DMP & Mutual Support Thread - Part 8

Growurown

Tigsmom wrote: »

Is it possible to get interest rates reduced without it affecting your rating?

No don't think so. When you take on credit you sign a contract agreeing to pay that interest rate, so if you pay less then you are breaking the terms of that contract which is 'defaulting' and this will affect your credit rating.

I haven't heard of any companies agreeing to change a contract allowing you to reduce interest, which is why people change cards so they can go for the 0% interest offers.

Tigsmom

Yeah you're probably right. We need to reduce the amount we are paying each month (£466 - £327 of this is interest!) so the DMP is looking like the only way. Oh well...

sunnyface

Just checked mine on Noddle - I am 1/5.
Could be worse I suppose ...

Growurown

Tigsmom wrote: »

Yeah you're probably right. We need to reduce the amount we are paying each month (£466 - £327 of this is interest!) so the DMP is looking like the only way. Oh well...

I guess for a lot of people the DMP route is very much a last resort, but when the proverbial hits the fan you don't have a lot of choice. Well that's how it happened for us, the credit just ran out. I wish we had gone on a DMP years ago now instead of struggling on as we did just getting deeper and deeper into debt. I can honestly say that our DMP has been a lifesaver, and even though our credit rating is now rubbish it was a price worth paying.

Tigsmom

Our first priority is to cut the amount we are paying to creditors each month because we just don't have any spare and even living frugally we can't afford to go to the dentist or opticians (and need to) or get the kids new uniforms. I don't think we can do that any other way than on a DMP.

bertman

Have had two letters now from MBNA, they have accepted the reduced payment offer from CCCS and frozen all charges. Best of all they have reduced interest to 0% :-) So just waiting on the others now. I have had a pack from CCCS showing what the offers are, I am quietly hopeful that they will all play ball.

My worry is that my DMP payment goes out on the 1st August which means that nobody will get a payment until the end of August which is some time off. I just hope they will all be OK with this. I only sent a token payment at the end of June so in effect they may go month without a payment. I range CCCS but they didn't seem to think it was going to be a problem, they are pretty laid back and this does unsettle me a bit knowing how the companies can behave.

We are getting loads of letters each day all basically saying the same - you haven't paid the minimum amount required or we are waiting on CCCS offer, I guess this will all settle down shortly though.

So far so good.....

Growurown

bertman wrote: »

Have had two letters now from MBNA, they have accepted the reduced payment offer from CCCS and frozen all charges. Best of all they have reduced interest to 0% :-) So just waiting on the others now. I have had a pack from CCCS showing what the offers are, I am quietly hopeful that they will all play ball.

My worry is that my DMP payment goes out on the 1st August which means that nobody will get a payment until the end of August which is some time off. I just hope they will all be OK with this. I only sent a token payment at the end of June so in effect they may go month without a payment. I range CCCS but they didn't seem to think it was going to be a problem, they are pretty laid back and this does unsettle me a bit knowing how the companies can behave.

We are getting loads of letters each day all basically saying the same - you haven't paid the minimum amount required or we are waiting on CCCS offer, I guess this will all settle down shortly though.

So far so good.....

All will be well Bertman. CCCS are laid back because they know the score. Lots of the letters you are receiving are generated from an automated system. Missed payment = computer going nuts. Keep in touch with your creditors, call them if you are concerned by what the letters say and explain the situation again if necessary. Once everything is up and running things will calm down. You will still get the occasional letter but most of us just ignore those as again they are sent by the computer, plus I think creditors have a statutory obligation to send them anyway.

bertman

Growurown wrote: »

All will be well Bertman. CCCS are laid back because they know the score. Lots of the letters you are receiving are generated from an automated system. Missed payment = computer going nuts. Keep in touch with your creditors, call them if you are concerned by what the letters say and explain the situation again if necessary. Once everything is up and running things will calm down. You will still get the occasional letter but most of us just ignore those as again they are sent by the computer, plus I think creditors have a statutory obligation to send them anyway.

Thanks -I spoke to them again this morning and they have allayed my fears over this, they really know what they are talking about - I just need to have faith in what they say. You are right about system generated letters, I have re-read the MBNA correspondence and they even state that letters will be sent out and to ignore them.

Growurown

bertman wrote: »

I have re-read the MBNA correspondence and they even state that letters will be sent out and to ignore them.

:rotfl::rotfl::rotfl:

So creditors are wasting money on posting letters you don't need. Gives them something to do I suppose.:D

nfollows1982

I am also having a great experience with Payplan, who seem to be mentioned a lot less on here than CCCS.

I've got all my DMP set up online and they have already submitted offers to the creditors which shows up on my online account, so I am just waiting to see what they all say.

The reply to emails straight away and never leave you hanging for an answer - I am really impressed with the service they offer.

I was so worried about going into DMP but I already feel its the best decision I have ever made when it comes to money.

I've got 2 basic accounts up and running, one for all wages and direct debits and the other one to receive a standing order each month for food/petrol money and expenses.

I feel so much better for not having credit, my OH has jumped right on board with the DFW ideals and it's made a big and postitve difference to our marriage now we have the support of Payplan.

For any newbies reading this and doubting the effect a DMP can have on your life, don't hesitate and just go for it!!