DMP & Mutual Support Thread - Part 8

Hopelessly_Hopeful

925pws wrote: »

That's actually a good point you raise - does anyone know when debts are likely / normally passed from original creditor to DCA?

TtFtM it would be interesting to know this as the more info we have the better informed we will be to make the right move / decision.

I know you've been overpaying some of your creditors but wanted to ask, do you also save? I've decided to save my extra pennies until all creditors get back to let me know whether they have stopped interest. Even if they don't I'll certainly go down the FOS route. Is there a point of law or something that you quoted regarding the interest not being stopped?

Am afraid there are no certains in DMP land. They like to keep an element of randomness to stop people 'playing the system'! Like playing poker!

HHx

speshfesh

Hi Everyone,

First time posting and I've just landed myself a lovely DMP just so I could be part of the club!:(
I'm using a company DM company that I've found to be very helpful. The welcome pack covered literally everything on the personal effects of debt, helplines, etc which I felt gave me some comfort that I'd found a 'sympathetic' company. Don't misunderstand me, I'm not naive enough to think these guys are my friends and I know it's all about the profit but, so far at least, it suits my eventual goal of being debt free as soon as possible.
I have unsecured debts of around £24K and I'll be paying £630pm.
The bonus for me is the plan is scheduled for 40mths so I'll be paying the company around £3K to 'manage' the plan. If they manage to get the interest frozen on my debts, the interest on my CC alone would've been more than that.
I was obviously hesitant to go with a DM company but I have been pleased with their approach and the advice I've been given so far and their transparency on fees. For me, the fact that the monthly fee is actually around what I would pay to my creditors normally wasn't the deciding factor but rather the fact that I would be debt free in 40mths (dependent on creditors freezing interest of course):o.
One of my CC debts is over £7K so I would still be paying this off way past the 40mths. I was advised against an IVA and the plan is flexible enough to allow me to address any change in circumstances.
I guess I'm hoping nobody comes back with a reply that tells me I've been an idiot!! (of course feel free to do so):).
I'll definitely be back once I've been on the DMP for a while (hopefully not depressed by it all ).

925pws

Hopelessly_Hopeful wrote: »

Am afraid there are no certains in DMP land. They like to keep an element of randomness to stop people 'playing the system'! Like playing poker!

HHx

Well that's just wonderful of them to be so kind I knew this was going to be a rollercoaster of a journey, thank goodness for you lovely people :T

Hopelessly_Hopeful

speshfesh wrote: »

Hi Everyone,

First time posting and I've just landed myself a lovely DMP just so I could be part of the club!:(
I'm using a company DM company that I've found to be very helpful. The welcome pack covered literally everything on the personal effects of debt, helplines, etc which I felt gave me some comfort that I'd found a 'sympathetic' company. Don't misunderstand me, I'm not naive enough to think these guys are my friends and I know it's all about the profit but, so far at least, it suits my eventual goal of being debt free as soon as possible.
I have unsecured debts of around £24K and I'll be paying £630pm.
The bonus for me is the plan is scheduled for 40mths so I'll be paying the company around £3K to 'manage' the plan. If they manage to get the interest frozen on my debts, the interest on my CC alone would've been more than that.
I was obviously hesitant to go with a DM company but I have been pleased with their approach and the advice I've been given so far and their transparency on fees. For me, the fact that the monthly fee is actually around what I would pay to my creditors normally wasn't the deciding factor but rather the fact that I would be debt free in 40mths (dependent on creditors freezing interest of course):o.
One of my CC debts is over £7K so I would still be paying this off way past the 40mths. I was advised against an IVA and the plan is flexible enough to allow me to address any change in circumstances.
I guess I'm hoping nobody comes back with a reply that tells me I've been an idiot!! (of course feel free to do so):).
I'll definitely be back once I've been on the DMP for a while (hopefully not depressed by it all ).

Welcome to the club. Only you can decide if it is the right thing. My advice is hound hound and hound the DM company to make sure you are getting value for money and interest stopped, if not, then consider ditching them.

HHx

speshfesh

Hopelessly_Hopeful wrote: »

Welcome to the club. Only you can decide if it is the right thing. My advice is hound hound and hound the DM company to make sure you are getting value for money and interest stopped, if not, then consider ditching them.

