I'm scared of entering into a DMP! Please help!

lonely_2

Over the last few weeks, I have been trying to address the issue of my massive debt problems. My situation is that I have debts in excess of £50,000 to 7 different high-street creditors and a take-home income of £2650 a month. I can afford to pay back approx £1000 a month but my minimum monthly payments come up to around £1700. So I looked into an IVA and a debt management plan. Because I didn't want to have to release any equity in my flat and I was too ashamed to confess everything to my husband, I have opted for the DMP route with Payplan. Nothing is final yet (very early stages) but I am so scared that the banks will not stop the interest, and I will be on this DMP for the next 100 years! Also, I am 31 this year and desperately want to start a family, but with this looming over me I can't see that this will be a possibility any time soon. I feel sick with worry that I will start getting horrible letters and calls from the creditors as soon as I default on any payments - and I don't know whether I should do it from this month, before the DMP is agreed, or only after the DMP is confirmed. My fear is that if I stretch myself for another month, possibly getting into more debt, they will think I can afford to carry on doing this and not agree to a DMP at all.

Has anyone get any experiences similar to mine? I desperately need some reassurance that there is light at the end of the tunnel. I have heard that the banks are not obliged to stop interest and charges - is it common that they would refuse to do so even if they could see that I was trying my best to repay everything? And generally speaking do they prefer debt management plans to IVAs?

lonely_2

Anyone? Please - just some moral support would be nice ;-) I feel so low today.

Bloody_Hell_2

I don't know the answrs to your questions but I'm awaiting my DMP pack from CCCS so know what your feeling. I've read lots of advice on here and from CCCS, the main one being, you can't pay what you haven't got. And my understanding is that if your making payments of what you can afford, few companines will ever take it as far as court for the simple reason, the courts could decide to LOWER the payments your making.
Keep posting, others will be along soon - there's lots on here going through the same thing

franny

Lonely

I have just entered into a DMP with the CCCS. I too didn't know what to expect and now it is a case of wait and see to hear from my creditors. I feel much much better now that I have done this.

Just to add that you have now made the first, hardest step in admitting to yourself your situation and posting on here. I'm no financial expert but some of the guys on here certainly know their stuff and will help you all the way.

Prepare a SoA (a budget) including your income and ALL expenditure and post it and we will all go through it and help you save some money.

We are all here for ya

HHH_2

I have a similar amount of debt but earn less so am paying 545 per month on my DMP(3 months in). Personally it's been a bit of a bumpy ride but as soon as I started doing something about it I felt better. my advice is to start your DMP as soon as possible but first get a bank account which is not conected to any of your creditors and get your pay put into this account.( I didnt and Lloyds just about finished me off!) I have had letters and phone calls but providing you have your DMP number to quote they should tail off after a few weeks, having said this after 5 weeks of no calls I did get one last night(Lloyds!!). THis is a great place to air your worries as the ashamed feelings get relaced by more postive feelings and a I CAN DO THIS attitude.Most of my creditors have stopped interest Lloyds havent!!! I am assured they will eventually. I am now looking at my debts going down very gradually.Ive no experience of IVAs but someone will reply soon I'm sure. Some of the DCA have actually been very helpful so dont be scared.Good luck you've made a start and that's got to be the best thing you will ever do.

Bloody_Hell_2

reading your post again, don't over stretch yourself, send them a token payment of what you can afford and once your DMP is set up you can ask them to speak to the Payplan about it.
I'm not looking forward to calls/letters but i'm expecting it

lou_lou_skinty_poos

hi im on a dmp nearly a year now it was the best thing ave ever done its hard at first they lenders do call you a lot and you do get letters. the only difference is that i dont own any property so there was no other way to get any money from than what i have offered as i dont think a ccj would be worth it to the company. with regards to your flat do you have a joint mortgage with ure partner if so you are financially linked and if you get defaults this may affect his credit rating. its something to think about good luck with everything

Don'tskipit

Hi lonely,
Thank you for taking the trouble to reply to my problem.
Have just seen your post - wish you well.

Bestthingsinlifearefree

Hi !

You have a good income so you may well be able to tackle your debts with out a IVA / DMP etc.

How / why has the debt been run up ? Can you keep a spending diary to see where your money is going ? From the little info you have given, the problem seems to be not a lack income but to much spending. By jumping into an IVA and DMP this will not address the behaviour that has got you to this situation.

How much equity have you in your flat ? etc

Could you post a SOA ?

http://forums.moneysavingexpert.com/showthread.html?t=107280

Can you not talk to your husband about this and draw up a joint strategy to strenghthen your joint finances ?

You have options. To explore those options and give you the best advice we need more info i.e an SOA.

Help us to help you by posting an SOA.

That is the first positive step forward.

Keep posting.

I wish you well.

Best,

lonely_2

Thanks for all the messages of support, I really appreciate it.

HHH, Lloyds are my biggest creditor and I also had my account with them (just changed to Abbey). Can I ask why they refused to stop the interest? Do they tell you why?

Ex-Spendaholic

Hello and welcome to MSE

You have taken a big step in coming on here. :T It will all get easier now. I'm in a similar situation. I went to CCCS and was offered a DMP. It took me forever to actually fill in the forms as I was terrified too. However I sent everything off last week and I sent all the forms to my creditors. I'm still waiting to hear back from CCCS and I am panicing a bit in case everything falls down round me. The very thought of making one payment per month and having it all sorted is just fantastic. I feel like an enormous weight has been lifted off my shoulders. According to CCCS it will take 22 years to clear my debts. :eek: I'm determined to do it sooner though. There's some fantastic advice on this site. Have a good look around. Join the cashback sites etc. There is money out there to be made.

Good luck.