DMP & Mutual Support Thread - Part 8

savvykaz

Just a quick update, I received a call from CCCS yesterday to say they had all our forms back and everything was ok; the DMP is set up for 1st payment to go out on June 1st and then it's countdown to a debt free existence ( ok, it might be 6 years off but at last we will be in control!!!) Hope we don't get too much grief from our creditors?

Hopelessly_Hopeful

PayingMyDebts wrote: »

Hi all the new starters, going to CCCS four and a bit years ago was the best thing I ever did. I had debts of about £40k - made my final payment on the 1st May.

Well done and thanks for posting.

What's the plan now?

HHx

Hopelessly_Hopeful

savvykaz wrote: »

Just a quick update, I received a call from CCCS yesterday to say they had all our forms back and everything was ok; the DMP is set up for 1st payment to go out on June 1st and then it's countdown to a debt free existence ( ok, it might be 6 years off but at last we will be in control!!!) Hope we don't get too much grief from our creditors?

Well done. Fingers crossed and good luck.

HHx

AmyV_2

925pws wrote: »

Hi again friendly folks

Quick query. While on a DMP, are there options when mortgage deal runs out or have I no chance of getting another deal? I'm happy to stay with same lender even if it's not the best deal in the world.

Thank you

Hi 925, we recently changed ours. We were on the standard one (sorry can't think of the right terminology), however when we heard about possible interest rate increases back in April we decided to go back to a fixed rate, so at least we knew where we were every month. As we stayed with the same lender there were no checks and we got a really good deal... so the DMP had no effect whatsoever. We've never been in arrears with the mortgage so I think the DMP is immaterial to them.

Good luck with it :-)

The_mangler

savvykaz wrote: »

Just a quick update, I received a call from CCCS yesterday to say they had all our forms back and everything was ok; the DMP is set up for 1st payment to go out on June 1st and then it's countdown to a debt free existence ( ok, it might be 6 years off but at last we will be in control!!!) Hope we don't get too much grief from our creditors?

I'm in the same position as you, my first payment goes out 1st June then its just looking forwards to 4 years time and finally being debt free! My income will drop somewhat in August when eldest goes to Uni and I lose her Child Benefit and Child Tax Credits but I've told CCCS about this and they've noted it, and will adjust accordingly when the time comes. I'm waiting for the phone to start ringing now, but for the first time in ten or so years I'm beginning to feel more positive that what I pay will actually be paying off debts, not over inflated interest rates.

Thanks everyone on here for your continued support and advice. :T

Ss3kjp

Considering a dmp with cccs but need advice on a couple of points
I have applied for a dmp with cccs, they are currently sending me paperwork to sign. Our debts are 31000 in Credit cards overdrafts and loan. I'm still not 100% sure it is the best option because of the following:

We are currently only paying a small amount of interest on 1 of our outstanding credit cards, and our overdrafts, all the rest are 0%.
Our credit rating is not that bad as we usually make all of our minimum payments.
If we take on dmp companies may start charging us interest that currently don't. This is a worry as one of our batclaycards is 9000 currently on 0% we don't want to have to pay interest on that. Is it therefore silly to take a dmp and make our credit rating worse when we are meeting our minimum payments?

Also one of our loans that we have met all of our payments on for 5yrs is ending in august, so it seems silly to default on this when it's not actually necessary to.

Additionally my husband is an actuary, and is concerned this may affect his promotion chances.

I am currently on smp in my cccs budget, in sept I will have no salary for 3 months, then I will go back to work and be on more money. Should we wait and do dmp after I go back to work?

THE REASON WE WANT THE DMP is to help us budget, so we know an end date to our debt, because my husband is struggling to get a new 0% to transfer one card as he has so much debt in his name, and to start paying off our overdrafts which we have just ignored since we left university and have lived within.

Is their a better option than taking a dmp? Should we keep paying minimum payments and try to negotiate intest on our overdrafts. So we don't get bad credit rating.

I'm really concerned about the amount of ppl who cccs hasn't managed to freeze interest for. We will be worse off if that is the case for us.

Please advise me, I'm happy to give more info.

Joyanne

Ss3kjp wrote: »

Considering a dmp with cccs but need advice on a couple of points
I have applied for a dmp with cccs, they are currently sending me paperwork to sign. Our debts are 31000 in Credit cards overdrafts and loan. I'm still not 100% sure it is the best option because of the following:

We are currently only paying a small amount of interest on 1 of our outstanding credit cards, and our overdrafts, all the rest are 0%.
Our credit rating is not that bad as we usually make all of our minimum payments.
If we take on dmp companies may start charging us interest that currently don't. This is a worry as one of our batclaycards is 9000 currently on 0% we don't want to have to pay interest on that. Is it therefore silly to take a dmp and make our credit rating worse when we are meeting our minimum payments?

Also one of our loans that we have met all of our payments on for 5yrs is ending in august, so it seems silly to default on this when it's not actually necessary to.

Additionally my husband is an actuary, and is concerned this may affect his promotion chances.

I am currently on smp in my cccs budget, in sept I will have no salary for 3 months, then I will go back to work and be on more money. Should we wait and do dmp after I go back to work?

THE REASON WE WANT THE DMP is to help us budget, so we know an end date to our debt, because my husband is struggling to get a new 0% to transfer one card as he has so much debt in his name, and to start paying off our overdrafts which we have just ignored since we left university and have lived within.

Is their a better option than taking a dmp? Should we keep paying minimum payments and try to negotiate intest on our overdrafts. So we don't get bad credit rating.

