Help with Payplan interview.42000.00 in debt

somewhere_up_there

Hello Everyone.
2.30pm.
Phone call at 4 from payplan.
Have a 161.49 left over to pay the credit card companies.
Hopefully that will be enough on the 42000.00 debts.

Have tried to lower apr's with the credit card companies.
But all they say is go into arrears and then we will talk to you{barclaycard]

Was late with a payment to barclaycard{partner in hospital and forgot due date]
They racked the interest up on next payment to 25.9%
But i had two balance transfers for life at 6.9 and 7.9

Spoke to a great guy at barclaycard{second call]
Who said these cannot be taken away from you.

So just hoping they will pay extra interest payments back

Should i just make token payments to card companies ,until dmp is set up.

Next week i owe Barclaycard 412.00
Virgin 129.00
Egg 159.00 {barclaycard now]

I am in last chance saloon now.

Always managed to pay all debts in past.
And even today am not in arrears.
All savings gone, house gone.

Tixy

Wait to see what payplan say. But yes if you are going to go into a DMP then they'll usually advise to send token payments in the month or so it takes to set the plan up.

Hope the call goes well.

BlushingRose

somewhere_up_there wrote: »

Hello Everyone.
2.30pm.
Phone call at 4 from payplan.
Have a 161.49 left over to pay the credit card companies.
Hopefully that will be enough on the 42000.00 debts.

Have tried to lower apr's with the credit card companies.
But all they say is go into arrears and then we will talk to you{barclaycard]

Was late with a payment to barclaycard{partner in hospital and forgot due date]
They racked the interest up on next payment to 25.9%
But i had two balance transfers for life at 6.9 and 7.9

Spoke to a great guy at barclaycard{second call]
Who said these cannot be taken away from you.

So just hoping they will pay extra interest payments back

Should i just make token payments to card companies ,until dmp is set up.

Next week i owe Barclaycard 412.00
Virgin 129.00
Egg 159.00 {barclaycard now]

I am in last chance saloon now.

Always managed to pay all debts in past.
And even today am not in arrears.
All savings gone, house gone.

Try not to worry about the fact that you're not in arrears. We weren't either, we hadn't defaulted on anything, but we were struggling SO much and were having to live off our credit cards as we had no money left as were using everything to pay everything else off. (sounds confusing, but not uncommon, I now understand).

Your DMP provider will send you some template letters to send out to your creditors, telling them that you're starting a DMP and who with.
Your creditors will, most likely, get back to you and, hopefully, freeze interest and perhaps even refund some of it.
In the meantime, wait until you've spoken with the DMP provider before you do anything else.

You're doing great x

somewhere_up_there

Hi Everyone.
3.45pm.
Just finished your diary blushing rose.
Tixi will check out yours next.
You are all inspirational.
Nervous now.

Tixy

I don't have a diary.

But if you are recommended a DMP there are some useful threads to read so you get an idea of DMPs in practice such as

Without a Paddle - Help and support for those starting or continuing a DMP (part 3)
and
DMP Mutual Support Thread - Part 8

lillibet_dripping

Hi Somewhere!
It's 16.10 and am thinking of you....
I have received two 'proposals' from both Payplan and Vincent Bond. Both state they will take £100 each month but the difference is that Payplan will take 17 years to clear and VB estimate 25 years:eek: I know that's because I'm effectively paying less to my creditors per month with VB but I feel more confident that they will be able to get the interest and charges frozen.

Again, apologies to Somewhere for hijacking, but I have a quick question. I do have a small emergency fund built up (only a couple of hundred). If I move this to my new bank account on Monday, do I have to declare it anywhere or is it best to withdraw it and stuff it under the mattress. It's still an asset isn't it? I would rather keep it as a safety net rather than throw it at my debt right now.

Tixy

I know that's because I'm effectively paying less to my creditors per month with VB but I feel more confident that they will be able to get the interest and charges frozen.

