DMP & Mutual Support Thread - Part 8

speshfesh

Longroadahead wrote: »

Hi

I've been trying to face up to my debt problem for a while and have been reading the discussions on here but only now getting the courage to speak up and ask for some advice on moving to a DMP. Here are brief details of my situation.

I have built up a lot of unsecured debt - c. 40,000 - a combination of a long-time in education, low-ish starting salary afterwards and careless spending.

Starting in September last year I have moved the majority of this onto informal payment arrangements and, in most cases, interest and charges have been stopped. However, I am still struggling to meet repayments - I have a high mortgage on a flat which is let out but which doesn't fully cover the mortgage, rent on the house we live in and I have also just had to take a job away from home meaning I will soon have to pay rent on a weekday let as well to enable me to get to work.

I am not in arrears on any priority debts/rent and have no CCJs but obviously have defaults. My income is now comparatively high but is eaten up by these outgoings and I reckon I can realistically only afford £150pcm at the minute on my unsecured debt.

I want to move to a DMP so that I can lower my monthly payments and also don't have the take all of the constant pressure of dealing with lenders pushing for more (though I know that this can continue even in a DMP to some extent). My main question is this - is a DMP realistic on £150 pcm to start off with? I am confident that my ability to repay will improve over the next couple of years but obviously I can't guarantee this.

I have completed the CCCS questionnaire and also requested advice from National Debtline but also thought I would try out here.

I have tried not ramble and hope the general thrust of my position is clear - any advice is appreciated! Thanks:)

Hi LRA and welcome:hello:
You mentioned you've filled out the CCCS questionnaire? Do you mean the budget planner that would determine how much you can likely afford to pay into a DMP? If so, then I guess the £150pm figure would be accepted by CCCS as your affordable payment.
I suppose the consideration then would be how long your DMP would need to run (given you'll be paying £150pm to clear a £40K debt).
To give you some idea, I'll be paying around £400pm to clear a £22K debt with CCCS which is likely to take me 4yrs 8mths apparently. I'm going to have to do some serious cutting back to be able to add more in when I can to reduce this though (and I don't know if I can get any interest reduced/stopped yet! :wall:).
Remember, they can only take what you can afford so make sure you allow for 'everything' you need to live .

Good luck, keep us posted.:D

ailz95

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

When we first started with a DMP we were with Churchwood (I think) Finance. They said they could get over 95% of interest stopped and charged us £37.50 per month. Talking to MBNA one time they suggested that we go to Payplan or CCCS for free. They don't guarantee that interest will be stopped but it often is - at least as often as by Churchwood, for us at least.

That £3000 you're going to pay them would make a good contingency fund. I wish we'd gone for free from the beginning instead of losing £375 that would have helped us rather than them.

Sorry Speshfesh, I realise now that you've already changed your mind. Well done for being flexible - we also had to pay £250 up front for Churchwood - I'd forgotten about that.

Longroadahead

speshfesh wrote: »

Hi LRA and welcome:hello:
You mentioned you've filled out the CCCS questionnaire? Do you mean the budget planner that would determine how much you can likely afford to pay into a DMP? If so, then I guess the £150pm figure would be accepted by CCCS as your affordable payment.
I suppose the consideration then would be how long your DMP would need to run (given you'll be paying £150pm to clear a £40K debt).
To give you some idea, I'll be paying around £400pm to clear a £22K debt with CCCS which is likely to take me 4yrs 8mths apparently. I'm going to have to do some serious cutting back to be able to add more in when I can to reduce this though (and I don't know if I can get any interest reduced/stopped yet! :wall:).
Remember, they can only take what you can afford so make sure you allow for 'everything' you need to live .

Good luck, keep us posted.:D

Hi Speshfesh - thanks.:T
I have filled out the CCCS budget planner but the figures aren't right due to my more complicated mortgage/rent arrangements. I have mortgage and rent as relocated a few years ago and the mortgaged property has been let out since. As I said in my first post, I have had to take another job away from where I live currently as I was made redundant in December '11, so will have to pay another rent to stay there during the week (the salary more or less covers this extra rent though).

I tried calling Nat debtline this morning but couldn't get through so have sent an email with the details of the above to see what they say. I'll try again tomorrow. I guess its a pretty unusual circumstance. I just want to do everything I can to get sorted out, even if it takes 10 years. I'll post any progress.:)

speshfesh

ailz95 wrote: »

Hi Speshfesh

When we first started with a DMP we were with Churchwood (I think) Finance. They said they could get over 95% of interest stopped and charged us £37.50 per month. Talking to MBNA one time they suggested that we go to Payplan or CCCS for free. They don't guarantee that interest will be stopped but it often is - at least as often as by Churchwood, for us at least.

That £3000 you're going to pay them would make a good contingency fund. I wish we'd gone for free from the beginning instead of losing £375 that would have helped us rather than them.

Sorry Speshfesh, I realise now that you've already changed your mind. Well done for being flexible - we also had to pay £250 up front for Churchwood - I'd forgotten about that.

Hi ailz:)

Thanks for the support.

Yes, we have now gone with CCCS and everything looks ok for the moment at least.
I'm sure I'll be on here at some point ranting about those that won't stop hassling me or stop/reduce interest:mad:.

