Self managed dmp???

houseiseverything

My partner has been putting everything in place to start a DMP through Payplan. He is currently unemployed, so I will be paying it.
We realised last night that he has inadvertantly already done his own DMP as he negotiated with both credit card companies before we even knew DMP's existed. They have a both agreed to freeze interest and to fixed monthly payments- in writing.
Should we just stick with this, or should we do Payplan anyway? What are the pros and cons please? Thanks.

tonkinator

It really depends if you're happy to deal with the creditor yourself, rather than having them do it for you.

I think if you've already done what is arguably the hardest bit (negotiating rate freexze and lower payments) then you may as well do the rest yourself.

TBF on payplan, they don't charge monthly or set up fees.

Some of them charge 2months payments upfront? Crazy...

dfwsometimesoon

houseiseverything wrote: »

My partner has been putting everything in place to start a DMP through Payplan. He is currently unemployed, so I will be paying it.
We realised last night that he has inadvertantly already done his own DMP as he negotiated with both credit card companies before we even knew DMP's existed. They have a both agreed to freeze interest and to fixed monthly payments- in writing.
Should we just stick with this, or should we do Payplan anyway? What are the pros and cons please? Thanks.

I would probably be inclined to stay as it was if all debts have already been negotiated with creditors, unless it a joint DMP u are entering and including debts in ur name too.

With regards to a DMP in your partners name however using ur income details am not sure how this would work with payplan. If he is entering a DMP in his own right it would need to be in his name using his income and expenditure details so it would be a true reflection of his own income for them to offer a payment proposal.....are u really willing to sacrifice your income to pay his debts??

houseiseverything

dfwsometimesoon wrote: »

I would probably be inclined to stay as it was if all debts have already been negotiated with creditors, unless it a joint DMP u are entering and including debts in ur name too.

With regards to a DMP in your partners name however using ur income details am not sure how this would work with payplan. If he is entering a DMP in his own right it would need to be in his name using his income and expenditure details so it would be a true reflection of his own income for them to offer a payment proposal.....are u really willing to sacrifice your income to pay his debts??

I have no debts, all this was run up without me knowing and the money used to fund a business. I have no choice but to pay it really, as I would lose my home if i didn't!
Payplan were fine with it being his debt and my income, they said that when he gets a job it can change and then be done on his income.

dfwsometimesoon

houseiseverything wrote: »

I have no debts, all this was run up without me knowing and the money used to fund a business. I have no choice but to pay it really, as I would lose my home if i didn't!
Payplan were fine with it being his debt and my income, they said that when he gets a job it can change and then be done on his income.

Is the house in joint or your partners sole name? reason im asking is I had reservations even entering a DMP with regards to the house, there is no guarantee legal action wont be taken. However after speaking with Payplan they put my mind at rest re house, as we have a joint mortgage creditors cannot take legal action to enforce sale of the house as it is not solely in my name. im also in Scotland and the rules for ccj etc are slightly different if the house is in joint names this also means any charging order is served on the person rather than the property and means that person cannot sell the property without clearing the charging order 1st, this last for 5 years as far as im aware....we have no intentions of selling so it ceased to be of issue and put my mind at rest a lot.

If your mortgage is in joint names and you are not in Scotland please check as to what legal action can be taken as Im almost 100% sure they cannot enforce a sale on a jointly owned property, u cannot be held jointly responsible for any debts not in your name. Am sure someone will correct if Im wrong xx

edit: sorry have read through some of ur other posts, u mention re mortgaging but not being able to do so financially on ur own without partners involvement...am assuming by that it may be joint?? if thats the case involving urself in ur partners DMP may not be the best step to take....

Jointly owned property
It is not possible to register a charging order as an ‘equitable charge’ on a jointly owned property unless all the owners / registered proprietors are judgement debtors. Where only one of the owners / registered proprietors is the judgement debtor, the order will be registered as a ‘restriction’.

info from here - http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm667320.htm

apologies if this is incorrect and the mortgage is in ur partners name only xx

Time_to_face_the_music

houseiseverything wrote: »

My partner has been putting everything in place to start a DMP through Payplan. He is currently unemployed, so I will be paying it.
We realised last night that he has inadvertantly already done his own DMP as he negotiated with both credit card companies before we even knew DMP's existed. They have a both agreed to freeze interest and to fixed monthly payments- in writing.
Should we just stick with this, or should we do Payplan anyway? What are the pros and cons please? Thanks.

Has he organised interest free repayments on the OD too? If not, how will you deal with this?

Check the arrangements from the CCs carefully, even with an organised DMP, arrangements to pay are often for a set period with regular reviews, typically anything between 3 and 12 months.

A lot of people find that as soon as you reach minimum payment on any of your debts that the creditor no longer considers you to be in financial difficulty and re-applies interest.

houseiseverything

Time_to_face_the_music wrote: »

Has he organised interest free repayments on the OD too? If not, how will you deal with this?

Check the arrangements from the CCs carefully, even with an organised DMP, arrangements to pay are often for a set period with regular reviews, typically anything between 3 and 12 months.

A lot of people find that as soon as you reach minimum payment on any of your debts that the creditor no longer considers you to be in financial difficulty and re-applies interest.

Thanks! The overdraft has to wait to be discussed formally, but the bank says they will probably freeze interest.
What worries me is when you say they can just reapply interest. How often does this happen? We could never afford the minimum payments, that's for sure.