About to start a DMP with Payplan

ananas_2

Hi All

I recently found myself in a position where I was living off my overdraft and was in overdraft even after payday. It was depressing, not only that but each month, my overdraft was increasing significantly as everything got paid off it. Inspired by those who have shared their experiences on here, I have decided to take control of my finances. I will be starting a DMP with payplan with my fist payment going out in about three weeks. According to payplan, I can afford to pay less than a quarter of what I used to pay to the creditors.


I wonder if you can help me answer a few questions;

• The balance on one of my loans is showing all the iterest frontloaded, is this normal?
• Payplan tell me it is unlikely the creditors will stop the interest but I see a number of people on here who have been successful at getting the interest stopped - how do you do it?
• Is there anything I should be doing in the meantime?
• If I have any spare money, should I pay directly to Payplan or to one of the creditors directly?

Thank you all very much for sharing your experiences on here and thanks in advance for considering my questions.

Gimpsdad

Could you let us know how much you owe, roughly, and what your monthly payment will be to Payplan?

Have you changed bank accounts yet?

To try and answer some of your other points, yes, interest on loans is frontloaded. Interest freeze on a DMP is never guaranteed, but the odds are pretty good. Change bank account immediately if not already done, for the moment any spare cash I would put to one side for any emergencies, you can no longer use credit to cover any emergencies don't forget. Not too much, just enough, and then go from there.

ananas_2

Gimpsdad, thanks for your response. I owe around 30,000 and can afford to pay a very limited amout, less that a quater of the monthly payments I used to make, so very nervous and worried about creditors not accepting offers.

I have changed bank accounts and in the process of changing direct debits etc. I am already finding it very difficult to do things without using any credit - I feel I have no money at all for the first time in ages.

I feel as thought I should be doing something but not sure what. Also was not keen to find out how people managed to get the interest stopped.

pmlindyloo

ananas wrote: »

Gimpsdad, thanks for your response. I owe around 30,000 and can afford to pay a very limited amout, less that a quater of the monthly payments I used to make, so very nervous and worried about creditors not accepting offers.

I have changed bank accounts and in the process of changing direct debits etc. I am already finding it very difficult to do things without using any credit - I feel I have no money at all for the first time in ages.

I feel as thought I should be doing something but not sure what. Also was not keen to find out how people managed to get the interest stopped.

I think this is a bit concerning.

Would you feel able to post up a SOA so that people can give you some tips on reducing your expenditure?

When you are on a DMP you should be able to manage to live, not extravagently but reasonably.

Did Payplan help you to complete your Income and Expenditure statement? I am wondering if you have not given them the correct figures so that you can live reasonably. If they haven't got the correct figures then you can ask them to change them. You shouldn't be struggling that much.

Was a DMP their only suggestion or was it the one that you chose?

Gimpsdad

Do you have assets?

Rule of thumb(not always accurate but never massively out) is that you pay £30 per month for each £1000 of debt. You may therefore have been paying between £700 to £1000 on repayments. You may have a true d.i. of say £150 to £300 if I am there or thereabouts. If you have no assets a dmp is the wrong way to go, no doubt.

Can you clarify?