DMP & Mutual Support Thread - Part 8

matty2712

Hopelessly_Hopeful wrote: »

Hi Matty

Without meaning to sound rude it seems you are yet to to finsh having the lightbulb moment! Perhaps you could do with deferring start of the DMP, send tokens of £1 for two or three months so you can be paying your family and getting to grips with what you owe and to whom.

Does that help?

HHx

See your point,

whats the lightbulb moment? perhaps im going into this way too fast, I didnt think I could defer that long, thought I had to set it up almost straight away to get these paid off. by deferring 3 months I could save up a little and pay off my bro in laws debt, and maybe have some left over as an emergency fund, what would the consequences be for deferring by 2-3 months

2spicy

matty2712 wrote: »

See your point,

whats the lightbulb moment? perhaps im going into this way too fast, I didnt think I could defer that long,

LBM ... That moment of crystal clarity where you know exactly what path to take, it will all make sence.

If I was you, stall the DMP by 1 or 2 months.
Write to your creditors, keep them informed all the way (this is the key, keep the infomation flowing). Tell them that you are in desperate financial "doodoo" and that you are working out a solution with a DMP. Send them a token payment, that way you show willingness to repay yoru debts, and work out in order or priority what to do with the spare cash you will have when not paying your debts .. ie clear that secured loan ASAP). if it takes 2 or three months, keep doing the same to your creditors, write to them, appologise, admit your in a financial and tell them you cannot give them what you donot have.
As I have said many times before, it now becomes a Game ... you have to know how to play it by their rules, but you can cheat the system a little too.

after 2 or three months of giving token payments, get the DMP up and running ASAP, and start climbing the ladder to Debt freedom.

Remember, they are going to hassle you and chase you during the token payment stages. Be Strong, dont give in. Stress "you cannot give them what you donot have to give".

If it helps, make something up ... House repairs, car repairs to continue working.

Also, when you are documenting your income and expenditure, dont forget to put down prescriptions, haircuts, pet food etc.
You might not spend that money in reality, but its a useful buffer to fall back on, or bank for when you need a few £££ (birthdays, car repairs or a bottle of wine to remind you your human) !!

Growurown

matty2712 wrote: »

See your point,

whats the lightbulb moment? perhaps im going into this way too fast, I didnt think I could defer that long, thought I had to set it up almost straight away to get these paid off. by deferring 3 months I could save up a little and pay off my bro in laws debt, and maybe have some left over as an emergency fund, what would the consequences be for deferring by 2-3 months

The same as going on a DMP. Creditors know that priority debts come before them, although that won't stop them trying to get money out of you. Provident squeeze money out of people knowing full well they are months behind on their rent, but they don't care.

You need to keep in touch with them all and let them know what you are doing. They might give you a hard time, send you letters etc. but you can ignore those pretty much, as long as you keep them informed.

Your lightbulb moment? LBM? Well it is that moment the light goes on in your head to say 'I can't do this any more. I can't sustain this level of credit and live.' In fact I'm sure there was a thread about your LBM. One person said it was when he had just got paid and there was still no money and nothing left on the credit cards either.

Lady1982

ah thats helps me massivly as i am waiting on 2 statements- will get the DMP posted this afternoon and just include the account numbers and balances
thanks x

Tigsmom wrote: »

I'm probably a bit late in posting this (my email alerts stopped working!) but I just wanted to mention that I had been holding off sending my DMP off because I didn't have up to date statements from all of my creditors and the DMP said I needed to post these with the DD form and agreement. Some of the accounts were online and our loan only sends statements annually. Anyway I emailed CCCS and they have just replied saying they are not needed. They just need the outstanding balance and the account numbers. They can also put the DMP on hold for up to 6 weeks while we set up our new bank account and send letters to our creditors. Hope this info is helpful to others just starting out.

