DMP Review & Reduced Payments - Should I be worried??

Twins

Hi everyone,

I've been away from these forums since September as things were settling down since starting my DMP in June last year and I was even managing to put some money aside each month.

Well I've just completed my review over the phone this afternoon and I have had to reduce my monthly payments from £292 to £131 and am worried on how this will look with my creditors

I've had my tax credits taken away and then over all more expenditure with bills etc... I haven't been able to save any money for about 6 months now and in fact have used up any money I did have saved up and am feeling quite depressed about it all.

Has anybody had any experience where they've had to reduce their DMP payments and how was it taken by the creditors? I'm trying to go back and scrutinize everything I'm spending money on as the call today has made me realise I have let things slip again and I can't afford to be back in the same position I was in.

Would appreciate your responses!

Thank you!

Cyril

I think you only need worry if you own a house or have assets.

Anyone who has nothing is probably in a stronger position with creditors who will have to poke up with what you offer, rather than someone with assets who creditors could ask to sell their home.

a_brand_new_me

Hi,

Oh my goodness, you are in exactly the same position as us! We too started our DMP with cccs last june paying £292 a month and are due our review shortly. Our tax credits have just stopped, bills have gone up including rent etc (not to mention food & petrol costs!) and we are really starting to struggle too. I am getting really worried as to how our creditors will react if we reduce our payments as nearly all have lowered/stopped interest. Sorry I haven't got any advice but just thought I'd let you know you are not alone and would be interested in how you get on. .

Growurown

I think it is difficult to say how creditors will react. We have had problems with Halifax yet other people say they have been fine with them. Nat West have been great with us but I know they have caused others nightmares.

Your new SOA will go to all the creditors which will show you are paying what you can afford as your circumstances have changed. I don't really see that there is much your creditors can do about it. After all you can't pay what you don't have.