I Contacted Payplan And......... (iva/dmp Advice Needed Please)

TOTALLYFEDUP_3

....well the first lady I spoke to was lovely and she made an appointment for someone to ring me back on Friday which they did and let's just say there was a definite undercurrent of disapproval as our debts were revealed in their full 'glory' altho' she didn't voice an opinion!

As I feel like a complete and utter failure, waste of space and imbecile anyway, this made me feel 100 times worse. From the heart, if it wasn't for the fact that it would kill my Mum and that I just couldn't do it to my children, I would do myself in!

We did our full SOA and after allowing us our necessary expenses (we don't smoke, we've cancelled Sky and anything else unimportant and unnecessary) we have £483 per month to go to our creditors with debts totalling almost £60,000 (deep breaths).

She said we could go DMP route but we'd be looking at 10 years paying it off and seemed to be trying to put us off saying things like "It's not legally binding so they can continue to take action against you" and seemed to be more putting us towards an IVA which would be 5 years and rather than paying almost £60,000 back it would be more like £30,000.

She also said a DMP would mean our credit rating would be affected for 6 years AFTER making the last payment as opposed to 1 year AFTER the IVA finishing - in other words 16 years of poor credit rating V 6 years of poor credit rating. The thing is, I don't EVER want to see another credit/store card, nor do I EVER want to take out a loan!

I am now 100% reformed and of the opinion for possibly the first time in my life, that if I can't afford it, I don't buy it - simple!

From what she's said the IVA seems a good way to go from the point of view we're paying less back BUT I feel we got ourselves into this mess and we should see it thru' to the bitter end and pay everyone off.

The thought of the IVA scares me half to death if I'm honest :eek: so I am seriously thinking about doing a DMP and I guess what I'm hoping to get from you wonderful peeps on here, is some advice from your own personal experiences.

Has anyone here done a DMP with our creditors (listed below) and if so were they able to freeze interest? Did they hassle you? File default notices? File CCJ's etc? Has anyone successfully sorted out a DMP to last approx 10 years or am I being totally unrealistic expecting then to accept a DMP lasting so many years?

Our creditors are:

Yorkshire Bank (Loand & O/D)
Halifax (Loan & C/C)
Citi (C/C)
MBNA (C/C)
Arrow (Warrior Group) (C/C)
NEXT (S/C)
Egg (loan & C/C)

ANY advice at all would be gratefully received. Thanks for listening!

Broken_hearted

I don't understand IVA's but was worried I might loose my home if I did one, so I went down the DMP route. Like you I never want to have credit again.

roxy7699

I cant offer any advice on a DMP but Im sure a helpful person will be along soon - I personally opted for the IVA route and have had no problems so far.
Itll all work out fine im sure.

Hugs

TOTALLYFEDUP_3

We're council tennants so as long as we pay the rent we don't have that particular worry which is something I guess.

I know my life could be worse, no one died afterall but I just feel so sh*t right now not to mention STUPID!

Thanks Roxy

Broken_hearted

Maybe you should just go bankrupt have a look on the other board.

TOTALLYFEDUP_3

NO, that's not an option I'll EVER consider!

I just couldn't do it.

skylight

Bankruptcy is another option - if you do not own your own home or other assets etc. But that is a huge step too.

Have a good look on the National Debtline website. There are countless pdf booklets to download and read through and they cover every option available. You can make an informed decision once you have all the information.

But back to your questions - default notcies will be issued anyway, becuase you have defaulted on your original agreement. They mean nothing but mess up your credit rating (realistically). CCJs may be issued if you ignore the problem or dont continue with the DMP payments. And some people here are on DMP's to last a long time.

moxie_2

I'm in a DMP with Payplan. I found them to be very helpful and non judgemental, sorry if you had a different experience, perhaps you got someone who was in a bad mood for some reason? Two of my creditors are MBNA and Egg. I've had no problems with them since the DMP was set up. They have both frozen interest. Egg have filed a default notice (but they are the only ones to do that). My DMP is for another 7 years, but I hope to become debt free sooner than that once my daughter finishes uni and I can throw more at the debt. I don't care about my credit rating either, as I live in a Housing Assoc. property so don't need to get a mortgage, and will never apply for credit ever again. There are people on here who are in DMPs that are due to last a lot longer than 10 years. I looked into an IVA recently, as suggested by Payplan, but decided against as there is more flexibility with a DMP. Good luck!

alidadas

I know that you've said you never want to do bankruptcy, which is fair enough, I also used to say that - I just wanted you to know its nothing to be ashamed about. I kept burying my head in the sand re my debts, would arrange reduced payments but kept defaulting on them to as I just hadn't sorted out my budget properly. In the end, when I decided it was time for me to stop messing about, my creditors just refused any offers I gave them, and even though I showed them my SOA and what I could realistically afford, they kept refusing my minimum payment and would only accept large amounts which I just didn't have. In the end bankruptcy really became my only choice as I didn't have the income to do a IVA and they kept refusing my DMPs.

I really wish I'd found this site sooner as I really think I could have sorted it out myself if I'd dealt with it early enough!

So I just wanted to say that although I completely understand you dont want to go bankrupt, dont dismiss it out of hand without even investigating.

You could perhaps post your SOA on here - others may be able to help on where you could save a little bit more. Include your debts, what APR they are currently on, the balance and minimum payment.

flaura

I did the same wheni set up my DMP with payplan i was looking at 2012 before my debts were paid off at £105 per month over the last three years my circumstances changed considerably and i am now paying back £500 a month to my debts - I've just ended my DMP with Payplan as i only have one debt left

I had three accounts with the halfax only my loan account remaining Payplan had all interest frozen on these when they wouldn't consider directly - in addition they did issue defaults - however it is 6 years from date of default not from the date it is cleared payment common misconception !

In addition i also had a credit card with MBNA and the calls stopped immediately with them and they froze the interest worth looking at the charges on this as what i claimed back from them in charges re-paid 78% of what i owed them.

I'm now looking at cleared debts this year 2007 instead of 2012 5 years earlier and then only another 3 years til a completely clear credit record.

I totally understand where you are coming from with the topping yourself thing i nearly did and i know i couldn' have done this without paplan

Just wanted to say thanks to my grandad too RIP for helping me with £500

TOTALLYFEDUP_3

Thanks to everyone for the advice.

Personally I think I'd feel better doing the DMP, I think DH is swayed by the IVA as it halves what we owe but I feel it's too rigid and that if, God forbid, one of us lost our jobs we'd be in a worse position with an IVA than DMP if that makes sense.

We have a car valued roughly at £8000 and we're hoping to sell and buy something cheaper say £4500 ish and throw what's left into the DMP and obviously selling stuff on Ebay and car boots I'll get more together. Same with any overtime (it's pretty sparce at work on that front but I'll take what I can).