DMP & Mutual Support Thread - Part 8

Wannabefree1

typhoo wrote: »

Ok thanks for letting me know. So does every payment count as a default through the DMP? Or is it just the first few?

I'm concerned as I'm currently 24 (with nearly 30k debt) but taking action now. My main aim is to try and get a mortgage when I'm around 30 and with a family hopefully! My DMP is scheduled to run for 5 years so hoping to be done with debt by the time I'm 30. Realistically will I be able to get a mortgage at that time with my credit score?

Hi

No, you only default once. The default when settled will disappear six years from issue. So ideally if they default you straigt away, you settle your debt in 5 Years you should only have a further year before it's removed.

However, the problem comes at which point they default you!! Some companies don't do it right away so you will have to wait longer for the 6 year timer to complete.

Mortgage providers will frown upon defaults as they do CCJ's and poor payment history. When we got our mortgage my hubby was financially associated still with his ex and she had a few CCJ's to her name but we still got the mortgage. But following the financial crisis I doubt they are so accommodating. Somebody may know more about this than me.

PinotGrigio41

pumpkinsoup wrote: »

hi all after burying our heads in the sand once again!! we are now at rock bottom hubby got made redundant 3rd of jan!! luckily he started a new job more or less straight away but has had to take a pay cut!! of around 400 a month!! we were on the verge of a dmp b4 but now for sure!!
i have filled in the debt remedy on cccs website and they are posting forms out to us!! just a bit concerned as it says on site i cant accsess details now but i wanted to write down the budget so i could make a start!! will they send me the budget through the post or have a gotta rake through my big expaning older and do it again??
many thanks for any replies.

Hi pumpkinsoup, I rang the CCS and asked them to email the debt remedy which I received pretty much instantly. It gave me a chance to go through the figures and start to make plans prior to the postal paperwork arriving. We didnt use the CCCs in the end, but their debt remedy is great. Actually I think if you filled it out online, if you log back in you can request an email from there. Good Luck with everything .

nicrobx4

Hi all,
I have just received my deby remedy from CCCS who think a DMP would be the best option. They have suggested i open a new bank account. We are also looking to emigrate in May so was wondering if anyone could suggest the best account that would enable payments from OZ to make payments
Cheers

2spicy

nicrobx4 wrote: »

Hi all,
I have just received my deby remedy from CCCS who think a DMP would be the best option. They have suggested i open a new bank account. We are also looking to emigrate in May so was wondering if anyone could suggest the best account that would enable payments from OZ to make payments
Cheers

Im sure any bank will accept transactions made from abroard, but yoru probably getter getting an account with a bank that has a world wide presence rather than a UK one.(we have accounts with HSBC and frequently transfer money into our French account(when I work in France its easier to pay for fuel / food etc using a french debit card)).

One question though, how is emergration accepted when going on a DMP ? I would have thought this would start to worry creditors as you wont be in the country

BlushingRose

Wannabefree1 wrote: »

Hi BR,

I'm concerned that it's so tight for you. Are you still keeping a spending diary? I'm just wondering whether your budget isn't quite right with CCCS. Or have you had added big expense to pay a well this month?

We were allowed £20 per person for a clothing fund a month (4 of us). So it meant I'd transferred £80 into a second account when I got paid. And therefore had enough money this month to sort eldest out who was nothing short of desperate! I doubt we'll need £80 a month - we're not used to replacig our clothes - but there are a few items like hubby's work boots that we need to sort out ASAP. Then I'm going to let the fund increase for a while and eventually shave some off into a lump some for the DMP (as advised the best was by Payplan)

Shopping fund for food isn't so great. I think I have 55 left for the next 2.5 weeks. But I do have some stuff still in the house as I start the month with a big monthly dry stores/freezer shop. But can then spend an extra 40 a week on fresh stuff. So this will be my challenge the next 2 weeks!

I hope you an pinpoint what's causing things to be tight for you and get it corrected. I think all you would need to do is phone CCCS and tell them it's not working for you and in what areas.

Did you ever post a SOA - maybe one with your CCCS budget and comments where your struggling - perhaps we can spot something and help you?