I'm really concerned about the amount of ppl who cccs hasn't managed to freeze interest for. We will be worse off if that is the case for us.

Please advise me, I'm happy to give more info.

Hi I've been on a dmp since jan of this year with cccs and I have 12 creditors and of those 9 have stopped interest at the mo. before I went onto my dmp I tried to take out a consolidation loan because the minimum payments were leaving us with no money for things like food and petrol. It wasn't until I tried to take out a loan that I realised my credit rating was not good and so a dmp was the only way for us. Since jan our lives have changed for the better, I don't spend the whole month trying to juggle money to pay debts, infact I don't really think about them anymore, I didn't have too many phone calls and the persistent ones I just blocked their number and dealt with them by letter.
I now look at my cccs payment as a sort of loan payment that is taken once a month and on my cccs budget I'm able to even save a bit of money for emergencies like car repairs and new washing machine. I don't miss having credit one bit.
At the beginning I didn't want to go on a dmp because it seemed like a lot of work with changing bank accounts and direct debits but at the time of my decision it was Christmas and I had no money or credit left to buy presents for my 5 kids so if I hadn't of done it when I did then it would've been a miserable Christmas, it was a budget Christmas but we managed and I vowed we would never end up like that again.
I've read on here that people have put their payments both up and down and cccs are fine with this.
I can't tell you what to do but it was the best thing I have ever done and I'm quite confident in saying that I won't be the only one on here that says that.
Hope that helps a little bit.

2spicy

925pws wrote: »

I've a confession to make, the CCCS forms are still sitting on my desk to post.

I know, I know but I will find out this week if I have a job come the end of September. I was holding off so that when I do send them in I have a complete picture. If it's good news they will be sent off with a straightforward letter, if it's bad news then I will have to explain what my salary will be up to end of September and after that who knows.

No wonder I'm feeling low today. I hate not being in control and having to play the waiting game. I have such a knot in the pit of my stomach. I guess life throws these curve balls and I guess it's all how we deal with them and whether we become stronger for it or end up a complete wreck.

Personally, I wouldnt tell them. set up the DMP in Good Faith using the infomation you have at this present time.
When September comes, cross that bridge. If we all held off "just incase" most fo us would never have started a DMP.

Get theforms off ASAP .. once the DMP is established, you have shown willing to repay debts ... when circumstances change, your creditors can be negotiated with / updated with your situation at that point ... but the fact is, you will have 6 months worth of repayments that have been made already and thus if it all goes "Pete Tong", you have demonstrated that you take the debt seriously.

savvykaz

On reading the pack from CCCS, I noticed that you can make payments on either the 1st or the 10th of each month and as DH is paid on the 8th and I'm paid on the 10th, I gave them a ring and have managed to change our payment date to the 10th :j. This is great news as all our DDs will now go out between 10th and 12th of each month and all that's left will then be for our budgeted spends. :T

Growurown

Ss3kjp wrote: »

We are currently only paying a small amount of interest on 1 of our outstanding credit cards, and our overdrafts, all the rest are 0%.
Our credit rating is not that bad as we usually make all of our minimum payments.
If we take on dmp companies may start charging us interest that currently don't. This is a worry as one of our batclaycards is 9000 currently on 0% we don't want to have to pay interest on that. Is it therefore silly to take a dmp and make our credit rating worse when we are meeting our minimum payments?

Also one of our loans that we have met all of our payments on for 5yrs is ending in august, so it seems silly to default on this when it's not actually necessary to.

Additionally my husband is an actuary, and is concerned this may affect his promotion chances.

I am currently on smp in my cccs budget, in sept I will have no salary for 3 months, then I will go back to work and be on more money. Should we wait and do dmp after I go back to work?

THE REASON WE WANT THE DMP is to help us budget, so we know an end date to our debt, because my husband is struggling to get a new 0% to transfer one card as he has so much debt in his name, and to start paying off our overdrafts which we have just ignored since we left university and have lived within.

Is their a better option than taking a dmp? Should we keep paying minimum payments and try to negotiate intest on our overdrafts. So we don't get bad credit rating.

I'm really concerned about the amount of ppl who cccs hasn't managed to freeze interest for. We will be worse off if that is the case for us.

Like Joyanne I have found going on the DMP a real lifesaver and would recommend it for anyone who is really struggling to live and pay their creditors at the same time. I am assuming that if CCCS are sending you paperwork that you have completed a SOA which shows you aren't able to meet all your commitments and live?

Unfortunately there are no guarantees as to which creditors will stop interest so that is a risk you take. I have 12 creditors and only the Halifax continued to charge interest. However I saved so much by not paying interest to all the others that it didn't concern me overly as my debt with them wasn't that big anyway.

I'm not sure why you would want to wait until you go back to work to start your DMP. Surely you need the extra cash now whilst your income is reduced?

A DMP certainly helps you budget because there is no more credit to fall back on. When the money runs out you go without so you have to manage. I'm not sure though that helping you to budget is the right reason to do a DMP, because you will be defaulted and this will affect your credit rating. It really depends what is more important to you, being able to live without constant worry about how you are going to pay for everything or having a good credit rating.

If you choose to keep your good credit rating it will take you a long time to pay everything back if you are just making minimum payments. Credit is getting harder to access and when all the 0% offers run out on your current cards you may not be able to move the debt to another zero rated card. You can try renegotiating the interest charged on the overdraft but I have my doubts that you will be successful.

Also I wouldn't worry about defaulting on the loan that finishes in August because it won't make any difference to your situation. If you do choose to go on a DMP then other creditors will default you so it will still affect your credit rating whether you pay this loan or not.