DMP & Mutual Support Thread - Part 8

Time_to_face_the_music

sammyboyblue wrote: »

We have made 4 payments into our DMP but unfortunately i have been made redundant, i tried to change our income and expense form on payplans web site to reflect our new house hold income but payplan have said there is now a deficit and they wont be able to help. I have a budget review with our case worker on the 29th. As any one any experience in these situations, will i be advised to go down bankruptcy/IVA route.

thanks sammyboyblue

Hi sammyboyblue :hello:

Sorry to hear about your redundancy news

I don't think an IVA is an option if Payplan state that there is a deficit but I am not an expert on this. Bankruptcy is definitely an option but again I don't know a lot about it. If you ask on the main DFW forum, you will get some really good advice from posters like Fat Belly and Gimp's Dad among others who are extremely helpful.

Any chance of a new job in the near future? If so, maybe you could offer token payments for a couple of months and then pick the DMP back up again. Make sure you find out all your benefit entitlements and start claiming these ASAP.

Good luck and please let us know how you get one

Time_to_face_the_music

win123 wrote: »

To Tigsmom
What would I do without you thank you so much for your advice yet again much appreciated - I will look into this anyway the DMP is going to be up and running by Dec i think she said - so will get saving - just reading some other threads and someone says that a DMP free company has rejected someones dmp if they dont tighten their budget we have been told that it will be 100 per month - They are ringing friday AM to start stage one of the DMP i just hope they dont expect mum to cut back anymore as she cant - the more I am reading the scarier things are - when I rang them today I asked them would it only be 100 that we would be paying and she said yes providing our income etc does not change - but what happens if they decide we can pay more and we have to cut back on things - we cant cut back anymore - sorry I am a worrier I know tigsmom lol

Hi win123 :hello:

If CCCS are ringing you tomorrow, make sure you have everything written down for all your incomings and outgoings, any other information and also all the questions you want to ask them.

They are very friendly and helpful and really don't mind how many questions you ask so you are sure to get it all sorted

Time_to_face_the_music

2spicy wrote: »

You can do whatever you want ... if one creditor has been particularly understanding, then you can choose to settle the debt with them.

If you want to pay off or make an offer to pay off a creditor, you can. Personally, I would contact your DMP company, and tell them what you want to do. If your outstanding debt with Wonga will remove them as a creditor, DO IT !!!.. then just keep making the same DMP payments each month so the rest of your creditors receive a little more.

We plan to do the same, Barclays have been very understanding, Froze interest immediately and have genuinely been nice about the whole debt thing. Were saving to offer them a full and final settlement.

We are going to disagree on this but let's agree to disagree and do it nicely because we all support each other on this thread

I would always pay extra money off a debt to a creditor who is still charging me interest over one who has frozen it. Every extra penny we have goes towards an interest charging debt and as soon as the first one is paid off, that extra will move towards another one :mad:

I appreciate the sentiments but with interest still coming in at around £230 a month, paying off those debts first has to be my priority

Time_to_face_the_music

SARAHJANE wrote: »

:mad: we,ve been getting help off the nationdebt advice line , they have recommended that we enter a dmp. so i have done the final paper work and sent it off. im just wondering how they work ,we have £106 spare each month & our debt is about 30k . how many years wiil we be under the dmp plan . :eek:

Hi SARAHJANE :hello:

That is likely to be a very long DMP at a predicted 23+ years, if all your creditors stop interest

Is it likely that your payments to your creditors are likely to be able to increase over time? if so, this could obviously cut down the length of your DMP.

Did National Debtline give you any other options or suggestions? It could be worth giving CCCS or Payplan a call and seeing what they suggest.

southernbelle

2spicy wrote: »

You can do whatever you want ... if one creditor has been particularly understanding, then you can choose to settle the debt with them.

If you want to pay off or make an offer to pay off a creditor, you can. Personally, I would contact your DMP company, and tell them what you want to do. If your outstanding debt with Wonga will remove them as a creditor, DO IT !!!.. then just keep making the same DMP payments each month so the rest of your creditors receive a little more.

We plan to do the same, Barclays have been very understanding, Froze interest immediately and have genuinely been nice about the whole debt thing. Were saving to offer them a full and final settlement.

Thank you very much. Wonga have actually been one of the most understanding of all my creditors, so I am keen to pay them off first. It's also the smallest debt so it will be a good incentive to keep going.

2spicy

Time_to_face_the_music wrote: »

We are going to disagree on this but let's agree to disagree and do it nicely because we all support each other on this thread

No, No, totally understand where your coming from, and do agree with you. (gosh that's the politest disagreement I've ever had with someone !!)

If its a small debt, then it would be easier to get rid of, plus you have the physiological factor that your total number of debtors has been decreased, and one debt has been "settled".. so its an incentive to keep on going.

If there are debts that are larger and still charging interest, then, yes, I agree too that it maybe better to try and reduce these first.

Time_to_face_the_music

2spicy wrote: »

No, No, totally understand where your coming from, and do agree with you. (gosh that's the politest disagreement I've ever had with someone !!)

If its a small debt, then it would be easier to get rid of, plus you have the physiological factor that your total number of debtors has been decreased, and one debt has been "settled".. so its an incentive to keep on going.

If there are debts that are larger and still charging interest, then, yes, I agree too that it maybe better to try and reduce these first.

Oh I love these polite disagreements :rotfl:

Tigsmom

I think I would pay the small debt off too. It's one less column on the spreadsheet...

southernbelle

Another question...

has anyone had any luck with persuding HSBC to stop interest? I am starting to write a letter every month and wear them down! :rotfl::o

Time_to_face_the_music

Tigsmom wrote: »

I think I would pay the small debt off too. It's one less column on the spreadsheet...

It's a nice psychological boost to have one debt paid off but it always makes more financial sense to pay off the one with the highest interest