DMP & Mutual Support Thread - Part 9

Mr_Mink

Woodypuddy wrote: »

Help! I am confused now. Not sure if I can ask this question here? Just spoken to payplan who gave me my options (bankcruptsy, IVA or DMP)

I said a definite no to bankcruptsy but he advised that I may wish to consider the IVA option. With my DMP as it stands it would take about 13 years to pay off, if all interest was frozen, which I totally understand is very much down to the creditors. He advised that with an IVA it would be paid off at the same amount, that it was a formal agreement and after that time the debt would be written off after 5 years. I queried the house as I don't want this to be put at risk and he said that it would be highly unlikely anyone would offer to remortgage therefore you pay for a further 12 months (making 6 years) and then that's it.

I know it is my debt that I have accrued and therefore I have always said it is my responsibility to pay it back however long it takes but now I am worried I am making a wrong decision and if the creditors don't freeze interest I could be paying until I am 6 feet under.

Sorry for rambling but I guess I am having that surge of worry again now that I am making wrong choices. I did ask if I could do a IVA later if the DMP didn't work out , he said I could but it was usually the other way round.

He also said that I should consider progressing PPi claims, now I am almost sure I don't have any but I thought no harm in seeing but then again I started to panic as the Company they use charges 12.5 %, which is reasonable but if PPi is claimed from anyone I have a debt with they can use it to offset my balance - which then means I will have a 12.5% bill to pay to the search company.

I have said DMP and I will think about the PPi but am confused and worried now!

Thnaks

I can't really advise on IVA over DMP or the other way around (personally I'm on a DMP with a very distant 2026 completion date). One thing to keep in mind is that if circumstances improve, you can up the DMP payments to bring things forwards (I'm hoping to have my distant date brought to at least within this decade through various means).

As for the PPI, never ever ever pay anyone to do it. You can easily get the template letters needed from this site. The settlement would be used to offset debt but at least if you sort it yourself, you will have cleared a load of debt for free

Puzzcat

Hi woody,


I'm also another longtimer, dmp due to run until 2022... Like Mr Mink I am hoping to bring that forwards as time goes by...


Can't comment on the IVA v DMP, it wasn't something I was offered by SC, there is an IVA thread somewhere maybe they can throw more light on it for you...


As for PPI, I regret now that I know I didn't ever take it out..
Doesn't stop the stream of phonecalls telling me I did.. Bored of them all now, they are as bad as the 'where there's blame, there's a claim' brigade... Up to you if you think you may have some due..

Find_The_Real

Woodypuddy wrote: »

Help! I am confused now. Not sure if I can ask this question here? Just spoken to payplan who gave me my options (bankcruptsy, IVA or DMP)

I said a definite no to bankcruptsy but he advised that I may wish to consider the IVA option. With my DMP as it stands it would take about 13 years to pay off, if all interest was frozen, which I totally understand is very much down to the creditors. He advised that with an IVA it would be paid off at the same amount, that it was a formal agreement and after that time the debt would be written off after 5 years. I queried the house as I don't want this to be put at risk and he said that it would be highly unlikely anyone would offer to remortgage therefore you pay for a further 12 months (making 6 years) and then that's it.

I know it is my debt that I have accrued and therefore I have always said it is my responsibility to pay it back however long it takes but now I am worried I am making a wrong decision and if the creditors don't freeze interest I could be paying until I am 6 feet under.

Sorry for rambling but I guess I am having that surge of worry again now that I am making wrong choices. I did ask if I could do a IVA later if the DMP didn't work out , he said I could but it was usually the other way round.

He also said that I should consider progressing PPi claims, now I am almost sure I don't have any but I thought no harm in seeing but then again I started to panic as the Company they use charges 12.5 %, which is reasonable but if PPi is claimed from anyone I have a debt with they can use it to offset my balance - which then means I will have a 12.5% bill to pay to the search company.

I have said DMP and I will think about the PPi but am confused and worried now!