Tigsmom

Lady1982 wrote: »

ah thats helps me massivly as i am waiting on 2 statements- will get the DMP posted this afternoon and just include the account numbers and balances
thanks x

Glad I wasn't too late. I've sent them an email with mine and will also be posting my DMP this afternoon. Still waiting for my new bank details though. It's been a week, was hoping to have it by now

Time_to_face_the_music

Kittypurr wrote: »

Hello everyone, been reading these posts and really glad to have had a source of genuine advice. Great to hear about others experiences. Thanks!
I am in the process of setting up a DMP after lots of research into options and a failed attempt at loan consolodation which I prob would have regretted anyway. I have been paying all debts till now, but relying on my BF and friends to feed me, pay for car maintenace etc every month as I have a job but doesnt pay enough lol. Not sustainable long term. I got into debt after taking out a CDL to do a course that normally leads straight to a job earning £27 plus. But for the first time they did not recruit this year and it took me five months to get a job despite lots of applications. So the debt grew from 0 to 10,000 CDL loan with Barclays, overdraft 1,500 and 3875 creditcard was EGG now Barclaycard.
Anyhow when I did a serious budget sheet I was shocked as had so little left. I knew I couldnt carry on. Really upset to think about getting any defaults as I know BF would like us to buy together in next few years. Thats going to be a mare.

Anyhow decided to post as other posts helped me so much. Also as Payplan gave me some very baised advice in my opinion and alot of pressure to do an IVA rather than DMP. They said false things to 'scare' me into IVA rather than DMP. I let national debtline know as Payplan had poo pooed the advice given by National Debtline too. I suspect they thought they could make more money out of me as you have to pay for an IVA and my debt quite high. I explained my circs likely to change and I want less stigma if possible. Had to say over four times, Im phoning to do a DMP. They made it sound horrendous and IVA easy and simple and perfect (in my opinion).
Anyhow enough ranting. Upon advice of national debtline referred and changed to CCCS. Who sound brill from these posts and apparently have a good relationship with Barclays. Just concerned me.

I have set up bank account and transferring. Think I will need to pay Bcard as due on 18th but hope CCCS all sorted by end of month for the rest as want all to be as smooth as poss.

One question, I live with my landlord and it could be a real problem if hassled my collectors etc might put my accom at risk, can they do this? Are they likely to?

Thanks all

Hi Kittypurr and welcome :hello:

I think your post got lost in a bit of a flurry.

I am not sure about the landlord question but most people advise that you should tell your creditors to only contact you by post, i.e. no phone calls. After the first few weeks, we have had no real contact with our creditors except for the usual monthly statements. We did have a few phonecalls at first but certainy nothing over the top, though I think it could depend on who you owe money to.

I'm not sure if anyone has suggested this to you but if you are struggling to pay Bcard this month, you can just send them a token payment, until CCCS gets it all set up for you.

Well done on getting the DMP sorted out with CCCS, they are really helpful and supportive :T

Good luck and please do let us know how you get on

matty2712

Finally getting somewhere, new bank account sorted ready for my DMP with CCCS, at first I thought I might not get 1 as I was refused twice, but thanks for the advice from all/most of you guys, The Coop have accepted us, Yipppeeee, be a couple of days now until its fully functional.

A bit of good news from Provident, they were the only people I was very concerned about, also with our agent. Anyhow RESULT, the agent have come to see us and give us their best wishes, Thought this wouldn't be the case.

My next step is to see my Bro in law, who is guarantor for a loan I took out, dont know how to break it to him as he is also a good friend. Would it affect his credit rating as im going into a DMP, or has anyone else had a guarantor on a loan who may be able to help on this situation.

The ball is now rolling

Matty&OH;):)

dfwsometimesoon

if u fail to make full monthly payments then they will take from his bank account as he is the guarantor he is liable for any payments u do not make.... and yes it will affect his credit report if he is unable to make the payments, as with the other loans that family members have taken out for u i would strongly advise u NOT to include this in ur DMP your brother in law will be out of pocket/credit report trashed if monthly payments are not made in full.....

matty2712

Good morning all,

Just a quickie regarding Token payments,

How much do you suggest as a token payment? should I send the letter of which i received from cccs with the token payment.

Oooppppssss

Im a little confused as to deferring the DMP, some people have said to defer for 2 months others have said to defer a month and others are saying to get it started asap. Whats your thoughts???

gizmo111

matty2712 wrote: »

Good morning all,

Just a quickie regarding Token payments,

How much do you suggest as a token payment? should I send the letter of which i received from cccs with the token payment.

Oooppppssss

Im a little confused as to deferring the DMP, some people have said to defer for 2 months others have said to defer a month and others are saying to get it started asap. Whats your thoughts???

How much is the guarantor loan - can you use what would be the DMP payments to clear that before you start the DMP?