Spoke to pay plan . Right decision?

benny_hawkins

Hello , I hope that one of you kind people can help with my situation.
My financial situation :
Mortgage approx £88,000. Santander
Whie label loan secured£20,000 approx 17 years left
Property worth £250000

Credit card rbs. £7400
Credit card Santander £1100
Barclay loan £7500 approx
Santander loan£10000
Barclays overdraft £1000 (£500 reserve which I don't understand)

My salary £23000

Problem: Barclays would not increase overdraft.I always seem Togo into overdraft receiving letters etc.
I contacted Payplan. Told them everything.
They will contact me again on Weds.
I wa told that they would accept£100.00 per month if successful.
I have opened up a nationwide account.

I have told my brother, who is understandably furious with me.
He thinks I should see citizens advice, before committing.
He also was asking , how the companies get the money back, as I'm 50 in December .

Please could you advise?

Thanks
Interst going up on credit cards.

antonic

I have been with Payplan for 74 months (10 to go !)

I have had no problems with Payplan AT ALL during my time with them.

As for your brother you should of course listen to his opinion BUT unless he is going to clear your debts for you, its your decision that counts.

And congratulations on your LBM and facing up to your debts.

DVardysShadow

It looks like you have reached the stage of needing to borrow to keep up your payments. At a guess. This is the road to ruin.

Payplan are fien as a dmp manager according to accounts here. I suggest also you fill out a statement of affairs http://www.makesenseofcards.co.uk/soacalc.html and paste a copy here. Then people can advise on what other things you could do to bring your finances under control.

desperate_mum_3

Hi , I went with payplan many years ago before going bankrupt I personally didnt find them much help i was paying them regulary but the debt will never clear i then found this site and found everyone on here so much more helpful ... good luck

I_luv_cats

(a) A budget is a must before you do anything. (as o/p has suggested too)

(b) https://debtremedy.cccs.co.uk/start.aspx?WT.svl=cta_dr_2

you could use the above CCCS online debt remedy to see what are your options.


(c) http://www.nationaldebtline.co.uk/

National Debt Line is another option

(d) Your solution really would be based on how much money you have left after a sensible/realistic budget to pay your creditors. (IVA/DMP/Sell your house etc.)

Mort

We were with Payplan and have cleared our debts, have a look at this thread which gives some advice.
https://forums.moneysavingexpert.com/discussion/2077631

Payplan work out a budget with you which results in a sensible amount to go towards the debts. CAB will probably put you in touch with a debt company. Whatever you decide to do don't be tempted to sign up with anyone who will charge a fee.
Good luck.

fatbelly

Mort wrote: »

. CAB will probably put you in touch with a debt company.

There are formal links with CCCS now. I believe some advisers still refer to Payplan. Both are very good at what they do and fee-free. In most instances we assist the client to set up a self-managed plan (if that's the preferred option)

Poosmate

Sounds like you've more or less made up your mind about going on a DMP. I don't think anyone can really offer any meaningful suggestions without knowing all of your income and expenditure.

Please post your SOA using the link in DVS's post for more specific assistance.

What are the APR's on your debts and the monthly repayments? What is the term of your loans?

Not sure what is meant by your Barclays O/D and reserve of £500 - are you going £1k into your O/D each month and does that mean you're going £500 over your agreed O/D limit?

I had a Woolwich One Account mortgage which gives a current account attached to the mortgage. The current account comes with an O/D which increases as you pay off your mortgage. This O/D is referred to by them as a "reserve". These Woolwich mortgages were taken over by Barclays. Interest on this O/D (or reserve) is charged at the same rate as your mortgage so really cheap. Of course with it being tied to a mortgage it also becomes secured debt EEK! so should be used with extreme caution!

Good luck with whatever you decide to do.

Poo

benny_hawkins

Thanks for your help so far. I keep going past my £1000limit with Barclays, then I enter £500 reserve which I do not understand.

I will do soa tomorrow.

When I paid a cheque in my Santander acct on Monday , the cashier
Just coincidentally mentioned a possible homeowner loan.
They couldn't do it as I don't earn enough.

This made me take action and contact Payplan.

My brother says see cab before weds,or ask Barclays for help.

I don't know ifbive left it too late.

benny_hawkins

I do realise I will not get credit for six years.
I don't know how long will the Payplan go on for, or how the people I owe money to get all I owe.

Bangton

Why would you have left it too late?

I have found payplan to be great and am so glad I took the plunge as I am not far from clearing my own debts thanks to their help and support.

Saying that, is £100 all you can afford to pay each month as that would take a fair time to pay off all your debt?

The companies get the money owed back as ideally you enter into a plan for enough years to ensure the creditors are completely paid back. If that takes 4, 10, 16yrs etc so be it!