Thnaks

Hi Woody, I went from DMP to IVA last year as mine was going to take 27 years to pay off. We have our own little thread that covers all things IVA. An IVA can have a lot of variables depending on income and assets so it is worth taking the time to truly understand it all and research things as much as you can before deciding on one. A DMP is a good start and gives you the breathing space from your creditors in order to make the right decision for you. As it is informal you can option for an IVA at a later date.

IVA Thread
http://forums.moneysavingexpert.com/forumdisplay.php?f=159

It would be an idea to claim PPI before you consider opting for an IVA as this is paid into the IVA otherwise, whereas if you claim direct this could be paid towards off-setting debt or savings and may reduce the term of your DMP. It is easy to claim yourself without paying any claims companies and therefore keeping all the money yourself and no fees if they do offset against the debt. There is also a board on here for advice about how to claim.

PPI Thread
http://forums.moneysavingexpert.com/forumdisplay.php?f=169


Have a look around and read up to get an idea of options. Good luck. Feel free to post on the IVA board as well with questions as it can be hard to decide what is the best option to take.

Mr_Mink

nextyeartina wrote: »

I started my DMP January 2013. Is it too late to ask for the interest & charges accrued during set up of the DMP to be refunded? If so, is there a letter template I could use for this. Also, could anybody point me in the right direction to a letter template asking to be defaulted please. I'm really rubbish at writing letters, lol


Tina xxx

This is the tried and true interest letter template. Not sure about the default one, I could actually do with printing that one off myself.

http://forums.moneysavingexpert.com/showpost.php?p=62784742&postcount=2285

Puzzcat

Mr_Mink wrote: »

This is the tried and true interest letter template. Not sure about the default one, I could actually do with printing that one off myself.

http://forums.moneysavingexpert.com/showpost.php?p=62784742&postcount=2285

I don't think there is a default letter, I was just going to write pretty please default me...but I shall wait a few more months.

Coinmachine

just a quick query re the defaults issue and six years. I am probably being thick here but... my DMP will run for 7 years 5 months assuming all interest freezes, and hopefully less than this if I can pay off more in time. Ive read about the clock ticking and defualts. Is it just one defualt that is issued per account?

If they were made now six years would still be within the timefrane for the DMP. Is your credit record still affected after the DMP ends, is it the DMP that shows for 6 years as well from the end point? Not that I ever intend to get another credit card but with a view to a mortgage?

Good luck to everyone and to those starting out I have now been through the painful first steps and despite stresses along the way it definately gets better. Being a spreadsheet saddo part of me is looking forward to setting one up to show the debt decreasing!

Puzzcat

Coinmachine wrote: »

just a quick query re the defaults issue and six years. I am probably being thick here but... my DMP will run for 7 years 5 months assuming all interest freezes, and hopefully less than this if I can pay off more in time. Ive read about the clock ticking and defualts. Is it just one defualt that is issued per account?

If they were made now six years would still be within the timefrane for the DMP. Is your credit record still affected after the DMP ends, is it the DMP that shows for 6 years as well from the end point? Not that I ever intend to get another credit card but with a view to a mortgage?

Good luck to everyone and to those starting out I have now been through the painful first steps and despite stresses along the way it definately gets better. Being a spreadsheet saddo part of me is looking forward to setting one up to show the debt decreasing!

As I understand it you can only be defaulted once per debt. That default then stays on your file for 6 years regardless of the length of your dmp. Forgive me if i'm wrong but that is how I understand it. Arrangement to pay markers stay on your credit file for 6 years I believe from the last payment...

Time_to_face_the_music

Woodypuddy wrote: »

Help! I am confused now. Not sure if I can ask this question here? Just spoken to payplan who gave me my options (bankcruptsy, IVA or DMP)

I said a definite no to bankcruptsy but he advised that I may wish to consider the IVA option. With my DMP as it stands it would take about 13 years to pay off, if all interest was frozen, which I totally understand is very much down to the creditors. He advised that with an IVA it would be paid off at the same amount, that it was a formal agreement and after that time the debt would be written off after 5 years. I queried the house as I don't want this to be put at risk and he said that it would be highly unlikely anyone would offer to remortgage therefore you pay for a further 12 months (making 6 years) and then that's it.

