DMP & Mutual Support Thread - Part 8

redfalcon

mrshughes86 wrote: »

I'm a frequent reader of this board but thought I would just share my story to give some hope to people.

In 2010 my husband lost his job when the building company he worked for went under. Not only did he not get any redundancy, he was still owed two months pay when the company went down (while the owner was on holiday in Thailand) and we never got the money as the guy was declared bankrupt when he returned.

We had a loan and some credit cards on 0% deals from when I had been studying , and we were managing with these until he lost his job.

Unfortunately we put living expenses on credit cards, hoping he would find more work quickly, but this didnt happen. Our debts quickly mounted, with bank charges and late payment charges adding to the problem.

In the summer of 2010 I decided to try and tackle the problem and added everything up and did a budget, but our debts totalled over £55k and our current income was way off the minumum payments on each. I started having panic attacks, stopped sleeping, and spiralled into depression. I felt under extra pressure to carry on going to work everyday because I knew how desperately we needed my wage.

We were hassled by several creditors phone calls and letters everyday, which made me panic more and more. Luckily I could just about cope with anti-depressants and forced myself to continue working.

We decided the only thing to do was move into the spare room at my husbands parents house to cut our expenses as much as possible, but we still couldnt make minimum payments and our debts still kept increasing due to interest and charges even though we hadnt used credit cards for months and ploughed every penny we earn't into paying them off.

In October 2010 I read about CCCS. As soon as I got off the phone from them I felt like a great weight had been lifted.
They told me to immediately stop paying the money that all my creditors were demanding, as things like food, rent and heating were more important - something I'd seemed to lose grasp of!
They suggested a debt management plan of 6 years, and although it seemed a long time, at least there was an end date!
I was so happy that at last there seemed a resolution to our problem.

All of our creditors accepted our plan (Lloyds TSB loan, Lloyds TSB CC, Halifax CC, Tesco CC, First Direct loan, Santander CC, HSBC CC, Lloyds TSB overdraft, First Direct overdraft, as well as Argos store card and Next store card)

They stopped charging interest, accepted our reduced payments, and at last I saw our debts start to actually reduce!

We have now been on our plan a year and a half, and in that time my husband has found a job and we have increased the amount we pay each month.
What started out as a 6 year plan is now looking like it will be finished in around 4 years.

We had a few minor blips along the way, with our car gearbox dying and costing £2k to repair :-( but CCCS were always supportive and informative.

The thing that gave me most strength is knowing I can't be controlled by the creditors. We still get the odd phone call, but now all I say is "I'm on a DMP with CCCS, my client number is xxxxxxx - please direct your enquiry to them". This has helped no end with my stress and I am now feel back in control and am gradually reducing my anti-depressants.

Our initial £55k debt is now £38k and shrinking all the time!

As our earning situtation improves and items we had on hire purchase come to an end we can increase our monthly payments further and speed up our DMP. We started out paying just £600 a month of our debts, we now pay £800, and by June I hope to get this up to £1100.

I'm so pleased I rang CCCS that day! Thank you!

Thanks for posting this! I've just started the ball rolling for my DMP and just hoping so much they all accept my reduced payments and stop interest etc... But can only wait! It nice to know there's light at the end of the tunnel hey

trainergirl

Thanks for the words of wisdom everyone has given - I really appreciate it. I'm finding it really hard to see a way out of this mess so the advice comes in handy.

I just think reality is starting to set in - gulp! I'll keep you posted!

BTW - called The Co-op bank last Wednesday and they still haven't sent the new bank details through yet, thought they might be here by now!

Time_to_face_the_music

redfalcon wrote: »

Hello everyone!

Been reading through all the advice on this thread and it has finally encouraged me to face my debt and apply for a DMP through CCCS.

In the process of sending letters to my creditors and all the documents back off to CCCS.

