Help with Payplan interview.42000.00 in debt

lillibet_dripping

somewhere_up_there wrote: »

Hi Lilly.
Awake same as you.
Co-op already done, just sending proof of address and identity.
Filled in an soa ready for Friday.
Is not looking good.

How much are you in Debt for if you do not mind me asking.
Scary figures.

Hi Somewhere:wave:
No, I don't mind revealing at all. Now that I have acknowledged the problem it doesn't seem as scary as when it was a secret.

Debts:
Overdraft 1: 2293
Overdraft 2: 83
Credit card 1: 11171
Credit card 2: 3661
Loan: 4655
TOTAL: 21863:eek:
It's still a huge amount but I feel so relieved to have taken the first step to sorting it.
Lilly

dancingfairy

Hi. I haven't been through a Payplan interview but I suspect it's more of a chat. They will want to get a good idea of your situation right now and should be able to suggest what they think is the best solution(s) for you and give you pros and cons for each so you are able to make the best decision.
In my mind it works like this:
1) All essential day to day bills - this includes mortgage, rent, electric, phone,car, childcare, food etc etc.
Anything left after this can be used for :
2) Priority debts - these included any secured loan, things like council tax arrears, utility arrears etc. Basically anything that could affect hugely the quality of your life if not paid.
3) Unsecured bills come way down the list - this includes unsecured personal loans, most credit cards, mobile bills etc etc.

Depending on how much 'spare' you have after stage 1 will depend on what your options are. Some of the options include a DRO (debt reduction order - basically a very mini form of bankruptcy for those on low income and with low assets), a DMP ( debt management plan - where your 'spare' income is split in a fair way between your creditors and you ask them to freeze interest and charges), token payments (perhaps if you are on benefits or a short term holding situation, perhaps if you are waiting for a lump sum for redundancy or from a pension or from selling your house etc), an IVA (Individual Voluntary Arrangement) or bankruptcy. There are many solutions and it's about taking time to find the best one for you.
I'd say ask lots of questions and make sure you understand if you sign up to anything (especially if its for bankruptcy or an IVA as these are formal, legal agreements/arrangements).
Best of Luck to everyone.
df

lillibet_dripping

Hi Somewhere,
Because all my paperwork was ready, I have just this minute spoken to Payplan. After going through all the figures, it seems I only have £26 to play with.
As a DMP apparently needs at min of £100 to work, the lovely Jay has gone away to crunch some numbers and will get back to me in about 10 mins.
Not sure where this is going to end up but I know I have to do something rather than nothing.
Apparently, I can't do an IVA because there is too much equity in the house:eek:
Lilly

Payplan_company_representative

Hi Lilly, it's great that you are keeping everyone posted.

Unfortunately if you have a lot of equity in your home as IVA is sometimes not possible.

Let us know what happens after Jay has finished going through your figures.

Gemma

BlushingRose

lillibet_dripping wrote: »

As a DMP apparently needs at min of £100 to work

...Really???

Tixy

BlushingRose wrote: »

...Really???

Yeah, the charities and Payplan will typically only do a managed DMP for someone who has over £100 to offer to creditors and owes at least £5k across at least 3 different creditors.

If you have less than £100 a month and don't owe loads they'll help debtors to set up self-managed DMPs and provide template letters etc.
If you have less than £100 a month and owe a lot then they usually consider those token payments - and either advise on that as a short term option and on other alternative options for the debtor.

lillibet_dripping

Payplan_company_representative wrote: »

Hi Lilly, it's great that you are keeping everyone posted.

Unfortunately if you have a lot of equity in your home as IVA is sometimes not possible.

Let us know what happens after Jay has finished going through your figures.

Gemma

Hi Gemma.
(Sorry to Somewhere for hijacking your thread:o. Tell me to go and start another one if you like).
The two options were a) to look at remortgaging and b) to tighten the budget to find a £100 underspend.
Last August I spent most of my school summer holidays trying to arrange a remortgage as my 'deal' was about to end. Even a recommended Financial Advisor couldn't do it and I ended up with a secured loan, so I didn't think this option was viable.
I have therefore tweaked the budget (which was probably a little on the high side to allow for petrol going up, groceries going up etc.) and am going with the DMP.
Paperwork coming out today (?). I have been advised to continue with all essential payments (making a token payment if necessary) until DMP is set up.
Am just waiting for the Co-op bank paperwork to come through and then get all the financial bits transferred over.
I don't know whether to feel relieved, sorry, scared, peaceful - a whole run of emotions right now.
One thing I do know though and that is that I have done the right thing finally in facing up to this situation and that in itself is a very powerful feeling.
Hope you are doing OK Somewhere and keep us posted.
Lilly

Mort

somewhere up there & lillibet dripping

Payplan are OK, I was with them for a DMP. I found them to be helpful and understanding but not judgemental. Just remember to have all the information they ask for to hand and it will be fine.

The start of a DMP can be a bit fraught when the debtors start receiving token payments etc... but after a while things do settle down.

somewhere_up_there

Hi Everyone.
Very happy lily to converse .
And anyone else who wants to join in.

Happy to know things went well for you.

Was worried about how much i had left a month to pay debts, it worked out at 65.00

But will tweak.

Do not think a 100.00 will be enough to offer on my debts 42000.00
Anyone got any advice on this one

somewhere_up_there

Mort.
can i just ask,. you managed to pay back your full amount on a dmp
I want to pay back money owed , but am not sure i will ever get there.