They absolutely won't have more chance of getting them frozen, if anything they have slightly less chance of getting them frozen.
They may have made you feel more confident, but that's sales patter. The charities and payplan will be very honest, they'll try to get them frozen and usually creditors will agree to it - but they cannot guarantee it. The same is true with fee charging companies whatever they suggest to you.

17years (or even 25!) on a DMP is a very long time lillibet - do you feel that realistically you will be able to increase your payments at some point in the future to reduce that term? If not did Payplan discuss bankruptcy as a possible option to you?

somewhere_up_there

Hi Lily.
Phone call over.
Bit worried as they did not propose anything.
Said someone will ring Monday or Tuesday{is this normal]'
Thinking it's because such large debts.

Vincent Bond
Never heard of them ,are you sure they do not take fees as they are not one most recommend.
Be careful.

Paypal were recommended to me by the credit card companies, and on a dmp there are no charges as far as i know.

Worrying weekend.
Blushing Rose what happened on initial phone call to payplan?

appleblossom

just to try and put your mind at ease a little, we went with pp about 8 years ago,had no problems with them, we already had the interest frozen on our loans/cards (amt owed was the same as you) - every april we submitted a new SOA and had no dealings with any of the companies (were paying itro £250.00 in total to 8 different companies) - about 2 years ago I started getting the dreaded phone calls and letters through the door - after getting my head back out of the sand after a couple of week I started contacting them back to find out why and it appeared pp weren't making the payments as often as they should so it was showing me being in arrears - I discussed how it would stand if I left pp and went it alone and they were ok - I then dedicated a day writing letters to each company, preparing an up to date soa, breaking down each debt with the original amount, the amount we had paid, the % of our excess income we could pay etc and duly sent the letters off - one by one I had acceptance from them all -

Last year,one of them offered me a settlement figure of 1/3rd of the total o/s (reducing it to £600.00) and offered to let me pay it over 10months -I was originally paying them £20 a month so it meant finding another £40.00 a month but saving an awful lot - I have 2 months left to pay on this now and they have already agreed to reduce the other debt that is paid to them to 1/3rd/over 10months for being such a good payer,never missed a payment etc.

We didn't get ourselves into debt intentionally which is why I didn't want to go bankrupt (plus didn't want the risk of losing our house etc) and have always held our hands up to what we owe - I am hopeful that as we manage to clear some of the smaller ones we may be able to negotiate the larger ones and gradually get them cleared.

Good luck with payplan, they really set us up to the way forward.

lillibet_dripping

Tixy wrote: »

They absolutely won't have more chance of getting them frozen, if anything they have slightly less chance of getting them frozen.
They may have made you feel more confident, but that's sales patter. The charities and payplan will be very honest, they'll try to get them frozen and usually creditors will agree to it - but they cannot guarantee it. The same is true with fee charging companies whatever they suggest to you.

17years (or even 25!) on a DMP is a very long time lillibet - do you feel that realistically you will be able to increase your payments at some point in the future to reduce that term? If not did Payplan discuss bankruptcy as a possible option to you?

Hi Tixy
No, bankruptcy was never mentioned. Only the remortgaging option. I see what you are saying about sales patter - probably why I'm in this situation in the first place. 17 years does sound an awful long time but I have so much equity in my house that bankruptcy/IVA is apparently not an option. My plan, however, is that when my DD15 finishes year 11 and possibly two years' at 6th form college, I will sell up and move to be nearer to elderly parents so the debts will be paid off from the proceeds of the sale. However, the best laid plans and all that.......
Do you think I should stick with payplan?

Somewhere....
Payplan's proposal was only a verbal one but he said that at a rate of £100 per month it would take 17 years to clear. I got home from work to a message from Payplan to say that they had appointed me an advisor and to give her a call to set the ball rolling.

I'm now confused at to which option I should take. Vincent Bond are the peeps who sponsor the iva forum chat website and seem to come highly recommended and he did have a very smooth sales patter. At the end of the day, 17 or 25 years is neither here nor there because as soon as this house is sold I should be able to pay everything off and start afresh. I just can't do it for a few years yet.

Keep us posted on your progress.
Lilly