Had to sign up for this forum so i'm not alone on this journey

Hello redfalcon and welcome

Well done on taking those important first steps :T

With this forum behind you, I've found I'm never alone on the journey. There is always someone here to share their experiences, cheer you on or just put a smile on your face on a bad day :A

Time_to_face_the_music

trainergirl wrote: »

Thanks for the words of wisdom everyone has given - I really appreciate it. I'm finding it really hard to see a way out of this mess so the advice comes in handy.

I just think reality is starting to set in - gulp! I'll keep you posted!

BTW - called The Co-op bank last Wednesday and they still haven't sent the new bank details through yet, thought they might be here by now!

The Co-op were a little slow getting our paperwork out too but once everything got sorted, they were great.

You'll get through this and the people here will support you all the way. The first steps are the hardest and you have already taken those :T

The most important thing to us was changing our mindset towards debt, tell yourself every day that this debt can be beaten and you will be debtfree one day. Little sacrifices add to up to big chunks of debt gone. I wanted to have my hair cut last week, instead I tied it up in a pony tail and threw the money at the dreaded NatWest overdraft. I am selling our clutter on ebay and planning a car boot sale, oh and saving 1p and 2p pieces in a jar. It all adds up

Growurown

mrshughes86 wrote: »

I'm a frequent reader of this board but thought I would just share my story to give some hope to people.

So pleased that everything is working out for you now. Thanks for sharing your experience - it is nice to hear the positive side to doing a DMP.

Time_to_face_the_music

mrshughes86 wrote: »

I'm a frequent reader of this board but thought I would just share my story to give some hope to people.

Hello Mrs Hughes

I am so glad to hear things are going well for you and that your health is improving. Other people's stories do give hope here and I have learned so much from the sharing of experiences good and bad.

Good luck going forward and may the light at the end of the tunnel shine brighter every day :T

Chrisblue1962

Yesterday, for the first time in three years, I had this strange feeling...I was not overly concerned or panicking about money or my debts.

I've been on a DMP since July 2009 and still have about 15 years to go. However, this month, my DMP amount has gone up as my circumstances have improved slightly - paid off Gas & Electricity arrears.:T

Now, I look forward to Payday each month as I've got my budget sorted and under control, with a nice spreadsheet to keep track of it all ...and it seems to be working!

Life is not a bed of roses but my partner is v supportive and we are starting to "get there" and starting to plan for the future.

The hardest thing I find about being on a DMP is keeping track of and controlling those "tiny" purchases which mean you "lose" money each month. However, I've now built a small Petty Cash amount into my budget, it even has it's own account which I can draw money from.

Reading this Forum is a great help and support from folks on here for those moments where things are looking scary is priceless.

To all those walking the DMP Path..."Keep On Going!!!"

Earthmother_2

Hi, Just an update from me. Our first DMP payment has gone out but all has not gone smoothly. Lloyds have chosen to ignore the fact that CCCS told them payments will be made on the the 25th of the month and have said we have broken our agreement. Phoned them up and told them, the guy didn't have a clue and kept insisting as we hadn't paid on the 4th the agreement was broken. In the end he said get the CCCS to contact them, which I did and we are still getting letters now.

Today a default letter plopped on the mat. Does that mean anything has changed? I am just going to keep paying CCCS and let it sort itself out, as I have read on here that letters come randomly when DMP's are first starting.

Another question though, I sent LLoyds a postal order by recorded delivery at the beginning of March as a token payment, yet two statements on it is not showing up. I sent a letter asking them to acknowledge they had received it, but as yet nothing. Has this happened to anybody else? It was for £30 and I can't afford for it to vanish into thin air.

mrshughes86

Thanks to everyone who replied. I'm sure you all know how much it means to have people who know what you are going through.

Chrisblue1962, I have recently started to feel that way, hence my post yesterday! It is so nice to feel in control, and know every month that your pay can chip away at your debt and still leave you with enough money for essentials.

iwilldoitthistime

Hi

Im about to start my DMP but have just thought - will it effect my mortgage? Im on a two year fixed deal with Halifax - my LTV is at about 85%, so Halifax usually just move me to another deal at the end of the term. Will they still do this if Im on a DMP?

thanks x