Self administered DMP - advice needed

Zulu_Dawn

I've been self-administering my DMP for coming up to a year now.

It has really gone very well. I've had all interest frozen and been meeting my payments regularly. Despite a few default notices, I've had no CCJ's and everyone has been as pleasant as you can expect.

To get interest frozen, I had to pay a somewhat higher percentage than planned to a couple of my creditors (both MBNA - surprise, surprise). This fact plus the increase in interest rates on my mortgage together with a general increase in outgoings means I am unable to continue to pay at the same level going forward. I have had to borrow from family to get me through which I can't do ad infinitum. I've been through my SOA in the past and there is nothing left that I can do with that to help the problem sufficiently.

Clearly I need to try and reduce payments somehow. I am proposing to send revised budgets and letters etc. but am slightly fearful of what will happen.

Has anyone had any experience of this and can anyone offer any advice as to how to make this process go as smoothly as possible. I could have a pop at MBNA but my suspicion is it might be easier to have a go at the others and try to get MBNA out of the equation as quickly as possible.

For interest I am paying around 0.6% of my O/s debt each month to all creditors except for MBNA where I am paying 1.7% each month and the family debt where I am repaying around 2% per month. I need around a 20% reduction for all my credit card debt or to get MBNA in line with the others and a 5% reduction across the piece. I owe a lot!

Thanks very much in advance


ZD

Crown

Hi ZD,

I also have done my own DMP and have had all interet frozen.The bottom line is that you can only pay what you can afford.

I am making token payments of just £1.00 a month to my creditors why I am getting more important debts paid off.

Have your creditors not got back in contact with you? mine put me on a reduced payment to be reviewed within 6 months?

I would definelty write to them letters and send an updated SOA/Budget as if you are having to borrow money it isnt obviously going to work as you are getting into more debt.

I dont know what your debts are but in total I now owe around £39,500 and as I say I am paying £1 a month to around 3 creditors.

rayday2

I had to make lower payments this time round in my letter (template off National Debthelpline) I explained that with rising interest rates etc there was less money to go round.

They accepted this one company passed it on to a debt collection agency who accepted.

Zulu_Dawn

Crown wrote: »

Hi ZD,

Have your creditors not got back in contact with you? mine put me on a reduced payment to be reviewed within 6 months?

I dont know what your debts are but in total I now owe around £39,500 and as I say I am paying £1 a month to around 3 creditors.

My creditors haven't really got back to me in any serious way. A couple sent me default notices after six months. I've also had a couple of letters. However a quick call offering the same has got rid of them. The truth seems to be that as long as you do what you agree to, they leave you alone.

I'm a bit embarassed about my total debt level but it is substantial and I have lots of creditors.

Crown

Hi again. Your right about leaving you alone once you make regular payments. Also by law they need to issue you with the defualt notices.

Is your interest still frozen though?

Also I was not trying to poke my nose into your finances. just thought id share that even on my substantial debt they still accepted £1 payments. also if I was posting under my real name then of course id be more cautious about the details I post but as as I post under a nickname I dont care who knows the amount of my debts

Zulu_Dawn

Crown wrote: »

Also I was not trying to poke my nose into your finances. just thought id share that even on my substantial debt they still accepted £1 payments. also if I was posting under my real name then of course id be more cautious about the details I post but as as I post under a nickname I dont care who knows the amount of my debts

Interest is still frozen thankfully. Thanks for your comments. It provides me with some hope.

You think Zulu Dawn is my nickname!? Sadly, I had parents with a big crush on Michael Caine and who believed teasing and being beaten up in the playground was good for me.;)

My reticence about my total debt is nothing to do with being cautious. I just can't face up to it. I'm a recovering compulsive gambler sadly and boy am I paying for it now.

Crown

Hi again, I too am a recovering Compulsive gambler and am now truelly on the programme and attending my meetings each week and havent bet for 3 months.

You would be amazed at how many people on here have debts due to gambling.

Zulu_Dawn

Hi Crown

If you attend GA meetings in the S London area I may well know you.

I've not had a bet in 2007 and am not at all surprised at the number of CGs on this site. I reckon there are approaching half a million CGs in Britain currently. It's a time bomb.

I've spoken to people about this site at meetings. I'm also a big fan of the Forum at Gordon House though post there under a different name.

Best of luck to you anyway.


ZD