Onwards and upwards:D

ktez

Hi everyone

Has anyone any experience of opening an account with the Co-op? I have been waiting now for over a week on them making a decision on whether I can open an account or not. The problem being, it is holding everything up as i am holding off post all the set up papers to the cccs until I get my new bank details. I have made token payments to all creditors but have now started to get the horrible letters demanding payments. I have all my letters ready to go to the creditors with my cccs reference number on them however I didn't want to send these until i have the cccs set up!!!!

Can the co-op refuse me? I have bad credit (or should I say too much credit) but good wages and have more or less always made payments just missed one or two lately.

speshfesh

Longroadahead wrote: »

Hi Speshfesh - thanks.:T
I have filled out the CCCS budget planner but the figures aren't right due to my more complicated mortgage/rent arrangements. I have mortgage and rent as relocated a few years ago and the mortgaged property has been let out since. As I said in my first post, I have had to take another job away from where I live currently as I was made redundant in December '11, so will have to pay another rent to stay there during the week (the salary more or less covers this extra rent though).

I tried calling Nat debtline this morning but couldn't get through so have sent an email with the details of the above to see what they say. I'll try again tomorrow. I guess its a pretty unusual circumstance. I just want to do everything I can to get sorted out, even if it takes 10 years. I'll post any progress.:)

Hi LRA,

I think the main thing is to disclose all your outgoings including those that may seem 'complicated'. At the end of the day these are your personal circumstances and they are real so, to a DMP provider, it is what it is.
The only anomaly I can see would be the rent you get from the mortgaged property. You may be able to argue that this could stop at any point so maybe shouldn't be included in your incoming funds. That way, you may be able to get a reduced monthly payment amount but use it on the DMP while you get it as an over payment.
At least then you're not committed to a monthly payment that takes you to your limit.;)

Just a thought.:D

Hopelessly_Hopeful

Longroadahead wrote: »

Hi Speshfesh - thanks.:T
I have filled out the CCCS budget planner but the figures aren't right due to my more complicated mortgage/rent arrangements. I have mortgage and rent as relocated a few years ago and the mortgaged property has been let out since. As I said in my first post, I have had to take another job away from where I live currently as I was made redundant in December '11, so will have to pay another rent to stay there during the week (the salary more or less covers this extra rent though).

I tried calling Nat debtline this morning but couldn't get through so have sent an email with the details of the above to see what they say. I'll try again tomorrow. I guess its a pretty unusual circumstance. I just want to do everything I can to get sorted out, even if it takes 10 years. I'll post any progress.:)

Hi and welcome

Why dont you put the rent and mortage contribution in the same outgoing box. They will likely call you to discuss anyway.

Good luck

HHx

Hopelessly_Hopeful

ktez wrote: »

Hi everyone

Has anyone any experience of opening an account with the Co-op? I have been waiting now for over a week on them making a decision on whether I can open an account or not. The problem being, it is holding everything up as i am holding off post all the set up papers to the cccs until I get my new bank details. I have made token payments to all creditors but have now started to get the horrible letters demanding payments. I have all my letters ready to go to the creditors with my cccs reference number on them however I didn't want to send these until i have the cccs set up!!!!

Can the co-op refuse me? I have bad credit (or should I say too much credit) but good wages and have more or less always made payments just missed one or two lately.

Hi and welcome

Have you called them? 08457 212 212

I applied for a basic current account (the next one up from cashminder) online and was up and running in four days.

HHx

wanna-be-mortgage-free_2

I've heard that CCCS have some 'helpers' in at the moment. Maybe you got a trainee but at the end of the day if creditors have accepted your repayments then go it alone.

Although CCCS will want to keep you as they get paid by the financial institutions!

speshfesh

ktez wrote: »

Hi everyone

Has anyone any experience of opening an account with the Co-op? I have been waiting now for over a week on them making a decision on whether I can open an account or not. The problem being, it is holding everything up as i am holding off post all the set up papers to the cccs until I get my new bank details. I have made token payments to all creditors but have now started to get the horrible letters demanding payments. I have all my letters ready to go to the creditors with my cccs reference number on them however I didn't want to send these until i have the cccs set up!!!!

Can the co-op refuse me? I have bad credit (or should I say too much credit) but good wages and have more or less always made payments just missed one or two lately.

Hi ktez,

I had a co-op current account which I hadn't used for over a year but which I needed to start up again to get away from my existing Nationwide account (NW CC and overdraft part of my DMP!).
Although I already had the co-op account and I could still log in online, they wouldn't send me any new cards until they saw salary funds going into the account. Once this happened, the card arrived without a problem.
I'm guessing that if you have a badit credit rating they may not want to give you an old style current account but they should be able to give you a cash card type account with the ability for direct debits surely? Especially as this probably wouldn't have any overdraft facility, credit card, etc attached to it:think:.
Make sure the co-op are fully aware of the funds that will likely be paid in each month and if that doesn't shift things along, ask about the other account options they have where you may be more 'suitable'.

Apart from the bank account issue, I'm at the same stage as you. :T
Send your letters and CCCS pack off as soon as possible.:eek:
The sooner you do this, the sooner you can get through the first hurdles.
I posted all mine yesterday with the CCCS ref number on them along with my pack to CCCS so mine isn't set up yet either!:rotfl:
The calls will not stop for a little while so get your thick skin ready and wait for CCCS to do their thing (I'm assuming CCCS have all your info?).;)

Sorry if I've missed anything or not understood something.:)