How does it work?

enoughsenough

Hi, i'm new to the forum. we've finally had enough and are fed up of the calls and being made to feel cak about our finances! my husband lost is job a while ago and we ended up borrowing money to get by, hes back in full time employment now :T but because we have missed a few repayments the interest has started to cripple us. i had tesco bank on the phone who insisted i go through and expendeture form with them then she turned round and said i need a payment from you today, i cant help you!!!!!!! she had me almost in tears! were finally managing to pay our everyday bills but are struggling with repayments.

I was wondering how the debt management plans work. We owe £25K between us, we have a mortgage and money in the house but by the time we sell up we'd be owing a whole lot more than we would get out. Can anyone explain it to me please? will we be borrowing £25k and paying back just one payment till its cleared or will we be handing our salaries over to a company and getting 'pocket money' back to live on? i'm so confused, just feel like curling up and crying........again!

Thanks for any advice peeps. xx

sunshineangel

hi dont want to read and run but if you look on cccs that should explain it for you or have a chat to them. its a free service to help people sort thier debt. sorry cant help with answers as dont know them. x

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Debtmanagementplan.aspx

nimbo

hiya, I'm not much help on the DMP front but do post a statement of affairs (SOA) because people will be able to help you pick it apart....

also try writing to the companies and stating that you wish to receive no more phone calls, and will only deal with letters. (i realise they still have to be opened but at least they don't have those evil voices in your ears)....

Also look at the old style board they are wizzes over the feeding families for really little money, and healthy food too...

it's seems really difficult but we've all been there (or somewhere similar)....

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sickasachip13

Hi there,

Really a DMP is a sort of 'gentleman's agreement' between you and the creditors who, hopefully, will accept a lower payment in recognition that you've got debt problems.

Google the info in my signature and it'll tell you about my experience of going on a DMP.

SAAC

moohound

A non fee organisation like Payplan or CCCS help you fill out an expenditure and assest form and they will advise you on your options, such as a DMP which is an informal agreement with lenders who may (or may not) freeze interst and agree to reduced payments. or an IVA which is a more formal agreement, be aware though that in some cases you may have to give up some of the equity in your home if you do an IVA.

You can run and manage a DMP yourself or use one of the organisations suggested.

That is the best place to start. you will get loads of support on this forum, there are people here who have dealt with every creditor and someone will know how to help you whatever your circumstances.

once you get the helpyou need you will start to feel better.

I struggled for nearly two years with no money left after a week despite working all hours and ruining my health and not seeing my family. watch martins video on debt solutions as well there are NO debt problems that can't be solved. It is not quick and it is not easy but there will be a solution, and you can start to live properly again.

eyeopener2

Nothing much to add to the CCCS/DMP advice, except to say that they do work (see my signature). it's not easy as you live on quite a tight budget but they are flexible, however sacrifices will have to be made. The usual stuff of Sky TV, mobile phones, magazines, food budget all have to be cut back. It's worth it though, believe me.

One other thing, if a creditor rings you up and starts demanding this and demanding that just say goodbye and put the phone down. They aren't worth the tears and heartache, they are basically bullying muppets who can't get another job ;-).

So get in touch with CCCS or Payplan, see what your options are and start living a life again.

E2

enoughsenough

Oh my goodness, thank you for being so accepting, i wrote this thinking i would probably get a few people telling be to stop moaning as worse has happened! I feel so emotional, i've always coped with our finances without issues but having a young family and losing an income has really knocked me for six.

I have spoken to CCCS and she has taken my details but i have to wait a few days now for someone to call me back to see if they can help at all. The person that i spoke with was really nice but couldn't give me much indication of what i would be paying each month or for how long. I just want to see a small light at the end.

How do i show a SOA? what info is needed.

Thanks all. big hugs. xxx

eyeopener2

We have all been where you are at the moment so don't you worry, it's only money and it can be fixed. It's not easy, but once your on the right track you will feel like a huge weight has been taken off your shoulders.

No more tears ok?

E2

nimbo

http://www.makesenseofcards.com/soacalc.html

put in all the information that you can, and it will highlight areas that could be pared down to use the money to throw at debts....

it isn't so people can criticise but it can sometimes show that actually there is a 'spare xxx' of cash that is being drip fed into something like kids extra spends, or that quick fix lunch in town...

Time_to_face_the_music

Hi enoughsenough and welcome :wave:

Try out CCCS's debt remedy, it's a great online tool to calculate how much you would have available for a DMP and how long it would take you to become debt free.

We have been with CCCS for 5 months and it's already making a big difference to our massive debt. If you feel like it, come and join us on the DMP & Mutual Support Thread - part 8

https://forums.moneysavingexpert.com/discussion/3723081

It's full of people's experiences, advice and is also a great place to have a rant, a moan or a whinge on those bad days

eyeopener2

You will get a lot of !!!!!!'s or "your spending £400 a week on mobiles! get rid now!" but all advice is from a good place (usually) and there are some real experts around the place at spotting stuff and pointing you in the right direction. The people who frequent this board are some of the nicest people.

Good luck and don't put things off, today is the first day of the rest of your life and the start of your Debt Free journey.

E2