I feel some cyber hugs looming for my (((twin)))

Next month, we have the MOT/car Tax (and any repairs) to contend with. This is a worry, although CCCS have said to let them know re: repairs, Mr BR doesn't want to stop the CCCS payment if we can help it (argument on it's way there, I suspect)

I started to keep a spending diary on the 20th Dec which was payday. By the 29th of Dec we had £125 left in the bank for the month, which was for petrol and food. We're doing quite well when you look at it like that.
Our SOA was, apart from the DD/SO & debts, a bit of a guess I suppose. We did it through the CCCS website too, and it told us to put things at certain amounts if we weren't sure. In Dec, we had a payment of £45 and another of £25 which were one offs. but for Jan/Feb these'll get swallowed by the MOT?Car Tax so we won;t be any better off, in fact I'm expecting to be worse off.
What didn't do, though, was to work out how much we had for the month straight away and then divide it by 4 (or whatever) to find out how much we had a week or anything. Also, we haven't been putting anything aside for tv license or anything like that cos we don't have the spare money atm. Alos, and the CCCS didn't pick up on this at all, we have nothing in the budget for an emergency fund.

PinotGrigio41

BlushingRose wrote: »

Next month, we have the MOT/car Tax (and any repairs) to contend with. This is a worry, although CCCS have said to let them know re: repairs, Mr BR doesn't want to stop the CCCS payment if we can help it (argument on it's way there, I suspect)

I started to keep a spending diary on the 20th Dec which was payday. By the 29th of Dec we had £125 left in the bank for the month, which was for petrol and food. We're doing quite well when you look at it like that.
Our SOA was, apart from the DD/SO & debts, a bit of a guess I suppose. We did it through the CCCS website too, and it told us to put things at certain amounts if we weren't sure. In Dec, we had a payment of £45 and another of £25 which were one offs. but for Jan/Feb these'll get swallowed by the MOT?Car Tax so we won;t be any better off, in fact I'm expecting to be worse off.
What didn't do, though, was to work out how much we had for the month straight away and then divide it by 4 (or whatever) to find out how much we had a week or anything. Also, we haven't been putting anything aside for tv license or anything like that cos we don't have the spare money atm. Alos, and the CCCS didn't pick up on this at all, we have nothing in the budget for an emergency fund.

BR if you can bear it, it might be worth you posting your SOA, as there might be something glaringly obvious to the experienced people on here ( I'm not included in that obviously !). It does sound as though something may have gone amiss. I did my initial Debt Remedy online, but then I called them and they went through everything with a fine tooth comb. If you dont want to post your SOA I do really think you should try calling them again and explaining to them what you have told us, if you havent already done so x

Wannabefree1

PinotGrigio41 wrote: »

BR if you can bear it, it might be worth you posting your SOA, as there might be something glaringly obvious to the experienced people on here ( I'm not included in that obviously !). It does sound as though something may have gone amiss. I did my initial Debt Remedy online, but then I called them and they went through everything with a fine tooth comb. If you dont want to post your SOA I do really think you should try calling them again and explaining to them what you have told us, if you havent already done so x

I second this. Something isn't right somewhere. It doesn't seem you had enough for the month ahead to me. I know Mr BR probably wants to stick to the original plan but this is for the long term and it's got to be achievable.

Jenjen

Blushing Rose, I really think you need to consider reducing your DMP payment to start with. From what you have said before you are going to be debt free in about 8 years currently if I remember rightly. That means you must have quite a high DMP payment judging by the size of your debt. We have started with a very low DMP payment (£147) and it will currently take us over 16 years to repay. We intend to increase it later when we can and have a few plans for how that will happen, but for the time being we thought it better and CCCS agreed to start off like this and get ourselves back on our feet. Non of our creditors have objected to the long repayment time and we have had no hassle from any of them at all. Not one of them has felt the need to ring us and most haven't even bothered to write. So don't try paying more than you can afford and leave yourself short. That defeats the whole purpose of a DMP.

Why don't you post a new SOA using the figures you have agreed with CCCS and let everyone on here see what they can suggest to help.

BlushingRose

OK, I'll repost the CCCS SOA - but as I can't find the web log-in number I'll have to copy it by hand from the paperwork the CCCS sent us.

BlushingRose

Here we go - be *kind*

This is the CCCS approved SOA -

Mortgage - £662
Water - £20
Council Tax - £87 - Paid over 12 months
Gas - 23
Electricity - £27 - Gas and Elect tied into a 5 year deal
Building & Contents Insurance - £30
Telephone inc Internet - £50 - tied to one service provider, cannot switch
TV license - £14
Life Insurance - £81
Car servicing/spares - £15
Road Tax - £10
Car insurance - £20
Fuel & Parking - £80
Groceries inc cleaning products and toiletries - £280
Pet costs - £20
Clothing/footwear - £20
Profession/Union fee - £31
Medicines/prescriptions - £10
Dentist/opticians - £10
Newspapers/Mags - £20
Entertainment - £20 - although we don't actually do anything or go anywhere.

Total expenses = £1530
Total Income = £1994

Difference handed over to CCCS £464