DMP & Mutual Support Thread - Part 8

Growurown

MrDJB192 wrote: »

Thing is, this £275 is over HALF of my total monthly payment, so i'm a tad concerned that all the others are going to wonder why they're getting such a small slice of the pie so to speak

There is a calculation that SC use that either HH or TTFTM has posted before that works out how much each creditor is paid. Most creditors accept SC's figures and work with them but if you are really concerned why not contact them just to set your mind at rest.

Growurown

moneysaymoneydo wrote: »

hi, can someone out there please help with my question!

friend has a DMP with charity one (not sure which one but he has no charges) anyway he has been on it approx a year paying a monthly fixed sum, another friend who has a substantial amount of cash £140,000 wants my friend on DMP to "hold" this money for him in his account and has assured him there will be no questions asked as he is gifting this money to him, i suspect so he can claim benefits anyway is this possibly surely DMP people will have to be told and see it as an asset even if he is just holding it for someone!? would be grateful for any advice to tell him i just feel he could get into trouble over this.
thanks in advance

Sorry but this sounds very dodgy to me. If this money is in your friends account under his name it will be seen as his money even though the intention is to 'hold' it for his friend. This may affect his DMP. Plus you can't gift that amount of money, I think it would be subject to tax as it would be seen as income. If the person handing over the money is doing it to carry on claiming benefits then that would be illegal, and if your friend knows this this then he could get into trouble as well. Personally I wouldn't touch it with a barge pole.

MrDJB192

Looks like I've broken rules....didn't realise I wasn't allowed links in my signature. Hope I've not annoyed anyone....

Was just a link to a more in depth diary I'm blogging through the entire DMP start to finish. PM me if you would like to follow it

Time_to_face_the_music

MrDJB192 wrote: »

Thing is, this £275 is over HALF of my total monthly payment, so i'm a tad concerned that all the others are going to wonder why they're getting such a small slice of the pie so to speak

StepChange (ex CCCS) allocate their DMP payments based on your due minimum monthly payments to your debts, so the payments bear no comparison to the amount of money you owe in total. This particular debt is to a PDL so would have a very high minimum payment so they are getting the lion's share.

It's a big problem for us too as we hit minimum payments from the start of our DMP and hence creditors would not stop interest. M&S actually advised us to lower our payment but CCCS would not do this so we have paid, and looks like we will carry on paying, 24.9% interest throughout the DMP.

From a few comments on the Struggling with debt? Ask a debt advisor a question thread, it looks like CCCS are the only DMP company that allocates payments this way and we are not the only people with problems because of it. Alice in welfareland has posted about this several times recently and stated that she has been reading this thread. Hopefully she will answer you or you could send her a PM and ask her about it.

Time_to_face_the_music

MrDJB192 wrote: »

Looks like I've broken rules....didn't realise I wasn't allowed links in my signature. Hope I've not annoyed anyone....

Was just a link to a more in depth diary I'm blogging through the entire DMP start to finish. PM me if you would like to follow it

The same thing happened to SAAC, who I think she just changed the signature to give google instructions to the blog. Give it a go

Hopelessly_Hopeful

Morning All

How are we?

One more week of work for me then some very well earnt days off

HHx

fermi

Time_to_face_the_music wrote: »

The same thing happened to SAAC, who I think she just changed the signature to give google instructions to the blog. Give it a go

Don't. As that is also breaking forum rules. Sorry.

Hopelessly_Hopeful

Got my Northern Rock letter today saying I may have been affected, they will let me know in 8 weeks time. Fingers crossed. Great thought to thinking of being able to save a few weeks or months of the end of the mortgage.

HHx

Time_to_face_the_music

fermi wrote: »

Don't. As that is also breaking forum rules. Sorry.

But it's a CCCS (now StepChange) blog and MSE seems very keen on StepChange recently, so I would have thought one more chance to promote their services would be encouraged.

Time_to_face_the_music

Hopelessly_Hopeful wrote: »

Got my Northern Rock letter today saying I may have been affected, they will let me know in 8 weeks time. Fingers crossed. Great thought to thinking of being able to save a few weeks or months of the end of the mortgage.

HHx

Woohoo! Here's hoping HH :j