HHx

Thanks HH, I agree.
I can see that everyone's circumstances, instincts will be different.
They have stated they have a 95% success rate in getting interest frozen (the 95% figure used in case they are up against creditors they've not dealt with before) but they have seen my creditor list and don't see a problem (at first glance anyway;)).
I already feel better having taken this step regardless of where it will take us as a family so here goes!:D
Thanks again:)

Growurown

speshfesh wrote: »

They have stated they have a 95% success rate in getting interest frozen (the 95% figure used in case they are up against creditors they've not dealt with before) but they have seen my creditor list and don't see a problem (at first glance anyway;)).
I already feel better having taken this step regardless of where it will take us as a family so here goes!:D
Thanks again:)

Welcome Speshfesh. £3k seems like a lot of money to me to be paying for a service you can get for free. However if you are happy to pay then make sure you get an excellent service from them. I don't know what percentage the free services will give for getting interest stopped but out of my creditors only one is still charging interest. It seems to depend on how much you owe and how much you can pay and the whims of the creditor.

For example we have two overdrafts with the Halifax. One was for £2,300 and the other for £800. The first we are being charged for the second we aren't. We both had Virgin CCs with about £5,000 on each card. Mine has been passed to a DCA but the other one hasn't. The only difference between the two I can see is that mine was being charged at a higher rate of interest because I earn less than OH, therefore I am a greater risk.

It is a roller coaster journey but eventually we will all land with a bump:D

Time_to_face_the_music

speshfesh wrote: »

Hi Everyone,

First time posting and I've just landed myself a lovely DMP just so I could be part of the club!:(
I'm using a company DM company that I've found to be very helpful. The welcome pack covered literally everything on the personal effects of debt, helplines, etc which I felt gave me some comfort that I'd found a 'sympathetic' company. Don't misunderstand me, I'm not naive enough to think these guys are my friends and I know it's all about the profit but, so far at least, it suits my eventual goal of being debt free as soon as possible.
I have unsecured debts of around £24K and I'll be paying £630pm.
The bonus for me is the plan is scheduled for 40mths so I'll be paying the company around £3K to 'manage' the plan. If they manage to get the interest frozen on my debts, the interest on my CC alone would've been more than that.
I was obviously hesitant to go with a DM company but I have been pleased with their approach and the advice I've been given so far and their transparency on fees. For me, the fact that the monthly fee is actually around what I would pay to my creditors normally wasn't the deciding factor but rather the fact that I would be debt free in 40mths (dependent on creditors freezing interest of course):o.
One of my CC debts is over £7K so I would still be paying this off way past the 40mths. I was advised against an IVA and the plan is flexible enough to allow me to address any change in circumstances.
I guess I'm hoping nobody comes back with a reply that tells me I've been an idiot!! (of course feel free to do so):).
I'll definitely be back once I've been on the DMP for a while (hopefully not depressed by it all ).

Hi speshfesh and welcome

Sorry in advance but I am going to ask/say some things you probably won't want to hear

1) Why on earth are you paying fees for a DMP? Every penny you are paying this company should be going towards paying off your debts, not feathering their pockets.

2) £24 K debt + £3000 fees at £630 per month does not add up to 40 months. Have you questioned this?

3) Have you questioned their 95% success rate? I could say I would give you a 98% success rate at getting all interest stopped and I would just be pulling figures out of the air. Where is their proof?

4) Do you know that some companies claim to pay off your debts and actually hold on to the money some times for months? Or that some companies make you think all is going well and at the so called end of your DMP, you find out that you still owe thousands or tens of thousands?

I'll stop now but there could be dozens more questions but I'll just add one more ...

5) Have you signed on the dotted line and if so, when did you do it?

Time_to_face_the_music

925pws wrote: »

That's actually a good point you raise - does anyone know when debts are likely / normally passed from original creditor to DCA?

TtFtM it would be interesting to know this as the more info we have the better informed we will be to make the right move / decision.

I know you've been overpaying some of your creditors but wanted to ask, do you also save? I've decided to save my extra pennies until all creditors get back to let me know whether they have stopped interest. Even if they don't I'll certainly go down the FOS route. Is there a point of law or something that you quoted regarding the interest not being stopped?

No idea re original creditors and DCAs. I wonder if it's to do with the time they think it will take you to pay it all back but don't know if that is correct.

I don't save, well except for 1ps and 2ps, 5p pieces and £2 coins which all have their own piggy bank now. I always wondered what I was going to do with my collection of money boxes and now I know. Oh apart from the one I sold for £30 something on ebay

Reznor

Just wanted to say hi and that I started a dmp with pay plan last month so i will be on here posting rather then watching from a distance.:j

925pws

Reznor wrote: »

Just wanted to say hi and that I started a dmp with pay plan last month so i will be on here posting rather then watching from a distance.:j

Hello and welcome to the boards Reznor,

Yes please do post and let us know how you are doing. There are a lot of us going through the same thing so hopefully we can compare notes and support each other