DMP & Mutual Support Thread - Part 8

tomandjerry

Time_to_face_the_music wrote: »

We actually considered coming out of the CCCS DMP and running our own so we could adjust payments to creditors. Is that worth considering?

Hi Time to face the music,

Is that possible? I have been on a DMP with CCCS for the past 5-6 years, would that be a good idea? What are the rules or where to find them?
Many thanks,
T&J

Time_to_face_the_music

tomandjerry wrote: »

Hi Time to face the music,

Is that possible? I have been on a DMP with CCCS for the past 5-6 years, would that be a good idea? What are the rules or where to find them?
Many thanks,
T&J

Hi T&J :hello:

It's dependent on everyone's individual case but we have considered it because some creditors have refused to stop interest from the start of our DMP and some are threatening to restart it as we are reaching minimum payments.

We have looked at the way that CCCS work out their payments to creditors and they are based on a % of the minimum monthly payment rather than the total debt. This means that relatively small debts with a high minimum payment % are being paid off quicker than large debts with a low minimum payment %. To give an example, we have a debt with a balance of approximately £5900 which receives a payment of £202 each month and another with a balance of over £10,000 which only receives £200 per month. This means that lower debts reach minimum payment levels quickly and the creditor then threatens to reintroduce interest.

We have looked into self managed DMPs and the advice there is that payment to creditors should be made as a % of the total owed, this method of distributions seems much fairer and means all debts should be paid off at the same rate.

Sorry this a bit long winded and rambling but am happy to answer any other questions you may have. I used this website to make the calculations for the self managed DMP v the CCCS one. If we do end up going self managed, this is the route we will take:

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

parsniphead

Hi Everyone

I wondered if anyone could help me with my question.

I have been in a DMP with Payplan for a number of years which has run very smoothly. I have recently been awarded a big PPI repayment from Barcl4ys which part of it they used to clear the existing balance on my loan which was fine by me as it's what I would have done anyway.There was an amount of money left over after this which they forwarded to me.

What I would really like to do is use this money to pay off another chunk of my DMP but have heard that creditors can stop the DMP if you overpay.

Is this correct and would I be better to save the money to use at the end as a big final payment or are over payments OK?

Thanks in advance.

Time_to_face_the_music

parsniphead wrote: »

Hi Everyone

I wondered if anyone could help me with my question.

I have been in a DMP with Payplan for a number of years which has run very smoothly. I have recently been awarded a big PPI repayment from Barcl4ys which part of it they used to clear the existing balance on my loan which was fine by me as it's what I would have done anyway.There was an amount of money left over after this which they forwarded to me.

What I would really like to do is use this money to pay off another chunk of my DMP but have heard that creditors can stop the DMP if you overpay.

Is this correct and would I be better to save the money to use at the end as a big final payment or are over payments OK?

Thanks in advance.

Hi parsniphead :hello:

Great news on the PPI and paying off a loan :T

I think the official advice on a windfall is that you should pay the money to your DMP provider and they will distribute the money fairly among your creditors.

With this done and the extra money now available from your paid off loan, hopefully your DFD will be a lot sooner :j

vickle1970

Hi

I started my DMP last December, 2 off my creditors are now paid off they were payday loans. My biggest debt is now my old bank account overdraft with Santander.

I have been reading about still being able to claim back charges under hardship rules. At one point my original overdraft was reduced by the bank giving me only 30 days notice and this was the start of me stupidly taking out payday loans to try and make ends meet. I did call and tell them I could not afford to pay it back at the time.
I have also had a lot of reduced pay this year due to illness. Is it worth trying to claim back to try and reduce my debt?

Any advice appreciated

Vic

RubyLou89

NaughtySpot wrote: »

Have you got a date for your first CCCS payment? It does all go a bit quiet TBH until your creditors send you default notices. If you're changing bank accounts get that sorted now, and just make token payments to creditors if payments need making. Also cancel all your direct debits to your creditors.

I've just spoke to CCCS . they said our first payment is set up to leave on December 1st. I've just cancelled all my direct debits. thanks for your advice.

parsniphead

Thank You Time to face the music.

I really want to put it towards debt repayment but didn't want to cause myself problems.

This should knock another 4 months off my DFD bringing it down to 10 months. :j:j:j This time two weeks ago I had another 3 years to go and now I can see the light at the end of a very, very long tunnel.

NaughtySpot

vickle1970 wrote: »

Hi

I started my DMP last December, 2 off my creditors are now paid off they were payday loans. My biggest debt is now my old bank account overdraft with Santander.

I have been reading about still being able to claim back charges under hardship rules. At one point my original overdraft was reduced by the bank giving me only 30 days notice and this was the start of me stupidly taking out payday loans to try and make ends meet. I did call and tell them I could not afford to pay it back at the time.
I have also had a lot of reduced pay this year due to illness. Is it worth trying to claim back to try and reduce my debt?

Any advice appreciated

Vic

Are they still charging you interest and bank charges? If so I would write to them (see the letter a couple of pages back) and maybe tag on the bottom about refunding previous charges.

If they are no longer charging interest then I would still try, it's worth the cost of a stamp. Wouldn't it be great if they refunded it and your overdraft went down. :money:

claredd1976

Hi, hoping someone will be able to advise me. My ex-husband and I are on a DMP with CCCS, we seperated in January this year, but continued to pay the monthly payment. However, this morning I received a text message!! telling me that he has declared himself bankrupt!

What does this mean with regards to the DMP, am hoping that it doesnt mean I am now liable.

Thanks in advance, I'm worried sick x

Time_to_face_the_music

claredd1976 wrote: »

Hi, hoping someone will be able to advise me. My ex-husband and I are on a DMP with CCCS, we seperated in January this year, but continued to pay the monthly payment. However, this morning I received a text message!! telling me that he has declared himself bankrupt!

What does this mean with regards to the DMP, am hoping that it doesnt mean I am now liable.

Thanks in advance, I'm worried sick x

Hi Claredd :hello:

Did the DMP include single debts and shared debts? If any of the debts were in your ex's name only, I would assume that they are now taken out of the DMP and dealt with in his bankruptcy but I have no idea what will happen with shared debts.

Do you have a family home and if so, is he still on the mortgage? Any other shared assets?

I think you really need to speak to CCCS, or StepChange as they are now known, today.

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