DMP self management or not?

Issuma

I went straight in with the 'I'm struggling, I also sent a comprehensive income & expenditure sheet and a detailed breakdown of my list of creditors with offers of payment, there is a calculation that you need to work out your pro rata payments as you must be seen to be treating all your creditors fairly.
I used the template letters requesting for the interest to be frozen, some agreed straight away but a couple resisted, I then wrote again explaining that all my other creditors had agreed and then they did.

Depth_Charge

Hi zenshi

Just following on from others - this CAB DMP system might also be worth a look

Institute of Money Advisers award winning Citizens Advice Bureau Online Debt Management Plan System that saves all your information, does all the letters and financial statements etc'

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

Also assocciated Debt Remedy & Information tool

http://mymoney.nedcab.org.uk/moneyadvice/index.asp

This system is FREE to use, flexible and is being successfully used by a growing number of people and advice agencies and is under going continued development.

All your money goes to your creditors

Rumour has it that the continued expansion of the above CAB system has got the fee chargers and a few others very worried.

Maybe they have good reason to be:)

Your choice at the end of the day.

Best Wishes

zenshi

I was thinking to offer £10 monthly as this will allow me to concentrate on my mortgage arrears first. My biggest card debts are 6,500 and 3,700 then two smaller cards at £3,150 and £1174

Issuma

To offer correct DMP payments you need to use the following calculation:

1. Take the amount you owe to a lender
2. Multiply by the total amount available to pay all your lenders
3. Divide this by the amount owed to all your lenders in order that each receives a fair share of what is available; known as pro-rata payments

Example
Lender 1 is owed £1,000
Lender 2 is owed £800
Lender 3 is owed £250
Total amount owing to all lenders: £2,050
Total available to pay all lenders: £30 per month
To calculate the pro-rata payment for each creditor:
Lender 1 = £1,000 x 30 ÷ £2,050 = £14.63 per month
Lender 2 = £800 x 30 ÷ £2,050 = £11.71 per month
Lender 3 = £250 x 30 ÷ £2,050 = £3.66 per month

This is why you need to complete an income & expenditure sheet so you know exactly how much income you have left each month to split between your creditors, if you're going to self manage you have to do it the same as if a company were doing this for you.

zenshi

Thank you. No one had explained that to me at all

Issuma

It's just incase any of your accounts ever got to court you need to be able to demonstrate that you have treated everyone fairly, it would be frowned upon if you paid for example £5 a month on a debt of £6k and £10 a month on a debt of a lower amount to get that one paid quicker by self managing your own DMP you still need to stick to the same principles as if a company were doing this on your behalf.

zenshi

OK....so I've done my figures and the pro data thing. Do I just outline income, expenditure and list all my debts to each company so they can see its fair???l and send a copy with my begging letter?

Allypops

The mortgage arrears are a priority debt (along with anything like council tax arrears) so have a chat with a debt advisor (free one like National Debt helpline again) before making any offers to the other creditors.

Good luck with everything.

zenshi

OK, looks like I will have to self manage but I'm now wondering what to do if I can't cope with it all

I only have £40 to spread between my creditors! If you can only get DMP if you have £100 spare....am I going to fall before I've even begun?!

mum2one

have you tried stepchange - they have a thread on here there really helpful, i'm on benefits and they took me on, def worth a chat with them.

I did a self managed DMP for 12 months, it ust turned into a nightmare for me as each creditor thought they were more important than the others, and when I said I have calculated I can offer you £20 pm it was no we won't accept less than £40 but when I contacted stepchange - the creditors accepted the payment terms of them. x

Good luck with it all x