DMP with CCCS?

Gimpsdad

PS, where did this £5 per creditor come from? They will accept £1 per creditor according to their report on the token payment scheme. Maybe they don't consider it very much as an option anymore.

BlushingRose

Gimpsdad wrote: »

Fair enough Rose, but it is strange that IVA seems not to have been discussed or considered. The debt level at the bottom of your signature says £48,979. Divide that by 14 years and you get £291. £291 per month is more than enough to look at an IVA, or even an interlocking one if this is a joint situation. You have no legal protection from your creditors on a DMP and you cannot guarantee they will freeze interest, see numerous other threads on here re that. You say you may be able to increase shortly, that is good but still pretty useless if your creditors don't play ball.

So far, everyone if playing ball, so that's good.
Also, I'm aware of how much we owe, thanks

Gimpsdad wrote: »

Slow starter? Hope for the best and tough luck if it doesn't work out the way you planned might be nearer the mark. Apologies if there is some other reason why you have chosen the DMP instead of the legally binding IVA, such as equity/occupation etc, but if there isn't then hoping for the best is rarely a sustainable strategy in the long run.

We have chosen a DMP because that is what we were advised to do.
Do you work for a IVA company or something? You seem very keen.

Mrs_Arcanum

IVA's have different rules

HOW DO I QUALIFY?
If you want to be considered for an IVA under our IP panel scheme, you usually need:

debts totalling at least £15,000;
at least three different debts across at least two different creditors;
to be able to afford to pay at least £200 towards the IVA every month. You can also put in a lump sum or any assets you have; and
be able to repay at least 20p in every £1 to your creditors over the term of the IVA.

From National Debtline England

Gimpsdad

I will answer your points one by one.

Do I work for an IVA company? No, I work in bankruptcy actually. Am I keen? Yes, very keen to see debtors given the best advice possible. With all due respect, choosing a DMP "because were advised to do so" is nowhere near "we chose a DMP as an IVA was not appropriate because of......" or even "we chose a DMP even though we were well aware that an IVA or BR were much cheaper and quicker for us as we wanted to pay our debts back in full regardless of the timescale". That is fair enough, and I would not criticise it in any way.

What I do object to is the common misconception that free is best. Bad advice is bad, whether free or not. Cost is a distant second to quality.

To illustrate, you need to examine the evidence. Lets look at Mrs Arcanum's last post.

Gimpsdad

Who are National Debtlines IP "panel"?

No matter. Apparently you need £15,000 of debt. Er, no. Drivel.
You need 3 lines of credit across 2 different creditors. Certainly preferable, but not absolutely set in stone, therefore factually incorrect again.
You need £200 per month. Complete garbage, pure and simple
You need to pay back 20p in the £. This gets worse by the minute. An IVA is an alternative to bankruptcy and if it offers a better return for creditors than BR then creditors will give it due consideration.

It is little wonder that I question the motives of those that draw their salaries from creditor contributions when such mis-information repeats itself over and over again. Martin himself has a guide to IVA's which is laughable in it's errors and mistakes, but vulnerable people will take these "guides" as gospel when they are downright dangerous and misleading. I repeat, bad advice is bad advice, whether it is free or not.

Rochdale_Guy

Well, CCCS have offered £5 a month to The RBS for my overdraft, so maybe there is a £5 minimum or it just wouldn't be viable I guess unless you owed a much smaller amount than me?

Gimpsdad

Type "CCCS token payment scheme" into Google and make your own mind up. Much trumpeted, but quietly dropped it seems.

Even if you can do it, CCCS will not help you directly, you have to do it yourself.

BlushingRose

Gimpsdad wrote: »

I will answer your points one by one.

Do I work for an IVA company? No, I work in bankruptcy actually. Am I keen? Yes, very keen to see debtors given the best advice possible. With all due respect, choosing a DMP "because were advised to do so" is nowhere near "we chose a DMP as an IVA was not appropriate because of......" or even "we chose a DMP even though we were well aware that an IVA or BR were much cheaper and quicker for us as we wanted to pay our debts back in full regardless of the timescale". That is fair enough, and I would not criticise it in any way.

What I do object to is the common misconception that free is best. Bad advice is bad, whether free or not. Cost is a distant second to quality.

To illustrate, you need to examine the evidence. Lets look at Mrs Arcanum's last post.

Just out of interest, on a BR or IVA, could we keep the house?

Growurown

Poosmate wrote: »

The thing is though, they make you spend money in places where you just don't! As an example in my case £5 for haircuts. I haven't spent £5 on a haircut for at least 10 years why would I start now I'm in debt!??!

Actually this isn't correct. Just because they give you an option to put money by for haircuts doesn't mean you have to take it. They are trying to make you think about your spending and where your money goes and cover all eventualities. A DMP won't work unless you have enough money to live on so you have to put money aside for everything or you will soon find yourself getting into difficulty.

Rochdale_Guy

What course of action would you suggest for me out of interest?

£27,000 owed, and currently on a Debt Management Plan with CCCS, with a debt free date of 2030?

I have £126 available each month to repay my creditors, although that will change come April as my flat and garage rent are going up by nearly £30 a month, and I have to insure my car (first quote obtained via Direct Line, at £1,388)... with someone who will let me pay monthly, as I have no credit cards anymore?

Bankruptcy?