went through pros and cons of both DMP and IVA and said the same as you, that they may but may not hassle/take to court and DMP is what they would recommend.

Going to talk to my husband tonight as the IVA part would only be in his name, and then will ring Payplan tomorrow and say we want to do DMP and see what there response is.

It is a confusing enough time as it is without all this added to it. Roll on starting something and having some idea of what is happening in our life.

Tixy

I think thats sensible, definitely don't be bullied into an IVA if you don't want one or don't feel its right for you. Hopefully they'll be fine but if not then I would consider speaking to CCCS, I know it means running through everything again for a budget but its worth it rather than be stuck for years with an IVA or a DMP company you are not happy with.

turbo.jet

I'm not sure if you'd said whether or not you'd read this -

http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf

I'm not an expert, but I thought if you were paying them as much as you can afford to pay them, and keep in touch with them (ie regular payments) then they wouldn't take you to court because surely no magistrate will expect you to pay more than is physically possible. Surely the key is to pay them what you can and be totally up front about it. Show them your budget so they can see that they and your other creditors are getting as much as you can afford.

I hope this helps, I'm kinda just brain-farting.

One piece of advice I'm definitely confident on is speak to CCCS as well. You will get completely impartial advice.

Good luck!

greenbrucelee

when your on a dmp interest and charges can still be put onto it make it take along time to pay off but cccs and payplan will try and get these stopped. Creditors can still send letters and call you but not to the point of harrasment.

with an IVA the above can't happen although as I understand it when it gets to the last year your supposed to pay something towards the debts which means selling something you have which would be considered an asset.

turbo.jet

A lot of people have had their creditors agree to stop the interest and charges themselves though I've noticed.

Lilpalf

We are going to go for a DMP and I have asked today if we need to could we go for a IVA at a later date if we find the DMP not suitable, which we can.

But like you, we feel that it would be unlikely for our creditors to take us to court because it would not benefit them. We could not afford to pay anymore and the budget gets reviewed every year so it would always be up to date. We don't have enough equity in our property to make it worthwhile them making us bankrupt, as in the long run they would get less of their money back.

Ringing Payplan tomorrow to see how they respond

turbo.jet

Good luck with that. What are your thoughts about speaking to CCCS too? Could be good to get a 2nd opinion if nothing else?