I know it is my debt that I have accrued and therefore I have always said it is my responsibility to pay it back however long it takes but now I am worried I am making a wrong decision and if the creditors don't freeze interest I could be paying until I am 6 feet under.

Sorry for rambling but I guess I am having that surge of worry again now that I am making wrong choices. I did ask if I could do a IVA later if the DMP didn't work out , he said I could but it was usually the other way round.

He also said that I should consider progressing PPi claims, now I am almost sure I don't have any but I thought no harm in seeing but then again I started to panic as the Company they use charges 12.5 %, which is reasonable but if PPi is claimed from anyone I have a debt with they can use it to offset my balance - which then means I will have a 12.5% bill to pay to the search company.

I have said DMP and I will think about the PPi but am confused and worried now!

Thnaks

OK, please don't anyone shoot me down in flames because I have made it abundantly clear in the past that I am no fan of Stepchange but I am even less of a fan of Payplan.


1) Payplan is not a charity, it is part of a massive company and they are there to make money.

2) They will try and sell you stuff, insurance, PPI claims, they even offer credit on cars, white goods etc, while you are on a DMP.

3) They charge for PPI claims.

4) They like to sell IVAs above providing free DMPs.

5) There have been many people who have thought they have come to the end of their DMP with Payplan, to find that they still owe thousands.

6) There have been several instances recently where Payplan have not been distributing money on time to creditors and the creditors have kicked off and reintroduced interest/charges etc. Payplan accept no responsibility for this.




Re IVA v DMP - do you have equity in your house? That is probably the most important deciding factor, If you do, in year 5 of an IVA you can be forced to remortgage your home and pay off the equity towards your IVA.

Get a second opinion on your options. Use the Stepchange Debt Remedy, it's anonymous and it will advise you without you needing to speak to Stepchange:

http://www.stepchange.org/debtremedy.aspx?WT.srch=1&WT.mc_id=200032&WT.seg_1=stepchange%20debt%20remedy&gclid=CNCGlvuVs7wCFWLHtAodEiwAdA

Want a 3rd or 4th opinion, try NED CAB DMP or MyMoneySteps, google either/both. Am in a hurry now so can't provide all links.

Never pay for a PPI claim, our saviour :money: has the perfect guide to do it for nowt!

Don't panic, the solution you need is out there but make sure you know everything before you make any decisions.
Get ALL the advice you need, try the IVA forum here, then make a decision you want, not one that is forced on you.

TTFTM x

Woodypuddy

Thanks everyone for the responses.

Are Stepchange a charity or are they funded in the same way as Payplan?

Assuming I could start the whole process again with Stepchange rather than proceed with Payplan as I haven't signed anything yet? Got to say I did a bit of a google review earlier as I was unhappy with how the conversation had gone and am now a tad worried whereas I have read (in the main) good things about SC on here. It was the National Debt counselling service that forwarded my details to them.

I will definitely go on the SC website and take a look.

Time_to_face_the_music

Woodypuddy wrote: »

Thanks everyone for the responses.

Are Stepchange a charity or are they funded in the same way as Payplan?

Assuming I could start the whole process again with Stepchange rather than proceed with Payplan as I haven't signed anything yet? Got to say I did a bit of a google review earlier as I was unhappy with how the conversation had gone and am now a tad worried whereas I have read (in the main) good things about SC on here. It was the National Debt counselling service that forwarded my details to them.

I will definitely go on the SC website and take a look.

Stepchange are a charity but they are still funded by the financial industry, they receive a % back of each payment they manage to recover for the creditors. I think it's 11 or 12% but am not sure and can't find the reference at the moment.

I don't actually understand the way that National Debtline work in taking all of your information, then referring you to either Stepchange or Payplan. I started our DMP with Stepchange (then CCCS) but moved to self managed after 10 or 11 months and have never looked back.

I am biased and I don't want you to be affected by my prejudices hence me suggesting you get as many opinions/as much information as possible before making YOUR decision.