Will a DMP work for me ?

trevor_john

Hi Guys/Gals

I have debts that are getting very difficult to service.I am kiving in a rented house and employed full time and married. I have the following debts:

Bank Loan...£15000
Barclaycard £10000
Natwest card £5000
MBNA ...........£6000

I am up to date with them all but struggleeach month and borrow to make payments, If i apply to CCCS for a DMP are the above creditors likely to stop interest and allow me to repay the amounts outstanding. I know some will suggest a Bankruptcy but would rather halt the interest and repay what i owe. I apprteciate your thoughts/help
thx
T

taffy056

Why don't you put up an statement of affairs (SOA) and see where your money is going, and if any savings can be made, any agreements to pay reduced amounts are going to impact your credit file.

trevor_john

Hi I did the soa on CCCS site earlier. It explained that a DRP was for me and m,ost creditors will accept and will stop interest,all i wondered was folks experience with aboce creditors.

lindann_2

l would do a soa, for here, lot of experts here. Payplan is another good place to start with a dmp, like cccs.
Some people will find, that they had to move to a basic bank account or one that not related to your own bank:; You will understand that your main bills are rent/council tax, gas electric so on. what is left over will be paid pro rata,
You can ask to creditors to freeze interest and charges. Barclay will stop it for six months, in our experienced, but its up to each creditor. Going to a dmp, will stop the hassle of dealing with the phone calls, letters etc. Not sure what a Drp, is.. you have to pay a lump sum for Bankruptcy, it last a year, but again any credit ratings will be nil. for each, both has time limits. One thing l learnt on a Dmp, it gives us an insight, that when a person borrows money, its not our money, cash is always best... we are near the end of our dmp, fingers crossed, its been a long 7/8 years.. good luck

trevor_john

Thx for your reply. I will go via the cccs site as have filled out online. My main query was the stopping/freezing of interest. If Barclay only freeze for 6 months it will help although longer would be easier.As above i want to pay back what i owe minus the interest.If i go Bankrupt they get nothing so maybe they will freex longer.

sickasachip13

Hi,

We've been with CCCS for about 16 months, on a DMP. I did a blog about going on it, at CCCS' request - google the details in my signature if you'd like to see it. We started with 19 creditors, all of yours except Natwest, and 17 stopped all % straight away and haven't started charging it (yet). Two dropped the % to a nominal amount (a couple of quid a month). It's been a bloomin' godsend. Obviously going down the DMP will trash your credit history for several years, so you need to consider carefully.

SAAC

eyeopener2

My experience with two of those couldn't be more different.

MBNA - brilliant, stopped interest.

Barclaycard - initially stopped interest but have now increased twice in 12 months. Firtly to 6.9% and now 12%

Having said that you tend to find that each case is treated individually, or the evidence points that way from what I read on here daily. Some people have trouble with MBNA for example.

sickasachip13

PS. We have four debts with Barclays/card. Three of them have been 0% since the start and one of them is nominal %. It doesn't necessarily follow it will be the same for you, but there's lots of arguments and template letters to ask them to play ball.

eyeopener2

sickasachip13 wrote: »

PS. We have four debts with Barclays/card. Three of them have been 0% since the start and one of them is nominal %. It doesn't necessarily follow it will be the same for you, but there's lots of arguments and template letters to ask them to play ball.

Barclaycard seem to increase rates when certain thresholds are reached, I was quoted that when I paid over 1% of the balance, that was rate rise #1. When I paid over what is considered the minimum payment then all gloves are off.:mad:

Ah well.

sickasachip13

eyeopener2 wrote: »

Barclaycard seem to increase rates when certain thresholds are reached, I was quoted that when I paid over 1% of the balance, that was rate rise #1. When I paid over what is considered the minimum payment then all gloves are off.:mad:

Ah well.

That is so annoying. Un/fortunately for us, it'll be a long time before we reach anywhere near the minimum payment

trevor_john

Thanks all replies. Sickasachip I have read your blog and feel a lot better.