DMP & Mutual Support Thread - Part 8

Time_to_face_the_music

Newchapter wrote: »

Hi

I'm new to this site. Started a dmp April 2011, using Payplan but they have scared me quite a bit last week by suggesting an IVA, not that I currently have any equity in my house, but I expect I will have in 5 years time at the expected end of the IVA. I am going to see a private financial advisor who has really helped a friend of mine significantly reduce her debts and am thinking of moving my DMP from Payplan to them. They have also suggersted I am paying too much into the DMP and not leaving enough to live on. I was interested to read you have chosen to no longer use CCCS and self manage. Is it better?
thanks

Have just noticed there is a post about Payplan suggesting an IVA to someone on a long standing DMP on the Struggling with debt? Ask a debt advisor a question thread.

Check out
https://forums.moneysavingexpert.com/discussion/2402327
post #3358

Bellarosa wrote: »

My partner back in 2007 contacted payplan as she was really struggling with her debts and they did her financial statement and arranged a manageable amount of 560 per month repayments to creditors. This include one unsecured loan from Northern Rock for 21k which was the 25% of one of these 125% mortgages (she repaid the mortgage with ERC just to get out quickly), they were giving out at the time. The total amount within the DMP was 48k, the remainder consisting of another loan and the rest credit cards.
She has paid the 560 a month now for five years diligently (apart from one missed payment during the loss of a family member) but recently we have noticed an anomaly with regards the amount payplan are showing as outstanding on the online portal, versus the figures on her statements received. Payplan said at the outset that they request the interest and charges be frozen and after seeing copies of there letters that go with the financial statement they ask each creditor to respond within 21 days if they disagree with a) the payment offer and b) the request to freeze interest and charges.
Now here's the problem - 5 years on the Northern Rock balance outstanding on their statement is currently 18k!!!!! This is after 5 years worth of payments!!!! We feel really aggrieved by this and before this came to light we were thinking that the plan had two years to run at the most. Since speaking to payplan and highlighting the anomaly, there response was "do you want us to adjust the balance on the screen at our end then? " well at this point the last five years just flashed in front of us with a complete sense of disappointment. And then to add insult to injury the advisor suggested my partner perhaps look at an I.V.A!!!! Why now ?

Please help

Thanks in advance:mad:

trainergirl

Some advice needed please!

Had a letter from Lloyds TSB loan saying that they will accept reduced payments of £148 starting from 28th May for 6 months.

Not sure what to make of this as this was the amount suggested by CCCS in my repayment plan so why are Lloyds saying its only for 6 months?

The letter also states that if I do not keep to this plan then they will cancel it immediately but my DMP doesn't start til 1st June so they won't get my money til 25th June. I made a full payment in April and sent them £10 to cover May's payment.

Has anyone got any experience of this situation?

Thanks
TG xx

The_mangler

Im just wondering, CCCS havent said anything to me but my plan starts June 1st but obviously the creditors wont be paid until 25th. Most of my debts were due around 1st of the month, should I be sending out a token payment to them? All I can manage at the moment is £1 to each of them or isnt it worth the stamps to post them?

antk4

Time_to_face_the_music wrote: »

I'm always looking at signatures for someone who owes more money than us to cheer me up! :rotfl:

We owed more money than you, just over 84,000 when we first started. On dmp with cccs for 14 months and it is now down to 68,512. Only another 4 years8 months to go.

925pws

Time_to_face_the_music wrote: »

Oooh tell me, tell me, make me feel better! :rotfl:

When we added up our debts, we were gobsmacked at how much the total was. It was a really sobering moment

But now we love watching the total go down each month and tomorrow, CCCS payout day, the 25th of the month is now our favourite day , I will update our signature and we will have a smile at the new total. We already know that the dreaded NatWest overdraft is about to drop from the 4000s into the 3000s and we can't wait to see that one

We also have a sneaky few pounds from ebay sales this month which will take a little more off the total. We actually did very well on ebay but the long suffering car is due for a MOT and am not optimistic about getting through without spending money so most of the ebay money is in reserve for that

Though if it does ok, it will be even more paid back to the NatWest :j

LOL, I will tell you but you have to be patient with me

Received an email from CCCS with a few queries so just need to phone them in the morning. Also need to phone one of the creditors to get a/c no and sort code for the loan, I really don't want to speak to them, is there any other way of getting this? I can see a reference number from the direct debit but not sort code. Wonder if that would do? Any ideas?

Time_to_face_the_music

trainergirl wrote: »

Some advice needed please!

Had a letter from Lloyds TSB loan saying that they will accept reduced payments of £148 starting from 28th May for 6 months.

Not sure what to make of this as this was the amount suggested by CCCS in my repayment plan so why are Lloyds saying its only for 6 months?

The letter also states that if I do not keep to this plan then they will cancel it immediately but my DMP doesn't start til 1st June so they won't get my money til 25th June. I made a full payment in April and sent them £10 to cover May's payment.

Has anyone got any experience of this situation?

Thanks
TG xx

We had a similar thing with M&S, we will review after 12 months blah blah. It's probably just a matter of telling them after 6 months that everything is the same. I suspect they think we may have won the lottery by then and not paid them off

Growurown

The_mangler wrote: »

Im just wondering, CCCS havent said anything to me but my plan starts June 1st but obviously the creditors wont be paid until 25th. Most of my debts were due around 1st of the month, should I be sending out a token payment to them? All I can manage at the moment is £1 to each of them or isnt it worth the stamps to post them?

Would it be worth calling your creditors and explaining the situation? I had to do a bit of this when I started my DMP because some creditors wanted their payments on a certain date to which I had to say sorry no can do, it's the 25th of each month and they went along with it.

Newchapter

Thanks for that. I've just read it.

To be honest, it just seems that there are so many conflicting pieces of advice around, its hard to know what to do for the best. I've tried Payplan for just over a year - I am broke on the plan, so I may as well try another idea and see if that's more sustainable.

I'll let you know in 6 months whether everything's gone horribly wrong - fingers crossed, it wont

I have a friend who has used this financial advisor suggested to me. My friend has cleared a large proportion of her debt and quite quickly. The FA seems to have negotiated well on her behalf with the creditors, got the interest frozen and secured full and final settlement on one of her cc's: balance was £6000, she cleared for £2500.

I am nervous but I am prepared to take a risk I think. Payplan really frightened me with their IVA suggestion.

Thank you for responding. It makes a difference to know there's someone to talk to who's in a similar situatoion. I wish you well with your plan, :T

Time_to_face_the_music wrote: »

Have just noticed there is a post about Payplan suggesting an IVA to someone on a long standing DMP on the Struggling with debt? Ask a debt advisor a question thread.

Newchapter

:TWell done Antk4, you are inspirational

antk4 wrote: »

We owed more money than you, just over 84,000 when we first started. On dmp with cccs for 14 months and it is now down to 68,512. Only another 4 years8 months to go.

Time_to_face_the_music

antk4 wrote: »

We owed more money than you, just over 84,000 when we first started. On dmp with cccs for 14 months and it is now down to 68,512. Only another 4 years8 months to go.

Hi antk4 and thank you so much for answering me

£15,500 in 14 months is an outstanding achievement and seeing it can be done is inspiration to me and many others :T

Well done and good luck with the rest of your DMP. Here's hoping it gets paid off in even faster time :j